MIRA INFORM REPORT

 

 

Report Date :

07.01.2012

 

IDENTIFICATION DETAILS

 

Name :

JAPAN AIRLINES CO LTD

 

 

Registered Office :

Nomura Fudosan Tennoji Bldg, 2-4-11 Higashi-Shinagawa Shinagawaku Tokyo

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Year of Establishment :

December 1952

 

 

Com. Reg. No.:

0107-01-007666 (Tokyo-Shinagawaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Airline operator (domestic & international)

 

 

No. of Employees :

16,221

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 218,234 Million

Status :

Moderate

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 – September 30, 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 and address

 

JAPAN AIRLINES CO LTD

REGD NAME:    KK Nihon Kohku (Kohku means airways) International

MAIN OFFICE:  Nomura Fudosan Tennoji Bldg, 2-4-11 Higashi-Shinagawa Shinagawaku Tokyo

                                    40-8605 JAPAN

Tel: 03-5460-3121     Fax: 03-5460-3936

 

URL:                 http://www.jal.com/

E-Mail address: info@jal.com

 

 

ACTIVITIES  

 

Airline operator (domestic & international)

 

BRANCHES

 

Domestic (46), overseas (60) (Tot 106 as of Mar/09)

 

 

EXECUTIVES

 

Kazuo Inamori, ch                      MASARU ONISHI, PRES

Hisao Taguchi, v pres                 Yasuhiro Omura, s/mgn dir

Chihiro Tamura, s/mgn dir           Hirohide Kamikawa, dir

*.. All newly appointed on 19/01/2009

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    R/WEAK                       A/SALES          Yen 383,021 M

PAYMENTS                  NO COMPLAINTS          CAPITAL           Yen 181,352 M

TREND             SLOW                          WORTH            Yen 218,234 M

STARTED                     2002                             EMPLOYES      16,221

 

                                               

COMMENT    

 

AIRLINE OPERATOR. 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE                                   

GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 218,234 MILLION, ON 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established originally in Oct 1952 as a private company and was reorganized in Oct 1953 as a government-owned company according to the Japan Airlines Law.  In Nov 1987, the government stake (then 34%) was entirely sold off and the firm was privatized.  In Oct 2002, when the firm (JAL) integrated with Japan Air System (JAS, domestic flights operator), the group formed a holding company, Japan Airline Corporation.  The subject changed the corporate name to Japan Airlines International Co Ltd in Apr 2004.  This is the nation’s largest airline company, vying with All Nippon Airways (ANA).  The amalgamation with JAS bred strife in management over the safety operations and series of safety troubles followed.  This led to the decrease in domestic passenger who fled to ANA.  The firm declared bankruptcy on 19/Jan/2010 and filed protection under the Corporate Rehabilitation Law to the Tokyo District Court the same day.

(Bankruptcy and Filing Procedures): On 19/01/2010: Japan Airlines Corp, Japan Airlines International Corp & JAL Capital Co Ltd jointly filed rescue & protection proceedings under the Corporate Rehabilitation Law to the Tokyo District Court.  The Court rendered decision to commence the reorganization proceedings on the same day.  The liabilities of Japan Airlines International Co Ltd are reported at: Yen 1,527,919 million.  All the executives resigned the same day.  The same day, ETIC (Enterprise Turnaround Initiative Corp declared to provide support to JAL companies.  The court approved and concluded on 28/03/2011.

On 25/06/2010: Japan Airlines Corp declared to amalgamate two firms, Japan Airlines International Corp & JAL Capital Co Ltd, into one entity in order to streamline operations, including cumulating the assets & credits, and facilitation of debts cutback negotiations.

 

FINANCIAL INFORMATION

 

            Financials for 01/12/2010 and 31/03/2011 fiscal term are reportedly amounted to 383,021 million.  The recurring profit was posted at Yen 42,041 million and the net profit at Yen 621,973 million.  The profits include extraordinary profits of Yen 583,707 million from the exemption of liabilities.   

 

(Apr/Sept/2011 results): sales Yen 599,873 million, operating profit Yen 106,174 million, recurring profit Yen 103,131 million, net profit Yen 97,414 million.  Total assets are reported at Yen 1,229,949 million and the net worth at Yen 309,196 million.

 

For the current term ending Mar 2012 the operating profit is projected at Yen 140,000 million, recurring profit at Yen 130,000 million and the net profit at Yen 120,000 million, on a sales turnover at Yen 1,150,000 million.

 

The financial situation is considered RATHER WEAK but should be good for ORDINARY business engagements.  Max credit limit is estimated at Yen 218,234 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Dec 1952

Regd No.:             0107-01-007666 (Tokyo-Shinagawaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         6,000 million shares

Issued:                1,982,383,250 shares

Sum:                   Yen 100,000 million

Major shareholders (%): Enterprise Turnaround Initiative Corporation of Japan (100).

 

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

 

 

OPERATION

 

Activities: Airline operator, providing scheduled & non scheduled air transport services, air cargo transport services, aircraft maintenance services, and the related services (100%).

 

Clients: JTB, Jal Pack, Kinki Nippon Tourist, HIS, governments, passengers, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: Fuyo General Lease Co, IBJ Leasing Co, Mitsui Sumitomo Finance & Lease, Showa Shell Sekiyu, JX Nippon Energy & Oil Corp, Cosmo Oil, other.

 

Payment record: No Complaints

 

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

 

Bank References:

Mizuho Corporate Bank (H/O)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2011

INCOME STATEMENT

 

 

  Annual Sales

　

383,021

 

  Cost of Sales

288,947

 

      GROSS PROFIT

94,074

 

  Selling & Adm Costs

52,859

 

      OPERATING PROFIT

41,215

 

  Non-Operating P/L

826

 

      RECURRING PROFIT

42,041

　

      NET PROFIT

621,073

BALANCE SHEET

 

 

 

  Cash

　

352,886

 

  Receivables

 

110,092

 

  Inventory

 

26,179

 

  Securities, Marketable

12

 

  Other Current Assets

63,805

 

      TOTAL CURRENT ASSETS

552,974

 

  Property & Equipment

507,451

 

  Intangibles

 

51,949

 

  Investments, Other Fixed Assets

94,143

 

      TOTAL ASSETS

1,206,517

 

  Payables

 

131,306

 

  Short-Term Bank Loans

840

 

　

 

　

 

  Other Current Liabs

210,735

 

      TOTAL CURRENT LIABS

342,881

 

  Debentures

 

　

 

  Long-Term Bank Loans

250,426

 

  Reserve for Retirement Allw

152,699

 

  Other Debts

　

242,277

 

      TOTAL LIABILITIES

988,283

 

      MINORITY INTERESTS

 

 

Common stock

181,352

 

Additional paid-in capital

189,901

 

Retained earnings

(166,910)

 

Evaluation p/l on investments/securities

(767)

 

Others

 

14,658

 

Treasury stock, at cost

　

 

      TOTAL S/HOLDERS` EQUITY

218,234

　

      TOTAL EQUITIES

1,206,517

ANALYTICAL RATIOS            Terms ending:

31/03/2011

 

 

Net Worth (S/Holders' Equity)

218,234

 

 

Current Ratio (%)

161.27

 

 

Net Worth Ratio (%)

18.09

 

 

Recurring Profit Ratio (%)

10.98

 

 

Net Profit Ratio (%)

162.15

 

 

Return On Equity (%)

284.59

Notes: Financials are for the period from 01/12/2010 till 31/03/2011.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.78

UK Pound

1

Rs.81.79

Euro

1

Rs.67.46

 

 

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.