MIRA INFORM REPORT

 

 

Report No. :

330863

Report Date :

09.07.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYO ENGINEERING CORP

 

 

Registered Office :

2-8-1 Akanehama Narashino City Chiba-Pref 275-0024

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May 1961

 

 

Com. Reg. No.:

002504

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Plant engineering works (93.9%) for: energy, oil refining, oil & gas development petrochemicals & chemicals, water treatment, infrastructure, environment, pharmaceutical & fine chemicals, food & beverages, electronics & semiconductors, transportation systems, power generation, nuclear power, advanced production systems, automobiles, manufacturing, fine chemicals distribution systems, biotechnology, other; IT related business (5.2%), real estate leasing & management (0.9%).

 

 

No. of Employees :

1, 086

 

 

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 4,964.1 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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company name & address

 

TOYO ENGINEERING CORP

 

 

REGD NAME

 

Toyo Engineering KK

 

 

MAIN OFFICE

 

2-8-1 Akanehama Narashino City Chiba-Pref 275-0024 JAPAN

Tel: 047-451-1111    

Fax: 047-454-1800

 

URL:                 http://www.toyo-eng.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Plant engineering works

BRANCHES:     Tokyo

OVERSEAS:      China, Korea, Malaysia, Indonesia, Iran, Thailand, Saudi Arabia and others

FACTORIES:    At the caption address (Engineering Center)

 

CHIEF EXEC:   KATSUMOTO ISHIBASHI, PRES

          

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　     A/SALES          Yen 230,124 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 18,198 M

TREND SLOW   　                     WORTH            Yen 74,831 M

STARTED         1961                 　     EMPLOYES      1,086

 

COMMENT:      PLANT ENGINEERING WORKS  FINANCIAL SITUATION COSIDERED SLOW BUT GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 4,964.1 MILLION, 30 DAYS NORMAL TERMS

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

155,696

7,012

3,773

(%)

67,096

(Consolidated)

31/03/2012

157,881

5,102

3,728

1.40

69,265

31/03/2013

228,723

4,032

1,457

44.87

71,091

31/03/2014

230,124

4,942

967

0.61

74,831

31/03/2015

290,000

10,000

6,000

26.02

80,831

 

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established originally as JV formed by Toyo Konetsu (today Mitsui Chemicals), Mitsui & Co and Taisei Corp.  This is a plant engineering company servicing for industries: oil/gas, petrochemicals, transportation systems, pharmaceuticals, fine chemicals, power generation, biotechnology, environment, other.  Has world level technology for urea and ammonia fertilizer plant engineering.  Well-experienced in oil refining, petrochemical and N-Power plants.  At the end of 2014 fiscal year, backlog of contracts results in successful competition observed in chemical fertilizer production in Indonesia (over Yen 50 billion), petrochemical in Torkmenistan (over Yen 50 billion) and oil refinery in Canada (over Yen 50 billion).

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 230,124 million, a 0.6% up from Yen 228,723 million.  The recurring profit was posted at Yen 4,942 million and the net profit at Yen 967 million, respectively, compared with Yen 4,032 million recurring profit and Yen 1,457 million net profit, respectively, a year ago.　

           

For the current term ending 2015 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 6,000 million, respectively, on a 26% rise in turnover, to Yen 290,000 million.  Backlog of contracts as of March/2014 was ample Yen 538.0 billion by successful competition aided by recovery of new orders. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,964.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　          May 1961

Regd No.:                                 (Chiba-Narashino) 002504

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              500 million shares

Issued:                         192.8 million shares

Sum:                            Yen 18,198 million

 

Major shareholders (%): Mitsui & Co (22.7), Mitsui Chemicals (13.3), Master Trust Bank of Japan T (8.9), Taisei Corp (2.6), Japan Trustee Services T (2.4)

           

No. of shareholders: 9,489

 

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

 

