MIRA INFORM REPORT

 

 

Report No. :

335671

Report Date :

06.08.2015

 

IDENTIFICATION DETAILS

 

Name :

NIPPON LIGHT METAL HOLDINGS CO LTD

 

 

Registered Office :

NYK Tennoz Bldg, 2-2-20 Higashi-Shinagawa Shinagawaku Tokyo 140-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Oct., 2012

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Aluminum.

 

 

No. of Employees :

13,335

 

 

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 8,875.3 Million

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

Company Name and address

 

NIPPON LIGHT METAL HOLDINGS CO LTD

 

REGD NAME:               Nippon Keikinzoku Holdings KK

 

MAIN OFFICE:              NYK Tennoz Bldg, 2-2-20 Higashi-Shinagawa Shinagawaku Tokyo 140-0002

                                                JAPAN

                                                Tel: 03-5461-8601          -

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of aluminum

 

 

BRANCHES

 

Nationwide

 

 

OVERSEAS

 

USA, other

 

 

FACTORIES

 

(Subsidiaries)

 

 

CHIEF EXEC

 

ICHIRO OKAMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 431,477 M

PAYMENTSREGULAR   CAPITAL           Yen 39,085 M

TREND UP                    WORTH            Yen 137,385 M

STARTED         2012                 EMPLOYES      13,335

 

 

COMMENT

 

HOLDING COMPANY OF ALUMINUM MFR

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 8,875.3 MILLION, 30 DAYS NORMAL TERMS

 

 

Unit: In Million Yen

Forecast figures for the 31/10/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a holding company of aluminum maker, Nippon Light Metal, became a holding company in 2012.  One of the world’s major aluminum makers comprehensively handling rolling, processing and selling operations. It closed the last surviving smelting plant in Japan in March 2014. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 431,477 million, a 7.1% up from Yen 402,829 million in the previous term. The recurring profit was posted at Yen 20,600 million and the net profit at Yen 9,645 million, respectively, compared with Yen 12,730 million recurring profit and Yen 5,128 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 21,000 million and the net profit at Yen 13,000 million, respectively, on a 6.6% rise in turnover, to Yen 460,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 8,875.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

    Date Registered:　        Oct 2012

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              2,000 million shares

Issued:                         545,125,049 shares

Sum:                            Yen 25,200 million

 

Major shareholders (%): Japan Trustee Services T (6.5), Master Trust Bank of Japan T (6.4), Dai-ichi Life Ins (3.6), Nikkei Kenyukai (2.9), other: foreign owners (15.0)

 

No. of shareholders: 46,675

 

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

 

Managements: Takashi Ishiyama, ch; Ichiro Okamoto, pres; Toshihide Murakami, dir; Yasunori Okamoto, dir; Hiroshi Yamamoto, dir; Koji Ueno, dir; Hiroyasu Hiruma, dir; Shozo Hamamura, dir; Masato Ono, dir

 

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

 

Related companies: Nippon Light Metal Co, other.

 

 

OPERATION

           

Activities: Manufactures industrial chemicals: Alumina, Chemicals & ingots (26%), plastic sheet & extruded products (19%), processed products 6 related business (32%), foil & powder (22%)

 

Overseas Sales Ratio (19%)

 

Clients: [Mfrs, wholesalers] Nippon Light Metal, Nippon Full Half, Toyo Aluminium, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Payment record: Regular

 

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

 

Bank References:

            Mizuho Bank (H/O)

            SMBC (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

　

431,477

402,829

  Cost of Sales

354,490

333,826

      GROSS PROFIT

76,987

69,003

  Selling & Adm Costs

57,682

56,386

      OPERATING PROFIT

19,305

12,617

  Non-Operating P/L

1,295

113

      RECURRING PROFIT

20,600

12,730

　

      NET PROFIT

9,645

5,128

BALANCE SHEET

  Cash

　

29,823

41,654

  Receivables

133,976

119,503

  Inventory

67,652

51,726

  Securities, Marketable

　

　

  Other Current Assets

17,455

13,924

      TOTAL CURRENT ASSETS

248,906

226,807

  Property & Equipment

153,235

150,901

  Intangibles

4,543

5,022

  Investments, Other Fixed Assets

50,593

49,808

      TOTAL ASSETS

457,277

432,538

  Payables

69,060

63,279

  Short-Term Bank Loans

70,108

62,217

　

　

　

  Other Current Liabs

63,052

56,024

      TOTAL CURRENT LIABS

202,220

181,520

  Debentures

18,921

18,818

  Long-Term Bank Loans

74,251

89,249

  Reserve for Retirement Allw

18,797

17,130

  Other Debts

　

5,703

4,627

      TOTAL LIABILITIES

319,892

311,344

      MINORITY INTERESTS

  Capital, Paid-Up

39,085

39,085

  Surplus

98,300

82,109

      SHAREHOLDERS' EQUITY

137,385

121,194

　

      TOTAL EQUITIES

457,277

432,538

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

　

11,780

18,148

Cash Flows from Investment Activities

-7,119

-18,998

Cash Flows from Financing Activities

-17,981

5,762

　

Cash, Bank Deposits at the Term End

　

29,433

41,597

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

137,385

121,194

Current Ratio (%)

123.09

124.95

Net Worth Ratio (%)

30.04

28.02

Recurring Profit Ratio (%)

4.77

3.16

Net Profit Ratio (%)

2.24

1.27

Return On Equity (%)

7.02

4.23

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.99.15

Euro

1

Rs.69.31

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN 

 

 

Report Prepared by :

NIT

 

 

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.