MIRA INFORM REPORT
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Report No. : |
301615 |
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Report Date : |
21.01.2015 |
IDENTIFICATION DETAILS
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Name : |
DAIO PAPER CORPORATION |
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Registered Office : |
2-60 Mishima-Kamiyacho Shikoku-Chuo City
Ehime-Pref 799-0402 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 (Consolidated) |
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Date of Incorporation : |
May 1943 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of Paper & Paperboards as well as Home & Personal
Care Products Subject product
ranges includes :- Paper Products Newspaper, Publishing, Printing, Information, Packaging Home &
Personal Care Products Tissues, Toilet Paper, Disposable Diapers |
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No of Employees : |
8,023 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 5,138.9 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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Japan |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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Source : CIA |
Company
name
DAIO PAPER CORPORATION
REGD
NAME
Daio Seishi KK
MAIN
OFFICE
2-60
Mishima-Kamiyacho Shikoku-Chuo City Ehime-Pref 799-0402 JAPAN
Tel:
0896-23-9001 Fax: 0896-23-5694
*.. The is its Tokyo Office
URL: http://www.daioh-paper.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Manufacturer of Paper & Paperboards as well as Home & Personal
Care Products
Subject product
ranges includes :-
Paper Products
Newspaper, Publishing, Printing, Information, Packaging
Home &
Personal Care Products
Tissues, Toilet Paper, Disposable Diapers
BRANCHES
Tokyo,
Osaka, Nagoya, Fukuoka, other (Tot 34)
OVERSEAS
Chile,
Hawaii, Thailand, Korea, China, Indonesia
FACTORIES
Ehime,
Gifu (Tot 3)
CHIEF
EXEC
MASAYOSHI
SAKO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 430,054 M
PAYMENTSNo Complaints
CAPITAL Yen 38,756 M
TREND UP WORTH Yen 119,252 M
STARTED 1943 EMPLOYES 8,023
COMMENT
PAPER MFR
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 5,138.9 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2015
fiscal term.
HIGHLIGHTS
This is the 3rd largest paper mfr. Top-class maker of household-use paper products
such as tissue paper. Umber of
consolidated subs decreased, following former Chairman’s scandal. Became equity-method firm of Hokuetsu Kishu
Paper.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 430,054 million, a 5.6% up from Yen 407,362 million in the previous term. Sales of home-use papers grew, partly thanks to the penetration of price hikes. The recurring profit was posted at Yen 11,257 million and the net profit at Yen 6,293 million, respectively, compared with Yen 6,637 million recurring profit and Yen 15,109 million net profit, respectively, a year ago.
(Apr/Sept/2014 results): Sales Yen 214,182 million (up 4.9%), operating profit Yen 10,629 million (up 101.4%), recurring profit Yen 8,164 million (up 178.9%), net profit Yen 5,037 million (up 481.1%). (% as compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected at Yen 20,000 million and the net profit at Yen 11,000 million, respectively, on a 4.6% rise in turnover, to Yen 450,000 million. Price hikes will contribute to earnings.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,138.9 million, on 30 days normal terms.
REGISTRATION
Date Registered: May
1943
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 300 million shares
Issued:
129,018,185 shares
Sum: Yen 38,756
million
Major shareholders (%): Hokuetsu Kishu Paper (21.2),
Iyo Bank (4.7), Ehime Bank (4.6), Ehime Paper Mfg (4.1), Daio Kaiun (3.6), Kami
Shoji (3.6), Tokushu Tokai Paper (3.0), Hyogo Paper (2.5), Company’s Treasury
Stock (2.2), Japan Trustee Services T (2.2); foreign owners (3.6)
No. of shareholders: 2,567
Listed on the
S/Exchange (s) of: Tokyo
Managements: Masayoshi Sako,
pres; Hidetaka Ikawa, s/mgn dir; Toshihiro Adachi, s/mgn dir; Ken’ichi Mori,
mgn dir; Kunihiro Okazaki, mgn dir; Akihiro Tsuzuki, dir; Ryoji Ono, dir; Hiroshi
Yamazaki, dir; Yasunori Shimizu, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Tokyo Pulp &
Paper Co, other.
