MIRA INFORM REPORT

 

 

Report Date :

30.06.2014

 

IDENTIFICATION DETAILS

 

Name :

CHIYODA CORPORATION

 

 

Registered Office :

Minatomirai Grand Central Tower, 4-6-2 Minatomirai Nishiku Yokohama 220-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

January, 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is engaged in the Plant engineering of oil refining & petrochemical plants

 

 

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

 

Status :

Satisfactory

Payment Behaviour :

No complaints

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

 

 

 

 


Company name and address

 

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

 

 

COMMENT

 

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

 

 

HIGHLIGHTS

 

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.

 

 

FINANCIAL INFORMATION

 

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. 

 

 

REGISTRATION

 

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

 

           

OPERATION

 

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 (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

446,147

398,918

  Cost of Sales

404,685

356,402

      GROSS PROFIT

41,462

42,515

  Selling & Adm Costs

20,383

17,402

      OPERATING PROFIT

21,079

25,113

  Non-Operating P/L

1,758

405

      RECURRING PROFIT

22,837

25,518

 

      NET PROFIT

13,447

16,077

BALANCE SHEET

  Cash

 

37,868

59,956

  Receivables

73,005

65,394

  Inventory

127,466

94,696

  Securities, Marketable

107,499

122,899

  Other Current Assets

63,258

40,261

      TOTAL CURRENT ASSETS

409,096

383,206

  Property & Equipment

14,958

14,547

  Intangibles

19,509

6,770

  Investments, Other Fixed Assets

31,725

30,856

      TOTAL ASSETS

475,288

435,379

  Payables

145,392

117,769

  Short-Term Bank Loans

1,287

88

 

 

 

  Other Current Liabs

115,000

112,574

      TOTAL CURRENT LIABS

261,679

230,431

  Debentures

 

 

  Long-Term Bank Loans

10,018

10,132

  Reserve for Retirement Allw

2,080

2,310

  Other Debts

 

3,480

3,150

      TOTAL LIABILITIES

277,257

246,023

      MINORITY INTERESTS

Common stock

43,396

43,396

Additional paid-in capital

37,112

37,112

Retained earnings

109,525

100,988

Evaluation p/l on investments/securities

4,920

6,584

Others

4,468

2,625

Treasury stock, at cost

(1,390)

(1,349)

      TOTAL S/HOLDERS` EQUITY

198,031

189,356

 

      TOTAL EQUITIES

475,288

435,379

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

-17,177

14,147

Cash Flows from Investment Activities

-16,796

-5,257

Cash Flows from Financing Activities

-5,249

-4,432

 

Cash, Bank Deposits at the Term End

 

145,303

180,229

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

198,031

189,356

Current Ratio (%)

156.34

166.30

Net Worth Ratio (%)

41.67

43.49

Recurring Profit Ratio (%)

5.12

6.40

Net Profit Ratio (%)

3.01

4.03

Return On Equity (%)

6.79

8.49

 

 

           

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.