MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

HAZAMA ANDO CORPORATION

 

 

Registered Office :

Kokusai Shin-Akasaka Bldg West, 6-1-20 Akasaka Minatoku Tokyo 107-8658 

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 2003

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Engaged in Civil engineering and building construction, including surveys, measurements, planning, designing, execution, supervising, technical guidance communicating, and consulting work;

Engaged as Real estate transactions and the ownership and use of real property;

Engaged in Soil survey and purification work including the collection, handling and disposal of wastes, and consulting work relating to such business;

Engaged in Planning, designing and consulting work relating to area development, urban development, and environmental improvements; Power generation and electricity, thermal, and other energy supply business

 

 

No of Employees :

3,987

 

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

 

Maximum Credit Limit :

Yen 5,960.3 Million

 

 

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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

HAZAMA ANDO CORPORATION

 

REGD NAME

 

KK Ando Hazama

 

MAIN OFFICE

 

Kokusai Shin-Akasaka Bldg West, 6-1-20 Akasaka Minatoku Tokyo 107-8658  JAPAN

 

Tel:                              03-6234-3600      

 

URL:                 http://www.ad-hzm.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Civil engineering

 

 

BRANCHES

 

49 locations nationwide

 

 

OVERSEAS

 

Asia (8), USA, Mexico, Peru, Honduras, other

 

 

CHIEF EXEC

 

TOSHIAKI NOMURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 371,216 M

PAYMENTS      No Complaints          CAPITAL           Yen 12,000 M

TREND             UP                                WORTH            Yen 54,381 M

STARTED         2003                             EMPLOYES      3,987

 

 

COMMENT    

 

CIVIL ENGINEERING COMPANY 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,960.3 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

196,701

2,654

1,560

(%)

29,065

(Consolidated)

31/03/2012

182,049

4,779

1,766

-7.45

30,557

 

31/03/2013

197,899

5,336

2,293

8.71

32,844

 

31/03/2014

371,216

11,258

16,414

87.58

54,381

 

31/03/2015

361,000

10,900

6,400

-2.75

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a noted civil engineering firm with established reputation in dam and tunnel construction.  Made new start as newly listed construction firm in Oct 2003 following setback brought about by bubble burst.  Has good track record in overseas projects in S/E Asia.  Merged with Ando Corp in Apr 2013.  Development of new areas such as the vegetable growing system with Ibaraki Prefectural Government etc are strengthened.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 371,216 million, an 87.6% up from Yen 197,899 million in the previous term.  New orders of Yen 300 billion were performed from the plan at the beginning of the term.  Works in hand, mainly profitable civil engineering, were steadily performed.  The recurring profit was posted at Yen 11,258 million and the net profit at Yen 16,414 million, respectively, compared with Yen 5,336 million recurring profit and Yen 2,293 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 10,900 million and the net profit at Yen 6,400 million, on a 2.8% fall in turnover, to Yen 361,000 million.  New orders will be acquired steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,960.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered: Oct 2003

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       397,250,000 shares

Issued:                118,382,741 shares

Sum:                   Yen 12,000 million

 

Major shareholders (%): Japan Trustee Services Bank (9.9), Company’s Treasury Stock (6.8), Mizuho Bank (3.7), Master Trust Bank of Japan (2.7), HazamaG Customers’ S/Holding Assn (2.6), Group Employees’ S/Holding Assn (2.4), Asahi Life Ins (2.0), Ando Kensetsu Taka S/Holding Assn (1.6), Mitsubishi UFJ Trust Bank (1.5), Woolen Miyata Industry (0.9); foreign owners (7.1)

 

No. of shareholders: 36,540

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Toshio Ono, ch; Toshiaki Nomura, pres; Mitsuaki Higo, v pres; Haruyuki Kaneko, v pres; Hisanori Ueno, s/mgn dir; Hikari Yamazaki, s/mgn dir; Hidekazu Kojima, s/mgn dir; Hisayoshi Kinoshita, mgn dir; Yoshinobu Okabe, dir; Hisanori Komiya, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Hazama Ando Kogyo Corp, Aoyama Kiko Co, other.

