MIRA INFORM REPORT

 

 

Report Date :           

29.02.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

NIPPON CARGO AIRLINES CO LTD

 

 

Registered Office :

Onarimon Yusen Bldg 6F 3-23-5 Nishishimbashi Minatoku Tokyo 105-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

September 1978

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Scheduled & non-scheduled air cargo transport services

 

 

No. of Employees :

588

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Poor

Payment Behaviour :

Unknown

Litigation :

--

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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 CARGO AIRLINES CO LTD

 

 

REGD NAME

 

Nihon Kamotsu Kouku KK

 

 

MAIN OFFICE

 

Onarimon Yusen Bldg 6F 3-23-5 Nishishimbashi Minatoku Tokyo 105-0003, JAPAN

Tel: 03-5402-3003     Fax: 03-5402-1808

 

*.. MAIN OPERATION CENTER: Cargo Administration Bldg 4F, New Tokyo International Airport, Narita City Chiba-Pref 282-0021,

                       

URL:                             http://www.nca.aero/

E-Mail address:                        info@nca.aero

 

 

ACTIVITIES  

 

Scheduled & non-scheduled air cargo transport services

 

 

BRANCHES

 

Narita Airport, Kansai Airport, Central Japan Airport

 

 

OVERSEAS

 

New York, Boston, Chicago, Atlanta, Anchorage, San Francisco, Los Angeles; Hong Kong, Singapore, Bangkok, Bangkok Airport, Seoul, Seoul Airport, Shanghai, Shanghai Airport; Amsterdam, Frankfurt, Milan

 

 

WAREHOUSE

 

Narita New Tokyo Int’l Airport, Kansai Int’l Airport, Central Japan Int’l Airport, New York, San Francisco, Chicago, Boston, Atlanta, Amsterdam, Milan, Boston, Atlanta; Amsterdam, Milan, Frankfurt; Hong Kong, Bangkok, Singapore, Shanghai (-- all Airports)

OFFICERS

 

TETSUFUMI OTSUKI, PRES      Koji Miyahara, ch

Takuzo Nomura, s/mgn dir          Fukashi Sakamoto, s/mgn dir

Yoshimasa Sekiguchi, mgn dir    Takeshi Naka, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    R/WEAK           A/SALES          Yen 87,234 M

PAYMENTS                  Unknown       CAPITAL           Yen 50,574 M

TREND             SLOW              WORTH            Yen (-) 54,076 M

STARTED                     1978                 EMPLOYES      588

 

 

COMMENT

 

AIR CARGO TRANSPORT SERVICE PROVIDER, OWNED BY NIPPON YUSEN KK.

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN (-) 4,933.1 MILLION, 30 DAYS NORMAL TERMS.   NEGATIVE NET WORTH AND

ANY CREDITS ARE RECOMMENDED ON SECURED TERMS FROM THE PARENT, NIPPON YUSEN KAISHA LTD.

           

 

HIGHLIGHTS

           

The subject company was established by five companies: Kawasaki Kisen KK, Nippon Yusen KK, Yamashita-Shinnihon KK, Mitsui OSK Lines and All Nippon Airways in order to advance into air cargo transport services.  In Aug 1983, granted license for scheduled air cargo transportation from the then Ministry of Transport.  Offers scheduled and non-scheduled air  cargo transport services around the world, having 21 locations: Japan (3), USA (7), Asia (8), Europe (3), including airport offices.  Operates 8 Boeing 747-400Fs fleet, servicing to and from these areas.  In 2005, became financially consolidated subsidiary of Nippon Yusen KK. 

 

 

FINANCIAL INFORMATION

 

                        Notes: Forecast figures for the 31/03/2012 fiscal term

 

The sales volume for Mar/2011 fiscal term amounted to Yen 87,234 million, a 39.4% up from Yen 62,578 million in the previous term.  Sales increased in all areas.  The operations came back to profitability to post Yen 7,891 million recurring profit and Yen 11,189 million net profit, respectively, compared with Yen 14,949 million recurring loss and Yen 17,736 million net losses, respectively, a year ago.

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 8,000 million and the net profit at Yen 11,500 million, respectively, on an 8.9% rise in turnover, to Yen 95,000 million.

