MIRA INFORM REPORT
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Report No. : |
327667 |
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Report Date : |
16.06.2015 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI GAS CHEMICAL CO INC |
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Registered Office : |
Mitsubishi Bldg, 2-5-2 Marunouchi Chiyodaku Tokyo 100-8324 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
April, 1951 |
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Com. Reg. No.: |
0100-01-008768 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Xylene, Methanol, Engineering Plastics, Other. |
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No. of Employees : |
5,521 |
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 and address
MITSUBISHI GAS CHEMICAL CO INC
REGD NAME: Mitsubishi
Gas Kagaku KK
MAIN OFFICE: Mitsubishi
Bldg, 2-5-2 Marunouchi Chiyodaku Tokyo 100-8324 JAPAN
Tel: 03-3283-5000 Fax: 03-3287-0833
URL: http://www.mgc.co.jp
E-Mail address: info@mgc.co.jp
ACTIVITIES
Mfg of xylene,
methanol, engineering plastics, other
BRANCHES
Osaka, Nagoya, Niigata,
Mie, Okayama, Kanagawa, Saga, other (Tot 13)
OVERSEAS
Shanghai, USA,
Germany, Singapore, Thailand
FACTORIES
Niigata,
Yokkaichi, Kashima, Mizushima, Naniwa, Yamagata, Saga;
OVERSEAS
Saudi Arabia,
Brunei, Venezuela, China
CHIEF
EXEC
TOSHIKIYO KURAI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 529,570 M
PAYMENTSREGULAR CAPITAL Yen 41,970 M
TREND UP WORTH Yen 422,448 M
STARTED 1951 EMPLOYES 5,521
COMMENT
MFR OF XYLENE, METHANOL, OTHER.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
Notes: Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2016 fiscal term
HIGHLIGHTS
The subject firm
is a major mfr of xylene, methanol
& engineering plastics. Made a new start in 1971 thru merger between Japan
Gas Chemical and Mitsubishi
Edogawa Chemical. Strong in electronic materials.
Has good track record in overseas business including that in Saudi
Arabia and Brunei.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 529,570 million, a 1% down from Yen
534,443 million in the previous term. In
aromatic chemicals, sales of PTA products remained in a slump. The recurring profit was posted at Yen 43,034
million and net profit at Yen 44,381 million, respectively, compared with Yen
30,804 million recurring profit and Yen 14,921 million net profit,
respectively, a year ago.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 37,000 million
and the net profit at Yen 29,000 million, respectively, on a 17.1% rise in
turnover, to Yen 620,000
million. A new subsidiary JSP will add Yen 120 billion to sales.
The financial
situation is considered FAIR and
good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Apr 1951
Regd
No.: 0100-01-008768 (Tokyo-Chiyodaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 984,856,000 shares
Issued: 483,478,398 shares
Sum: Yen 41,970 million
Major
shareholders (%): Company’s Treasury Stock (6.5), Japan Trusty Services T (5.5), Master
Trust Bank of Japan T (5.2), Nippon Life Ins (3.9), Meiji Yasuda Life Ins
(3.4), Northern Trust (AVFC) (3.3), Zenkyoren (2.9), MUFG (2.8), Norin Chukin
Bank (2.0), Asahi Glass (2..0); foreign owners (26.4)
No.
of shareholders: 18,002
Listed on the S/Exchange (s) of: Tokyo
Managements: Kazuo Sakai, ch;
Toshikiyo Kurai, pres; Tetsushi Watanabe, rep dir; Yukio Sakai, rep dir; Kunio
Kawa, s/mgn dir; Katsuhiko Sugita, s/mgn dir; Yoshihiro Yamane, mgn dir;
Katsushige Hayashi, mgn dir; Masahiro Jono, mgn dir; Kenji Inatori, mgn dir;
Yoshimasa Nihei, dir
Nothing detrimental
is known as to the commercial morality of executives.
Related companies: MGC Filsheet Co, MGC Electro Techno Inc,
AG Int’l Chemical, Eiwa Chemical Ind, other.
