MIRA INFORM REPORT

 

 

Report No. :

300689

Report Date :

13.01.2015

 

IDENTIFICATION DETAILS

 

Name :

AWA PAPER MFG CO LTD

 

 

Registered Office :

3-10-18 Minami-Yasocho Tokushima 770-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

Feb 1916

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Manufacturing of Paper.

 

 

No. of Employee :

655

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

AWA PAPER MFG CO LTD

 

REGD NAME:   Awa Seishi KK

MAIN OFFICE:  3-10-18 Minami-Yasocho Tokushima 770-0005 JAPAN

                        Tel: 088-631-8100     Fax: 088-631-8325     -

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:      Paper mfg

BRANCHES:     Tokyo

OVERSEAS:     Thailand, China

FACTORIES:     At the caption address, Komatsushima, Anan (2); Thailand

 

CHIEF EXEC:    YASUHIRO MIKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                                         A/SALES          Yen 15,701 M

                        PAYMENTS      NO COMPLAINTS                      CAPITAL           Yen 1,385 M

                        TREND             UP                                            WORTH            Yen 6,134 M

                        STARTED         1916                                         EMPLOYES      655

 

COMMENT:       PAPER MFR 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is a time-honored paper mfr founded in 1916.  Based in Tokushima Prefecture.  Specialized in filter paper with highest market share.  RO membrane backing paper, etc.  Overseas sales ratio at around 50%.  Expanding mfg bases such as for automobile-use filter paper in Thailand.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 15,701 million, a 0.1% down from Yen 15,724 million in the previous term.  Sales of automobile-related materials took a reactionary downturn after the demand upsurge prior to the consumption tax hike.  The recurring profit was posted at Yen 581 million and the net profit at Yen 412 million, respectively, compared with Yen 396 million recurring profit and Yen 442 million net profit, respectively, a year ago.

 

(Apr/Sept/2014 results): Sales Yen 790 million (up 4.7%), operating profit Yen 236 million (previously Yen 19 million), recurring profit Yen 176 million (down 20.3%), net profit Yen 42 million (down 78.4%).  (% & figures as compared with the corresponding period a year ago).

 

            For the current term ending Mar 2015 the recurring profit is projected at Yen 400 million and the net profit at Yen 200 million, respectively, on a 6.4% rise in turnover, to Yen 16,700 million.  Sales of both engine-use filter materials and clutch-use friction materials are sound.  Sales of water treatment materials to companies in North America will increase, offsetting the delayed recovery of sales in China and other markets.

 

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

 

REGISTRATION

           

Date Registered:　    Feb 1916

Legal Status:                 Limited Company (Kabushiki Kaisha

Authorized:                   28.8 million shares

Issued:                         10,172,676 shares

Sum:                            Yen 1,385 million

 

Major shareholders (%): Tokuosha Co (19.8), Miki & Co (10.2), Nisshin Co (7.8), Fujihiko Miki (6.0), Mahle Filter Systems Japan (4.2), Yasuhiro Miki (2.9), Awa Bank (2.9), Tokyo Roki (2.8), Marubeni Corp (2.1), Employees’ S/Holding Assn (2.1); foreign owners (0.1)

 

No. of shareholders: 2,448

 

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

 

Managements: Yasuhiro Miki, pres; Fujihiko Miki, dir; Hiroshi Nagao, dir; Kenji Fukunaga, dir; Yasuo Yoshii, dir

 

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

 

Related companies: Awa Paper (China), Thai United Paper (Thailand).

 

 

OPERATION

           

Activities: Mfg of auto-use nonwoven cloth-related (68%), water-treatment materials (21%), industrial materials (11%)

Overseas Sales Ratio (50%)

 

(Main Products): Filter paper, reverse osmosis membrane backing paper ceramic filter paper for friction materials, battery separator paper, core sheet for building materials, etc

           

Clients: [Mfrs, wholesalers] Ozax Co, DyNax Corp, Miki Co, Tokyo Roki, GS Chemical Ind, other

No. of accounts: 450

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Miki Co, Sojitz Planet, Nissho Iwai Pulp & Paper

 

Payment record: No Complaints

 

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

 

 

Bank References

 

Awa Bank (H/O)

Mizuho Bank (Tokushima)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

15,701

15,724

　

  Cost of Sales

13,383

13,376

　

      GROSS PROFIT

2,318

2,348

　

  Selling & Adm Costs

2,065

2,020

　

      OPERATING PROFIT

253

327

　

  Non-Operating P/L

328

69

　

      RECURRING PROFIT

581

396

　

      NET PROFIT

412

442

BALANCE SHEET

　

　

  Cash

　

1,562

1,135

　

  Receivables

2,826

2,594

　

  Inventory

2,239

2,417

　

  Securities, Marketable

　

　

　

  Other Current Assets

209

165

　

      TOTAL CURRENT ASSETS

6,836

6,311

　

  Property & Equipment

9,865

8,555

　

  Intangibles

35

56

　

  Investments, Other Fixed Assets

655

553

　

      TOTAL ASSETS

17,391

15,475

　

  Payables

2,988

2,303

　

  Short-Term Bank Loans

1,186

1,183

　

　

　

　

　

  Other Current Liabs

2,024

1,927

　

      TOTAL CURRENT LIABS

6,198

5,413

　

  Debentures

　

　

　

  Long-Term Bank Loans

3,372

2,785

　

  Reserve for Retirement Allw

709

636

　

  Other Debts

　

977

1,021

　

      TOTAL LIABILITIES

11,256

9,855

　

      MINORITY INTERESTS

　

　

Common stock

1,385

1,385

　

Additional paid-in capital

1,401

1,401

　

Retained earnings

613

272

　

Evaluation p/l on investments/securities

22

18

　

Others

2,714

2,544

　

Treasury stock, at cost

(1)

(1)

　

      TOTAL S/HOLDERS` EQUITY

6,134

5,619

　

      TOTAL EQUITIES

17,391

15,475

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

1,674

521

　

Cash Flows from Investment Activities

-1,536

-805

　

Cash Flows from Financing Activities

203

65

　

Cash, Bank Deposits at the Term End

　

1,124

731

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

6,134

5,619

　

Current Ratio (%)

110.29

116.59

　

Net Worth Ratio (%)

35.27

36.31

　

Recurring Profit Ratio (%)

3.70

2.52

　

Net Profit Ratio (%)

2.62

2.81

　

　

Return On Equity (%)

6.72

7.87

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.94.28

Euro

1

Rs.73.73

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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.