MIRA INFORM REPORT
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Report No. : |
325841 |
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Report Date : |
08.06.2015 |
IDENTIFICATION DETAILS
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Name : |
SHIN-ETSU CHEMICAL CO LTD |
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Registered Office : |
Asahi Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Sept., 1926 |
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Com. Reg. No.: |
0100-01-008680 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of PVC, Semiconductor Wafers, Silicon. |
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No. of Employees : |
18,291 |
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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 and address
SHIN-ETSU CHEMICAL CO LTD
REGD NAME: Shin
Etsu Kagaku Kogyo KK
MAIN OFFICE: Asahi
Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN
Tel: 03-3246-5011 Fax: 03-3246-5358
URL: http://www.shinetsu.co.jp/
E-Mail address: info@shinetsu.co.jp
ACTIVITIES
Mfg of PVC,
semiconductor wafers, silicon
BRANCHES
Osaka, Nagoya,
Fukuoka, Sapporo, Gunma
FACTORIES
Naoetsu, Takefu,
Gunma (Isobe, Matsuida), Kashima
OVERSEAS
USA (9), Mexico, Portugal, UK, Netherlands
(4), Hungary, Germany, Malaysia
(5), Korea (2), China (4),
Taiwan (4), Singapore (2), Indonesia (2),
Thailand (2), Philippines, Australia (2) (--subsidiaries)
CHIEF
EXEC
SHUNZO MORI, PRES
& CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,254,543 M
PAYMENTSNO COMPLAINTS CAPITAL Yen 119,419 M
TREND UP WORTH Yen 2,012,711 M
STARTED 1926 EMPLOYES 18,291
COMMENT
MFR SPECIALIZING IN PVC & ELECTRONIC MATERIALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Notes: Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2016 fiscal term
HIGHLIGHTS
This is the
world’s largest mfr of PVC, and semiconductor wafers. Originally maker of
chemical fertilizers including carbide and calcium cyanide. Major maker of silicone resins. Succeeded in shift of mainline, and expanded
to electronic materials, including rare earths and synthetic quarts.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 1,255,543 million, a 7.7% up from Yen
1,165,819 million in the previous term.
Sales of semiconductor silicone performed extremely favorably. Demand for magnets was also robust. The recurring profit was posted at Yen
198,025 million and the net profit at Yen 128,606 million, respectively,
compared with Yen 180,605 million recurring profit and Yen 113,617 million net
profit, respectively, a year ago..
For the current
term ending Mar 2016 the recurring profit is projected at Yen 200,000 million
and the net profit at Yen 130,000 million, respectively, on a 1.6% rise in
turnover, to Yen 1,275,000 million.
Sales of polyvinyl chloride will start to become firmer, and sales of
photoresists will continue growing on the strength of robust demand for use in
semiconductors.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Sept 1926
Regd No.:
0100-01-008680 (Tokyo-Chiyodaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1,720 million shares
Issued: 432,106,693 shares
Sum:
Yen 119,419 million
Major shareholders
(%): Master Trust Bank of Japan, T (8.9), Japan Trustee Services Bank T
(6.5), Nippon Life Ins (5.2), Hachijuni Bank (2.7), Japan Trustee Services t4
(2.6), Meiji Yasuda Life Ins (2.4), Company’s Treasury Stock (1.4), Sompo Japan
Nipponkoa Ins (1.2), Bank of New York Mellon SANV 10 (1.2), State Street Bank
West Treaty (1.1); foreign owners (42.4)
No.
of shareholders: 44,576
Listed
on the S/Exchange (s) of: Tokyo
Managements: Chihiro Kanagawa,
ch; Shunzo Mori, pres & CEO; Fumio Akiya, v pres; Yasuhiko Saitoh, v pres;
Toshinobu Ishihara, s/mgn dir; Norikazu Fukud, mgn dir; Akiji Takasugi, mgn
dir; Masahiko Todorogi, mgn dir; Toshiya Akimoto, mgn dir; Fumiaki Arai, mgn
dir; Yukihiro Matsui, mgn dir
Nothing detrimental is knows as to the commercial
morality of executives.