OPERATION
Activities: Manufactures
xylene, methanol, and other industrial chemicals:
(Sales
Breakdown by Divisions): Natural Gas Chemicals (35%); Aromatic Chemicals (26%); Functional Chemicals (29%);
Specialty Chemicals (10%).
Overseas Sales Ratio (48%):
(Mfg
products): organic/inorganic chemicals, petroleum-derived chemicals, chemical fertilizers, agro chemicals, feeds,
feed additives, synthetic
resins, synthetic rubber & other high molecular polymers, dyes, pigments, paints & adhesives,
pharmaceutical products, quasi-drugs, biochemical products, food & food additives, detergents, bleaches, gas
absorbers, civil-engineering
& construction
materials, ceramic products, information device, components & apparatus, others
Clients: [Mfrs,
wholesalers] Mitsubishi Corp, Itochu Chemical Frontier, Daicel Chemical Ind,
Sojitz Corp, Mitsubishi Engineering Plastics, Mitsubishi Gas Chemical America,
other
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] JX Nippon Oil & Energy Corp, Shell Chemicals Japan, Mitsubishi
Chemical, Mitsubishi International Corp, Brunei Methanol Co, NGC Electro
Techno, other
Payment record: Regular
Location: Business area in Tokyo. Office premises at
the caption address are owned by the group 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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529,570 |
534,443 |
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Cost of Sales |
452,360 |
460,293 |
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GROSS PROFIT |
77,210 |
74,149 |
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Selling & Adm Costs |
62,213 |
62,661 |
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OPERATING PROFIT |
14,996 |
11,488 |
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Non-Operating P/L |
28,038 |
19,316 |
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RECURRING PROFIT |
43,034 |
30,804 |
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NET PROFIT |
44,381 |
14,921 |
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BALANCE SHEET |
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Cash |
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62,327 |
38,772 |
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Receivables |
152,711 |
127,817 |
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Inventory |
110,356 |
99,192 |
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Securities, Marketable |
18,137 |
2,130 |
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Other Current Assets |
28,635 |
19,731 |
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TOTAL CURRENT ASSETS |
372,166 |
287,642 |
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Property & Equipment |
235,923 |
191,311 |
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Intangibles |
9,214 |
3,169 |
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Investments, Other Fixed Assets |
173,078 |
175,716 |
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TOTAL ASSETS |
790,381 |
657,838 |
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Payables |
79,323 |
71,665 |
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Short-Term Bank Loans |
104,155 |
75,859 |
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Other Current Liabs |
41,590 |
31,373 |
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TOTAL CURRENT LIABS |
225,068 |
178,897 |
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Debentures |
25,000 |
25,000 |
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Long-Term Bank Loans |
69,932 |
83,481 |
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Reserve for Retirement Allw |
5,586 |
9,232 |
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Other Debts |
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42,346 |
37,369 |
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TOTAL LIABILITIES |
367,932 |
333,979 |
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MINORITY INTERESTS |
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Common
stock |
41,970 |
41,970 |
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Additional
paid-in capital |
35,595 |
35,595 |
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Retained
earnings |
278,910 |
239,831 |
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Evaluation
p/l on investments/securities |
20,612 |
11,384 |
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Others |
53,492 |
3,197 |
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Treasury
stock, at cost |
(8,131) |
(8,119) |
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TOTAL S/HOLDERS` EQUITY |
422,448 |
323,858 |
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TOTAL EQUITIES |
790,381 |
657,838 |
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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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76,982 |
27,182 |
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Cash
Flows from Investment Activities |
-23,531 |
-29,883 |
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Cash Flows
from Financing Activities |
-25,005 |
7,124 |
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Cash,
Bank Deposits at the Term End |
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72,678 |
37,310 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
422,448 |
323,858 |
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Current
Ratio (%) |
165.36 |
160.79 |
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Net
Worth Ratio (%) |
53.45 |
49.23 |
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Recurring
Profit Ratio (%) |
8.13 |
5.76 |
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Net
Profit Ratio (%) |
8.38 |
2.79 |
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Return
On Equity (%) |
10.51 |
4.61 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.64.09 |
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|
1 |
Rs.99.57 |
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Euro |
1 |
Rs.71.84 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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.