|
Report Date : |
17.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
IHI CORP |
|
|
|
|
Registered Office : |
Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-8710 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
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|
|
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Date of Incorporation : |
January 1889 |
|
|
|
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Com. Reg. No.: |
(Tokyo-Kotoku) 031604 |
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|
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Legal Form : |
Limited Company |
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|
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Line of Business : |
Heavy machinery engineering works: Mineral resources &
energy (24%) ship building & offshore structures (8%), diesel engines,
agricultural machinery, construction machinery, logistic systems, aero
engine, rocket systems & space exploration, defense units |
|
|
|
|
No. of Employees |
27,579 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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.
Prime Minister Shinzo ABE has declared the economy his government's top
priority; he has overturned his predecessor's plan to permanently close nuclear
power plants and is pursuing an economic revitalization agenda of fiscal
stimulus, monetary easing, and structural reform. Japan joined the Trans
Pacific Partnership negotiations in 2013, a pact that would open Japan's
economy to increased foreign competition and create new export opportunities
for Japanese businesses. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise
government revenue and reduce public debt, Japan decided in 2013 to gradually
increase the consumption tax to a total of 10% by the year 2015. Japan is
making progress on ending deflation due to a weaker yen and higher energy
costs, but reliance on exports to drive growth and an aging, shrinking
population pose other major long-term challenges for the economy
|
Source
: CIA |
IHI CORP
REGD NAME: KK I
H I
MAIN OFFICE: Toyosu
IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-8710 JAPAN
Tel:
03-6204-7800 Fax: 03-6204-8800
*..
The is its Sagami Factory
E-Mail
address: webmaster@IHI.co.jp
Engineering
works of aerospace, ships/marine structure, industrial machinery,
energy-related fields
Tokyo
(3), Yokohama, Chita, Nagasaki, Aioi, Kure, Soma, other (Tot 18)
Europe
(3), USA, Oceania, Asia (9), Middle East, Africa, other (Tot 14)
Aioi,
Kure, Soma, Yokohama, Mizuho, Chita, other (Tot 10)
TAMOTSU
SAITO, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 1,304,038 M
PAYMENTS REGULAR CAPITAL Yen 107,165 M
TREND UP WORTH Yen 362,555 M
STARTED 1889 EMPLOYES 27,579
HEAVY ELECTRIC MACHINERY MFR.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
1,187,292 |
51,482 |
29,764 |
(%) |
253,640 |
|
(Consolidated) |
31/03/2012 |
1,221,869 |
41,715 |
23,823 |
2.91 |
258,475 |
|
31/03/2013 |
1,256,049 |
36,219 |
33,386 |
2.80 |
299,282 |
|
|
31/03/2014 |
1,304,038 |
53,235 |
33,133 |
3.82 |
362,555 |
|
|
31/03/2015 |
1,440,000 |
57,000 |
35,000 |
10.43 |
.. |
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2015 fiscal term
This
is a major comprehensive heavy electric machinery mfr expanding operations in
aerospace, ships/marine structures, industrial machinery/energy related fields,
other. Bought aerospace business from
the then ailing Nissan Motor in 2000.
Highly competitive in aerospace and defense areas, and other areas,
including aircraft jet engines, power generation boilers, LNG tanks, etc. Tied up with Toshiba Corp in N-power
generation equipment. Integrated
shipbuilding business with JFE Holdings.
The company has suspended production of in-house developed heavy duty
tanks for LNG transportation in recent years.
But it has started to receive a number of inquiries from ocean-based LNG
facilities. In plant engineering
business, it plans to construct natural gas liquefaction facility for the first
time in the US. The company plans to
take in shale gas-related demand in North America through a US engineering
firm. Its first LNG liquefaction facility
will be completed in the US in 2017.
The sales volume for Mar/2014 fiscal term amounted to Yen
1,304,038 million, a 3.8% up from Yen 1,256,049 million in the previous
term. Sales of assigned passenger
jet-use parts rose sharply and profitability improved, due to weaker Yen, and
became a major driver for a business performance recovery. The recurring profit was posted at Yen 53,235
million and the net profit at Yen 33,133 million, respectively, compared with
Yen 36,219 million recurring profit and Yen 33,386 million net profit,
respectively, a year ago
For the current term ending Mar 2015 the recurring profit is
projected at Yen 57,000 million and the net profit at Yen 35,000 million,
respectively, on a 10.4% rise in turnover, to Yen 1,440,000 million. Construction works of LNG liquefaction
facility in the US will start contributing to earnings. Sales of automobile-use turbo chargers will
continue to expand.
The financial situation is
considered maintained FAIR and good for ORDINARY business engagements.
