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Report No. : |
308086 |
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Report Date : |
13.02.2015 |
IDENTIFICATION DETAILS
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Name : |
JFE ENGINEERING CORPORATION |
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Registered Office : |
Marunouchi Trust Tower North, 1-8-1 Marunouchi Chiyodaku |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April 2003 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
General engineering works |
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No. of Employee : |
3,280 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
JFE ENGINEERING
CORPORATION
REGD NAME: JFE Engineering KK
MAIN OFFICE: Marunouchi Trust Tower North, 1-8-1 Marunouchi
Chiyodaku Tokyo 100-0004
JAPAN
Tel:
03-6212-0800 Fax: 03-6212-0802
*.. The is its Yokohama Head Office
E-Mail
address: info@jfe-eng.co.jp
General engineering works
Sapporo, Sendai, Chiba, Yokohama, Kawasaki, Osaka, Nagoya,
other (Tot 21)
Hong Kong, Vietnam, Myanmar, Saudi Arabia, China,
Philippines, Malaysia,
Singapore, Indonesia, India, Australia (--subsidiaries)
Tsurumi, Tsu (Mie-Pref)
HISANORI KANOU, PRES Yoichi Kamon, v pres
Shigeki Tonooka, v pres Keiji
Yoshioka, rep dir
Sumiyuki Kishimoto, adv Masayuki
Numai, dir
Yen Amount: In million
Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 201,979 M
PAYMENTS REGULAR CAPITAL Yen
10,000 M
TREND UP WORTH Yen 77,262 M
STARTED 2003 EMPLOYES 3,280
ENGINEERING FIRM, WHOLLY OWNED BY JFE HOLDINGS INC.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established on the basis of an
engineering works division separated from JFE Holdings Inc (See
REGISTRATION). This is an engineering
works company with 4 Divisions: Energy Industries Engineering Div,
Environmental Industries Engineering Div, Steel Structure Engineering Div and
Industrial Machinery Engineering Div (See OPERATION for details). Recent projects awarded: In Jan 2015 received
orders for Sewage Treatment Plant in Sri Lanka; In Jan 2015 received orders for
expansion of Tomakomai smart-agriculture plant (use of hot spring heat as plant
heat source); In Feb 2015 awarded the contract for sewage treatment plant in
the Philippines. Clients include gas
power generation plants, local municipalities, other
The sales volume for Mar/2014 fiscal term amounted to Yen
201,979 million, a 1% up from Yen 199,136 million in the previous term. The recurring profit was posted at Yen 9,592
million and the net profit at Yen 9,964 million, respectively, compared with
Yen 12,391 million recurring profit and Yen 8,576 million net profit,
respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is
projected at Yen 9,700 million and the net profit at Yen 10,000 million,
respectively, on a 3% rise in turnover, to Yen 208,500 million. Business is seen expanding steadily.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Apr 2003
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 800,000
shares
Issued: 200,000
shares
Sum: Yen
10,000 million
Major shareholders (%): JFE Holdings Inc* (100)
*.. Holding company formed thru business combinations
between Kawasaki Steel and NKK in Sept 2002, listed Tokyo, Nagoya S/E’s,
capital Yen 147,143 million, sales Yen 3,666,859 million, operating profit Yen
153,327 million, recurring profit Yen 173,676 million, net profit Yen 102,382
million, total assets Yen 4,263,980 million, net worth Yen 1,706,069 million,
employees 57,210, Pres Hajime Bada
Nothing detrimental is known as to the commercial morality
of executives.
Activities: Total
Engineering Works, offering the following works:
Energy Industries Engineering Div: offshore-onshore pipeline
systems, storage base systems, process plants, on-site energy supply, district
heating & cooling, cogeneration, geothermal energy utilization systems,
inspection, diagnosis & maintenance services;
Environmental Industries Engineering Div: high temperature
gasifying & direct melting plant, hyper crate stoker plant, fluidized bed
plant, flue gas & ash treatment equipment, sustainable energy plant, gas
engine power generation system, steam turbine;
Steel Structure Engineering Div: bridges, hybrid caissons,
steel frames for building;
Industrial Machinery Engineering Div: heavy machinery, prime
movers, conveyance/handling & construction machinery, environmental plant
equipment, other.
Clients:
[Government agencies, mfrs, electric powers, wholesalers] Tokyo Gas Co,
Governments, other
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] JFE Steel & group firms
Payment
record: Regular
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
(In Million Yen)
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Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
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Annual Sales |
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208,500 |
201,979 |
199,136 |
211,750 |
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Recur. Profit |
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9,700 |
9,592 |
12,391 |
11,702 |
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Net Profit |
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10,000 |
9,964 |
8,576 |
154 |
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Total Assets |
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238,060 |
216,905 |
237,566 |
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Current Assets |
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155,129 |
134,603 |
156,582 |
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Current Liabs |
|
|
97,103 |
86,519 |
105,669 |
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Net Worth |
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77,262 |
63,348 |
52,692 |
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Capital, Paid-Up |
|
|
10,000 |
10,000 |
10,000 |
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Div.P.Share(¥) |
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|
0.00 |
0.00 |
0.00 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.23 |
1.43 |
-5.96 |
2.91 |
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Current Ratio |
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.. |
159.76 |
155.58 |
148.18 |
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N.Worth Ratio |
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.. |
32.45 |
29.21 |
22.18 |
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R.Profit/Sales |
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4.65 |
4.75 |
6.22 |
5.53 |
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N.Profit/Sales |
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4.80 |
4.93 |
4.31 |
0.07 |
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Return On Equity |
|
.. |
12.90 |
13.54 |
0.29 |
Notes: Forecast (or estimated) figures for the 31/03/2015
fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.43 |
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|
1 |
Rs.95.02 |
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Euro |
1 |
Rs.70.63 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.