Managements: Makoto Fusayama, ch; Katsumoto Ishibashi, pres; Takaya Naito, vp

Hideki Shiinoki, s/mgn dir; Keiichi Matsumoto, s/mgn dir; Masayuki Uchida, mgn dir; Masaaki Yamaguchi, mgn dir;

 

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

 

Related companies: Toyo Business Engineering, other

 

 

OPERATION

           

Activities: Plant engineering works (93.9%) for: energy, oil refining, oil & gas development petrochemicals & chemicals, water treatment, infrastructure, environment, pharmaceutical & fine chemicals, food & beverages, electronics & semiconductors, transportation systems, power generation, nuclear power, advanced production systems, automobiles, manufacturing, fine chemicals distribution systems, biotechnology, other; IT related business (5.2%), real estate leasing & management (0.9%).

 

Overseas Sales Ratio (84%)

          

Clients: [Oil refiners, mfrs, wholesalers] Indian Oil Corporation, PDVSA Petroleo SA, Petropars Ltd, Evonik Monosilane Japan Co, Petroleos de Venezuela SA, Dalian Sumika Jingang Chemicals Co, PT Kalimantan Timur (Kaltim), Mitsui Chemicals, Toshiba Plant Systems, Nippon Oil, Maruzen Oil Chemical, other

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyo Engineering India Ltd, Toyo Engineering Korea Ltd, , Mitsubishi Heavy Ind, Sankyu Inc, KINDEN Corp, other

 

Payment record: No Complaints

 

Location: Business area in Narashino City, Chiba-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (H/O)

MUFG (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

230,124

228,723

　

  Cost of Sales

204,968

204,523

　

      GROSS PROFIT

25,156

24,200

　

  Selling & Adm Costs

24,699

22,606

　

      OPERATING PROFIT

457

1,594

　

  Non-Operating P/L

4,485

2,438

　

      RECURRING PROFIT

4,942

4,032

　

      NET PROFIT

967

1,457

BALANCE SHEET

　

　

  Cash

　

73,814

52,328

　

  Receivables

48,362

54,423

　

  Inventory

0

0

　

  Securities, Marketable

25,025

21,376

　

  Other Current Assets

54,840

60,390

　

      TOTAL CURRENT ASSETS

202,041

188,517

　

  Property & Equipment

30,363

31,187

　

  Intangibles

5,085

5,489

　

  Investments, Other Fixed Assets

19,991

15,501

　

      TOTAL ASSETS

257,480

240,694

　

  Payables

55,764

60,370

　

  Short-Term Bank Loans

10,580

12,712

　

　

　

　

　

  Other Current Liabs

73,820

60,048

　

      TOTAL CURRENT LIABS

140,164

133,130

　

  Debentures

　

　

　

  Long-Term Bank Loans

33,535

26,477

　

  Reserve for Retirement Allw

3,677

5,202

　

  Other Debts

5,273

4,794

　

      TOTAL LIABILITIES

182,649

169,603

　

      MINORITY INTERESTS

　

　

Common stock

18,198

18,198

　

Additional paid-in capital

20,759

20,759

　

Retained earnings

31,546

31,537

　

Evaluation p/l on investments/securities

　

　

　

Others

4,736

980

　

Treasury stock, at cost

(408)

(383)

　

      TOTAL S/HOLDERS` EQUITY

74,831

71,091

　

      TOTAL EQUITIES

257,480

240,694

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

21,244

-18,986

　

Cash Flows from Investment Activities

-1,638

-1,587

　

Cash Flows from Financing Activities

3,167

-532

　

Cash, Bank Deposits at the Term End

　

96,934

71,675

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

74,831

71,091

　

Current Ratio (%)

144.15

141.60

　

Net Worth Ratio (%)

29.06

29.54

　

Recurring Profit Ratio (%)

2.15

1.76

　

Net Profit Ratio (%)

0.42

0.64

　

　

Return On Equity (%)

1.29

2.05

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.98.22

Euro

1

Rs.69.93

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ASH

 

               


 

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.