MIRA INFORM REPORT
|
Report No. : |
346520 |
|
Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHIYODA CORPORATION |
|
|
|
|
Registered Office : |
Minatomirai Grand Central Tower, 4-6-2 Minatomirai Nishiku Yokohama 220-0012 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2015 |
|
|
|
|
Date of Incorporation : |
Jan., 1948 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Plant Engineering of Oil Refining &
Petrochemical Plants. |
|
|
|
|
No. of Employees : |
6,097 |
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 14,656.4 Million |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 and address
CHIYODA CORPORATION
REGD NAME: Chiyoda
Kako Kensetsu KK
MAIN OFFICE: Minatomirai
Grand Central Tower, 4-6-2 Minatomirai Nishiku Yokohama
220-0012 JAPAN
Tel: 045-225-7777
URL: http://www.chiyoda-corp.com/
E-Mail address: (thru
the URL)
ACTIVITIES
Plant engineering
of oil refining & petrochemical plants
BRANCHES
Tokyo, Osaka,
Nagoya, Sapporo, Naha, Sendai, Kurashiki, other (Tot 13)
OVERSEAS
Abu Dhabi, Doha, Teheran, Shanghai, Beijing, Jakarta, Singapore, Hague,
Milan, Ulsan, India, UAE (--subsidiaries)
FACTORIES
Kawasaki (research
center)
CHIEF
EXEC
SHOGO SHIBUYA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
480,979 M
PAYMENTSNO COMPLAINTS CAPITAL Yen
43,396 M
TREND UP WORTH Yen 208,405 M
STARTED 1948 EMPLOYES 6,097
COMMENT
MAJOR
COMPREHENSIVE PLANT ENGINEERING COMPANY, AFFILIATED TO MITSUBISHI CORP.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 14,656.4 MILLION, 30 DAYS NORMAL TERMS
Notes:
Unit in Million Yen
Forecast
(or estimated) figures for 31/03/2016fiscal term
HIGHLIGHTS
The subject
company was established on the basis of a construction division spun off from
Mitsubishi Oil Co Ltd. This is a leading comprehensive plant engineering
company with oil refining and petrochemical plants. Boasts high-level engineering technology with recognition by oil majors. Engaged in major
LNG engineering plant projects in Asia, Oceania and Near & Middle
East. Mitsubishi Corp is the top shareholder. As the firm
developed a unique dehydrogenation technology, it intends to use it for
construction and operation of
special hydrogen plants. It plans to start those businesses at Kawasaki
City by the end of the March
2016 term. It aims to win a first order for LNG plants in the US teaming up with
CB&I.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 480,979 million a 7.8% up from Yen
446,147 million in the previous term.
Construction of the ultralarge-scale LNG project and the oil refinery
progressed. The recurring profit was
posted at Yen 22,271 million and the net profit at Yen 11,029 million,
respectively, compared with Yen 22,837 million recurring profit and Yen 13,447
million net profit, respectively, a year ago.
(Apr/Jun/2015 results):
Sales Yen 125,946 million (up 43.6%), operating profit Yen 3,979 million (up
250.4%), recurring profit Yen 3,512 million (up 104.9%), net profit Yen 2,017 million (up 584.6%). (% as compared
with the corresponding period a year ago).
For the current
term ending Mar 2016 the recurring profit is projected at Yen 22,000 million
and net profit at Yen 12,000 million, respectively, on a 24.7% rise in
turnover, to Yen 600,000 million.
Filling
of ample order backlog will progress smoothly.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen
14,656.4 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jan 1948
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
570 million shares
Issued:
260,324,529 shares
Sum:
Yen 43,396 million
Major shareholders
(%):
Mitsubishi Corp (33.3), Master Trust Bank of Japan T (4.6), Japan Trustee
Services T (4.1), MUFG (3.4), Mitsubishi UFJ Trust (2.2), BNP Paribas
Securities (1.3), Meiji Yasuda Life Ins (0.8), State Street Bank & Trust
505225 (0.8), Trust & Custody Services Inv T (0.8), Japan Trustee Services
T7 (0.6); foreign owners (15.1)
No.
of shareholders: 21,246
Listed
on the S/Exchange (s) of: Tokyo
Managements: Shogo Shibuya,
pres; Keiichi Nakagaki, v pres; Hiroshi Ogawa, v pres; Masahito Kawashima,
s/mgn dir; Katsuo Nakasaka, s/mgn dir; Ryosuke Shimizu, mgn dir; Masahiko Kojima,
mgn dir; Masaji Santo, dir
Nothing detrimental is knows as to the commercial morality of
executives.
