MIRA INFORM REPORT
|
Report No. : |
321317 |
|
Report Date : |
13.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
UBE INDUSTRIES LTD |
|
|
|
|
Registered Office : |
Seavans North Bldg, 1-2-1 Shibaura Minatoku Tokyo 105-8449 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2015 |
|
|
|
|
Date of Incorporation : |
March 1942 |
|
|
|
|
Com. Reg. No.: |
2500-01-002992 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturing of chemicals, construction materials, machinery &
metal molding, energy |
|
|
|
|
No. of Employees : |
10,832 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source
: CIA |
Company
Name
UBE INDUSTRIES LTD
REGD
NAME
Ube Kosan KK
MAIN
OFFICE
Seavans North Bldg, 1-2-1
Shibaura Minatoku Tokyo 105-8449 JAPAN
Tel: 03-5419-6112 Fax:
03-5419-6237-
*.. Registered at: 1978-96 Kogushi Ube City Yamaguchi-Pref;
Phone: 0836-31-1111; Fax: 0836-21-2232
URL: http://www.ube-ind.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg of chemicals, construction materials,
machinery & metal molding, energy
BRANCHES: Osaka, Nagoya, Fukuoka
OVERSEAS: China (5), Hong Kong, Singapore, Thailand
(5), USA (2), Europe (4), Brazil
FACTORIES: Ube (2), Chiba, Ise, Sakai
CHIEF EXEC: YUZURU YAMAMOTO, PRES
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 641,759 M
PAYMENTS REGULAR CAPITAL Yen 58,435 M
TREND SLOW WORTH
Yen 289,610 M
STARTED 1954 EMPLOYES 10,832
COMMENT: MFR OF CHEMICALS & CEMENT FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million
Yen
Forecast figures
for the 31/03/2016 fiscal term.
HIGHLIGHTS
The subject company was established originally as coal mining firm in
1987. Made new start in 1942 thru merger
of 3 firms in chemical, cement & machinery industries. Now is a diversified mfr of chemicals &
cement, as mainline. Third ranked mfr of
nylon materials in the world. Also has
strength in electronic materials.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen 641,759
million, a 1.3% down from Yen 650,610 million in the previous term. The recurring profit was posted at Yen 23,228
million and the net profit at Yen 14,649 million, respectively, compared with
Yen 18,691 million recurring profit and Yen 12,623 million net profit,
respectively, a year ago. .
For the current term ending Mar 2016 the recurring profit is projected
at Yen 32,000 million and the net profit at Yen 17,000 million, on a 6.7% rise
in turnover, to Yen 685,000 million.
Sales of pharmaceuticals will show a growth.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Mar 1942
Regd No.: 2500-01-002992
(Yamaguchi-Ube)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 3,300 million shares
Issued:
1,062,001,076 shares
Sum: Yen
58,435 million
Major shareholders
(%):
Japan Trustee Services T (5.3), Master Trust Bank of Japan T (5.2), Zenkyoren
(3.0), Nippon Life Ins (1.8), Sumitomo Life Ins (1.8), Nomura Lux Multi
Currency J818517 (1.7), Yamaguchi Bank (1.4), BBH Boston Cust. BGAF620313
(1.4), Trust & Custody Services Inv T (1.4); foreign owners (25.0)
No. of
shareholders: 65,135
Listed on the
S/Exchange (s) of: Tokyo
Managements: Michio
Takeshita, ch; Yuzuru Yamamoto, pres; Hidseyuki Sugishita, s/mgn dir; Tadashi
Matsunami, s/mgn dir; Charunya Phichitkul, mgn dir; Nobuyuki Taenaka, mgn dir; Jun’ichi
Misumi, mgn dir; Masato Izumihara, mgn dir; Tokuhisa Okada, mgn dir; Etsuo
Matsunaga, dir; Masahiko Nojima, dir; Masataka Ichikawa, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Ube Materials, Ube
Kosan Machinery, other.
