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MIRA INFORM REPORT
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Report No. : |
487032 |
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Report Date : |
31.01.2018 |
IDENTIFICATION DETAILS
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Name : |
CHIYODA CORPORATION |
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Registered Office : |
Minatomirai Grand Central Tower, 4-6-2 Minatomirai Nishiku Yokohama 220-0012 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Jan., 1948 |
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Com. Reg. No.: |
0200-01-018029 (Yokohama-Nishiku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Plant Engineering of Oil Refining & Petrochemical Plants. |
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No. of Employees : |
1,505 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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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
*.. The given address is its Tokyo Office
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 10)
OVERSEAS
Abu Dhabi, Doha, Teheran,
Shanghai, Beijing, Jakarta, Singapore, Hague, Milan, Ulsan, India, UAE
(--subsidiaries)
FACTORIES
Kawasaki (research
center)
CHIEF
EXEC
MASAJI SANTO, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
603,745 M
PAYMENTS REGULAR CAPITAL Yen
43,396 M
TREND SLOW WORTH Yen
155,340 M
STARTED 1948 EMPLOYES 1,505
COMMENT
MAJOR
COMPREHENSIVE PLANT ENGINEERING COMPANY, AFFILIATED TO MITSUBISHI CORP.
FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
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. Pursuing structural reform
& re-growth simultaneously, in the medium term under the guidance of
President Santo, the company’s first president from Mitsubishi Corp.
FINANCIAL
INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 603,745 million a 1.28% down from Yen
611,548 million in the previous term.
The operations plunged into the deficit to post Yen 3,080 million
recurring loss and Yen 41,116 million net loss, respectively, compared with Yen
16,205 million recurring profit and Yen 3,375 million net profit, respectively,
a year ago.
For the current
term ending Mar 2018 the recurring loss is projected at Yen 8,000 million and
net profit at Yen 5,000 million, respectively, on a 17.18% fall in turnover, to
Yen 500,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Jan 1948
Regd
No.: 0200-01-018029
(Yokohama-Nishiku)
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), Northern Trust (AVFC) Silchester (3.4), MUFG (3.4),
Master Trust Bank of Japan T (3.4), Japan Trustee Services T (4.1), MUFG (3.4),
State Street Bank & Trust 505225 (1.5), other: foreign owners (21.5)
No.
of shareholders: 18,494
Listed
on the S/Exchange (s) of: Tokyo
Managements: Masaji Nagasaka,
ch: Masaji Santo, pres; Arata Sawara, v pres; Daisuke Hayashi, v pres; Masahiko
Kojima, s/mgn dir; Ryosuke Shimizu, mgn dir; Nobuyuki Uchida, dir; Nobuo
Tanaka, dir; Hiroshi Sakuma, dir; Mikio Kobayashi, 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
(69%), gas & electric power plants (2%), petroleum & petrochemicals
plants, general chemicals plants, social development works &
environmentally-related, others (--17%), others (12%).
Overseas
sales ratio (83%)
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)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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500,000 |
603,745 |
611,548 |
480,979 |
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Recur.
Profit |
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-8,000 |
-3,080 |
16,205 |
22,271 |
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Net
Profit |
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5,000 |
-41,116 |
3,375 |
11,029 |
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Total
Assets |
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461,331 |
528,219 |
515,839 |
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Current
Assets |
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425,244 |
455,030 |
444,578 |
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Current
Liabs |
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301,182 |
311,106 |
294,339 |
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Net
Worth |
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155,340 |
200,167 |
206,395 |
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Capital,
Paid-Up |
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43,396 |
43,396 |
43,396 |
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Div.Ttl
in Million (¥) |
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2,489 |
3.367 |
41.44 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-17.18 |
-1.28 |
27.15 |
7.81 |
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Current Ratio |
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.. |
141.19 |
146.26 |
151.04 |
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N.Worth Ratio |
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.. |
33.67 |
37.89 |
40.01 |
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R.Profit/Sales |
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-1.60 |
-0.51 |
2.65 |
4.63 |
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N.Profit/Sales |
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1.00 |
-6.81 |
0.55 |
2.29 |
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Return On Equity |
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.. |
-26.47 |
1.69 |
5.34 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.75 |
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1 |
INR 89.39 |
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Euro |
1 |
INR 78.75 |
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Yen |
1 |
INR 0.58 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.