MIRA INFORM REPORT
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Report No. : |
331798 |
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Report Date : |
10.07.2015 |
IDENTIFICATION DETAILS
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Name : |
CHIYODA CORPORATION |
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Registered Office : |
Minatomirai Grand Central Tower, 4-6-2 Minatomirai Nishiku Yokohama 220-0012 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Jan., 1948 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Plant Engineering of Oil Refining & Petrochemical Plants. |
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No. of Employees : |
6,097 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 14,656,4 Million |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 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 And address
CHIYODA CORPORATION
REGD NAME: Chiyoda
Kako Kensetsu KK
MAIN OFFICE: Minatomirai
Grand Central Tower, 4-6-2 Minatomirai Nishiku Yokohama
220-0012 JAPAN
Tel: 045-225-7777 (voice guidance)
URL: http://www.chiyoda-corp.com/
E-Mail address: (thru
the URL)
ACTIVITIES
Plant engineering
of oil refining & petrochemical plants
BRANCHES
Tokyo, Osaka,
Nagoya, Sapporo, Naha, Sendai, Kurashiki, other (Tot 13)
OVERSEAS
Abu Dhabi, Doha,
Teheran, Shanghai, Beijing, Jakarta, Singapore, Hague, Milan, Ulsan
FACTORIES
Kawasaki (research
center)
CHIEF
EXEC
SHOGO SHIBUYA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
480,979 M
PAYMENTSREGULAR CAPITAL
Yen 43,396 M
TREND UP WORTH Yen 208,405 M
STARTED 1948 EMPLOYES 6,097
COMMENT
MAJOR
COMPREHENSIVE PLANT ENGINEERING COMPANY, AFFILIATED TO MITSUBISHI CORP.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 14,656.4 MILLION, 30 DAYS NORMAL TERMS
Notes:
Unit in Million Yen
Forecast
(or estimated) figures for 31/03/2016fiscal term
HIGHLIGHTS
The subject
company was established on the basis of a construction division spun off from
Mitsubishi Oil Co Ltd. This is a leading comprehensive plant engineering
company with oil refining and petrochemical plants. Boasts high-level engineering technology with recognition by oil majors. Engaged in major
LNG engineering plant projects in Asia, Oceania and Near & Middle East. Mitsubishi Corp is the top shareholder. As the firm developed a unique
dehydrogenation technology, it intends to use it for construction and operation
of special hydrogen plants. It plans to
start those businesses at Kawasaki City by the end of the March 2016 term. It aims to win a first order for LNG plants
in the US teaming up with CB&I.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 480,979 million a 7.8% up from Yen
446,147 million in the previous term.
Construction of the ultralarge-scale LNG project and the oil refinery
progressed. The recurring profit was
posted at Yen 22,271 million and the net profit at Yen 11,029 million,
respectively, compared with Yen 22,837 million recurring profit and Yen 13,447
million net profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 22,000 million and net profit at Yen 12,000 million, respectively, on a
24.7% rise in turnover, to Yen 600,000 million.
Filling of ample order backlog will progress smoothly.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 14,656.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jan 1948
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 570 million shares
Issued: 260,324,529 shares
Sum: Yen 43,396 million
Major
shareholders (%): Mitsubishi Corp (33.3), Master Trust Bank of Japan T (5.2), MUFG
(3.4), Japan Trustee Services T (3.2), MUFG (3.4), Mitsubishi UFJ Trust (2.6),
Bank of New York Treaty Jasdec (1.4), Tokio Marine & Nichido Fire Ins
(0.9), State Street Bank & Trust 505225 (0.8), Meiji Yasuda Life Ins (0.8),
SIX SIS Ltd (0.8); foreign owners (15.1)
No. of shareholders: 21,246
Listed on the S/Exchange (s) of: Tokyo
Managements: Shogo Shibuya,
pres; Keiichi Nakagaki, v pres; Hiroshi Ogawa, v pres; Masahito Kawashima,
s/mgn dir; Katsuo Nakasaka, s/mgn dir; Ryosuke Shimizu, mgn dir; Masahiko
Kojima, mgn dir; Masaji Santo, dir
Nothing detrimental is knows as to the
commercial morality of executives.