Related companies: Chiyoda Keiso, Chiyoda
Kosho, other
OPERATION
Activities: Plant engineering works:
(Sales breakdown by divisions): LNG plants
(54%), gas & electric power plants (8%), petroleum & petrochemicals
plants, general chemicals plants, social development works &
environmentally-related, others (--22%), others (16%).
Overseas
sales ratio (76%)
Clients: [Oil, LNG,
petrochemical industries] Oman LNG, Exxon Chemical Singapore, Shell Eastern
Petroleum, Tokyo Electric Power, Tokyo Gas, Teijin Polycarbonate Singapore,
Kobe Steel, Eastern Petrochemical, Yokohama City government, Nippon Shinyaku,
Esso Highlands, Bayer & Dow Chemical, Qatar Liquefied Gas Co, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsubishi Corp, Ebara Corp, Mitsubishi Heavy Ind, Nippon Steel, Fisher
Japan, Yokogawa Electric, Mitsubishi Electric, Man Turbo Machinery, Chiyoda
System Technologies, Mikuni Engineering, other.
Payment
record: Regular
Location: Business area in
Yokohama City. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mitsubishi UFJ Trust Bank (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 |
|
480,979 |
446,147 |
|
|
Cost of Sales |
435,327 |
404,685 |
|
|
|
GROSS PROFIT |
45,651 |
41,462 |
|
|
|
Selling & Adm Costs |
24,185 |
20,383 |
|
|
|
OPERATING PROFIT |
21,466 |
21,079 |
|
|
|
Non-Operating P/L |
805 |
1,758 |
|
|
|
RECURRING PROFIT |
22,271 |
22,837 |
|
|
|
NET PROFIT |
11,029 |
13,447 |
|
|
BALANCE SHEET |
|
|||
|
|
Cash |
|
31,815 |
37,868 |
|
|
Receivables |
53,840 |
73,005 |
|
|
|
Inventory |
182,855 |
127,466 |
|
|
|
Securities, Marketable |
81,499 |
107,499 |
|
|
|
Other Current Assets |
94,569 |
63,258 |
|
|
|
TOTAL CURRENT ASSETS |
444,578 |
409,096 |
|
|
|
Property & Equipment |
14,826 |
14,958 |
|
|
|
Intangibles |
19,484 |
19,509 |
|
|
|
Investments, Other Fixed Assets |
36,951 |
31,725 |
|
|
|
TOTAL ASSETS |
515,839 |
475,288 |
|
|
|
Payables |
137,652 |
145,392 |
|
|
|
Short-Term Bank Loans |
991 |
1,283 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
155,696 |
115,004 |
|
|
|
TOTAL CURRENT LIABS |
294,339 |
261,679 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
10,015 |
10,018 |
|
|
|
Reserve for Retirement Allw |
1,070 |
2,080 |
|
|
|
Other Debts |
|
2,009 |
3,480 |
|
|
TOTAL LIABILITIES |
307,433 |
277,257 |
|
|
|
MINORITY INTERESTS |
|
||
|
|
Common
stock |
43,396 |
43,396 |
|
|
|
Additional
paid-in capital |
37,112 |
37,112 |
|
|
|
Retained
earnings |
115,831 |
109,525 |
|
|
|
Evaluation
p/l on investments/securities |
7,218 |
4,920 |
|
|
|
Others |
6,253 |
4,468 |
|
|
|
Treasury
stock, at cost |
(1,405) |
(1,390) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
208,405 |
198,031 |
|
|
|
TOTAL EQUITIES |
515,839 |
475,288 |
|
|
CONSOLIDATED CASH FLOWS |
|
|||
|
|
Terms ending: |
31/03/2015 |
31/03/2014 |
|
|
|
Cash
Flows from Operating Activities |
|
-24,145 |
-17,177 |
|
|
Cash
Flows from Investment Activities |
-5,444 |
-16,796 |
|
|
|
Cash
Flows from Financing Activities |
-4,569 |
-5,249 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
113,246 |
145,303 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
||
|
|
Net
Worth (S/Holders' Equity) |
208,405 |
198,031 |
|
|
|
Current
Ratio (%) |
151.04 |
156.34 |
|
|
|
Net
Worth Ratio (%) |
40.40 |
41.67 |
|
|
|
Recurring
Profit Ratio (%) |
4.63 |
5.12 |
|
|
|
Net
Profit Ratio (%) |
2.29 |
3.01 |
|
|
|
|
Return
On Equity (%) |
5.29 |
6.79 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.89 |
|
|
1 |
Rs.100.39 |
|
Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.