MIRA INFORM REPORT
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Report No. : |
321713 |
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Report Date : |
11.05.2015 |
IDENTIFICATION DETAILS
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Name : |
OBAYASHI CORPORATION |
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Registered Office : |
Shinagawa Inter City B, 2-15-2 Konan Minatoku Tokyo 108-8502 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
December 1936 |
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Legal Form : |
Limited Company |
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Line of Business : |
General Contractor: Construction (94%), Real Estate (3%), Others (2%) |
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No. of Employees : |
13,516 |
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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Maximum Credit Limit : |
Yen 30,809.8 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 – December 31, 2014
|
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
OBAYASHI
CORPORATION
REGD
NAME
KK Obayashigumi
MAIN
OFFICE
Shinagawa Inter
City B, 2-15-2 Konan Minatoku Tokyo 108-8502 JAPAN
Tel:
03-5769-1111 Fax: 03-5769-18\910 -
URL: http://www.obayashi.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: General
contractor
BRANCHES: 81
locations nationwide
OVERSEAS: Worldwide
(USA, Europe, Mid East, China, S/E Asia, Oceania, other)
FACTORIES: Kawagoe,
Hirakata (Osaka)
CHIEF EXEC: TOORU
SHIRAISHI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,612,756 M
PAYMENTSREGULAR CAPITAL Yen
57,752 M
TREND UP WORTH Yen
448,108 M
STARTED 1936 EMPLOYES 13,516
COMMENT: GENERAL CONTRACTOR FINANCIAL SITUATION
COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN
30,809.8 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is one of Big general contractors. Operations expanded from Osaka to Tokyo Metropolitan area, now operating nationwide. Excels in anti-earthquake technology and railroad construction works. Aggressive in obtaining overseas orders and PFI-related projects. Advancing into overseas markets.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 1,612,756 million, an 11.4% up from Yen 1,448,305 million in the previous term. The recurring profit was posted at Yen 40,135 million and the net profit at Yen 21,627 million, respectively, compared with Yen 44,690 million recurring profit and Yen 13,195 million net profit, respectively, a year ago.
(Apr/Dec/2014 results): Sales Yen 1,261,440 million (up 12.1%), operating profit Yen 27,645 million (up 69.4%), recurring profit Yen 37,753 million (up 58.9%), net profit Yen 24,295 million (up 75.4%). (% as compared with the corresponding period a year ago).
For the term that ended Mar 2015 the recurring profit was projected at Yen 39,000 million and the net profit at Yen 23,000 million, respectively, on a 5.4% rise in turnover, to Yen 1,700,000 million. Final results are yet to be released.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 30,809.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1936
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
1,224,335,000 shares
Issued: 721,509,000
shares
Sum: Yen
57,752 million
Major
shareholders (%): Japan Trustee Services T (9.9), Master Trust Bank of Japan T (6.5),
Nippon Life Ins (2.8), Takeo Ohbayashi (2.3), Northern Trust (AVFC) Nontreaty
(1.8), Employees ‘ S/Holding Assn (1.5), other; foreign owners (31.4)
No.
of shareholders: 38,071
Listed on the S/Exchange (s) of: Tokyo, Fukuoka
Managements: Takeo Ohbayashi,
ch; Tooru Shiraishi, pres; Tadahiko Noguchi, v pres; Makoto Kanai, v pres;
Shozo Harada, v pres; Makoto Kishida, s/mgn dir; Akitada Miwa, s/mgn dir;
Ken’ichi Shibata, s/mgn dir; Naoshi Sugiyama, s/mgn dir; Ahin’ichi Ohtake, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Obayashi Road, Naigai Technos, Obayashi
Real Estate, other.
OPERATION
Activities: General contractor: construction (94%), real estate (3%), others (2%)
Overseas Sales Ratio (18%)
Clients: [Mfrs, wholesalers] Ministry of Land, Infrastructure and Tourism, Transport Bureau of Dubai, Nishinippon Highways, Higashinippon Highways, Kobe Steel, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Naigai Technos, Obayashi Road, Nomura Micro Science, Matsushita Sangyo, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
MUFG (Osaka)
Mizuho Bank (Osaka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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1,612,756 |
1,448,305 |
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Cost of Sales |
1,500,697 |
1,333,617 |
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GROSS PROFIT |
112,059 |
114,687 |
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Selling & Adm Costs |
80,067 |
79,534 |
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OPERATING PROFIT |
31,991 |
35,153 |
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Non-Operating P/L |
8,144 |
9,537 |
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RECURRING PROFIT |
40,135 |
44,690 |
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NET PROFIT |
21,627 |
13,195 |
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BALANCE SHEET |
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Cash |
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121,373 |
99,717 |
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Receivables |
654,778 |
531,196 |
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Inventory |
79,564 |
92,201 |
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Securities, Marketable |
3,460 |
3,104 |
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Other Current Assets |
162,497 |
166,722 |
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TOTAL CURRENT ASSETS |
1,021,672 |
892,940 |
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Property & Equipment |
415,089 |
376,489 |
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Intangibles |
5,397 |
5,407 |
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Investments, Other Fixed Assets |
376,728 |
381,453 |
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TOTAL ASSETS |
1,818,886 |
1,656,289 |
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Payables |
578,750 |
531,300 |
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Short-Term Bank Loans |
159,856 |
126,622 |
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Other Current Liabs |
274,419 |
226,355 |
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TOTAL CURRENT LIABS |
1,013,025 |
884,277 |
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Debentures |
80,000 |
60,000 |
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Long-Term Bank Loans |
89,735 |
104,701 |
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Reserve for Retirement Allw |
57,785 |
62,093 |
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Other Debts |
|
130,233 |
130,568 |
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TOTAL LIABILITIES |
1,370,778 |
1,241,639 |
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MINORITY INTERESTS |
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Common
stock |
57,752 |
57,752 |
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Additional
paid-in capital |
41,750 |
41,750 |
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Retained
earnings |
178,665 |
161,666 |
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Evaluation
p/l on investments/securities |
115,744 |
106,707 |
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Others |
55,774 |
48,322 |
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Treasury
stock, at cost |
(1,577) |
(1,547) |
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TOTAL S/HOLDERS` EQUITY |
448,108 |
414,650 |
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TOTAL EQUITIES |
1,818,886 |
1,656,289 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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37,962 |
31,496 |
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Cash
Flows from Investment Activities |
-47,328 |
-29,151 |
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Cash
Flows from Financing Activities |
27,587 |
-28,977 |
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Cash,
Bank Deposits at the Term End |
|
121,177 |
99,690 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net Worth
(S/Holders' Equity) |
448,108 |
414,650 |
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Current
Ratio (%) |
100.85 |
100.98 |
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Net
Worth Ratio (%) |
24.64 |
25.03 |
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Recurring
Profit Ratio (%) |
2.49 |
3.09 |
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Net
Profit Ratio (%) |
1.34 |
0.91 |
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Return
On Equity (%) |
4.83 |
3.18 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.05 |
|
|
1 |
Rs.99.04 |
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Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.