Related companies: Chiyoda Keiso,
Chiyoda Kosho, other
OPERATION
Activities: Plant engineering works:
(Sales breakdown
by divisions): LNG plants (54%), gas & electric power plants (8%), petroleum
& petrochemicals plants, general chemicals plants, social development works
& environmentally-related, others (--22%), others (16%).
Overseas sales ratio (76%)
Clients: [Oil, LNG,
petrochemical industries] Oman LNG, Exxon Chemical Singapore, Shell Eastern
Petroleum, Tokyo Electric Power, Tokyo Gas, Teijin Polycarbonate Singapore,
Kobe Steel, Eastern Petrochemical, Yokohama City government, Nippon Shinyaku,
Esso Highlands, Bayer & Dow Chemical, Qatar Liquefied Gas Co, other.
No. of accounts:
2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsubishi Corp, Ebara Corp, Mitsubishi Heavy Ind, Nippon Steel,
Fisher Japan, Yokogawa Electric, Mitsubishi Electric, Man Turbo Machinery,
Chiyoda System Technologies, Mikuni Engineering, other.
Payment record: Regular
Location: Business area in Yokohama City. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mitsubishi UFJ
Trust Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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480,979 |
446,147 |
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Cost of Sales |
435,327 |
404,685 |
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GROSS PROFIT |
45,651 |
41,462 |
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Selling & Adm Costs |
24,185 |
20,383 |
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OPERATING PROFIT |
21,466 |
21,079 |
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Non-Operating P/L |
805 |
1,758 |
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RECURRING PROFIT |
22,271 |
22,837 |
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NET PROFIT |
11,029 |
13,447 |
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BALANCE SHEET |
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Cash |
|
31,815 |
37,868 |
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Receivables |
53,840 |
73,005 |
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Inventory |
182,855 |
127,466 |
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Securities, Marketable |
81,499 |
107,499 |
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Other Current Assets |
94,569 |
63,258 |
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TOTAL CURRENT ASSETS |
444,578 |
409,096 |
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Property & Equipment |
14,826 |
14,958 |
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Intangibles |
19,484 |
19,509 |
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Investments, Other Fixed Assets |
36,951 |
31,725 |
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TOTAL ASSETS |
515,839 |
475,288 |
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Payables |
137,652 |
145,392 |
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Short-Term Bank Loans |
991 |
1,283 |
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Other Current Liabs |
155,696 |
115,004 |
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TOTAL CURRENT LIABS |
294,339 |
261,679 |
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Debentures |
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Long-Term Bank Loans |
10,015 |
10,018 |
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Reserve for Retirement Allw |
1,070 |
2,080 |
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Other Debts |
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2,009 |
3,480 |
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TOTAL LIABILITIES |
307,433 |
277,257 |
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MINORITY INTERESTS |
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Common
stock |
43,396 |
43,396 |
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Additional
paid-in capital |
37,112 |
37,112 |
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Retained
earnings |
115,831 |
109,525 |
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Evaluation
p/l on investments/securities |
7,218 |
4,920 |
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Others |
6,253 |
4,468 |
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Treasury
stock, at cost |
(1,405) |
(1,390) |
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TOTAL S/HOLDERS` EQUITY |
208,405 |
198,031 |
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TOTAL EQUITIES |
515,839 |
475,288 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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-24,145 |
-17,177 |
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Cash
Flows from Investment Activities |
-5,444 |
-16,796 |
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Cash
Flows from Financing Activities |
-4,569 |
-5,249 |
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Cash,
Bank Deposits at the Term End |
|
113,246 |
145,303 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
208,405 |
198,031 |
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Current
Ratio (%) |
151.04 |
156.34 |
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Net
Worth Ratio (%) |
40.40 |
41.67 |
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Recurring
Profit Ratio (%) |
4.63 |
5.12 |
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Net
Profit Ratio (%) |
2.29 |
3.01 |
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Return
On Equity (%) |
5.29 |
6.79 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.51 |
|
|
1 |
Rs.97.85 |
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Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
NIT |
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 |
-- |
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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.