MIRA INFORM REPORT

 

 

Report Date :

27.09.2014

 

IDENTIFICATION DETAILS

 

Name :

ASAHI KASEI CHEMICALS CORPORATION

 

 

Registered Office :

Jimbocho Mitsui Bldg, 1-105 Kanda-Jimbocho Chiyodaku Tokyo 101-8101

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Nov., 1972

 

 

Com. Reg. No.:

0100-01-008906 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of petrochemicals, industrial chemicals.

 

 

No. of Employees :

5,400

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

ASAHI KASEI CHEMICALS CORPORATION

 

REGD NAME:    Asahi Kasei Chemicals KK

 

MAIN OFFICE:  Jimbocho Mitsui Bldg, 1-105 Kanda-Jimbocho Chiyodaku Tokyo 101-8101 JAPAN

Tel: 03-3296-3200     Fax: 03-3296-3438

 

URL:                 http://www.asahi-kasei.co.jp/chemicals

E-Mail address: info@asahi-kasei.co.jp/chemicals

 

 

ACTIVITIES

 

Mfg of petrochemicals, industrial chemicals

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka, Nobeoka, Fuji, Moriyama

 

 

OVERSEAS

 

China, Korea, Singapore, Indonesia, Europe, USA (--subsidiaries)

 

 

FACTORIES

 

Mizushima, Kawasaki, Nobeoka, Fuji, Moriyama, Shizuoka, Oita,

Wakayama, Fukuoka, Chiba; China

 

 

OFFICER(S)

 

YUJI KOBAYASHI, PRES          Tsuneo Takemoto, dir    

Yukihiro Mori, dir                        Mutsuo Narita, dir

Kenji Hamai, dir                         Masanao Nomoto, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                             A/SALES          Yen 615,441 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 3,000 M

TREND STEADY                       WORTH            Yen 174,475 M

STARTED         1972                             EMPLOYES      5,400

 

 

COMMENT

           

MFR OF INDUSTRIAL CHEMICALS, WHOLLY OWNED BY ASAHI KASEI CORP

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of 4 Asahi Kasei group firms merging into one entity.  The subject specializes in mg petrochemicals, polymers, performance chemicals, other.  This is actually mfg division of Asahi Kasei Corp (See REGISTRATION).  It expanded production capacity of acrylonitril at Korean Plant in Jan 2012, and in Jun 2012 built a new factory in Singapore for production of chemicals for supply to automobile tire industry.  In Jan 2014, started commercial production at a new plant in Korea for Acetonitrile products.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 615,441 million, an 11% up from Yen 552,198 million in the previous term.  Demand rose for engineering synthetic rubber and engineering resin for automobile makers.  Exports were active.  The recurring profit was posted at Yen 23,692 million and the net profit at Yen 4,054 million, respectively, compared with Yen 10,227 million recurring profit and Yen 6,121 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 24,000 million and the net profit at Yen 4,200 million, respectively, on a 5% rise in turnover, to Yen 646,500 million.  Sales will increase on the strength of the improving monomer market, and sales volume expansion of polymers.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:          Nov 1972

Regd No.:                                 0100-01-008906 (Tokyo-Chiyodaku)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  160,000 shares

Issued:                         40,000 shares

Sum:                            Yen 3,000 million

Major shareholders (%): Asahi Kasei Corp* (100)

 

*.. Comprehensive chemical firm engaged in diversified businesses of clothing, membranes and housing, Tokyo, founded 1931, listed Tokyo S/E, capital Yen 103,389 million, turnover Yen 1,897,766 million, operating profit Yen 143,347 million, recurring profit Yen 142,865 million, net profit Yen 101,296 million, total assets Yen 1,915,089 million, net worth Yen 912,700 million, employees 29,127, pres Toshio Asano.

 

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

 

 

OPERATION

 

Activities: Manufactures petrochemicals/industrial chemicals: monomers, organic & inorganic chemicals, polyethylene, synthetic resins, synthetic rubber & elastomers, polymers, cleaners, packaging products, performance chemicals, systems & membranes, pharmaceuticals & food additives, explosives, plastic films, storage bags, other (--100%).

 

Clients: [Mfrs, wholesalers] Mitsubishi Corp, Itochu Corp, Bridgestone Corp, Sekisui Chemical Ind, Nippon Paper Group firms, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Sanyo Sekiyu Kagaku, Tonen Chemical Corp, JX Nippon Oil & Energy Corp, other

 

Payment record: No Complaints

 

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

           

Bank References:

            SMBC (Tokyo)

            Mizuho Bank (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

646,500

615,441

552,198

547,382

Recur. Profit

　

24,000

23,692

10,227

25,187

Net Profit

　

4,200

4,054

6,121

10,821

Total Assets

　

　

474,306

498,949

456,120

Current Assets

　

　

255,223

278,600

242,696

Current Liabs

　

　

236,487

263,330

225,369

Net Worth

　

　

174,475

173,021

167,622

Capital, Paid-Up

　

　

3,000

3,000

3,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

5.05

11.45

0.88

0.68

    Current Ratio

　

..

107.92

105.80

107.69

    N.Worth Ratio

　

..

36.79

34.68

36.75

    R.Profit/Sales

　

3.71

3.85

1.85

4.60

    N.Profit/Sales

　

0.65

0.66

1.11

1.98

    Return On Equity

　

..

2.32

3.54

6.46

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term. 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.45

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIT

 

               

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.