MIRA INFORM REPORT

 

 

Report Date :

23.08.2012

 

IDENTIFICATION DETAILS

 

Name :

NIPPON PAPER INDUSTRIES CO LTD

 

 

Registered Office :

1-2-2 Hitotsubashi Chiyodaku Tokyo 100-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

August 1949

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 009422

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of paper & pulp

 

 

No. of Employees :

3,650

 

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

 

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name

 

NIPPON PAPER INDUSTRIES CO LTD

 

 

REGD NAME

 

Nippon Seishi KK

 

 

MAIN OFFICE

 

1-2-2 Hitotsubashi Chiyodaku Tokyo 100-0003 JAPAN

Tel: 03-6685-1111     Fax: 03-6665-3001

 

URL:                 www.np-g.com

E-mail:             (thru the URL)   

 

 

ACTIVITIES

 

Mfg of paper & pulp

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, other (Tot10)

 

 

FACTORIES

 

At the caption address, Osaka, Kushiro, Ishinomaki, Fuji, other (tot 10)

 

 

OFFICER(S)  

 

YOSYIO HAGA, PRES              Tsuyoshi Yamashita, v pres

Masaru Motomura, s/mgn dir     Hidetsugu Yamada, s/mgn dir

Fumio Manoshiro, mgn dir         Isamu Harada, mgn dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 467,342 M

PAYMENTS      No Complaints          CAPITAL           Yen 104,873 M

TREND             SLOW                           WORTH            Yen 216,533 M

STARTED                     1949                             EMPLOYES      3,650

 

 

COMMENT

 

MFG OF. PULP & PAPER, OWNED BY NIPPON PAPER GROUP INC

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$1,000,000 / O/A 60DAYS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1949 and in 2001 formed a holding company, Nippon Paper Group Inc, and became its wholly owned subsidiary.  This is the core company in the group firms, specializing in mfg pulp & paper.  Good are both imported and exported.  Two factories in Miyagi-Pref were hurt and damaged by the North Japan Earthquake & Tsunami that hit the area on 11/03/2011.  Clients are paper industries, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 467,342 million, an 11% down from Yen 527,019 million in the previous term., as its two factories (Ishinomaki & Nakoso in Miyagi-Pref) were damaged by the said Earthquake in March.  Recurring profit was posted at Yen 18,842 million, but the bottom end registered Yen 46,945 million net losses coming from the extraordinary losses relating to the Earthquake: Yen 19,000 million damage losses, Yen 23,500 million restructuring costs and investment losses of Yen 32,300 million.  This compares with Yen 7,823 million recurring profit and Yen 36,439 million net losses, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 20,000 million, respectively, on a 4% rise in turnover, to Yen 486,000 million.  Complete operation resumption at quake-damaged plants will result in volume growth Ishinomaki Plant and others in May/Sept 2012.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Aug 1949

Regd No.:        (Tokyo-Chiyodaku) 009422

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:        830 million shares

Issued:               209,746 shares

Sum:                  Yen 104,873 million

Major shareholders (%): Nippon Paper Group Inc* (100)

 

*.. Holding company formed in Mar 2001 via business combination between Nippon Paper Ind & Daishowa Paper Mfg, one of 2 largest companies in paper industry, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 55,730 million, sales Yen 1,042,436 million, operating profit Yen 36,524 million, recurring profit Yen 6,057 million, net losses Yen 41,675 million, employees 17,407, pres Yoshio Haga, concurrently

Consolidated Financials are attached (See SUPPLEMENTS)

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Manufactures paper & pulp: newsprint, printing & writing paper, business communication paper & industrial paper, paper for telephone directories, thermal paper, other (--100%).

 

Clients: [Mfrs, wholesalers] NP Trading Co, Shinsei Pulp & Paper Co, Kokusai Pulp & Paper Co, Asahi Newspaper, Yomiuri Newspaper, Daishowa Paper Mfg Ind, OG Corp, other,

No. of accounts: 1000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] North Pacific Paper Corp, NP Trading Co, Nippon Paper Lumber Co, Hokuetsu Kishu Paper, Nippon Daishowa paperboards Co, other  .