Related companies: Shintech Inc
(USA), Shin-Etsu Polymer, Shin-Etsu Handotai, other
OPERATION
Activities: Manufactures
industrial chemicals:
(Sales
Breakdown by Divisions):
Vinyl
Chloride & Chemicals Div (37%): PVC, silicones, methanol, chloromethane,
cellulose derivatives, caustic soda, silicon metal;
Silicones
Div (13%): semiconductor silicone, organic materials for electronics industry,
rare earth magnets for electronics industry, photo-resists;
Functional
Materials Div (9%): synthetic quartz products, oxide single crystals,
rare earths, rare earth magnets, construction of plants engineering,
information processing, export of technology & plants, import of goods,
others.
Semiconductor
Silicones Div (18%);
Others
(23%);
Overseas
sales ratios (71%)
Clients: [Mfrs,
wholesalers] Shin-Etsu Handotai (meaning semiconductor), Mitsubishi Corp,
Shin-Etsu Electronics Materials Singapore, Mitsui & Co, Shin-Etsu Astech,
Toshiba Corp, other.
No. of accounts:
2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Shin-Etsu Handotai, Naoetsu Electronics, Mitsui & Co, Kashima
PVC Monomer, Mitsubishi Chemical, Shintech Inc, other.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mizuho 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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1,255,543 |
1,165,819 |
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Cost of Sales |
940,399 |
873,879 |
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GROSS PROFIT |
315,143 |
291,939 |
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Selling & Adm Costs |
129,814 |
118,130 |
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OPERATING PROFIT |
185,329 |
173,809 |
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Non-Operating P/L |
14,696 |
6,796 |
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RECURRING PROFIT |
198,025 |
180,605 |
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NET PROFIT |
128,606 |
113,617 |
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BALANCE SHEET |
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Cash |
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461,489 |
363,339 |
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Receivables |
292,748 |
267,243 |
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Inventory |
276,910 |
273,136 |
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Securities, Marketable |
304,180 |
274,282 |
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Other Current Assets |
64,519 |
57,829 |
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TOTAL CURRENT ASSETS |
1,399,846 |
1,235,829 |
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Property & Equipment |
784,409 |
720,799 |
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Intangibles |
18,012 |
19,408 |
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Investments, Other Fixed Assets |
250,039 |
222,876 |
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TOTAL ASSETS |
2,452,306 |
2,198,912 |
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Payables |
120,694 |
109,401 |
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Short-Term Bank Loans |
6,825 |
7,524 |
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Other Current Liabs |
171,327 |
137,236 |
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TOTAL CURRENT LIABS |
298,846 |
254,161 |
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Debentures |
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Long-Term Bank Loans |
7,116 |
7,557 |
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Reserve for Retirement Allw |
33,401 |
28,127 |
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Other Debts |
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100,231 |
86,931 |
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TOTAL LIABILITIES |
439,594 |
376,776 |
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MINORITY INTERESTS |
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Common
stock |
119,419 |
119,419 |
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Additional
paid-in capital |
128,572 |
128,625 |
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Retained
earnings |
1,626,873 |
1,541,127 |
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Evaluation
p/l on investments/securities |
22,349 |
10,439 |
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Others |
149,335 |
57,479 |
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Treasury
stock, at cost |
(33,837) |
(34,954) |
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TOTAL S/HOLDERS` EQUITY |
2,012,711 |
1,822,135 |
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TOTAL EQUITIES |
2,452,306 |
2,198,912 |
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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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243,459 |
259,734 |
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Cash
Flows from Investment Activities |
-167,142 |
-246,894 |
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Cash
Flows from Financing Activities |
-43,545 |
-41,361 |
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Cash,
Bank Deposits at the Term End |
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423,846 |
362,560 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
2,012,711 |
1,822,135 |
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Current
Ratio (%) |
468.42 |
486.24 |
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Net
Worth Ratio (%) |
82.07 |
82.87 |
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Recurring
Profit Ratio (%) |
15.77 |
15.49 |
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Net
Profit Ratio (%) |
10.24 |
9.75 |
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Return
On Equity (%) |
6.39 |
6.24 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.90 |
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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
: |
SAN |
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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.