|
Report No. : |
316838 |
|
Report Date : |
13.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
NIPPON PAPER INDUSTRIES CO LTD |
|
|
|
|
Registered Office : |
Ochanomizu Solar City, 4-6 Kanda-Surugadai Chiyodaku Tokyo 101-0062 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
August 1949 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of pulp & paper |
|
|
|
|
No. of Employee : |
12,901 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. 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 |
NIPPON PAPER INDUSTRIES CO LTD
REGD NAME: Nippon
Seishi KK
MAIN OFFICE: Ochanomizu
Solar City, 4-6 Kanda-Surugadai Chiyodaku Tokyo 101-0062
JAPAN
Tel: 03-6665-1111
Fax: 03-6665-0300 -
URL: http://www.nipponpapergroup.com
E-Mail
address: (thru the URL)
Manufacturer
of pulp & paper
16
locations nationwide
USA,
China, Thailand, and S Africa
Hokkaido,
Akita, Ishinomaki, other (Tot 19 factories)
MANOSHIRO
FUMIO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 1,081,277 M
PAYMENTS REGULAR CAPITAL Yen 104,873 M
TREND UP WORTH Yen 426,584 M
STARTED 1949 EMPLOYES 12,901
MFG OF PULP & PAPER.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
This is one of 2 largest companies in paper industry. Once holding company formed in Mar/2001 via
business combination between old Nippon Paper and old Daishowa Paper Mfg. 2nd-ranked of paperboard. .
The sales volume for Mar/2014 fiscal term (the first fiscal
term when the firm became independent) amounted to Yen 1,081,277 million. The recurring profit was posted at Yen 28,188
million and the net profit at Yen 22,770 million, respectively, for the term.
(Apr/Dec/2014 results): Sales Yen 787,607 million (down 1.8%),
operating profit Yen 19,261 million (up 7.5%), recurring profit Yen 19,886
million (up 6.1%), net profit Yen 27,496 million (up 83.4%). (% as compared with the corresponding period
a year ago).
For the term that ended Mar 2015 the recurring profit was
projected at Yen 25,000 million and the net profit at Yen 26,000 million,
respectively, on a 1.0% fall in turnover, to Yen 1,070,000 million. Sales of printing paper were dampened by the
reactionary downturn after the consumption tax hike, and high prices of
materials and fuel. Final results
are yet to be released.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 20,274.6 million, on 30 days normal terms.
Date
Registered: Aug
1949
Legal
Status: Limited Company (Kabushiki Kaisha
Authorized: 300
million shares
Issued:
116,254,892 shares
Sum:
Yen 104,873 million
Major
shareholders (%): Japan Trustee Services T (7.1), Master Trust Bank of Japan
T (4.6), Mizuho Bank (4.7), Rengo Co (2.8), Employees’ S/Holding Assn (2.8),
Nippon Life Ins (2.6), Mitsui Life Ins (1.9), SMBC (1.7), Bank of New York
Jasdec Treaty (1.6), Bank of New York 133522 (1.5); foreign owners (19.6)
No. of
shareholders: 61,613
Listed
on the S/Exchange (s) of: Tokyo
Managements:
Yoshio Haga, ch; Fumio Manoshiro, pres; Hironori Iwase, v pres; Masaru
Motomura, v pres; Shuhei Marukawa, s/mgn dir; Ryuichi Akatsu, mgn dir;
Shin’ichi Sato, mgn dir; Kazufumi Yamasaki, mgn dir; Masahiko Ota, mgn dir; Ken
Hamaoki, mgn dir
Nothing detrimental is known as to
the commercial morality of executives.
Related
companies: Nippon Paper Crecia, Nippon Paper Papylia, Shokoku Coca-Cola Bottling, other
Activities: Manufactures:
Paper & pulp (78%), paper products-related (9%), lumber, construction
materials & civil engineering-related (6%), others (7%)
Overseas
Sales Ratio (12%)
Clients:
[Mfrs, wholesalers] NP Trading, DPP Inc, Nippon Tokan Package, Shinsei Pulp
& Paper, Yomiuri Newspaper Tokyo, Wakayama Nokyo Shokuhin Kogyo, other
No. of accounts: 500
Domestic areas of activities:
Nationwide
Suppliers:
[Mfrs, wholesalers] NP Trading, Nippon Paper Lumber, Sumida Chemical, JX Nippon Oil & Energy Corp, OG
Corp, other
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)
SMBC (H/O)
Relations: Satisfactory
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|||
|
|
|
Terms Ending: |
31/03/2014 |
|
INCOME STATEMENT |
|||
|
|
Annual Sales |
|
1,081,277 |
|
|
Cost of Sales |
844,603 |
|
|
|
GROSS PROFIT |
236,674 |
|
|
|
Selling & Adm Costs |
208,137 |
|
|
|
OPERATING PROFIT |
28,536 |
|
|
|
Non-Operating P/L |
-348 |
|
|
|
RECURRING PROFIT |
28,188 |
|
|
|
NET PROFIT |
22,770 |
|
|
BALANCE SHEET |
|||
|
|
Cash |
|
97,247 |
|
|
Receivables |
201,713 |
|
|
|
Inventory |
151,248 |
|
|
|
Securities, Marketable |
|
|
|
|
Other Current Assets |
55,209 |
|
|
|
TOTAL CURRENT ASSETS |
505,417 |
|
|
|
Property & Equipment |
729,179 |
|
|
|
Intangibles |
21,804 |
|
|
|
Investments, Other Fixed Assets |
224,494 |
|
|
|
TOTAL ASSETS |
1,480,894 |
|
|
|
Payables |
130,997 |
|
|
|
Short-Term Bank Loans |
292,326 |
|
|
|
|
|
|
|
|
Other Current Liabs |
85,911 |
|
|
|
TOTAL CURRENT LIABS |
509,234 |
|
|
|
Debentures |
18,000 |
|
|
|
Long-Term Bank Loans |
432,719 |
|
|
|
Reserve for Retirement Allw |
37,650 |
|
|
|
Other Debts |
|
56,706 |
|
|
TOTAL LIABILITIES |
1,054,309 |
|
|
|
MINORITY INTERESTS |
||
|
|
Common
stock |
104,873 |
|
|
|
Additional
paid-in capital |
217,105 |
|
|
|
Retained
earnings |
77,994 |
|
|
|
Evaluation
p/l on investments/securities |
7,814 |
|
|
|
Others |
20,134 |
|
|
|
Treasury
stock, at cost |
(1,336) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
426,584 |
|
|
|
TOTAL EQUITIES |
1,480,894 |
|
|
CONSOLIDATED CASH FLOWS |
|||
|
|
Terms ending: |
31/03/2014 |
|
|
|
Cash
Flows from Operating Activities |
|
75,763 |
|
|
Cash
Flows from Investment Activities |
-24,861 |
|
|
|
Cash
Flows from Financing Activities |
-65,487 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
97,149 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
||
|
|
Net
Worth (S/Holders' Equity) |
426,584 |
|
|
|
Current
Ratio (%) |
99.25 |
|
|
|
Net
Worth Ratio (%) |
28.81 |
|
|
|
Recurring
Profit Ratio (%) |
2.61 |
|
|
|
Net
Profit Ratio (%) |
2.11 |
|
|
|
|
Return
On Equity (%) |
5.34 |
Notes:
This is the only financial statement issued after the firm became independent.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.37 |
|
|
1 |
Rs.91.60 |
|
Euro |
1 |
Rs.66.49 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ASH |
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.