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Report No. : |
301459 |
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Report Date : |
10.01.2015 |
IDENTIFICATION DETAILS
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Name : |
KAWASAKI THERMAL ENGINEERING CO., LTD. |
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Registered Office : |
1000, Aoji-cho, Kusatsu-shi, Shiga pref. 525-0041 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
10.03.1972 |
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Com. Reg. No.: |
1600-01-012736 |
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Legal Form : |
Listed Company |
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Line of Business : |
Manufacturer of Boiler, air conditioner and related facilities |
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No. of Employees : |
497 |
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 |
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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, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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
|
Source
: CIA |
KAWASAKI THERMAL
ENGINEERING CO., LTD
Country: Japan
Company name: KAWASAKI THERMAL ENGINEERING CO., LTD.
Name in local language:KAWAJU REINETSU KOGYO K.K. (川重冷熱工業株式会社)
Office address: 1000, Aoji-cho, Kusatsu-shi, Shiga pref. 525-0041
Office tel: 077-563-1111
Office fax: 077-563-1120
Website: www.khi.co.jp/corp/kte
Business type: Manufacturer
Industry: Boiler, air conditioner and related facilities
Established: March 10, 1972
Capital: Jp. 1,460,500,000 yen
Employees: 497
Corporate formation: Listed
Corporation No.: 1600-01-012736 (Ohtsu Legal Affairs Bureau)
As of March 31, 2014:
Paid in capital : Jp. 1,460,500,000 yen
Number of authorized shares : 56,000,000 shares
Shares issued : 16,830,000 shares
Number of shareholder : 376
Name of
shareholders Number
of thousand shares (%)
------------------------------------------------------------------------------------------------------------
Kawasaki Heavy Industries, Ltd. 13,970 (83.01)
Business partners shareholders fund 1,387 ( 8.24)
Religion legal person, Manpukuji(temple) 100 ( 0.59)
Employees shareholders fund 86 ( 0.51)
Nakanetsu Co., Ltd. 56 ( 0.33)
Activity Product/Service Description
-------------------------------------------------------------------------------
Manufacturing Boiler and related facilities
Manufacturing Air conditioning and related facilities
President Mr. Haruo Nomura
Nationality: Japan
Managing Director Mr. Masayuki Furuyama
Nationality: Japan
Managing Director Mr. Ikuzo Fujiura
Nationality: Japan
Director Mr. Hisashi Akikawa
Nationality: Japan
Director Mr. Masahisa Yoshizumi
Nationality: Japan
Director Mr. Sei Harunaga
Nationality: Japan
Director Mr. Kaoru Fujisawa
Nationality Japan
Auditor Mr. Tsuyoshi Naito
Nationality: Japan
Auditor Mr. Tatsuaki Kochi
Nationality: Japan
Auditor Mr. Yasuo Akita
Nationality: Japan
Auditor Mr. Takushi Nakayama
Nationality: Japan
Note: The names of director(s) and auditor(s) are phonetically spelt.
*Key Personnel*
=============
Mr. Haruo Nomura
President and representative director June 2012
Born on May 30, 1952
Business career:
Apr. 1975: Employed by Kawasaki Heavy Industries, Ltd.
Jun. 2011: Director of the subject.
