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Report Date : |
30.06.2014 |
IDENTIFICATION DETAILS
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Name : |
CHIYODA CORPORATION |
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Registered Office : |
Minatomirai Grand Central Tower, 4-6-2 Minatomirai Nishiku Yokohama 220-0012 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
January, 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Subject is engaged in the Plant engineering of oil refining &
petrochemical plants |
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No. of Employees : |
6,062 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
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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 |
CHIYODA
CORPORATION
REGD NAME: Chiyoda Kako Kensetsu
KK
MAIN OFFICE: Minatomirai Grand
Central Tower, 4-6-2 Minatomirai Nishiku Yokohama
220-0012
JAPAN
Tel:
045-225-7777 (voice guidance)
URL: http://www.chiyoda-corp.com/
E-Mail address: (thru the URL)
ACTIVITIES:
Plant engineering of oil refining & petrochemical plants
BRANCHES:
Tokyo, Osaka, Nagoya, Sapporo, Naha, Sendai, Kurashiki, Takamatsu
OVERSEAS:
Abu Dhabi, Doha, Teheran, Shanghai, Beijing, Jakarta, Singapore, Hague,
Milan, Ulsan
FACTORIES:
Kawasaki (research center)
CHIEF EXEC:
SHOGO SHIBUYA, PRES & CEO
Yen Amount:
In million Yen, unless otherwise stated
SUMMARY:
FINANCES FAIR A/SALES Yen 448,147 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 43,396 M
TREND UP WORTH Yen 198,031 M
STARTED 1948 EMPLOYES 6,062
MAJOR COMPREHENSIVE PLANT ENGINEERING COMPANY,
AFFILIATED TO MITSUBISHI CORP.
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 |
247,082 |
15,732 |
7,979 |
(%) |
155,758 |
|
(Consolidated) |
31/03/2012 |
254,675 |
23,793 |
14,364 |
3.07 |
168,737 |
|
31/03/2013 |
398,918 |
25,518 |
16,077 |
56.64 |
189,356 |
|
|
31/03/2014 |
446,147 |
22,837 |
13,447 |
11.84 |
198,031 |
|
|
31/03/2015 |
465,000 |
21,000 |
3,500 |
4.23 |
.. |
Notes: Unit in
Million Yen
Forecast (or
estimated) figures for 31/03/2015fiscal term
The subject company was established on the basis of a construction
division spun off from Mitsubishi Oil Co Ltd.
This is a leading comprehensive plant engineering company with oil
refining and petrochemical plants.
Boasts high-level engineering technology with recognition by oil
majors. Engaged in major LNG engineering
plant projects in Asia, Oceania and Near & Middle East. Mitsubishi Corp is the top shareholder. As the firm developed a unique
dehydrogenation technology, it intends to use it for construction and operation
of special hydrogen plants. It plans to
start those businesses at Kawasaki City by the end of the March 2016 term. It aims to win a first order for LNG plants
in the US teaming up with CB&I.
The sales volume for Mar/2014 fiscal term amounted to Yen 446,147
million an 11.8% up from Yen 398,918 million in the previous term. The Ichthys LNG Project made a full-scale
contribution. The recurring profit was
posted at Yen 22,837 million and the net profit at Yen 13,447 million,
respectively, compared with Yen 25,518 million recurring profit and Yen 16,077
million net profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 21,000 million and net profit at Yen 13,500 million, respectively, on a
4.7% rise in turnover, to Yen 485,000 million.
Filling of ample order backlog will progress smoothly.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Jan 1948
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 570 million shares
Issued: 260,324,529 shares
Sum: Yen 43,396 million
Major shareholders (%): Mitsubishi Corp (33.3), Master Trust Bank of Japan
T (5.2), MUFG (3.4), Japan Trustee Services T (3.2), MUFG (3.4), Mitsubishi UFJ
Trust (2.6), Bank of New York Treaty Jasdec (1.4), Tokio Marine & Nichido
Fire Ins (0.9), State Street Bank & Trust 505225 (0.8), Meiji Yasuda Life
Ins (0.8), SIX SIS Ltd (0.8); foreign owners (24.8)
No. of shareholders: 11,423
Listed on the S/Exchange (s) of: Tokyo
Managements: Takashi Kubota, ch; Shogo Shibuya, pres; Keiichi Nakagaki,
v pres; Hiroshi Ogawa, v pres; Masahito Kawashima, s/mgn dir; Katsuo Nakasaka,
s/mgn dir; Ryosuke Shimizu, mgn dir; Masahiko Kojima, mgn dir; Masaji Santo,
dir
Nothing detrimental is knows as to the commercial morality of
executives.
