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Report Date : |
24.01.2014 |
IDENTIFICATION DETAILS
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Name : |
PENTA-OCEAN CONSTRUCTION CO LTD |
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Registered Office : |
2-2-8 Koraku Bunkyoku Tokyo 112-8576 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
April 1950 |
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Legal Form : |
Limited Company |
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Line of Business : |
Marine Civil Engineering Works |
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No. of Employees : |
2,980 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
Yen 6,010.9 Million |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
japan ECONOMIC OVERVIEW
In the years
following World War II, government-industry cooperation, a strong work ethic, mastery
of high technology, and a comparatively small defense allocation (1% of GDP)
helped Japan develop a technologically advanced economy. Two notable
characteristics of the post-war economy were the close interlocking structures
of manufacturers, suppliers, and distributors, known as keiretsu, and the
guarantee of lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A small agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. While self-sufficient in rice production, Japan imports about 60%
of its food on a caloric basis. For three decades, overall real economic growth
had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s,
and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging
just 1.7%, largely because of the after effects of inefficient investment and
an asset price bubble in the late 1980s that required a protracted period of
time for firms to reduce excess debt, capital, and labor. Modest economic
growth continued after 2000, but the economy has fallen into recession three
times since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan into recession. Government stimulus
spending helped the economy recover in late 2009 and 2010, but the economy
contracted again in 2011 as the massive 9.0 magnitude earthquake and the
ensuing tsunami in March disrupted manufacturing. The economy has largely
recovered in the two years since the disaster, but reconstruction in the Tohoku
region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared
the economy his government's top priority; he has pledged to reconsider his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus and regulatory reform and has
said he will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 stood as the fourth-largest economy in the world after second-place
China, which surpassed Japan in 2001, and third-place India, which edged out
Japan in 2012. The new government will continue a longstanding debate on
restructuring the economy and reining in Japan's huge government debt, which
exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth,
and an aging and shrinking population are other major long-term challenges for
the economy.
|
Source : CIA |
PENTA-OCEAN CONSTRUCTION CO LTD
Goyo Kensetsu KK
2-2-8 Koraku
Bunkyoku Tokyo 112-8576 JAPAN
Tel:
03-3816-7181 Fax: 03-3817-7642
URL: http://www.penta-ocean.co.jp/
E-Mail address: (through the URL)
Marine
civil engineering works
Sapporo, Yokohama, Osaka, Hiroshima, Fukuoka, other (Tot 98)
Singapore, Hong Kong, Indonesia, Malaysia, Egypt, Colombo,
Manila, Bangkok, Hanoi, Myanmar, Micronesia, Phnom Penh, Dubai, Taiwan
YOSHIO
MURASHIGE, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 349,839 M
PAYMENTSSlow but Correct CAPITAL Yen 30,449 M
TREND UP WORTH Yen 65,110 M
STARTED 1950 EMPLOYES 2,980
MARINE CIVIL ENGINEERING WORKS.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 6,010.9 MILLION, 30 DAYS NORMAL TERMS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2010 |
324,781 |
7,733 |
1,746 |
(%) |
54,465 |
|
(Consolidated) |
31/03/2011 |
302,256 |
7,431 |
2,163 |
-6.94 |
60,460 |
|
|
31/03/2012 |
328,004 |
7,448 |
1,622 |
8.52 |
62,385 |
|
|
31/03/2013 |
349,839 |
6,559 |
2,029 |
6.66 |
65,110 |
|
|
31/03/2014 |
357,000 |
7,500 |
2,600 |
2.05 |
.. |
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2014 fiscal term
The subject company was established originally in 1896 in Kure by Jinjiro
Mizuno, as Mizuno Gumi, in order to engage in reclamation and seawall
construction works, on his account. Won
reputation as master marine engineering firm which led the firm to be marine
civil engineering firm. A pioneer in
large-scale waterfront projects overseas and earned reputation for technology
in Suez Canal construction. Tops in
water-front dredging works. Aiming at
becoming general contractor by bolstering building construction div. The firm is shifting overseas operations from
Mid East to Asia including Singapore & Vietnam.
The sales volume for Mar/2013 fiscal term amounted to Yen 349,839 million, a 6.7% up from Yen 328,004 million in the previous term. The recurring profit was posted at Yen 9,559 million and the net profit at Yen 2,029 million, respectively, compared with Yen 7,448 million recurring profit and Yen 1,622 million net profit, respectively, a year ago.
(Apr/Sept/2013 results): Sales Yen 185,298 million (up 11.5%), operating loss Yen 4,316 million (up 76.6%), recurring profit Yen 3,420 million (up 68.4%), net profit Yen 1,635 million (up 454.5%). (% compared with the corresponding period a year ago).
