MIRA INFORM REPORT

 

 

Report No. :

307794

Report Date :

11.02.2015

 

IDENTIFICATION DETAILS

 

Name :

KOKUSAI PULP & PAPER CO LTD

 

 

Registered Office :

6-24 Akashicho Chuoku Tokyo 104-0044

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

December 1924

 

 

Com. Reg. No.:

0100-01-048806

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, Exports and Wholesales Pulp & Paper, Paper Products (--100%)

 

 

No. of Employees :

973

 

 

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 – 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


Company name & address

 

KOKUSAI PULP & PAPER CO LTD

 

 

REGD NAME

 

Kokusai Kami Pulp Shoji KK

 

 

MAIN OFFICE

 

6-24 Akashicho Chuoku Tokyo 104-0044 JAPAN

Tel: 03-3542-4111     

Fax: 03-3542-4282

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     Import, export, wholesale of pulps & paper, paper products

BRANCHES:     Osaka, Nagoya, Kyoto, Sendai, Sapporo, Fukuoka

OVERSEAS:     USA (2), China (3), Korea, Brazil, Indonesia, Vietnam, Australia (2),

                        Singapore (8), India (4), other (Tot 24)

 

OFFICERS:       MADOKA TANABE, PRES         Yasuo Akamatsu, ch

                        Munetaka Hioki, s/mgn dir          Akira Imahori, s/mgn dir

                        Masahiro Takada, mgn dir          Masahiro Kakitsu, mgn dir         

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 375,098 M

PAYMENTS      REGULAR                     CAPITAL           Yen 3,442 M

TREND             UP                                WORTH            Yen 38,300 M

STARTED         1924                             EMPLOYES      973

 

COMMENT:      TRADING FIRM SPECIALIZING IN PULP & PAPER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established in 1924 as KK Daido Yoshiten, and in 1999 merged with Nichia Corp and renamed as captioned.  This is a trading firm specializing in import, export and wholesale of pulp & paper, paper products, others (See OPERATION).  In Jan 2013 merged with Sumisho Pulp & Paper Shoji KK.  Major clients are Oji Paper and Nippon Paper Co.  Clients include government agencies, newspaper publishing companies, publishers, printing houses, other.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 375,098 million, a 15% up from Yen 327,512 million in the previous term.  The said merger with Sumisho Pulp & Paper Shoji contributed for the growth in full-term.  Due to the high Yen imports were decreased, while domestic production and demand rose much.  The recurring profit was posted at Yen 3,013 million and the net profit at Yen 2,032 million, respectively, compared with Yen 2,147 million recurring profit and Yen 5 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 3,500 million and the net profit at Yen 2,200 million, respectively, on a 5% rise in turnover, to Yen 393,000 million.  Price hikes on paper will contribute to earnings.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 6,449.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                       Dec 1924

Regd No.:                                 0100-01-048806 (Tokyo-Chuoku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              180 million shares

Issued:                                     67.02 million shares

Sum:                                        Yen 3,442 million

Major shareholders (%):           Oji Paper (19.1), Nippon Paper (10.1), Mizuho Bank (4.2), MUFG (3.9), SMBC

(3.9), Norin Chukin Bank (3.9), others

No. of shareholders:                 1,001

 

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

 

Group & subsidiary companies: Daiei Papers International Corp, Daido Kami Hambai Corp, Narumiya Kami Shoji KK, other

 

 

OPERATION

           

Activities: Imports, exports and wholesales pulp & paper, paper products (--100%)

 

Domestic (87%), Overseas (13%)

 

(Handling products): paper, paperboard, pulp, used paper, carbonless paper, thermal paper, tuck paper, plastic, crossing, aluminum foil, cellophane, wrapping materials, machinery, office supplies, industrial medicine, daily necessities & miscellaneous goods, others

 

Clients: [Government Agencies, newspaper offices, publishers, printing houses, wholesalers, business firms] Toppan Printing, Toppan Forms, Dainippon Printing, Sony Chemical & Information Device, Japan Consumers’ Coops, Shueisha, Angel Playing Card Mfg, Shogakukan, other.

 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Oji Paper, Nippon paper, Hokuetsu Kishu Paper, Chuetsu Pulp & Paper, Oji Materia, Oji Paperboard Co, Nippon Daishowa Paperboard Co, Oji Tac Co, Marubeni Corp, Oji Imaging Media, other

 

Payment record: Regular

 

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

 

 

Bank References:

Mizuho Corporate Bank (H/O)

MUFG (Kyobashi)

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in Million Yen)

Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

393,000

375,098

327,512

340,503

Recur. Profit

 

3,500

3,013

2,147

2,152

Net Profit

 

2,200

2,032

5

1,368

Total Assets

 

 

182,530

176,125

177,659

Current Assets

 

 

136,776

132,365

131,420

Current Liabs

 

 

123,887

121,378

128,527

Net Worth

 

 

38,300

34,132

30,574

Capital, Paid-Up

 

 

3,442

3,442

3,442

Div.P.Share(¥)

 

 

8.00

6.00

6.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.77

14.53

-3.82

-3.26

    Current Ratio

..

110.40

109.05

102.25

    N.Worth Ratio

..

20.98

19.38

17.21

    R.Profit/Sales

0.89

0.80

0.66

0.63

    N.Profit/Sales

0.56

0.54

0.00

0.40

    Return On Equity

..

5.31

0.01

4.47

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.96

UK Pound

1

Rs.94.41

Euro

1

Rs.70.20

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.