MIRA INFORM REPORT

 

 

Report Date :

08.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SHINSEI PULP & PAPER CO LTD

 

 

Registered Office :

1-8 Kanda-Nishikicho Chiyodaku Tokyo 101-8451

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

March  1918

 

 

Com. Reg. No.:

0100-01-023862 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Wholesaler of printing paper, board paper, pulp

 

 

No. of Employees :

1024 employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – 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

 

SHINSEI PULP & PAPER CO LTD

 

 

REGD NAME

 

Shinsei Kami Pulp Shoji KK

 

 

MAIN OFFICE

 

1-8 Kanda-Nishikicho Chiyodaku Tokyo 101-8451 JAPAN

Tel: 03-3259-5080     Fax: 03-3233-0991

                       

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

E-Mail address:            info@sppcl.co.jp

 

 

ACTIVITIES

 

Wholesale of printing paper, board paper, pulp, other

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Toyama

 

 

OVERSEAS

 

China (3), Hong Kong, Singapore (--subsidiaries); Melbourne (rep office)

 

 

FACTORIES

 

Tokyo (3), Saitama (2), Osaka (4), Aichi (2), Fukuoka, Sapporo (2), Miyagi, Toyama (-- distribution centers)

 

 

OFFICERS

 

WAKABAYASHI, PRES Jiro Itoh, s/mgn dir

Masahiro Ishikawa, mgn dir         Hiroshi Haruno, mgn dir

Hiroyuki Takeuchi, mgn dir          Koji Ohno, mgn dir

 

Yen Amount:                 In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 305,689 M

PAYMENTS      REGULAR         CAPITAL           Yen 3,228 M

TREND             SLOW              WORTH            Yen 38,527 M

STARTED                     1918                 EMPLOYES      1,024

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN PULP & PAPER.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

                        Note: Unit: In Million Yen

                        Forecast for the 31/03/2013 fiscal term.

                       

 

HIGHLIGHTS

           

The subject company was born by the merger of Okura Miyuki Co Ltd, as the surviving body, and Okamoto Co Ltd (including its 3 subsidiaries) in Oct 2005.  The merger effected to push the subject to No.2 in the paper trading industry.  Excels in printing paper, plastic films and board paper.  Core sales agent for Nippon Paper Ind, one of two largest paper mfrs in rivalry with Oji Paper.  Clients include printing houses, publishing firms, etc.

 

The firm’s Sendai Office was damaged by the North East Japan Earthquake that occurred in Mar/2011 but not to the extent of total loss.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 305,689 million, a 3.8% down from Yen 317,030 million in the previous term.  The recurring profit was posted at Yen 4,049 million and the net profit at Yen 875 million, respectively, compared with Yen 3,614 million recurring profit and Yen 629 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 4,800 million and the net profit at Yen 2,900 million, respectively, on a 6.3% rise in turnover, to Yen 325,000 million.

 

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

 

 

REGISTRATION

 

Date Registered:             Mar 1918

Regd No.:                        0100-01-023862 (Tokyo-Chiyodaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         300 million shares

Issued:                81,265,640 shares

Sum:                   Yen 3,228 million

 

Major shareholders (%): Hokuetsu Kishu Paper Mills (10.7), Nippon Paper Ind (9.8), Tokushu Paper Mfg (4.8), Oji Paper (4.1), Showa PAXX Co (3.1), Sun-A Kaken Co (3.1)

 

No. of shareholders: 1,231

           

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

 

 

OPERATION

 

Activities: Wholesales printing paper, pulp, coated paper, board paper, packaging paper & materials (--97%), paper processing works (2%), real estate leasing (1%).

            Export: 3%.

 

Clients: [Wholesalers, printing houses, publishers] Toppan Printing, Shogakukan,                          Shueisha, Kodansha, Kadokawa Group Holdings, Kokuyo Co, Kobunsha, Dai Nippon                  Printing, Otsuka Corp, Taisei Lamick Co, other. 

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Paper mills, wholesalers] Nippon Paper, Oji Paper, Chuetsu Pulp & Paper, Hokuetsu Kishu Paper Mills, Tokushu Paper Mfg, Daio Paper, Futamura Chemical, Nippon Daishowa Paperboard Co, Toyobo Co, Kishu Paper Co, Futamura Chemical Co, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Ningyocho)

MUFG (Tokyo)

Relations: Satisfactory

 

Note: The company management has refused to provide any additional details.

 

 

FINANCIALS

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

305,689

317,830

 

  Cost of Sales

287,936

299,621

 

      GROSS PROFIT

17,753

18,209

 

  Selling & Adm Costs

13,891

14,552

 

      OPERATING PROFIT

3,861

3,657

 

  Non-Operating P/L

188

-42

 

      RECURRING PROFIT

4,049

3,614

　

      NET PROFIT

875

629

BALANCE SHEET

 

 

 

 

  Cash

　

2,563

2,419

 

  Receivables

 

105,109

101,681

 

  Inventory

 

9,942

9,118

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,512

1,557

 

      TOTAL CURRENT ASSETS

119,126

114,775

 

  Property & Equipment

21,606

22,297

 

  Intangibles

 

519

460

 

  Investments, Other Fixed Assets

18,403

18,836

 

      TOTAL ASSETS

159,654

156,368

 

  Payables

 

89,341

82,977

 

  Short-Term Bank Loans

18,639

21,529

 

　

 

　

　

 

  Other Current Liabs

2,908

4,490

 

      TOTAL CURRENT LIABS

110,888

108,996

 

  Debentures

 

800

　

 

  Long-Term Bank Loans

4,924

6,013

 

  Reserve for Retirement Allw

73

91

 

  Other Debts

　

4,441

3,329

 

      TOTAL LIABILITIES

121,126

118,429

 

      MINORITY INTERESTS

 

 

 

Common stock

3,228

3,228

 

Additional paid-in capital

1,848

1,848

 

Retained earnings

33,378

33,139

 

Evaluation p/l on investments/securities

418

(218)

 

Others

 

(44)

(53)

 

Treasury stock, at cost

(301)

(5)

 

      TOTAL S/HOLDERS` EQUITY

38,527

37,939

　

      TOTAL EQUITIES

159,654

156,368

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

5,051

4,817

 

Cash Flows from Investment Activities

-118

212

 

Cash Flows from Financing Activities

-4,756

-5,087

　

Cash, Bank Deposits at the Term End

　

2,319

2,175

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

38,527

37,939

 

 

Current Ratio (%)

107.43

105.30

 

 

Net Worth Ratio (%)

24.13

24.26

 

 

Recurring Profit Ratio (%)

1.32

1.14

 

 

Net Profit Ratio (%)

0.29

0.20

 

 

Return On Equity (%)

2.27

1.66

 

 

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.