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANcIALS

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

486,000

467,342

527,019

546,398

Recur. Profit

 

20,000

18,842

7,823

15,179

Net Profit

 

20,000

-46,945

-36,439

16,310

Total Assets

 

 

1,270,034

1,311,898

1,257,303

Current Assets

 

 

556,589

536,660

502,337

Current Liabs

 

 

417,886

478,681

368,311

Net Worth

 

 

216,533

258,997

311,258

Capital, Paid-Up

 

 

104,873

104,873

104,873

Div.Ttl in million (¥)

 

 

0.00

13,508

10,806

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.99

-11.32

-3.55

-12.76

    Current Ratio

 

..

133.19

112.11

136.39

    N.Worth Ratio

..

17.05

19.74

24.76

    R.Profit/Sales

 

4.12

4.03

1.48

2.78

    N.Profit/Sales

4.12

-10.05

-6.91

2.99

    Return On Equity

..

-21.68

-14.07

5.24

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term. 

 

 

SUPPLEMENTS:

 

CONSOLIDATED FINANCIALS OF THE PARENT, NIPPON PAPER GROUP INC

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

1,042,436

1,099,817

 

  Cost of Sales

803,653

854,238

 

      GROSS PROFIT

238,783

245,579

 

  Selling & Adm Costs

202,259

209,970

 

      OPERATING PROFIT

36,524

35,608

 

  Non-Operating P/L

-30,467

-4,009

 

      RECURRING PROFIT

6,057

31,599

 

      NET PROFIT

-41,675

-24,172

BALANCE SHEET

 

 

 

 

  Cash

 

119,363

104,826

 

  Receivables

 

205,182

210,750

 

  Inventory

 

154,897

141,356

 

  Securities, Marketable

 

 

 

  Other Current Assets

66,902

58,460

 

      TOTAL CURRENT ASSETS

546,344

515,392

 

  Property & Equipment

752,501

798,482

 

  Intangibles

 

23,789

25,974

 

  Investments, Other Fixed Assets

205,001

220,744

 

      TOTAL ASSETS

1,527,635

1,560,592

 

  Payables

 

127,975

110,078

 

  Short-Term Bank Loans

212,231

272,788

 

 

 

 

 

 

  Other Current Liabs

157,571

167,419

 

      TOTAL CURRENT LIABS

497,777

550,285

 

  Debentures

 

48,000

68,000

 

  Long-Term Bank Loans

555,724

461,923

 

  Reserve for Retirement Allw

29,274

31,237

 

  Other Debts

 

30,208

40,384

 

      TOTAL LIABILITIES

1,160,983

1,151,829

 

      MINORITY INTERESTS

 

 

 

Common stock

55,730

55,730

 

Additional paid-in capital

266,252

266,254

 

Retained earnings

50,849

95,014

 

Evaluation p/l on investments/securities

1,866

(6,873)

 

Others

 

(6,738)

(67)

 

Treasury stock, at cost

(1,307)

(1,296)

 

      TOTAL S/HOLDERS` EQUITY

366,652

408,762

 

      TOTAL EQUITIES

1,527,635

1,560,592

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

60,114

115,454

 

Cash Flows from Investment Activities

-46,626

-93,467

 

Cash Flows from Financing Activities

1,652

59,053

 

Cash, Bank Deposits at the Term End

 

119,265

104,739

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

366,652

408,762

 

 

Current Ratio (%)

109.76

93.66

 

 

Net Worth Ratio (%)

24.00

26.19

 

 

Recurring Profit Ratio (%)

0.58

2.87

 

 

Net Profit Ratio (%)

-4.00

-2.20

 

 

Return On Equity (%)

-11.37

-5.91

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.51

UK Pound

1

Rs.87.60

Euro

1

Rs.69.17

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.