Date Registered: Jan
1889
Regd No.: (Tokyo-Kotoku) 031604
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
3,300 million shares
Issued:
1,546,799,542 shares
Sum: Yen 107,165
million
Major shareholders (%): JTSB (Toshiba Corp) (3.7),
Dai-ichi Life Ins (3.6), Japan Trustee Services T (3.6), Master Trust Bank of
Japan T (3.1), TCSB (Mizuho Bank) (2.9), Company’s Kyoeikai Assn (1.8), Nippon
Life Ins (1.6), Mitsui Sumitomo Ins (1.5), Mizuho Corporate Bank (1.4); foreign
owners (31.2)
No. of shareholders:
93,702
Listed on the S/Exchange (s) of:
Tokyo, Osaka, Nagoya, Fukuoka, Sapporo
Managements: Kazuaki Kama, ch; Tamotsu Saito,
pres; Fusayoshi Nakamura, v pres; Kazuo Tsukahara, v pres; Joji Sakamoto, dir;
Ichiro Terai, dir; Tatsumi Kawaratani dir; Imoto Izumi dir; Toshinori Ishido
dir; Hiroshi Iwamoto, dir; Hiromitsu Hamamura, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies: IHI Aerospace, IHI Marine United, IHI
Europe Ltd, other (Total 257 subsidiaries)
Activities: Heavy machinery engineering works:
Mineral resources & energy (24%) ship building & offshore structures (8%),
diesel engines, agricultural machinery, construction machinery, logistic
systems, aero engine, rocket systems & space exploration, defense units,
others (68%)
Overseas Sales Ratio (39%)
Clients: [Government agencies, electric
powers, mfrs] Defense Agency, Toshiba Corp, Japanese Aero Engine Corp, Tokyo
Electric Power, Sumitomo Metal Ind, Japan Nuclear Fuel, General Electric Co, other.
No. of accounts: 2,000 -
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers]: IHI Finance Support,
IHI Plant Construction, IHI Jet Service, IHI Machinery System, IHI Turbo
System, other.
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
Mizuho
Corporate Bank (H/O)
SMBC
(H/O)
Relations:
Satisfactory
|
|
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
1,304,038 |
1,256,049 |
|
|
Cost of Sales |
1,081,630 |
1,059,279 |
||
|
GROSS PROFIT |
222,408 |
196,770 |
||
|
Selling & Adm Costs |
169,137 |
154,629 |
||
|
OPERATING PROFIT |
53,271 |
42,141 |
||
|
Non-Operating P/L |
-36 |
-5,922 |
||
|
RECURRING PROFIT |
53,235 |
36,219 |
||
|
|
NET PROFIT |
33,133 |
33,386 |
|
|
BALANCE SHEET |
||||
|
Cash |
|
63,236 |
73,032 |
|
|
Receivables |
395,037 |
348,350 |
||
|
Inventory |
355,885 |
316,303 |
||
|
Securities, Marketable |
1,528 |
395 |
||
|
Other Current Assets |
85,515 |
76,706 |
||
|
TOTAL CURRENT ASSETS |
901,201 |
814,786 |
||
|
Property & Equipment |
336,448 |
321,057 |
||
|
Intangibles |
42,140 |
39,143 |
||
|
Investments, Other Fixed Assets |
216,572 |
189,253 |
||
|
TOTAL ASSETS |
1,496,361 |
1,364,239 |
||
|
Payables |
280,900 |
266,299 |
||
|
Short-Term Bank Loans |
110,340 |
114,927 |
||
|
|
|
|
||
|
Other Current Liabs |
335,009 |
284,226 |
||
|
TOTAL CURRENT LIABS |
726,249 |
665,452 |
||
|
Debentures |
30,000 |
63,335 |
||
|
Long-Term Bank Loans |
165,143 |
151,449 |
||
|
Reserve for Retirement Allw |
129,893 |
115,408 |
||
|
Other Debts |
|
82,521 |
69,313 |
|
|
TOTAL LIABILITIES |
1,133,806 |
1,064,957 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
107,165 |
95,762 |
||
|
Additional
paid-in capital |
54,439 |
43,047 |
||
|
Retained
earnings |
171,318 |
144,675 |
||
|
Evaluation
p/l on investments/securities |
8,424 |
6,158 |
||
|
Others |
21,874 |
10,376 |
||
|
Treasury
stock, at cost |
(665) |
(736) |
||
|
TOTAL S/HOLDERS` EQUITY |
362,555 |
299,282 |
||
|
|
TOTAL EQUITIES |
1,496,361 |
1,364,239 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash
Flows from Operating Activities |
|
39,220 |
74,347 |
|
|
Cash
Flows from Investment Activities |
-62,282 |
-61,033 |
||
|
Cash
Flows from Financing Activities |
11,395 |
-3,150 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
62,604 |
72,070 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net
Worth (S/Holders' Equity) |
362,555 |
299,282 |
||
|
Current
Ratio (%) |
124.09 |
122.44 |
||
|
Net
Worth Ratio (%) |
24.23 |
21.94 |
||
|
Recurring
Profit Ratio (%) |
4.08 |
2.88 |
||
|
Net
Profit Ratio (%) |
2.54 |
2.66 |
||
|
Return
On Equity (%) |
9.14 |
11.16 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.01 |
|
|
1 |
Rs.102.00 |
|
Euro |
1 |
Rs.81.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.