MIRA INFORM REPORT

 

 

 

 

Report Date :

08.12.2012

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI HEAVY INDUSTRIES PRINTING & PACKAGING MACHINERY LTD

 

 

Registered Office :

1-1-1 Itozaki-Minami Mihara Hiroshima-Pref 729-0329

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

April 2010

 

 

Com. Reg. No.:

(Hiroshima-Mihara) 040326

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of printing press

 

 

No. of Employees :

950 employees

 

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 637.0 million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

Company name

 

MITSUBISHI HEAVY INDUSTRIES PRINTING & PACKAGING MACHINERY LTD

 

 

REGD NAME

 

Mitsubishi Jyuko Insatsu Shiko Kikai KK

 

 

MAIN OFFICE

 

1-1-1 Itozaki-Minami Mihara Hiroshima-Pref 729-0329 JAPAN

Tel: 0848-67-2068     

                                               

URL:                 http://www.mhi-ppm.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of printing press

 

 

BRANCHES   

 

Tokyo, Osaka, Sapporo, Nagoya, Sendai, Niigata, Saitama , other (Tot 16)l

 

 

OVERSEAS   

 

USA, Europe, Canada, China (3), India, other

 

 

FACTORIES

 

At the caption address

 

OFFICERS

 

MASAMI SHIMIZU, PRES

Yuzuru Kazumasa, rep dir                                                         

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 43,574 M

PAYMENTS                  Slow but Correct  CAPITAL           Yen 10,000 M

TREND             UP                                WORTH            Yen 11,870 M

STARTED                     2010                             EMPLOYES      950

 

 

COMMENT

 

MFR OF PRINTING PRESS, WHOLLY OWNED BY MITSUBISHI HEAVY IND.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 637.0 MILLION, 30 DAYS NORMAL TERMS

                       

 

HIGHLIGHTS

           

The subject company was established originally in 2004 on the basis of a division separated from Mitsubishi Heavy Industries Ltd (See REGISTRATION).   And was reorganized in 2010 by merging sister companies.  This is a specialized mfr of printing press and packaging machines.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 43,574 million, a 17% up from Yen 37,199 million in the previous term.  A portion of business operations was transferred from the group firms.  The operations came back to profitability to post Yen 1,262 million recurring profit and Yen 690 million net profit, respectively, compared with Yen 1,957 million recurring loss and Yen 4,144 million net loss, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 1,300 million and the net profit at Yen 700 million, respectively, on a 3% rise in turnover, to Yen 44,800 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 637.0 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Apr 2010

Regd No.:         (Hiroshima-Mihara) 040326

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800,000 shares

Issued:               200,000 shares

Sum:                   Yen 10,000 million

Major shareholders (%): Mitsubishi Heavy Machinery Ltd* (100)

 

*.. Nation’s largest comprehensive heavy machinery mfr, Tokyo, founded 1950, listed Tokyo, Osaka, Nagoya, Sapporo S/E’s, capital Yen 265,608 million, sales Yen 2,820,932 million, operating profit Yen 111,961 million, recurring profit Yen 86,182 million, net profit Yen 24,540 million, total assets Yen 3,963,987 million, net worth Yen 1,306,366 million, employees 68,509, pres Hideaki Ohmiya

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

           

Activities: Manufactures printing presses (sheet fed offset presses), paper converting machines (corrugating machinery, box making machines), other (--100%).

 

Clients: [Mfrs, wholesalers] MHI Finance, International Pulp & Paper, Nippon Pulp & Paper, Rengo Co, Dynapac Co, DNP Nishinippon, Toppan Printing, Mainichi Newspaper, Nikkei Inc, Yomiuri Newspaper Group, other

            No. of accounts: 600

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Heavy Industries Transportation Equipment Engineering & Service Co, NSK Ltd, Mitsubishi Electric Co, other

 

Payment record: Slow but Correct

 

Location: Business area in Mihara, Hiroshima-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Fukuyama)

SMBC (Shinjuku)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

　

44,800

43,574

37,199

17,340

Recur. Profit

　

1,300

1,262

-1,957

-25

Net Profit

　

700

690

-4,144

-605

Total Assets

　

　

57,697

59,629

15,287

Current Assets

　

　

48,581

46,931

11,933

Current Liabs

　

　

25,405

27,382

9,016

Net Worth

　

　

11,870

11,227

3,459

Capital, Paid-Up

　

　

10,000

10,000

1,000

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.81

17.14

114.53

-14.94

    Current Ratio

 

..

191.23

171.39

132.35

    N.Worth Ratio

..

20.57

18.83

22.63

    R.Profit/Sales

 

2.90

2.90

-5.26

-0.14

    N.Profit/Sales

1.56

1.58

-11.14

-3.49

    Return On Equity

..

5.81

-36.91

-17.49

 

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

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, MITSUBISHI HEAVY INDUSTRIES LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,820,932

2,903,770

 

  Cost of Sales

2,375,158

2,461,857

 

      GROSS PROFIT

445,774

441,913

 

  Selling & Adm Costs

333,812

340,693

 

      OPERATING PROFIT

111,961

101,219

 

  Non-Operating P/L

-25,779

-33,108

 

      RECURRING PROFIT

86,182

68,113

　

      NET PROFIT

24,540

30,117

BALANCE SHEET

 

 

 

 

  Cash

　

262,287

301,047

 

  Receivables

 

958,064

852,645

 

  Inventory

 

1,053,342

1,116,205

 

  Securities, Marketable

1

8

 

  Other Current Assets

　

　

 

      TOTAL CURRENT ASSETS

2,639,003

2,575,613

 

  Property & Equipment

797,584

861,528

 

  Intangibles

 

25,313

25,165

 

  Investments, Other Fixed Assets

　

　

 

      TOTAL ASSETS

3,963,987

3,989,001

 

  Payables

 

651,101

619,107

 

  Short-Term Bank Loans

152,344

85,488

 

　

 

　

　

 

  Other Current Liabs

　

　

 

      TOTAL CURRENT LIABS

1,714,695

1,534,070

 

  Debentures

 

250,000

330,000

 

  Long-Term Bank Loans

553,189

684,989

 

  Reserve for Retirement Allw

47,002

49,842

 

  Other Debts

　

　

　

 

      TOTAL LIABILITIES

2,657,621

2,676,322

 

      MINORITY INTERESTS

 

 

 

Common stock

265,608

265,608

 

Additional paid-in capital

203,942

203,939

 

Retained earnings

822,473

815,145

 

Evaluation p/l on investments/securities

22,082

25,579

 

Others

 

　

　

 

Treasury stock, at cost

22,082

25,579

 

      TOTAL S/HOLDERS` EQUITY

1,306,366

1,312,678

　

      TOTAL EQUITIES

3,963,987

3,989,001

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

200,361

337,805

 

Cash Flows from Investment Activities

-47,047

-137,248

 

Cash Flows from Financing Activities

-183,614

-169,793

　

Cash, Bank Deposits at the Term End

　

254,605

288,868

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

1,306,366

1,312,678

 

 

Current Ratio (%)

153.91

167.89

 

 

Net Worth Ratio (%)

32.96

32.91

 

 

Recurring Profit Ratio (%)

3.06

2.35

 

 

Net Profit Ratio (%)

0.87

1.04

 

 

Return On Equity (%)

1.88

2.29

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.20

UK Pound

1

Rs.86.99

Euro

1

Rs.70.22

 

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.