For the current term ending Mar 2014 the recurring profit is projected at Yen 7,500 million and the net profit at Yen 2,600 million, respectively, on a 2.0% rise in turnover, to Yen 357,000 million. Non-consolidated new orders are increasing to Yen 320 billion up 14% over the preceding term, with civil engineering and overseas works increasing, despite moderate building construction. The execution of works in hand are going on favorably and stricter profitability management will show payoffs. Operating profit will bounce back, even if labor and fuel costs rise in the second half.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 6,010.9 million, on 30 days normal terms.
Date Registered: Apr
1950
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 599,135,000 shares
Issued: 286,013,910 shares
Sum: Yen 30,449 million
Major shareholders (%): Japan Trustee Services T (8.5), Master Trust Bank of Japan T (6.1), Mizuho Bank (2.4), Juniper (2.4), Meiji Yasuda Life Ins (2.3), Sompo Japan Ins (1.4), Tokio Marine & Nichido Fire Ins (1.3), Employees’ S/Holding Assn (1.2), Mizuho Trust & Banking (1.2), Japan Trustee Services T1 (0.9); foreign owners (11.5)
No. of shareholders: 43,094
Listed on the S/Exchange (s) of: Tokyo
Managements: Yoshio Murashige, pres; Hayuru Tsuda, v pres; Kiyoshi Ida, v pres; Kosuke Kondo, s/mgn dir; Kenichi Okabe, s/mgn dir; Sumio Yamashita, s/mgn dir; Kunihiko Sasaki, s/mgn dir; Tsuneyoshi Mochizuki, s/mgn dir; Yasuji Kakimoto, s/mgn dir; Takuzo Shimizu, s/mgn dir; Masami Kouchi, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Penta-Ocean Dredging, Yoshin Construction, Penta Builders, other
Activities: Domestic civil engineering works (36%), domestic: construction works (32%), overseas construction works (30%), others (2%).
Overseas sales ratio (30%).
Clients: Municipal offices, government & public agencies, business firms, other
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Itochu Corp,
Mitsubishi Corp, Sojitz Corp, Mitsui & Co,
Marubeni Corp, Nippon Steel,
Metal One, other.
Payment record: Slow but Correct
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Corporate Bank (H/O)
Resona Bank (Tokyo)
Relations: Satisfactory
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
|
349,839 |
328,004 |
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Cost of Sales |
328,724 |
303,820 |
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GROSS PROFIT |
21,115 |
24,183 |
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Selling & Adm Costs |
14,651 |
15,201 |
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OPERATING PROFIT |
6,463 |
8,982 |
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Non-Operating P/L |
96 |
-1,534 |
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RECURRING PROFIT |
6,559 |
7,448 |
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NET PROFIT |
2,029 |
1,622 |
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BALANCE SHEET |
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Cash |
|
50,595 |
63,370 |
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Receivables |
|
113,699 |
118,610 |
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Inventory |
|
9,727 |
11,041 |
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Securities, Marketable |
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Other Current Assets |
26,621 |
28,505 |
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TOTAL CURRENT ASSETS |
200,642 |
221,526 |
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Property & Equipment |
72,604 |
68,507 |
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Intangibles |
|
1,127 |
636 |
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Investments, Other Fixed Assets |
22,353 |
21,248 |
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TOTAL ASSETS |
296,726 |
311,917 |
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Payables |
|
111,574 |
112,842 |
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Short-Term Bank Loans |
39,955 |
45,687 |
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Other Current Liabs |
41,226 |
47,468 |
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TOTAL CURRENT LIABS |
192,755 |
205,997 |
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Debentures |
|
10,000 |
10,000 |
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Long-Term Bank Loans |
20,984 |
25,483 |
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Reserve for Retirement Allw |
351 |
324 |
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Other Debts |
|
7,525 |
7,727 |
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TOTAL LIABILITIES |
231,615 |
249,531 |
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MINORITY INTERESTS |
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Common
stock |
30,449 |
30,449 |
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Additional
paid-in capital |
18,386 |
18,386 |
|
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Retained
earnings |
8,635 |
7,453 |
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Evaluation
p/l on investments/securities |
1,181 |
(107) |
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Others |
|
6,482 |
6,227 |
|
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Treasury
stock, at cost |
(23) |
(23) |
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TOTAL S/HOLDERS` EQUITY |
65,110 |
62,385 |
|
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TOTAL EQUITIES |
296,726 |
311,917 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
|
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Cash
Flows from Operating Activities |
|
8,333 |
26,739 |
|
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Cash
Flows from Investment Activities |
-10,466 |
-11,585 |
|
|
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Cash
Flows from Financing Activities |
-11,058 |
1,738 |
|
|
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Cash,
Bank Deposits at the Term End |
|
49,927 |
62,712 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
65,110 |
62,385 |
|
|
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Current
Ratio (%) |
104.09 |
107.54 |
|
|
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Net
Worth Ratio (%) |
21.94 |
20.00 |
|
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Recurring
Profit Ratio (%) |
1.87 |
2.27 |
|
|
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Net Profit
Ratio (%) |
0.58 |
0.49 |
|
|
|
Return
On Equity (%) |
3.12 |
2.60 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.99 |
|
UK Pound |
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.83.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.