 

 

OPERATION

           

Activities: Civil engineering company: civil engineering (46%), construction (45%), group companies-related (8%), others (2%).

 

Overseas Sales Ratio (10%)

 

(Business Fields)

(1)     Civil engineering and building construction, including surveys, measurements, planning, designing, execution, supervising, technical guidance communicating, and consulting work;

(2)     Real estate transactions and the ownership and use of real property;

(3)     Soil survey and purification work including the collection, handling and disposal of wastes, and consulting work relating to such business;

(4)     Planning, designing and consulting work relating to area development, urban development, and environmental improvements;

(5)     Power generation and electricity, thermal, and other energy supply business

           

Clients: [Mfrs, wholesalers] Ministry of Land, Infrastructure & Transportation, Tokyo Electric Power, JFE Engineering, Kawasaki Life Corp, Central Nippon Expressway, Toshiba Corp, Sanyu Co, other


No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hazama Ando Kogyo Corp, Aoyama Kiko Co, Maruiso Corp, Kibe Kensetsu, Kanax Co, Tonets Corp, other

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

Mizuho Bank (H/O)

MUFG (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

 

371,216

197,899

 

  Cost of Sales

342,810

182,270

 

      GROSS PROFIT

28,406

15,628

 

  Selling & Adm Costs

16,328

10,015

 

      OPERATING PROFIT

12,077

5,612

 

  Non-Operating P/L

-819

-276

 

      RECURRING PROFIT

11,258

5,336

 

      NET PROFIT

16,414

2,293

BALANCE SHEET

 

 

 

 

  Cash

 

70,773

32,682

 

  Receivables

 

111,297

55,474

 

  Inventory

 

9,918

8,770

 

  Securities, Marketable

 

 

 

  Other Current Assets

13,981

11,697

 

      TOTAL CURRENT ASSETS

205,969

108,623

 

  Property & Equipment

28,710

18,715

 

  Intangibles

 

1,202

320

 

  Investments, Other Fixed Assets

24,765

14,221

 

      TOTAL ASSETS

260,646

141,879

 

  Payables

 

100,169

54,647

 

  Short-Term Bank Loans

26,302

9,927

 

 

 

 

 

 

  Other Current Liabs

51,972

30,857

 

      TOTAL CURRENT LIABS

178,443

95,431

 

  Debentures

 

846

 

 

  Long-Term Bank Loans

11,945

4,578

 

  Reserve for Retirement Allw

13,943

8,672

 

  Other Debts

 

1,087

354

 

      TOTAL LIABILITIES

206,264

109,035

 

      MINORITY INTERESTS

 

 

 

Common stock

12,000

12,000

 

Additional paid-in capital

15,010

9,007

 

Retained earnings

27,603

11,664

 

Evaluation p/l on investments/securities

954

244

 

Others

 

(1,091)

26

 

Treasury stock, at cost

(95)

(97)

 

      TOTAL S/HOLDERS` EQUITY

54,381

32,844

 

      TOTAL EQUITIES

260,646

141,879

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

7,484

7,933

 

Cash Flows from Investment Activities

3,593

-723

 

Cash Flows from Financing Activities

-53

-4,346

 

Cash, Bank Deposits at the Term End

 

70,024

32,659

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

54,381

32,844

 

 

Current Ratio (%)

115.43

113.82

 

 

Net Worth Ratio (%)

20.86

23.15

 

 

Recurring Profit Ratio (%)

3.03

2.70

 

 

Net Profit Ratio (%)

4.42

1.16

 

 

Return On Equity (%)

30.18

6.98

 

 

           


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.57

UK Pound

1

Rs.98.88

Euro

1

Rs.80.05

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.