Related companies: Chiyoda Keiso, Chiyoda Kosho, other
Activities: Plant engineering works:
(Sales breakdown by divisions): LNG plants (32%), gas & electric
power plants (18%), petroleum & petrochemicals plants, general chemicals
plants, social development works & environmentally-related, others (--50%).
Overseas sales ratio (62%)
Clients: [Oil, LNG, petrochemical industries] Oman LNG, Exxon Chemical
Singapore, Shell Eastern Petroleum, Tokyo Electric Power, Tokyo Gas, Teijin
Polycarbonate Singapore, Kobe Steel, Eastern Petrochemical, Yokohama City
government, Nippon Shinyaku, Esso Highlands, Bayer & Dow Chemical, Qatar
Liquefied Gas Co, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Ebara Corp, Mitsubishi
Heavy Ind, Nippon Steel, Fisher Japan, Yokogawa Electric, Mitsubishi Electric,
Man Turbo Machinery, Chiyoda System Technologies, Mikuni Engineering, other.
Payment record: No complaints
Location: Business area in Yokohama City. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mitsubishi
UFJ Trust Bank (H/O)
Relations:
Satisfactory
|
FINANCES: (Consolidated in million yen) |
||||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME
STATEMENT |
||||
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Annual Sales |
|
446,147 |
398,918 |
|
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Cost of Sales |
404,685 |
356,402 |
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GROSS PROFIT |
41,462 |
42,515 |
||
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Selling & Adm Costs |
20,383 |
17,402 |
||
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OPERATING PROFIT |
21,079 |
25,113 |
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Non-Operating P/L |
1,758 |
405 |
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RECURRING PROFIT |
22,837 |
25,518 |
||
|
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NET PROFIT |
13,447 |
16,077 |
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BALANCE
SHEET |
||||
|
Cash |
|
37,868 |
59,956 |
|
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Receivables |
73,005 |
65,394 |
||
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Inventory |
127,466 |
94,696 |
||
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Securities, Marketable |
107,499 |
122,899 |
||
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Other Current Assets |
63,258 |
40,261 |
||
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TOTAL CURRENT ASSETS |
409,096 |
383,206 |
||
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Property & Equipment |
14,958 |
14,547 |
||
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Intangibles |
19,509 |
6,770 |
||
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Investments, Other Fixed Assets |
31,725 |
30,856 |
||
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TOTAL ASSETS |
475,288 |
435,379 |
||
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Payables |
145,392 |
117,769 |
||
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Short-Term Bank Loans |
1,287 |
88 |
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|
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Other Current Liabs |
115,000 |
112,574 |
||
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TOTAL CURRENT LIABS |
261,679 |
230,431 |
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Debentures |
|
|
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Long-Term Bank Loans |
10,018 |
10,132 |
||
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Reserve for Retirement Allw |
2,080 |
2,310 |
||
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Other Debts |
|
3,480 |
3,150 |
|
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TOTAL LIABILITIES |
277,257 |
246,023 |
||
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MINORITY INTERESTS |
||||
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Common stock |
43,396 |
43,396 |
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Additional paid-in capital |
37,112 |
37,112 |
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Retained earnings |
109,525 |
100,988 |
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Evaluation p/l on
investments/securities |
4,920 |
6,584 |
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Others |
4,468 |
2,625 |
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Treasury stock, at cost |
(1,390) |
(1,349) |
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TOTAL S/HOLDERS` EQUITY |
198,031 |
189,356 |
||
|
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TOTAL EQUITIES |
475,288 |
435,379 |
|
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CONSOLIDATED
CASH FLOWS |
||||
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Terms ending: |
31/03/2014 |
31/03/2013 |
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|
Cash Flows from Operating Activities |
|
-17,177 |
14,147 |
|
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Cash Flows from Investment
Activities |
-16,796 |
-5,257 |
||
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Cash Flows from Financing Activities |
-5,249 |
-4,432 |
||
|
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Cash, Bank Deposits at the Term End |
|
145,303 |
180,229 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
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Net Worth (S/Holders' Equity) |
198,031 |
189,356 |
||
|
Current Ratio (%) |
156.34 |
166.30 |
||
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Net Worth Ratio (%) |
41.67 |
43.49 |
||
|
Recurring Profit Ratio (%) |
5.12 |
6.40 |
||
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Net Profit Ratio (%) |
3.01 |
4.03 |
||
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Return On Equity (%) |
6.79 |
8.49 |
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FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
|
1 |
Rs.102.40 |
|
Euro |
1 |
Rs.81.88 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
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|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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.