MIRA INFORM REPORT

 

 

Report Date :

24.05.2014

 

IDENTIFICATION DETAILS

 

Name :

KAJIMA CORPORATION

 

 

Registered Office :

1-3-1 Moto-Akasaka Minatoku Tokyo 107-8388

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

February 1930

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Major general Contractor in fields of construction of earth-quake-resistant buildings & N-power plants

 

 

No of Employees :

15,572

 

 

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 23,963.2 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 – September 30, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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:

 

KAJIMA CORPORATION

 

 

REGD NAME:

 

Kajima KK

 

 

MAIN OFFICE:    

 

1-3-1 Moto-Akasaka Minatoku Tokyo 107-8388 JAPAN

Tel: 03-5544-1111     Fax: 03-6437-2700

 

URL:                 http://www.kajima.co.jp/

E-Mail address: (thru the URL to each department)

 

 

ACTIVITIES: 

 

Major general Contractor in fields of construction of earth-quake-resistant buildings & N-power plants

 

 

BRANCHES:  

 

Sapporo, Sendai, Saitama, Chofu, Yokohama, Niigata, Nagoya, Osaka, Takamatsu, Hiroshima, Fukuoka

 

 

OVERSEAS;  

 

China, Egypt, Turkey, UAE, Tanzania, India, Vietnam, Myanmar, Singapore, Indonesia, Taiwan, Hong Kong, Malaysia, Thailand, Philippines, UK, France, Poland, Czech Republic, USA

 

 

FACTORIES: 

 

(subsidiaries)

 

 

CHIEF EXEC:

 

MITSUYOSHI NAKAMURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:   

 

FINANCES        FAIR                 　                     A/SALES          Yen 1,521,191 M

PAYMENTS      NO COMPLAINTS          　         CAPITAL           Yen 81,447 M

TREND             STEADY           　                     WORTH            Yen 364,126 M

STARTED         1930                 　                     EMPLOYES      15,572

 

 

COMMENT:   

 

GENERAL CONTRACTOR. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 23,963.2 MILLION, 30 DAYS NORMAL TERMS

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

1,325,679

17,502

25,844

(%)

253,299

(Consolidated)

31/03/2012

1,457,754

41,343

3,833

9.96

256,705

 

31/03/2013

1,485,019

24,633

23,429

1.87

318,126

 

31/03/2014

1,521,191

27,006

20,752

2.44

364,126

 

31/03/2015

1,600,000

30,000

17,000

5.18

..

                        Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS:

 

This is a major general contractor, well-known for high technology in fields of construction of earthquake-resistant buildings and N-power plants.  The company’s history dates back to Edo Era (1840) when Toshijiro Kajima began carpentry business in Edo (now Tokyo), on his account, the first overseas business being the building of railroads in Taiwan.  And has since developed the firm into a major general contractor.  Pioneer in building skyscrapers in Japan.  Real estate div developing into major earning sources, accounting for 6% of total group sales.  Diversifying business thru divisional system.  Now the influence by Kajima family waning.  Planned establishment of new local sub in Singapore canceled due to introduction of business HQ system into existing local sub.  The company has developed a system to judge weathering/deterioration of tunnels in mountains by tablet PCs. 

           

FINANCIAL INFORMATION:

 

The sales volume for Mar/2014 fiscal term amounted to Yen 1,521,191 million, a 2.4% up from Yen 1,485,019 million in the previous term.  New orders went favorably.  Civil engineering was steady.  The recurring profit was posted at Yen 27,006 million and the net profit at Yen 20,752 million, respectively, compared with Yen 24,633 million recurring profit and Yen 23,429 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 30,000 million and the net profit at Yen 17,000 million, on a 5.2% rise in turnover, to Yen 1,600,000 million.  New orders will a little decrease by thoroughly stressing on profitability.  In civil engineering works in hand will be steadily performed.  In construction, profitability will improve.  Operating profit will rally by absorbing high labor costs.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 23,963.2 million, on 30 days normal terms.

