MIRA INFORM REPORT

 

 

Report Date :

03.07.2014

 

IDENTIFICATION DETAILS

 

Name :

KYODO PRINTING CO LTD

 

 

Registered Office :

4-14-12 Koishikawa Bunkyoku Tokyo 112-8501

 

 

Country :

Japan

 

 

Financials (as on) :

     31.03.2014

 

 

Date of Incorporation :

      December, 1918

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Subject is a Printing company

 

 

No. of Employees :

1,857

 

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

 

Maximum Credit Limit :

Yen 3,497.0 million

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 

 

 


Company name and address

 

KYODO PRINTING CO LTD

 

REGD NAME:   Kyodo Insatsu KK

MAIN OFFICE:  4-14-12 Koishikawa Bunkyoku Tokyo 112-8501 JAPAN

Tel: 03-3817-2111     Fax: 03-3817-2617     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Printing company

 

 

BRANCHES   

 

Nagoya, Osaka, Kyoto

 

 

FACTORIES  

 

At the caption address, Ibaragi, Saitama (2), Wakayama, Kyoto, other (Tot 8)

 

 

CHIEF EXEC

 

YOSHIAKI FUJIMORI, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 94,479 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 4,510 M

TREND             UP                                WORTH             Yen 51,074 M

STARTED         1918                             EMPLOYES      1,857

 

 

COMMENT    

 

COMPREHENSIVE PRINTING COMPANY 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 3,497.0 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

98,328

1,159

-1,592

(%)

47,626

(Consolidated)

31/03/2012

97,040

2,534

1,320

-1.31

48,324

31/03/2013

94,220

2,443

1,437

-2.91

49,840

31/03/2014

94,479

2,832

1,592

0.27

51,074

31/03/2015

96,000

3,000

1,700

1.61

..

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the third largest comprehensive printing company, though much smaller in scale than Big 2.  Commercial printing is the mainline.  Strengthening PS (data print service) and website selling e-comics businesses.  Also engaged in production of lifestyle products, such as toothpaste tubes and paper containers.  The company aims to stimulate printing demand through strengthening digital capabilities and planning proposals, including appendices.  It will reinforce ties between sales and manufacturing departments.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 94,479 million, a 0.3% up from Yen 94,220 million in the previous term.  Printing was affected by slumping books and struggling packaging materials for foods.  But magazines and comics fared well, and catalog printing rose, backed by blanket orders integrating sales promotions and business support.  The recurring profit was posted at Yen 2,832 million and the net profit at Yen 1,592 million, respectively, compared with Yen 2,443 million recurring profit and Yen 1,437 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 3,000 million and the net profit at Yen 1,700 million, respectively, on a 1.6% rise in turnover, to Yen 96,000 million.  Comic’s sales promotion and business support will drive sales.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,497.0 million, on 30 days normal terms.

 

REGISTRATION

           

Date Registered: Dec 1918

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       360.8 million shares

Issued:                90,200,000 shares

Sum:                   Yen 4,510 million

 

Major shareholders (%): MTBJ (DIC) (9.4), Japan Trustee Services T (6.6), Tokyo Printing Ink Mfg (6.4), Mizuho Bank 3.1), Japan Trustee Services T4 (3.0), Company’s Treasury Stock (2.6), Asahi Life Ins (2.4), Toyo Ink SC Holdings (2.4), CBNYDFA Int’l Small Cap Value P (2.2), Employees’ S/Holding Assn (2.0); foreign owners (8.3)

 

No. of shareholders: 6,035

 

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

 

Managements: Toshiaki Inagi, ch; Yoshiaki Fujimori, pres; Mikio Miyoshi, mgn dir; Makoto Ogasawars, mgn dir; Kazushi Shimizu, mgn dir; Haruo Osawa, mgn dir; Minoru Hitomi, mgn dir; Masaaki Handa, dir; Kazuyoshi Ido, dir

 

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

 

Related companies: Kyodo Butsuryu (Distribution), Kyodo Printing Nishinippon, Cosmo Graphic, other.

 

 

OPERATION

           

Activities: Printing firm: Publishing & commercial printing (50%), business media (28%), lifestyle and industrial materials (20%), others (2%)

           

Clients: [Mfrs, wholesalers] Shueisha Inc, Nippon Zettoc Co, Kao Corp, Baseball            Magazine, Mizuho Bank, Kodansha Ltd, Plus Corp, Shogakukan Inc, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kokusai Pulp & Paper Inc, Nippon Pulp & Paper

Trading, Dinos Inc, Cosmo Graphic, other

 

Payment record: No complaints

 

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

 

Bank References:

                        Mizuho Bank (H/O)

                        SMBC (Ueno)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

94,479

94,220

  Cost of Sales

78,881

79,210

      GROSS PROFIT

15,598

15,010

  Selling & Adm Costs

13,498

13,196

      OPERATING PROFIT

2,100

1,813

  Non-Operating P/L

732

630

      RECURRING PROFIT

2,832

2,443

 

      NET PROFIT

1,592

1,437

BALANCE SHEET

  Cash

 

13,552

13,403

  Receivables

26,511

27,437

  Inventory

4,953

5,113

  Securities, Marketable

7

 

  Other Current Assets

1,003

1,529

      TOTAL CURRENT ASSETS

46,026

47,482

  Property & Equipment

37,378

38,141

  Intangibles

1,237

980

  Investments, Other Fixed Assets

11,363

10,135

      TOTAL ASSETS

96,004

96,738

  Payables

18,656

18,460

  Short-Term Bank Loans

2,250

3,179

 

 

 

  Other Current Liabs

8,911

6,865

      TOTAL CURRENT LIABS

29,817

28,504

  Debentures

5,000

7,000

  Long-Term Bank Loans

2,931

5,160

  Reserve for Retirement Allw

6,104

5,264

  Other Debts

 

1,078

970

      TOTAL LIABILITIES

44,930

46,898

      MINORITY INTERESTS

Common stock

4,510

4,510

Additional paid-in capital

1,742

1,742

Retained earnings

43,078

42,188

Evaluation p/l on investments/securities

2,665

1,942

Others

(376)

3

Treasury stock, at cost

(545)

(545)

      TOTAL S/HOLDERS` EQUITY

51,074

49,840

 

      TOTAL EQUITIES

96,004

96,738

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

8,065

6,197

Cash Flows from Investment Activities

-3,736

-3,216

Cash Flows from Financing Activities

-4,145

-1,770

 

Cash, Bank Deposits at the Term End

 

13,271

13,077

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

51,074

49,840

Current Ratio (%)

154.36

166.58

Net Worth Ratio (%)

53.20

51.52

Recurring Profit Ratio (%)

3.00

2.59

Net Profit Ratio (%)

1.69

1.53

Return On Equity (%)

3.12

2.88

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.97

UK Pound

1

Rs.102.90

Euro

1

Rs.82.02

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NNA

 

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.