MIRA INFORM REPORT

 

 

Report Date :

10.02.2014

 

IDENTIFICATION DETAILS

 

Name :

CHUETSU PULP & PAPER CO LTD

 

 

Registered Office :

282 Yonejima Takaoka City Toyama-Pref 933-8533

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

February 1947

 

 

Com. Reg. No.:

0100-01-034877

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures of paper/pulp and paper processed products, paper processed products

 

 

No. of Employees :

1,644

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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 and address

 

CHUETSU PULP & PAPER CO LTD

 

REGD NAME:    Chuetsu Pulp Kogyo KK

MAIN OFFICE:  282 Yonejima Takaoka City Toyama-Pref 933-8533 JAPAN

Tel: 0766-26-2401    

 

*.. Registered at: 2-10-6 Ginza Chuoku Tokyo     -

 

URL:                 http://www.chuetsu-pulp.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mg of pulp & paper

 

 

BRANCHES   

 

Tokyo, Osaka, Nagoya, Toyama, Fukuoka

 

 

FACTORIES

 

At the caption address, Sendai (Kagoshima)

 

 

CHIEF EXEC 

 

MASAFUMI HARADA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 90,506 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 17,259 M

TREND SLOW                          WORTH            Yen 49,781 M

STARTED         1947                             EMPLOYES      1,644

 

COMMENT    

 

MFR OF PULP & PAPER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

100,406

1,741

24

(%)

50,246

(Consolidated)

31/03/2011

103,798

1,698

317

3.38

49,664

 

31/03/2012

100,637

3,515

1,100

-3.05

50,198

 

31/03/2013

90,506

380

249

-10.07

49,781

 

31/03/2014

98,000

3,000

500

8.28

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a medium-scale paper mfr ranking 7th in industry.  Merged newsprint producing subsidiary in 1984 and advanced into manufacturing of coated paper, etc.  Newsprint and printing paper are major profit-earners.  Pulled out of paperboard business.  Has association with Oji Paper group.  Quingdao-based Oji Seitai, an affiliate of the joint venture in China, started operations in July 2013, and will commence commercial operations.  The power generation business will next focus on solar power and biomass.  Price hikes on paper this year (2013) in April and then again in October are expected to gradually penetrate. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 90,506 million, a 10.1% down from Yen 100,637 million in the previous term.  This is referred to the said withdrawal or paperboard production.  The recurring profit was posted at Yen 380 million and the net profit at Yen 249 million, respectively, compared with Yen 3,515 million recurring profit and Yen 1,100 million net profit, respectively, a year ago. 

 

((Apr/Dec/2013 results); Sales Yen 73,324 million (up 8.9%), operating profit Yen 2,011 million (previously Yen 276 million loss), recurring profit Yen 2,139 million (previously Yen 209 million loss), net profit Yen 830 million (previously Yen 37 million loss).  (% & figures as compared with the corresponding period a year ago)

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 3,000 million and the net profit at Yen 500 million, respectively, on an 8.3% rise in turnover, to Yen 98,000 million.  Sales volume of mainline printing paper is growing, backed by both the decline in imported paper as a result of weaker Yen and the accident at another firm in the same industry.  Prices on imported fuel and materials are not rising as much as anticipated.

 

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

 

 

REGISTRATION

           

      Date Registered:                Feb 1947

      Regd No.:                           0100-01-034877 (Tokyo-Chuoku)

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                              450 million shares

Issued:                         116,654,883 shares

Sum:                            Yen 17,259 million

 

Major shareholders (%): Oji Holding (9.0), Japan Trustee Services T (6.1), Japan Pulp & Paper (6.1), Hokuriku Bank (4.9), Shinsei Pulp & Paper (4.8), Kokusai Pulp & Paper (4.5), Mizuho Bank (3.4), Norin Chukin Bank (3.4), Japan Trustee Services T4 (3.3), Mitsui Sumitomo Ins (2.0); foreign owners (9.7)

 

No. of shareholders: 7,025

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Masafumi Harada, pres; Akiyoshi Kato, s/mgn dir; Fumio Ubashima, dir; Kiyotaka Furuta, dir; Shin Takagishi, dir; Hisashi Uematsu, dir

 

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

 

Related companies: Chuetsu Package, KK Bun’undo, Sanzen-seishi Co, other.

 

 

OPERATION

           

Activities: Manufactures paper/pulp and paper processed products (83%), paper processed products (13%), others (4%)

 

(Mfg/handling items): newsprint paper, printing paper, packing paper, special paper, paper bags, paper tube, corrugated fiber board, notebook, wood chip & drainage treatment drugs, forestation, greenery, tree plantation, paper cutting/selection/wrapping, other

 

Clients: [mfrs, wholesalers] Shinsei paper & Pulp, Kokusai Pulp & Paper, Japan Pulp & Paper, Yomiuri Newspaper, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Itochu Corp, Marubeni Corp, JX Nippon Oil & Mining Corp, other

 

Payment record: No complaints

 

Location: Business area in Takaoka, Toyama-Pref.  Office premises at the caption address are owned 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:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

90,506

100,637

 

  Cost of Sales

73,748

80,003

 

      GROSS PROFIT

16,758

20,633

 

  Selling & Adm Costs

16,499

16,963

 

      OPERATING PROFIT

258

3,669

 

  Non-Operating P/L

-78

-154

 

      RECURRING PROFIT

380

3,515

 

      NET PROFIT

249

1,100

BALANCE SHEET

 

 

 

 

  Cash

 

10,698

6,037

 

  Receivables

 

25,020

26,157

 

  Inventory

 

13,275

14,223

 

  Securities, Marketable

 

 

 

  Other Current Assets

1,486

2,317

 

      TOTAL CURRENT ASSETS

50,479

48,734

 

  Property & Equipment

72,862

76,935

 

  Intangibles

 

316

163

 

  Investments, Other Fixed Assets

7,039

7,075

 

      TOTAL ASSETS

130,696

132,907

 

  Payables

 

13,859

15,198

 

  Short-Term Bank Loans

34,139

35,231

 

 

 

 

 

 

  Other Current Liabs

8,916

7,079

 

      TOTAL CURRENT LIABS

56,914

57,508

 

  Debentures

 

4,000

6,000

 

  Long-Term Bank Loans

15,399

14,611

 

  Reserve for Retirement Allw

4,204

4,151

 

  Other Debts

 

398

439

 

      TOTAL LIABILITIES

80,915

82,709

 

      MINORITY INTERESTS

 

 

 

Common stock

17,259

17,259

 

Additional paid-in capital

14,651

14,654

 

Retained earnings

17,401

17,974

 

Evaluation p/l on investments/securities

489

275

 

Others

 

2

79

 

Treasury stock, at cost

(21)

(43)

 

      TOTAL S/HOLDERS` EQUITY

49,781

50,198

 

      TOTAL EQUITIES

130,696

132,907

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

10,024

132,907

 

Cash Flows from Investment Activities

-4,286

-4,480

 

Cash Flows from Financing Activities

-1,169

-5,724

 

Cash, Bank Deposits at the Term End

 

10,698

6,037

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

49,781

50,198

 

 

Current Ratio (%)

88.69

84.74

 

 

Net Worth Ratio (%)

38.09

37.77

 

 

Recurring Profit Ratio (%)

0.42

3.49

 

 

Net Profit Ratio (%)

0.28

1.09

 

 

Return On Equity (%)

0.50

2.19

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.32

UK Pound

1

Rs.101.78

Euro

1

Rs.84.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.