Home address: 3-11-1, Toyosaki, Kita-ku, Osaka-shi, Osaka
Currency: (local currency - Jp. yen)
-------------------------------------------------------------------------------------
Year | Sales | Net Income
-------------------------------------------------------------------------------------
|
2009 |
17,319,111,000 |
loss
122,209,000 |
|
2010 |
16,317,877,000 |
144,265,000 |
|
2011 |
15,250,262,000 |
loss
133,038,000 |
|
2012 |
15,948,183,000 |
14,685,000 |
|
2013 |
15,994,049,000 |
112,785,000 |
|
2014 |
16,773,685,000 |
404,323,000 |
*Book Closing*
============
March 31st
*Financials*
==========
|
Consolidated
Balance Sheet |
|||
|
Unit: millions
of JP yen |
|||
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Current
assets |
8,733 |
8,405 |
8,214 |
|
Cash & deposits |
3 |
53 |
5 |
|
Account receivables |
6,439 |
6,327 |
6,640 |
|
Inventories |
1,390 |
1,475 |
1,310 |
|
Others |
901 |
550 |
259 |
|
Fixed
assets |
3,545 |
4,199 |
4,474 |
|
Tangible assets |
1,587 |
1,878 |
2,090 |
|
Intangible assets |
307 |
310 |
345 |
|
Investments & others |
1,650 |
2,009 |
2,038 |
|
Total
Assets |
12,278 |
12,604 |
12,688 |
|
|
|
|
|
|
Current
liabilities |
5,788 |
6,231 |
5,918 |
|
Account payables |
4,351 |
4,032 |
3,778 |
|
Short term loans |
0 |
416 |
348 |
|
Outstanding accounts |
86 |
162 |
158 |
|
Outstanding taxes |
216 |
160 |
351 |
|
Others |
1,135 |
1,461 |
1,283 |
|
Fixed
liabilities |
2,538 |
2,363 |
2,545 |
|
Retirement benefits |
2,397 |
2,225 |
2,426 |
|
Others |
141 |
138 |
119 |
|
Shareholders'
equity |
3,938 |
4,000 |
4,206 |
|
Paid up capital |
1,460 |
1,460 |
1,460 |
|
Capital reserves |
1,228 |
1,228 |
1,228 |
|
Retained earnings |
1,266 |
1,329 |
1,536 |
|
Treasury stock |
-17 |
-18 |
-19 |
|
Valuation
& adjustment |
12 |
9 |
19 |
|
Total
Net Assets |
3,951 |
4,009 |
4,225 |
|
Total
Liabilities & Net Assets |
12,278 |
12,604 |
12,688 |
|
Consolidated
Income Statement |
|||
|
Unit :
millions of JP yen |
|||
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Sales |
15,948 |
15,994 |
16,773 |
|
Cost of
goods sold |
11,965 |
12,034 |
12,512 |
|
Gross
profit(loss) |
3,982 |
3,959 |
4,260 |
|
Sales/administrative
expenses |
3,665 |
3,801 |
3,851 |
|
Operating
profit(loss) |
316 |
158 |
408 |
|
Non
operating income |
37 |
90 |
73 |
|
Non
operating expenses |
103 |
60 |
10 |
|
Ordinary
profit(loss) |
250 |
188 |
471 |
|
Special
profits |
19 |
29 |
166 |
|
Special
losses |
0 |
0 |
0 |
|
Pretax
profit |
269 |
217 |
637 |
|
Taxes
& adjustment |
255 |
104 |
233 |
|
Net
profit |
14 |
112 |
404 |
*Latest Financials *
================
On November 12, 2014, the subject released the following business results and forecast:
As of September 30, 2014(2Q Mar. 2015 term)
Unit: millions of JPY
|
Year
term |
Sales |
Operating
profit(loss) |
Ordinary
profit(loss) |
Net
profit(loss) |
|
2Q
2014 |
7,706 |
-44 |
0 |
-9 |
|
2Q
2015 |
7,157 |
-71 |
-71 |
-56 |
|
FY
2015(F) |
17,500 |
370 |
350 |
300 |
|
Current
assets; |
7,921 |
|
Fixed
assets; |
4,372 |
|
Total
assets; |
12,293 |
|
Current
liabilities; |
5,747 |
|
Fixed
liabilities; |
2,483 |
|
Total
liabilities; |
8,230 |
|
Shareholders’
equity; |
4,047 |
|
Retained earnings; |
1,379 |
|
Total
net assets; |
4,062 |
|
Total
liabilities and net assets; |
12,293 |
*Bank Details*
============
Bank Name : Mizuho Bank, Ltd.
Branch : Kyoto corporate banking department
Bank Name : Sumitomo Mitsui Banking Corp.
Branch : Kyoto
Bank Name : Shiga Bank, Ltd.
Branch : Kusatsu
*Credit Opinion*
=============
Subject is a leading subsidiary of Kawasaki Heavy Industries, Ltd., the No.1 manufacturer of heavy machines in the nation.
As of September 30, 2014 the parent carries JPY 1,092,652 million of retained earnings.
As for the subject itself, a turnaround is expected in the 2nd half of 2014 term.
Also the joint venture in China is receiving some big orders.
Negative factors are not observed in particular at present.
Our rating is based on the above background.
Branch name: Tokyo business headquarters office
Branch address: Kiba, Koto-ku, Tokyo
----------------------------------------------------------------------------------------------------
Branch name: Osaka business headquarters office
Branch address: Higashi-nakajima, Higashi-yodogawa-ku, Osaka-shi
----------------------------------------------------------------------------------------------------
Branch name: Naka-Nippon branch
Branch address: Kami-odai, Nishi-ku, Nagoya-shi, Aichi pref.
