MIRA INFORM REPORT
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Report No. : |
325132 |
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Report Date : |
06.06.2015 |
IDENTIFICATION DETAILS
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Name : |
JGC CORPORATION |
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Registered Office : |
Queen Tower A, 2-3-1 Minatomirai Nishiku Yokohama 220-6001 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
October 1928 |
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Com. Reg. No.: |
008732 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is engaged in general engineering works (sales breakdown
by divisions): Comprehensive engineering works, catalysts & chemicals |
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No. of Employee : |
7,005 |
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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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
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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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 |
Company
name
JGC CORPORATION
REGD
NAME
Nikki KK
MAIN
OFFICE
Queen Tower A,
2-3-1 Minatomirai Nishiku Yokohama 220-6001 JAPAN
Tel:
045-682-1111 Fax: 045-682-1112
URL
E-Mail
address: webmaster@jgc.co.jp
ACTIVITIES
Plant
engineering works
BRANCHES
Tokyo,
Osaka, Yokohama, other (Tot 5)
OVERSEAＳ
Beijing,
Singapore, Paris, London, Jakarta, Bangkok, Abu Dhabi, Algiers, Teheran, Arzew
(Algeria)
(Affiliated): China,
Philippines, Singapore, Korea, Malaysia, Indonesia, Pakistan, Saudi Arabia (2),
UAE, Qatar, UK (2), Netherlands, Nigeria, Algeria, USA, Venezuela
CHIEF
EXEC
KOICHI
KAWANA, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 799,076 M
PAYMENTSREGULAR CAPITAL Yen
23,511 M
TREND UP WORTH Yen 388,496 M
STARTED 1928 EMPLOYES 7,005
COMMENT
INDUSTRIAL PLANT ENGINEERING COMPANY.
FINANCIAL SITUATION CONSIDERED FAIR
TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2016 fiscal term
HIGHLIGHTS
This is an independent general engineering company, founded
originally in 1928 as producer of oil products, on acquisition of license of
Dubbs’ thermal cracking process from old Universal Oil Products, USA. Strong in oil refining, petrochemicals, LNG
& nuclear fuel processing lines.
Overseas sales ratio about 60%.
With no production division, all materials, machinery & plants are
outsourced including subsidiaries. Works
cover industrial plants, such as crude oil, lube oil, LNG, LPG, ethylene, power
generation, nuclear power facilities, food processing, hospitals, shopping
centers, airports, non-ferrous metal smelting, pharmaceuticals & R&D
facilities, information & telecommunications facilities, medical &
welfare facilities, other, extending over 18,000 projects in more than 70
countries worldwide. Has close
association with Shell.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen
799,006 million, an 18.2% up from Yen 675,821 million in the previous
term. The recurring profit was posted at
Yen 44,867 million and the net profit at Yen 20,628 million, respectively,
compared with Yen 83,675 million recurring profit and Yen 47,178 million net
profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is
projected at Yen 58,000 million and the net profit at Yen 40,000 million,
respectively, on a 12.6% rise in turnover, to Yen 900,000 million. Yamal LNG project in Russia and a refinery in
Kuwait will make a full-scale contribution to earnings.
The financial situation is considered FAIR to GOOD and
responsible for ORDINARY business engagements.
REGISTRATION
Date Registered: Oct 1928
Regd No.: (Tokyo-Chiyodaku) 008732
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 600 million shares
Issued: 259,052,929 shares
Sum: Yen 23,511
million
Major shareholders (%): Master Trust Bank of Japan T
(7.4), Japan Trustee Services T (6.2), Nikki Shoji (4.6), JGC Trading & Services
(4.6), SMBC (4.2), JGC Scholarship Foundation (3.2), Company’s Treasury Stock
(2.5), Mizuho Corporate Bank (2.2), SSBT OD05 Omnibus Acct Treaty CI (2.1),
State Street Bank & Trust 505223 (1.2), State Street Bank & Trust
(1.2); foreign owners (43.8)
No. of shareholders: 7,187
Listed on the S/Exchange (s) of:
Tokyo
Managements: Masayuki Sato, ch; Koichi Kawana,
pres; Tadashi Ishizuka, v pres; Yutaka
Yamazaki, v pres; Tsutomu Akabane, s/mgn dir; Hideaki Miura, mgn dir; Satoshi
Sato, mgn dir; Masanori Suzuki, mgn dir; Hideaki Miura, mgn dir; Hideaki Miura,
mgn dir; Satoshi Sato, mgn dir; Hiroyuki Miura, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: JGC Catalysts & Chemicals Ind,
JGC Information Systems, JGC Projects Services, Japan Fine Ceramics, JGC
Plantech, other . .
