MIRA INFORM REPORT

 

 

Report Date :

23.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU PULP & PAPER CORPORATION

 

 

Registered Office :

NOF Nihombashi-Honcho Bldg 8F, 2-7-1 Nihombashi-Honcho Chuoku 103-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

January 1972

 

 

Com. Reg. No.:

0100-01-037338 (Tokyo-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Wholesale, import, export of printing paper, packaging paper, paperboard, etc

 

 

No. of Employees :

171

 

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 :

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

 

ITOCHU PULP & PAPER CORPORATION

 

 

REGD NAME

 

Itochu Kami Pulp KK

 

 

MAIN OFFICE

 

NOF Nihombashi-Honcho Bldg 8F, 2-7-1 Nihombashi-Honcho Chuoku 103-0023 JAPAN

Tel: 03-3639-7111     Fax: 03-3639-9009

                       

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

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

 

 

ACTIVITIES

 

Wholesale, import, export of printing paper, packaging paper, paperboard, etc

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka, Sendai, Hiroshima

 

 

OFFICERS

 

KEN’ICHI OSHITANI, PRES        Yukihiro Ozaki, mgn dir

Ueichiro Taku, dir                       Ichiro Kurashige, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 74,364 M

PAYMENTSREGULAR   CAPITAL           Yen 500 M

TREND SLOW               WORTH            Yen 2,848 M

STARTED         1972                 EMPLOYES      171

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN PULP & PAPER, WHOLLY OWNED BY ITOCHU CORP. 

 

FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE       FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a pulp & paper sales division separated from Itochu Corp, major general trading house of Japan, Tokyo (see REGISTRATION).  This is a trading firm specializing in import, export and wholesale of printing paper, pulp & packaging paper materials, paperboard, other.  70% of the total sales account for base paper materials.  30-40% of the goods are imported from Indonesia, China, USA, Korea, Taiwan, Scandinavian countries, etc.  Stressing mfg & processing in China, with imports increasing.  Major clients are newspaper companies, printing houses, paper mills, publisher, convenience stores, other, nationwide.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 74,364 million, a 2% down from Yen 75,582 million in the previous term.  The recurring profit was posted at Yen 642 million and the net profit at Yen 246 million, respectively, compared with Yen 346 million recurring profit and Yen 121 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 650 million and the net profit at Yen 250 million, respectively, on a 3% rise in turnover, to Yen 76,500 million

 

The financial situation is considered FARI to GOOD and responsible for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:        Jan 1972

Regd No.:                  0100-01-037338 (Tokyo-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         4 million shares

Issued:                1 million shares

Sum:                   Yen 500 million

 

Major shareholders (%): Itochu Corp*(100)

 

*.. Japan’s leading trading house, Tokyo, founded 1949, listed Tokyo, Osaka, Nagoya, o Sapporo, Fukuoka S/E’s, capital Yen 202,241 million, turnover Yen 11,978,276 million, operating profit Yen 272,620 million, recurring profit Yen 341,174 million, net profit Yen 300,505 million, total assets Yen 6,433,599 million, net worth Yen 1,387,391 million, employees 79,245, pres Masahiro Okafuji

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales news print paper, printing paper, office-use   paper supplies (--50%), paperboard (17%), pulp, packaging paper & materials,          non-woven cloths, recycled waste paper, others (--33%).  

(Import/export 22%)

 

(Handling products):

 

Printing & publishing paper: high & medium quality paper, coated paper, gravure paper, thin paper, processed base paper;

 

Packaging paper: Kraft paper, bleached Kraft paper, glazed paper, rolls, metal included paper, sterilized paper, processed base paper;

 

Paperboard base paper: exterior/interior lining materials, inner core material paper;

 

Packaging & paper goods: manila board, white board, chip board, milk carton board, paperboard cases, paper containers, paper cups, paper bags, other:

 

Plastics: plastic films, plastic bags, aluminum foils;

 

Information-related & office-use paper: business forms, thermal paper, PPC base paper, other.

 

Clients: [Printing Ind, paper mills, copy machine mfrs, chain stores] Toppan Printing,      Ricoh Co, First Retailing, Ito-Yokado, Family Mart, Shueisha, Ricoh Ltd. DNP Trading, Itochu Plastics, Coca-Cola National Beverages, other.

 

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Daioh Paper, Itochu Corp, Oji Paper, Oji Paperboard, Chuetsu Pulp & Paper, , other. 

Imports from China, Indonesia, Taiwan, Korea, USA, Scandinavia, etc.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Horidome)

SMBC (Ningyocho)

Relations: Satisfactory

 

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

76,500

74,364

75,582

77,532

Recur. Profit

 

650

642

346

526

Net Profit

 

250

246

121

254

Total Assets

 

 

31,750

27,816

29,855

Current Assets

 

 

30,092

26,053

 

Current Liabs

 

 

28,691

24,456

 

Net Worth

 

 

2,848

2,723

2,645

Capital, Paid-Up

 

 

500

500

500

Div.P.Share(¥)

 

 

246.00

121.00

254.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.87

-1.61

-2.52

-12.30

    Current Ratio

 

..

104.88

106.53

..

    N.Worth Ratio

..

8.97

9.79

8.86

    R.Profit/Sales

 

0.85

0.86

0.46

0.68

    N.Profit/Sales

0.33

0.33

0.16

0.33

    Return On Equity

..

8.64

4.44

9.60

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.82.56

Euro

1

Rs.70.10

 

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.