MIRA INFORM REPORT

 

 

Report No. :

355590

Report Date :

17.12.2015

 

IDENTIFICATION DETAILS

 

Name :

NIPPAN RENTAL CO LTD

 

 

Registered Office :

4-5-15 Nishi-Katakaimachi Maebashi City Gunma-Pref 371-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

Sept., 1979

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Rental of Civil Engineering & Road Machinery, Construction Machinery, Other.

 

 

No. of Employees :

226

 

 

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 – 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

 

NIPPAN RENTAL CO LTD

 

REGD NAME:               KK Nippan Rental

 

MAIN OFFICE:              4-5-15 Nishi-Katakaimachi Maebashi City Gunma-Pref 371-0013 JAPAN

                                                Tel: 027-243-7711     Fax: 027-243-5595     -

 

URL:                             http://www.nippan-r.co.jp

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Rental of civil engineering & road machinery, construction machinery, other

 

 

BRANCHES   

 

Tokyo, Gunma (7), Tochigi (4), Saitama (7), Ibaraki (2), Niigata (11), Nagano, Fukushima, Miyagi (each 1)

 

 

FACTORIES

 

Niigata (2), Gunma, Saitama (Service Factories)

 

 

CHIEF EXEC

 

HARUHIKO ISHIZUKA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 6,326 M

PAYMENTSREGULAR   CAPITAL                       Yen 721 M

TREND UP                    WORTH                        Yen 1,700 M

STARTED         1979                 EMPLOYES                 226

 

 

COMMENT

 

RENTAL OF CONSTRUCTION MACHINERY

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast figures for the 31/12/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the Gunma Pref-based rental business operator. Handles small- & medium-sized construction machinery, and event-use equipment, with majority of business in north Kanto and Shin-Etsu regions. Expanding into south Kanto region. The company also sells used construction machinery.  .

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 6,326 million, a 12.6% up from Yen 5,618 million in the previous term.  The recurring profit was posted at Yen 351 million and the net profit at Yen 145 million, respectively, compared with Yen 331 million recurring profit and Yen 156 million net profit, respectively, a year ago.

 

(Jan/Sept/2015 results): Sales Yen 4,892 million (up 9.5%), operating profit Yen 87 million (down 68.3%), recurring loss Yen 1 million (previously Yen 191 million profit), net loss Yen 16 million (previously Yen 74 million profit).  (% & figures as compared with the corresponding period a year ago).

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 150 million and the net profit at Yen 75 million, respectively, on a 9.1% rise in turnover, to Yen 6,900 million. 

           

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

 

 

REGISTRATION

           

Date Registered:　    Sept 1979

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:                  22.5 million shares

Issued:                7,602,520 shares

Sum:                   Yen 721 million

 

Major shareholders (%): Takayanagi Capital (13.5), Mitsui Co (8.6), Nippan Koyukai’s S/Holding Assn (6.1), Employees’ S/Holding Assn (5.7), Maruyama Jidosha (3.9), Koji Ishizuka (2.7), Hitachi Construction Machinery (2.3), Kobelco Construction Machinery (2.3), Tokio Marine & Nichido Fire Ins (1.8), Haruhiko Ishizuka (1.4); foreign owners 0.2)

 

No. of shareholders: 607

 

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

 

Managements: Haruhiko Ishizuka, pres; Norihisa Machida, s/mgn dir; Toshimi Wakui, mgn dir; Masaharu Kobayashi, dir

 

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

 

 

OPERATION

           

Activities: Leasing & sale of civil engineering & road machinery, construction machinery, makeshift equipment, rental cars, also offering maintenance services (--100%)

           

Clients: [Mfrs, wholesalers] Kashima Road Co, NIPPO, Rex Co, Itochu Construction Machinery, Okada Doken Inc, Yuasa Trading, Maeda Road Construction, Ueki Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Auto Lease, JA Mitsui Lease, Shinko Lease, Yuasa Corp, other

 

Payment record: Regular

 

Location: Business area in Maebashi City, Gunma-Pref. Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

            Gunma Bank (H/O)

            Ashikaga Bank (Maebashi)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/12/2014

31/12/2013

INCOME STATEMENT

　

　

  Annual Sales

　

6,326

5,618

　

  Cost of Sales

4,345

3,825

　

      GROSS PROFIT

1,980

1,793

　

  Selling & Adm Costs

1,512

1,357

　

      OPERATING PROFIT

467

436

　

  Non-Operating P/L

-116

-105

　

      RECURRING PROFIT

351

331

　

      NET PROFIT

145

156

BALANCE SHEET

　

　

  Cash

　

1,519

1,248

　

  Receivables

966

847

　

  Inventory

19

13

　

  Securities, Marketable

　

　

　

  Other Current Assets

437

436

　

      TOTAL CURRENT ASSETS

2,941

2,544

　

  Property & Equipment

8,150

6,586

　

  Intangibles

43

49

　

  Investments, Other Fixed Assets

166

157

　

      TOTAL ASSETS

11,300

9,336

　

  Payables

241

211

　

  Short-Term Bank Loans

　

300

　

　

　

　

　

  Other Current Liabs

3,171

2,834

　

      TOTAL CURRENT LIABS

3,412

3,345

　

  Debentures

306

454

　

  Long-Term Bank Loans

4,054

2,583

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

1,827

1,357

　

      TOTAL LIABILITIES

9,599

7,739

　

      MINORITY INTERESTS

　

　

Common stock

721

721

　

Additional paid-in capital

193

193

　

Retained earnings

764

664

　

Evaluation p/l on investments/securities

26

22

　

Others

0

1

　

Treasury stock, at cost

(4)

(4)

　

      TOTAL S/HOLDERS` EQUITY

1,700

1,597

　

      TOTAL EQUITIES

11,300

9,336

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/12/2014

31/12/2013

　

Cash Flows from Operating Activities

　

1,719

1,464

　

Cash Flows from Investment Activities

-1,909

-1,323

　

Cash Flows from Financing Activities

391

-177

　

Cash, Bank Deposits at the Term End

　

1,016

814

ANALYTICAL RATIOS            Terms ending:

31/12/2014

31/12/2013

　

Net Worth (S/Holders' Equity)

1,700

1,597

　

Current Ratio (%)

86.20

76.05

　

Net Worth Ratio (%)

15.04

17.11

　

Recurring Profit Ratio (%)

5.55

5.89

　

Net Profit Ratio (%)

2.29

2.78

　

　

Return On Equity (%)

8.53

9.77

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.85

UK Pound

1

Rs.100.58

Euro

1

Rs.73.16

YEN

1

Rs.0.54

Note : Above are approximate rates obtained from sources believed to be correct

 

 

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.