12 other local sales offices and three liaison offices are situated in: Sapporo, Sendai, Shiro-oka, Niigata, Nonoichi, Moriyama, Kobe, Hiroshima, Takamatsu, Fukuoka, Matsumoto, Shizuoka and Okayama cities
*Main Products & Services*
======================
Development, manufacture and sales of the following products:
Absorption Chiller:
Triple Effect Direct Fired Absorption Chiller
Double Effect Direct Fired Absorption Chiller (Sigma Ace / Sigma Midy)
Waste Heat Recovery (Hot Water) Absorption Chiller
Double Effect Steam Absorption Chiller (Sigma Ace)
Package Boiler:
Water Tube Boiler (KD)
Smoke Tube Boiler (KS)
Drum-less Water Tube Boiler (IF / KF)
Waste Heat Recovery Boiler (RG / KS-HR)
ISO 9001 & 14001 obtained
For Mar. 2014 term:
Air conditioning-related (67%)
Boiler (33%)
At the location of the head office.
*Address*
=========
Registered address is the same as the operational address.
The quoted address is the previous address of the Tokyo business headquarters office.
*Company History*
================
Date Development
-----------------------------------------------------------------------------------------------
March 10, 1972 Incorporated under the name of “Kawaju Reinetsu(Kawasaki
Thermal) Service Co., Ltd.,” 100%-sponsored by Kawasaki Heavy
Industries, Ltd.
Registered address: Fukushima-ku, Osaka-shi
July 1978 Merged Kawaju Tokyo Reinetsu Service Co., Ltd.
Acquired the marketing assets of boiler business from Kawasaki
Heavy Industries, Ltd.
Took the current company name.
August 1978 Relocated the registered address to Higashi-yodogawa-ku, Osaka-shi.
June 1984 Merged Kawaju Shiga Facilities Co., Ltd.
Relocated the registered address to the current address.
February 1990 Public listed(#6414).
March 1997 ISO9001 certified.
March 2002 Tie up with IHI Corp. for boiler business.
April 2002 ISO14001 certified.
December 2004 Listed on the JASDAQ Stock Market.
May 2005 Founded a joint venture in China.
June 2005 Concluded a big business contract with MEHR Ltd. in Iran.
*Suppliers*
==========
Heiwa Metals Co., Ltd.
Horikawa Sogo Service Inc.
Sanley Thermal Co., Ltd.
Nagoya Hokan Chemical Industry Co., Ltd.
Hiramatsu Metal Industries Co., Ltd.
Chowa Kikai Seisakusho Co., Ltd.
Shiga MEC Corp.
Sapla Corp.
Toho Thermal Industries Co., Ltd.
Futaba Kogyosho Co., Ltd.
*Customers*
==========
Kawasaki Heavy Industries, Ltd.
Kawasaki Trading Inc.
Energy Advance Inc.
Totech Corp.
Sapla Corp.
Kawasaki Machine Systems Ltd.
Toyo Kido Co., Ltd.
Mitsubishi Electric Building Techno Service Ltd.
Toho Gas Co., Ltd.
IHI Versatile Boiler Co., Ltd.
Overseas agents:
Pakistan
Khan Associates
B-76, Sector X-VII, Ghalib Avenue Gulshan-e-Maymar, Karachi 75340 Pakistan
Tel:+92-21-6350091 Fax:+92-21-6351331
Malaysia
Sime Darby Offshore Engineering Sdn. Bhd.
1, Jalan Puchong, Taman Preindustrian Puchong Utama 47100, Puchong, Selangor Darul Ehsan, Malaysia
Tel:+60-3-8068-8000 Fax+60-3-8068-8290
Thailand
BTP Engineering Co.,Ltd.
138 Soi Sukhumvit 62 Yaek 1, Sukhumvit Rd., Bangchak, Prakanong, Bangkok 10260 Thailand
Tel:+66-2741-6137 Fax:+66-2741-6138
Egypt
Cooling Technology by Natural Gas - Gas Chill
146A, South Academy St., New Cairo, Egypt
Tel:+20-2-2613-3134, 3135 Fax:+20-2-2613-3136
R.O.K.:
Sewon Giyeon Co.,Ltd.
598-14, Guro-Dong, Guro-Gu, Seoul, Korea
Tel:+82-2-2671-6671 Fax:+82-2-2671-8800
Bangladesh:
Tritech Engineering Limited
Block # B; Holding # 10 Plot # 23/15 Khilji Road, Mohammadpur, Shyamoly, Dhaka, Bangladesh
Tel:+880-2-8152237 Fax:+880-2-8152257
Company name: Dong-Feng Kawasaki Facilities Co., Ltd.
Country: China
Status: Joint-Venture
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.40 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.73.61 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.