|
Report Date : |
02.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
NIPPON PAPER INDUSTRIES CO LTD |
|
|
|
|
Registered Office : |
1-2-2 Hitotsubashi Chiyodaku Tokyo
100-0003 |
|
|
|
|
Country : |
Japan |
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|
|
|
Financials (as on) : |
31.03.2012 |
|
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Date of Incorporation : |
August 1949 |
|
|
|
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Com. Reg. No.: |
(Tokyo-Chiyodaku)
009422 |
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|
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Legal Form : |
Limited Company |
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|
|
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Line of Business : |
Manufacturer of paper &
pulp |
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|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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
NIPPON PAPER INDUSTRIES CO LTD
Nippon Seishi KK
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)
Mfg of
paper & pulp
Tokyo,
Osaka, Nagoya, other (Tot10)
At the
caption address, Osaka, Kushiro, Ishinomaki, Fuji, other (tot 10)
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
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
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
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.
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.
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.
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
|
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) |
|
|||||
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Terms Ending: |
31/03/2012 |
31/03/2011 |
||
|
INCOME STATEMENT |
|
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||||
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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 |
|||
|
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OPERATING PROFIT |
36,524 |
35,608 |
|||
|
|
Non-Operating P/L |
-30,467 |
-4,009 |
|||
|
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RECURRING PROFIT |
6,057 |
31,599 |
|||
|
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NET PROFIT |
-41,675 |
-24,172 |
|||
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BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
119,363 |
104,826 |
||
|
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Receivables |
|
205,182 |
210,750 |
||
|
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Inventory |
|
154,897 |
141,356 |
||
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Securities, Marketable |
|
|
|||
|
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Other Current Assets |
66,902 |
58,460 |
|||
|
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TOTAL CURRENT ASSETS |
546,344 |
515,392 |
|||
|
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Property & Equipment |
752,501 |
798,482 |
|||
|
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Intangibles |
|
23,789 |
25,974 |
||
|
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Investments, Other Fixed Assets |
205,001 |
220,744 |
|||
|
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TOTAL ASSETS |
1,527,635 |
1,560,592 |
|||
|
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Payables |
|
127,975 |
110,078 |
||
|
|
Short-Term Bank Loans |
212,231 |
272,788 |
|||
|
|
|
|
|
|
||
|
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Other Current Liabs |
157,571 |
167,419 |
|||
|
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TOTAL CURRENT LIABS |
497,777 |
550,285 |
|||
|
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Debentures |
|
48,000 |
68,000 |
||
|
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Long-Term Bank Loans |
555,724 |
461,923 |
|||
|
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Reserve for Retirement Allw |
29,274 |
31,237 |
|||
|
|
Other Debts |
|
30,208 |
40,384 |
||
|
|
TOTAL LIABILITIES |
1,160,983 |
1,151,829 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
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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.54.48 |
|
UK Pound |
1 |
Rs.82.72 |
|
Euro |
1 |
Rs.71.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.