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen (-) 4,933.1 million, on 30 days normal terms.  Negative net worth and any credits to be recommended on strictly secured terms from the parent, Nippon Yusen KK.

 

 

REGISTRATION

 

Date Registered:  Sept 1978

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         4.8 million shares

Issued:                1,590,373,000 shares

Sum:                   Yen 50,574 million

 

Major shareholders (%): Company’s Treasury Stock (66.4), Nippon Yusen KK*(33.6),

 

No. of shareholders:  2

 

*.. Nippon Yusen KK, Japan’s largest shipping company with century-old history, Tokyo,     founded 1885, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 144,319 million, turnover  Yen 1,929,169 million, recurring profit Yen 114,165 million, net profit Yen 78,535 million, Total assets Yen 2,045,997 million, net worth Yen 614,048 million, employees 28,361, pres Yasumi Kudo

 

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

 

 

OPERATION

 

Activities: Air cargo transport service provider, offering scheduled and non-scheduled air cargo transport services, operating 11 air cargo crafts, with warehousing facilities at            major international airports worldwide (--100%).

 

Operating aircrafts: Eight Boeing 747-400Fs

 

Overseas Sales Ratio (62.2%): North America 15.5%, Europe 6.1%, Asia 38.6%

 

Clients: [Air freight forwarders, cargo owners] Nippon Express (7.7%), Kintetsu World Express, MO Air System, Hankyu Express International, Alitalia, other.   

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Oil refineries, mfrs, wholesalers] Nippon Oil Corp, NYK Lines, KLM, Kin tetsu Express, other.

 

Payment record: Unknown

 

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

 

Bank References:

·         Mizuho Corporate Bank (H/O)

·         Norin Chukin Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

87,234

62,578

 

  Cost of Sales

65,267

62,986

 

      GROSS PROFIT

21,967

-407

 

  Selling & Adm Costs

13,285

14,718

 

      OPERATING PROFIT

8,681

-15,125

 

  Non-Operating P/L

-790

176

 

      RECURRING PROFIT

7,891

-14,949

　

      NET PROFIT

11,189

-17,736

BALANCE SHEET

 

 

 

 

  Cash

　

1,174

1,072

 

  Receivables

 

8,152

7,199

 

  Inventory

 

746

861

 

  Securities, Marketable

　

　

 

  Other Current Assets

4,000

4,541

 

      TOTAL CURRENT ASSETS

14,072

13,673

 

  Property & Equipment

44,286

44,915

 

  Intangibles

 

246

279

 

  Investments, Other Fixed Assets

1,017

4,574

 

      TOTAL ASSETS

59,621

63,441

 

  Payables

 

7,077

9,071

 

  Short-Term Bank Loans

1,343

1,648

 

　

 

　

　

 

  Other Current Liabs

88,690

101,083

 

      TOTAL CURRENT LIABS

97,110

111,802

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

682

202

 

  Reserve for Retirement Allw

408

380

 

  Other Debts

　

15,498

12,572

 

      TOTAL LIABILITIES

113,698

124,956

 

      MINORITY INTERESTS

 

 

 

Common stock

50,574

50,574

 

Additional paid-in capital

28,974

28,974

 

Retained earnings

(118,770)

(129,960)

 

Evaluation p/l on investments/securities

(2)

(1)

 

Others

 

(14,852)

(11,101)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

(54,076)

(61,514)

　

      TOTAL EQUITIES

59,621

63,441

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

3,337

-18,417

 

Cash Flows from Investment Activities

3,300

6,654

 

Cash Flows from Financing Activities

-6,404

11,703

　

Cash, Bank Deposits at the Term End

　

1,174

1,072

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

(54,076)

(61,514)

 

 

Current Ratio (%)

14.49

12.23

 

 

Net Worth Ratio (%)

-90.70

-96.96

 

 

Recurring Profit Ratio (%)

9.05

-23.89

 

 

Net Profit Ratio (%)

12.83

-28.34

 

 

Return On Equity (%)

-20.69

28.83

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.14

UK Pound

1

Rs.77.86

Euro

1

Rs.66.06

 

 

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.