MIRA INFORM REPORT

 

 

Report No. :

350242

Report Date :

20.11.2015

 

IDENTIFICATION DETAILS

 

Name :

JGC CORPORATION

 

 

Registered Office :

Queen Tower A, 2-3-1 Minatomirai Nishiku Yokohama 220-6001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

October 1928

 

 

Com. Reg. No.:

0100-01-008732

 

 

Legal Form :

Limited Company

 

 

Line of Business :

General engineering works (sales breakdown by divisions): Comprehensive engineering works* (93%), catalysts & chemicals** (--5%), others (2%).

 

 

No. of Employees :

7,332

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 33,566.1 Million

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

Company Name & address

 

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

 

                                    *.. Registered at: 2-2-1 Ohtemachi Chiyodaku Tokyo

 

URL:                 http://www.jgc.co.jp/

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      7,332

 

COMMENT:      INDUSTRIAL PLANT ENGINEERING COMPANY.  FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 33,566.1 MILLION, 30 DAYS NORMAL TERMS

 

 

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.

 

(Apr/Sept/2015 results): Sales Yen 436,199 million (up 8.8%), operating profit Yen 27,483 million (down 11.4%), recurring profit Yen 29,149 million (down 17.5%), net profit Yen 31,916 million (up 25.5%).  (% as compared with the corresponding period 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.  Max credit limit is estimated at Yen 33,566.1 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:                                   Oct 1928

Regd No.:                                 0100-01-008732 (Tokyo-Chiyodaku)

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 (7.2), Japan Trustee Services T (6.4), JGC Trading & Services (4.6), SMBC (4.2), JGC Scholarship Foundation (3.2), Company’s Treasury Stock (2.5), Mizuho Bank (2.2), Bank of NY Jasdec Non Treaty (1.4), BNP Paribas Securities (1.3), Bank of New York Mellon SANV 10 (1.2); foreign owners (37.3)

 

No. of shareholders: 10,971

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Masayuki Sato, ch; Koichi Kawana, pres; Yutaka Yamazaki, v pres; Tsutomu Akabane, v pres; Hideaki Miura, dir; Satoshi Sato, dir; Masanori Suzuki, 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* (93%), catalysts & chemicals** (--5%), others (2%).

 

Overseas sales ratio (83%)

 

*.. 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)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

799,076

675,821

　

  Cost of Sales

746,241

587,437

　

      GROSS PROFIT

52,834

88,384

　

  Selling & Adm Costs

23,094

20,130

　

      OPERATING PROFIT

29,740

68,253

　

  Non-Operating P/L

15,127

15,422

　

      RECURRING PROFIT

44,867

83,675

　

      NET PROFIT

20,628

17,178

BALANCE SHEET

　

　

  Cash

　

282,707

354,199

　

  Receivables

134,822

102,170

　

  Inventory

9,001

47,785

　

  Securities, Marketable

15,000

31,052

　

  Other Current Assets

92,008

40,680

　

      TOTAL CURRENT ASSETS

533,538

575,886

　

  Property & Equipment

78,560

70,290

　

  Intangibles

16,084

16,757

　

  Investments, Other Fixed Assets

91,572

83,169

　

      TOTAL ASSETS

719,754

746,102

　

  Payables

106,598

107,450

　

  Short-Term Bank Loans

13,204

866

　

　

　

　

　

  Other Current Liabs

166,731

225,037

　

      TOTAL CURRENT LIABS

286,533

333,353

　

  Debentures

　

　

　

  Long-Term Bank Loans

22,715

13,001

　

  Reserve for Retirement Allw

13,544

11,436

　

  Other Debts

　

8,465

8,430

　

      TOTAL LIABILITIES

331,257

366,220

　

      MINORITY INTERESTS

　

　

Common stock

23,511

23,511

　

Additional paid-in capital

25,608

25,607

　

Retained earnings

336,324

327,775

　

Evaluation p/l on investments/securities

10,272

6,868

　

Others

(560)

2,598

　

Treasury stock, at cost

(6,659)

(6,477)

　

      TOTAL S/HOLDERS` EQUITY

388,496

379,882

　

      TOTAL EQUITIES

719,753

746,102

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

-71,416

120,576

　

Cash Flows from Investment Activities

-23,411

-18,728

　

Cash Flows from Financing Activities

3,836

-10,687

　

Cash, Bank Deposits at the Term End

　

297,707

385,252

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

388,496

379,882

　

Current Ratio (%)

186.20

172.76

　

Net Worth Ratio (%)

53.98

50.92

　

Recurring Profit Ratio (%)

5.61

12.38

　

Net Profit Ratio (%)

2.58

2.54

　

　

Return On Equity (%)

5.31

4.52

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.11

UK Pound

1

Rs.101.03

Euro

1

Rs.70.77

 

 

INFORMATION DETAILS

 

Analysis Done by :

AMR

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.