MIRA INFORM REPORT

 

 

 

Report Date :

09.03.2013

 

IDENTIFICATION DETAILS

 

Name :

NISSHO IWAI PAPER & PULP CORP 

 

 

Registered Office :

Akasaka 1-Chome Center Bldg 11F, 1-11-30 Akasaka Minatoku Tokyo

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

July 1988

 

 

Com. Reg. No.:

 (Tokyo-Minatoku) 094513

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of printing paper, pulp, packaging materials

 

 

No. of Employees :

80

 

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 :

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

 

NISSHO IWAI PAPER & PULP CORP

 

 

REGD NAME 

 

Nissho Iwai Kami Pulp KK

 

 

MAIN OFFICE

 

Akasaka 1-Chome Center Bldg 11F, 1-11-30 Akasaka Minatoku Tokyo

107-0052 JAPAN

Tel: 03-6234-6350    

Fax: 03-6234-6360

 

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

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

 

 

ACTIVITIES

 

Import, export, wholesale of printing paper, pulp, packaging materials

 

 

BRANCHES

 

Osaka, Fukuoka

 

 

OVERSEAS

 

Germany, Indonesia, Vietnam, Hong Kong, Taiwan, Korea, USA, Canada

 

 

FACTORIES  

 

Japan Paper Technology (Vietnam) (JV mfr)

           


 

OFFICER(S)  

 

JUTOKU ABE, PRES     Katsuhisa Naya, ch

Yoshimi Miyano, s/mgn dir         Shin’ichi Matsuo, s/mgn dir

Takeshi Nakano, mgn dir            Tatsuo Koiso, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 60,552 M

PAYMENTS                  REGULAR         CAPITAL           Yen 327 M

TREND             STEADY           WORTH            Yen 2,635 M

STARTED                     1988                 EMPLOYES      80

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN PAPER & PULP, AFFILIATED WITH SOJITZ CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a pulp & paper section separated from Nissho Iwai Corp (now renamed Sojitz Corp after merger with Nichimen Corp), for marketing paper products, originally named NI Package Co Ltd.  In Apr 1992, renamed as captioned.  In Apr 2000 took over pulp & paper business from Kanematsu Corp, one of leading trading houses.  This is a trading house specializing in import, export and wholesale of paper & pulp, raw materials & products, cardboard, corrugated boards, other (See OPERATION).  Goods are imported from Canada, USA, Norway, Indonesia, Vietnam (JV factory), other.  Also exports to China, Indonesia, etc.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 60,552 million, a 6% up from Yen 57,242 million in the previous term.  Demand for used & waste paper increased from China and domestically.  Exports were brisk for industrial paper.  The recurring profit was posted at Yen 680 million and the net profit at Yen 328 million, respectively, compared with Yen 682 million recurring profit and Yen 357 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 690 million and net profit at Yen 340 million, respectively, on a 3% rise in turnover, to Yen 62,500 million.  Brisk exports continue. 

 

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

 

 

REGISTRATION

 

Date Registered:  Jul 1988

Regd No.:         (Tokyo-Minatoku) 094513

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         23,800 shares

Issued:                6,556 shares

Sum:                   Yen 327.8 million

 

Major shareholders (%): Sojitz Corp*(30.5), Rengo Co (12.2), Daio Paper (6.1),

Tokai Pulp (6.1), Kishu Paper (4.6)

 

No. of shareholders: 14

 

* Sixth-ranked general trading house, born by the merger of former Nissho Iwai Corp & Nichimen Corp in 2003, listed Tokyo S/E, capital Yen 160,339 million, sales Yen 4,494,237 million, operating profit Yen 64,522 million, recurring profit Yen 62,228 million, net loss Yen 3,649 million, total assets Yen 2,006,513 million, net worth Yen 290,207 million, employees 16,467, pres Yuji Sato

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales printing paper (29%), pulp (20%), paper boards (36%), raw paper materials (including used/waste paper) (13%), others (2%).     (Import 70%, export 30%)

 

(Handling Items):

 

Waste Paper: recovered paper, office paper, printed/unprinted paper;

 

Printing Paper: newsprint, wood free paper, mechanical paper, ground wood paper, coated paper, LWC & lightly coated paper, colored wood free paper, other printing & communication paper;

 

Pulp: paper pulp, fluff pulp, chemical pulp;

 

Industrial Paper: Kraft paper, MG poster paper, paper carton, paper cup, paper bag & paper tube, metal/glass interleaving paper & other industrial paper, synthetic paper, cellophane, other packaging & wrapping paper;

 

Packaging Paper: corrugated sheet & container, linerboard, corrugating medium, boxboard, cupboard, other paperboards.

 

Clients: [Printing houses, paper dealers] Rengo Co (4.9%), Kami Shoji Corp (4%), Livedo Corp (3.2%), Gold Shoji Co (3.1%) Oji Paper, Oji Container, Japan Pulp & Paper, Toppan Printing, Kodansha, Kyodo Printing, Lee & Man Paper, other.

Exports to China, Indonesia, other S/E Asian countries.

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] International Paper (Canada), Oji Inter Pack, Oji Paper, Japan Pulp & Paper, Daio Paper, Kishu Paper, Otsu Itagami Co, other. 

Imports from Norske Skog (Canada), other from USA, Norway, Indonesia, Vietnam, etc.

 

Payment record: Regular

 

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

 

Bank References:

Norin Chukin Bank (H/O)

MUFG (Tokyo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

62,500

60,552

57,242

47,898

Recur. Profit

 

690

680

682

524

Net Profit

 

340

328

357

229

Total Assets

 

 

21,668

21,599

18,891

Current Assets

 

 

19,952

19,970

17,285

Current Liabs

 

 

17,137

17,392

15,530

Net Worth

 

 

2,635

2,337

2,024

Capital, Paid-Up

 

 

327

327

327

Div.P.Share(¥)

 

 

5.20

5.20

5.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.22

5.78

19.51

-11.34

    Current Ratio

 

..

116.43

114.82

111.30

    N.Worth Ratio

..

12.16

10.82

10.71

    R.Profit/Sales

 

1.10

1.12

1.19

1.09

    N.Profit/Sales

0.54

0.54

0.62

0.48

    Return On Equity

..

12.45

15.28

11.31

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

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.40

UK Pound

1

Rs.81.57

Euro

1

Rs.71.24

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.