OPERATION
Activities: General engineering works (sales
breakdown by divisions): Comprehensive engineering works* (92%), catalysts
& chemicals** (--6%), others (2%).
Overseas sales ratio (77%)
*.. Detailed breakdown by industrial areas:
oil/gas/resources (14%), petroleum refining (17%), LNG (9%), chemicals (34%),
power generation (6%), others (10%).
** Products: catalysts-related (FCC catalysts, hydraulic treatment catalysts,
de-sulfurization catalysts, catalysts for petrochemicals); new
functional-related products (colloidal silica, CRT/FPD surface treatment
agents, LCD’s materials, semiconductor materials, batteries, cosmetics,
optical, other materials, antibacterial agents, other)
Clients: [Oil refineries, chemical mfrs, other
mfrs] Hokkaido Electric Power, INPEX Corp, JX Nippon Oil & Energy Corp,
Fuji Oil, Japan Oil, Gas & Metals National Corp, other.
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Tokki Ltd, Mitsui
Engineering & Shipbuilding, Mitsubishi Heavy Ind, Hitachi Ltd, Yokogawa
Electric, Kobe Steel, Shinko Planning, Sanki Engineering, Murata Machinery,
Sumitomo Metal Ind, other.
Payment record:
Regular
Location:
Business area in Yokohama. 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)
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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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799,076 |
675,821 |
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Cost of Sales |
746,241 |
587,437 |
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GROSS PROFIT |
52,834 |
88,384 |
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Selling & Adm Costs |
23,094 |
20,130 |
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OPERATING PROFIT |
29,740 |
68,253 |
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Non-Operating P/L |
15,127 |
15,422 |
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RECURRING PROFIT |
44,867 |
83,675 |
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NET PROFIT |
20,628 |
17,178 |
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BALANCE SHEET |
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Cash |
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282,707 |
354,199 |
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Receivables |
134,822 |
102,170 |
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Inventory |
9,001 |
47,785 |
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Securities, Marketable |
15,000 |
31,052 |
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Other Current Assets |
92,008 |
40,680 |
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TOTAL CURRENT ASSETS |
533,538 |
575,886 |
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Property & Equipment |
78,560 |
70,290 |
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Intangibles |
16,084 |
16,757 |
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Investments, Other Fixed Assets |
91,572 |
83,169 |
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TOTAL ASSETS |
719,754 |
746,102 |
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Payables |
106,598 |
107,450 |
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Short-Term Bank Loans |
13,204 |
866 |
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Other Current Liabs |
166,731 |
225,037 |
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TOTAL CURRENT LIABS |
286,533 |
333,353 |
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Debentures |
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Long-Term Bank Loans |
22,715 |
13,001 |
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Reserve for Retirement Allw |
13,544 |
11,436 |
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Other Debts |
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8,465 |
8,430 |
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TOTAL LIABILITIES |
331,257 |
366,220 |
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MINORITY INTERESTS |
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Common
stock |
23,511 |
23,511 |
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Additional
paid-in capital |
25,608 |
25,607 |
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Retained
earnings |
336,324 |
327,775 |
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Evaluation
p/l on investments/securities |
10,272 |
6,868 |
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Others |
(560) |
2,598 |
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Treasury
stock, at cost |
(6,659) |
(6,477) |
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TOTAL S/HOLDERS` EQUITY |
388,496 |
379,882 |
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TOTAL EQUITIES |
719,753 |
746,102 |
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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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-71,416 |
120,576 |
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Cash
Flows from Investment Activities |
-23,411 |
-18,728 |
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Cash
Flows from Financing Activities |
3,836 |
-10,687 |
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Cash,
Bank Deposits at the Term End |
|
297,707 |
385,252 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
388,496 |
379,882 |
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Current
Ratio (%) |
186.20 |
172.76 |
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Net
Worth Ratio (%) |
53.98 |
50.92 |
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Recurring
Profit Ratio (%) |
5.61 |
12.38 |
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Net
Profit Ratio (%) |
2.58 |
2.54 |
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Return
On Equity (%) |
5.31 |
4.52 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.98 |
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|
1 |
Rs.97.98 |
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Euro |
1 |
Rs.71.82 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
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.