MIRA INFORM REPORT

 

 

Report Date :

26.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SHIMIZU CORPORATION

 

 

Registered Office :

2-16-1 Kyobashi Chuoku Tokyo 104-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

August, 1937

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

General contractor (building, civil engineering, construction): construction, earth works, pavement works (bridges, airports) (--80%), investment & development (2%), others (18%)

 

 

No. of Employees

15,920

 

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 29,040.2 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 – March 31st, 2014

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

 

SHIMIZU CORPORATION

REGD NAME:    Shimizu Kensetsu KK

MAIN OFFICE:  2-16-1 Kyobashi Chuoku Tokyo 104-0031 JAPAN

Tel: 03-3561-1111          -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

General contractor

 

 

BRANCHES

 

45 locations nationwide

 

 

OVERSEAS

 

Asia (17), Europe (4), USA (2), Mexico, UAE, Turkey, Zambia

 

 

FACTORIES

 

Kotoku (Tokyo)

 

 

CHIEF EXEC

 

YOICHI MIYAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 1,497,578 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 74,365 M

TREND             UP                                WORTH            Yen 376,048 M

STARTED                     1937                             EMPLOYES      15,920

 

MAX CREDIT LIMIT: YEN 29,040.2 MILLION, 30 DAYS NORMAL TERMS

 

 

COMMENT

 

GENERAL CONTRACTOR

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

Results:

31/03/2011

1,303,755

18,815

10,848

(%)

296,461

(Consolidated)

31/03/2012

1,336,194

16,159

1,430

2.49

307,002

 

31/03/2013

1,416,044

17,330

5,901

5.98

358,094

 

31/03/2014

1,497,578

29,277

14,191

5.76

376,048

 

31/03/2015

1,500,000

40,000

24,000

0.16

..

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is one of the largest general contractors in Japan, with company origins far back to 1804 of Edo (present Tokyo) era.  Has strength in commercial building construction, mainly in Tokyo metropolitan area.  Emphasis placed more on environment and energy-related projects.  In the development of technologies, the company plans to diversify a lineup of earthquake-control systems against long-period vibration to increase projects applicable to the system.  It is fostering technology for measures for cope with the aging of infrastructure, including a concrete inspection system, painting to prevent life-threatening destruction, etc.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 1,497,578 million, a 5.8% up from Yen 1,416,044 million in the previous term.  Building construction fared well.  The recurring profit was posted at Yen 29,277 million and the net profit at Yen 14,191 million, respectively, compared with Yen 17,330 million recurring profit and Yen 5,901 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 40,000 million and the net profit at Yen 24,000 million, on a 0.2% rise in turnover, to Yen 1,500,000 million.  New order will be at a high level.  Completions will improve both in construction and civil engineering by absorbing high labor and material costs.  Operating profit will continue to grow.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 29,040.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                               Aug 1937

Legal Status:                                       Limited Company (Kabushiki Kaisha

Authorized:                                          1,500 million shares

Issued:                                                 788,514,613 shares

Sum:                                                    Yen 74,365 million

 

Major shareholders (%): Shimizu & Co (7.6), Shimizu Foundation (4.8), Master Trust Bank of Japan T (4.1),

Japan Trustee Services T (3.3), Employees’ S/Holding Assn (3.0), Housing Res. Found JUSOKEN (2.2), Mizuho

Bank (20), Japan Trustee Services T4 (1.4), Dai-ichi Life Ins (1.3), Fukoku Life Ins (1.3); foreign owners (18.8)

 

No. of shareholders:    47,001

 

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

 

Managements: Yoichi Miyamoto, pres; Kazuo Yoshida, v pres; Seikichi Kurosawa, v pres; Tatsuo Kakiya, v pres;

Susumu Hoshii, v pres; Kozo Kobashi, v pres; Mitsuaki Shimizu, dir; Yo Takeuchi, dir

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

 

Related companies:     TTK Co, Katayama Stratech Corp, MILX Corp, other.

 

 

OPERATION

 

Activities: General contractor (building, civil engineering, construction): construction, earth works, pavement works (bridges, airports) (--80%), investment & development (2%), others (18%)

 

Clients: [Mfrs, wholesalers] Ministry of Land, Infrastructure & Transport, Sakai Display Products, Dainippon Printing, Tokyo Metropolitan Government, Sumitomo Real Estate, Nippon Steel & Sumikin Plant Co, Yamada Mfg Co, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] MILX Corp, Kandenko Co, Takasago Thermal Engineering, Hanwa Co, Yamato Co, Fujiki Sash, Uchida Yoko Co, Mizuho Factors Ltd, Jesco Co, etc

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG Bank (H/O)

Hachijuni 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

 

1,497,578

1,416,044

 

  Cost of Sales

1,401,803

1,333,001

 

      GROSS PROFIT

95,774

83,042

 

  Selling & Adm Costs

69,720

69,940

 

      OPERATING PROFIT

26,054

13,101

 

  Non-Operating P/L

3,223

4,229

 

      RECURRING PROFIT

29,277

17,330

 

      NET PROFIT

14,191

5,901

BALANCE SHEET

 

 

 

 

  Cash

 

141,440

158,634

 

  Receivables

 

478,446

406,492

 

  Inventory

 

175,832

171,982

 

  Securities, Marketable

42,000

58,000

 

  Other Current Assets

107,194

128,589

 

      TOTAL CURRENT ASSETS

944,912

923,697

 

  Property & Equipment

230,659

218,556

 

  Intangibles

 

4,291

4,017

 

  Investments, Other Fixed Assets

332,824

310,171

 

      TOTAL ASSETS

1,512,686

1,456,441

 

  Payables

 

435,934

388,901

 

  Short-Term Bank Loans

127,786

153,984

 

 

 

 

 

 

  Other Current Liabs

226,252

235,235

 

      TOTAL CURRENT LIABS

789,972

778,120

 

  Debentures

 

70,000

70,000

 

  Long-Term Bank Loans

106,716

90,630

 

  Reserve for Retirement Allw

62,588

52,568

 

  Other Debts

 

107,362

107,028

 

      TOTAL LIABILITIES

1,136,638

1,098,346

 

      MINORITY INTERESTS

 

 

 

Common stock

74,365

74,365

 

Additional paid-in capital

43,143

43,143

 

Retained earnings

139,160

131,202

 

Evaluation p/l on investments/securities

101,344

101,344

 

Others

 

19,543

9,529

 

Treasury stock, at cost

(1,507)

(1,489)

 

      TOTAL S/HOLDERS` EQUITY

376,048

358,094

 

      TOTAL EQUITIES

1,512,686

1,456,441

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

17,395

46,364

 

Cash Flows from Investment Activities

-27,977

-29,744

 

Cash Flows from Financing Activities

-28,592

-14,045

 

Cash, Bank Deposits at the Term End

 

183,440

216,634

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

376,048

358,094

 

 

Current Ratio (%)

119.61

118.71

 

 

Net Worth Ratio (%)

24.86

24.59

 

 

Recurring Profit Ratio (%)

1.95

1.22

 

 

Net Profit Ratio (%)

0.95

0.42

 

 

Return On Equity (%)

3.77

1.65

 

 

           


 

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 :

KAR

 

 

Report Prepared by :

SDA

               

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.