OPERATION
Activities: Manufactures
chemicals & cement, as mainline:
(Sales Breakdown
by Divisions):
Chemicals &
Resins Division (33%): synthetic rubber, caprolactam chain (caprolactam,
polyamide resins, industrial chemicals);
Functional
Materials & Fine Chemicals Division (9%): specialty products (polyamide, battery
materials, high purity chemicals, separation membranes, ceramics,
telecommunication devices, aerospace materials), fine chemicals,
pharmaceuticals (active ingredients, intermediates);
Construction
Materials Division (34%): cement, resource recycling, building materials
(self-leveling materials, plastering materials & waterproofing materials),
limestone, ready-mixed concrete, calcia, magnesia, specialty inorganic
materials;
Machinery &
Metal Molding Division (15%): machinery (molding machines, die-casting machines,
injection molding machines, industrial machinery, bridges & structures, steelmaking
materials, aluminum wheels;
Energy &
Environment Division (8%): coal, power:
Others (1%)
Overseas Sales
Ratio (32%)
Clients: [Mfrs,
wholesalers] Ube Mitsubishi Cement, Unitika Ltd, Toyota Tsusho Corp,
Bridgestone Corp, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sojitz Corp, Mitsubishi Corporation, Ube Ammonia Ind,
Sumitomo Corp, Rio Tinto Japan, Toho Tenax Co, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Bank (Tokyo)
Relations: Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
|
INCOME STATEMENT |
|
|||
|
|
Annual Sales |
|
641,759 |
650,510 |
|
|
Cost of Sales |
538,983 |
546,340 |
|
|
|
GROSS PROFIT |
102,776 |
104,170 |
|
|
|
Selling & Adm Costs |
78,629 |
79,757 |
|
|
|
OPERATING PROFIT |
24,147 |
24,413 |
|
|
|
Non-Operating P/L |
-919 |
-5,722 |
|
|
|
RECURRING PROFIT |
23,228 |
18,691 |
|
|
|
NET PROFIT |
14,649 |
12,623 |
|
|
BALANCE SHEET |
|
|||
|
|
Cash |
|
38,106 |
30,560 |
|
|
Receivables |
144,918 |
153,160 |
|
|
|
Inventory |
78,554 |
82,402 |
|
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
21,238 |
30,416 |
|
|
|
TOTAL CURRENT ASSETS |
282,816 |
296,538 |
|
|
|
Property & Equipment |
347,438 |
332,436 |
|
|
|
Intangibles |
5,365 |
5,264 |
|
|
|
Investments, Other Fixed Assets |
75,927 |
66,477 |
|
|
|
TOTAL ASSETS |
711,546 |
700,715 |
|
|
|
Payables |
83,853 |
89,229 |
|
|
|
Short-Term Bank Loans |
89,063 |
95,494 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
66,584 |
73,235 |
|
|
|
TOTAL CURRENT LIABS |
239,500 |
257,958 |
|
|
|
Debentures |
60,050 |
40,070 |
|
|
|
Long-Term Bank Loans |
86,266 |
96,818 |
|
|
|
Reserve for Retirement Allw |
6,547 |
7,019 |
|
|
|
Other Debts |
|
29,573 |
33,495 |
|
|
TOTAL LIABILITIES |
421,936 |
435,360 |
|
|
|
MINORITY INTERESTS |
|
||
|
|
Common stock |
58,435 |
58,435 |
|
|
|
Additional paid-in capital |
38,413 |
38,398 |
|
|
|
Retained earnings |
153,368 |
142,307 |
|
|
|
Evaluation p/l on
investments/securities |
4,924 |
2,985 |
|
|
|
Others |
35,320 |
24,109 |
|
|
|
Treasury stock, at cost |
(850) |
(879) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
289,610 |
265,355 |
|
|
|
TOTAL EQUITIES |
711,546 |
700,715 |
|
|
CONSOLIDATED CASH FLOWS |
|
|||
|
|
Terms ending: |
31/03/2015 |
31/03/2014 |
|
|
|
Cash Flows from Operating Activities |
|
62,194 |
37,060 |
|
|
Cash Flows from Investment
Activities |
-42,441 |
-40,742 |
|
|
|
Cash Flows from Financing Activities |
-13,911 |
-7,491 |
|
|
|
Cash, Bank Deposits at the Term End |
|
36,964 |
30,098 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
||
|
|
Net Worth (S/Holders' Equity) |
289,610 |
265,355 |
|
|
|
Current Ratio (%) |
118.09 |
114.96 |
|
|
|
Net Worth Ratio (%) |
40.70 |
37.87 |
|
|
|
Recurring Profit Ratio (%) |
3.62 |
2.87 |
|
|
|
Net Profit Ratio (%) |
2.28 |
1.94 |
|
|
|
|
Return On Equity (%) |
5.06 |
4.76 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.20 |
|
|
1 |
Rs.100.03 |
|
Euro |
1 |
Rs.71.91 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
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 |
|
|
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 |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
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 |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.