 

 

REGISTRATION:

           

Date Registered:　      Feb 1930

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  2,500 million shares

Issued:                         1,057,312,022 shares

Sum:                            Yen 81,447 million

           

Major shareholders (%): Master Trust Bank of Japan T (5.5), Japan Trustee Services T 4.5), Shoichi Kajima (2.9), Employees’ S/Holding Assn (2.2), SMBC (1.9), Company’s Treasury Stock (1.6), Yoshiko Ishikawa (1.4), Kajima Foundation (1.3), Japan Trustee Services T9 (1.3), Taisho Pharmaceutical Holdings (1.1); foreign owners (17.3) 

           

No. of shareholders:    81,929

 

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

 

Managements: Mitsuyoshi Nakamura, pres; Naoki Atsumi, v pres; Hiroshi Kaneko, v pres; Tamiharu Tashiro, v pres; Takashi Hinago, v pres; Masayasu Kayano, v pres; Hiroshi Ishikawa, s/mgn dir Yohikazu Oshimi, s/mgn dir; Toshio Hasegawa, s/mgn dir; Kazuo Kojima, s/mgn dir Maao Oka, s/mgn dir; Toshiki Kurihara, s/mgn dir

 

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

 

Related companies: Kajima USA, Kajima Road Co, Taiko Trading, other.

           

 

OPERAtION:

           

Activities: General contractor:

Civil engineering (18%), construction (5%), development business (4%), domestic subsidiaries (13%), overseas subsidiaries (15%). 

 

Overseas Sales Ratio (15%).

           

Clients: [Mfrs, wholesalers, governments] Ministry of Land, Infrastructure and Transport, Canon Inc, JR (Japan Railway) East, Mitsubishi Estate, Sankei Building, other

              No. of accounts: 2,000

              Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Metal One Corp, Marubeni-Itochu Techno Steel Inc, S C Cement, Nippon Steel Trading, other.

 

Payment record: No Complaints

 

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

 

Bank References:

                        SMBC (Tokyo)

                        Mizuho 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

　

1,521,191

1,485,019

 

  Cost of Sales

1,413,204

1,380,670

 

      GROSS PROFIT

107,987

104,349

 

  Selling & Adm Costs

84,979

85,879

 

      OPERATING PROFIT

23,007

18,469

 

  Non-Operating P/L

3,999

6,164

 

      RECURRING PROFIT

27,006

24,633

　

      NET PROFIT

20,752

23,429

BALANCE SHEET

 

 

 

 

  Cash

　

268,890

202,194

 

  Receivables

 

567,203

498,067

 

  Inventory

 

8,942

7,929

 

  Securities, Marketable

162

66

 

  Other Current Assets

301,198

347,339

 

      TOTAL CURRENT ASSETS

1,146,395

1,055,595

 

  Property & Equipment

328,426

323,246

 

  Intangibles

 

4,907

5,684

 

  Investments, Other Fixed Assets

309,767

301,547

 

      TOTAL ASSETS

1,789,495

1,686,072

 

  Payables

 

458,796

446,399

 

  Short-Term Bank Loans

127,078

201,222

 

　

 

　

　

 

  Other Current Liabs

460,717

358,326

 

      TOTAL CURRENT LIABS

1,046,591

1,005,947

 

  Debentures

 

80,000

105,000

 

  Long-Term Bank Loans

138,630

110,620

 

  Reserve for Retirement Allw

60,174

61,588

 

  Other Debts

　

99,973

84,791

 

      TOTAL LIABILITIES

1,425,368

1,367,946

 

      MINORITY INTERESTS

 

 

 

Common stock

81,447

81,447

 

Additional paid-in capital

45,304

45,304

 

Retained earnings

148,740

132,089

 

Evaluation p/l on investments/securities

71,424

58,706

 

Others

 

23,437

6,662

 

Treasury stock, at cost

(6,226)

(6,082)

 

      TOTAL S/HOLDERS` EQUITY

364,126

318,126

　

      TOTAL EQUITIES

1,789,495

1,686,072

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

　

32,955

58,460

 

Cash Flows from Investment Activities

36,686

36,715

 

Cash Flows from Financing Activities

-17,159

-58,628

　

Cash, Bank Deposits at the Term End

　

259,420

201,164

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

364,126

318,126

 

 

Current Ratio (%)

109.54

104.94

 

 

Net Worth Ratio (%)

20.35

18.87

 

 

Recurring Profit Ratio (%)

1.78

1.66

 

 

Net Profit Ratio (%)

1.36

1.58

 

 

Return On Equity (%)

5.70

7.36

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.58.48

UK Pound

1

Rs. 98.67

Euro

1

Rs. 79.80

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.