OPERATION
Activities: Manufactures
paper: paper & paperboards (66%), home & personal care products (31%),
others (3%)
(Mfg items): Paper (newspaper, publishing, printing, information,
packaging, other);
Home & personal care products (tissues, toilet paper, disposable
diapers, other)
Clients: [Mfrs,
wholesalers] Tokyo Pulp & Paper, Tokyo Paper International, Shikoku Paper,
Nissho Iwai Pulp & Paper, Yomiuri Tokyo, other
No. of accounts: 600
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Iwaki Daio Paper, Mitsubishi Corp, Kanematsu Corp, other
Payment record: No
Complaints
Location: Business area in
Ehime. Office premises at the caption
address are owned and maintained satisfactorily.
Bank
References:
Aozora Bank (Takamatsu)
MUFG (Takamatsu)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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430,054 |
407,362 |
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Cost of Sales |
334,113 |
325,338 |
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GROSS PROFIT |
95,941 |
82,023 |
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Selling & Adm Costs |
79,892 |
70,445 |
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OPERATING PROFIT |
16,049 |
11,577 |
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Non-Operating P/L |
-4,792 |
-4,940 |
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RECURRING PROFIT |
11,257 |
6,637 |
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NET PROFIT |
6,293 |
15,109 |
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BALANCE SHEET |
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Cash |
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85,838 |
86,210 |
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Receivables |
86,194 |
90,108 |
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Inventory |
58,589 |
61,391 |
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Securities, Marketable |
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Other Current Assets |
13,250 |
8,549 |
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TOTAL CURRENT ASSETS |
243,871 |
246,258 |
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Property & Equipment |
286,290 |
292,213 |
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Intangibles |
67,020 |
71,418 |
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Investments, Other Fixed Assets |
48,931 |
49,223 |
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TOTAL ASSETS |
646,112 |
659,112 |
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Payables |
44,700 |
36,229 |
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Short-Term Bank Loans |
58,950 |
66,790 |
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Other Current Liabs |
149,593 |
157,362 |
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TOTAL CURRENT LIABS |
253,243 |
260,381 |
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Debentures |
25,640 |
35,740 |
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Long-Term Bank Loans |
215,283 |
226,988 |
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Reserve for Retirement Allw |
17,395 |
14,782 |
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Other Debts |
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15,299 |
13,251 |
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TOTAL LIABILITIES |
526,860 |
551,142 |
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MINORITY INTERESTS |
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Common
stock |
30,415 |
30,415 |
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Additional
paid-in capital |
30,293 |
29,402 |
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Retained
earnings |
58,319 |
52,967 |
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Evaluation
p/l on investments/securities |
2,182 |
1,120 |
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Others |
925 |
760 |
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Treasury
stock, at cost |
(2,882) |
(6,695) |
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TOTAL S/HOLDERS` EQUITY |
119,252 |
107,969 |
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TOTAL EQUITIES |
646,112 |
659,112 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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58,091 |
50,804 |
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Cash
Flows from Investment Activities |
-26,825 |
-41,454 |
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Cash
Flows from Financing Activities |
-37,242 |
-13,441 |
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Cash,
Bank Deposits at the Term End |
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79,046 |
82,457 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
119,252 |
107,969 |
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Current
Ratio (%) |
96.30 |
94.58 |
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Net Worth
Ratio (%) |
18.46 |
16.38 |
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Recurring
Profit Ratio (%) |
2.62 |
1.63 |
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Net
Profit Ratio (%) |
1.46 |
3.71 |
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Return
On Equity (%) |
5.28 |
13.99 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.85 |
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UK Pound |
1 |
Rs.93.27 |
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Euro |
1 |
Rs.71.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.