MIRA INFORM REPORT

 

 

Report No. :

321817

Report Date :

09.05.2015

 

IDENTIFICATION DETAILS

 

Name :

DEVELOPMENT BANK OF JAPAN INC

 

 

Registered Office :

Ohtemachi Financial City South Tower, 1-9-6 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Oct, 2008

 

 

Com. Reg. No.:

0100-01-120389 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Banking Operations: Loans, Investments, Advisory Services.

 

 

No. of Employees :

1,202

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Good

 

 

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 and address

 

DEVELOPMENT BANK OF JAPAN INC

 

REGD NAME:               KK Nippon Seisaku Toshi Ginko

 

MAIN OFFICE:              Ohtemachi Financial City South Tower, 1-9-6 Ohtemachi Chiyodaku Tokyo                                                                                                      100-0004 JAPAN

                                                Tel: 03-3270-3211      Fax: 03-3271-8472

 

URL:                             http://www.djb.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Banking operations: Loans, investments, advisory services

 

 

BRANCHES

 

10 domestic

 

 

OVERSEAS

 

1 branch, 3 JV’s

 

 

OFFICERS

           

TORU HASHIMOTO, PRES

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY     

 

FINANCES        FAIR                 A/SALES                      Yen 361,610 M

PAYMENTS      REGULAR         CAPITAL                       Yen 1,206,593 M

TREND UP                    WORTH                       Yen 2,627,714 M          

STARTED         2008                 EMPLOYES                  1,202

 

 

COMMENT

           

BANKING OPERATIONS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

                       

HIGHLIGHTS

           

The subject company offers, as a political bank, loans, investment, advisory services, other.  Clients are business firms, mfrs, other. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 361,610 million, a 6% up from Yen 340098 million in the previous term. The recurring profit was posted at Yen 165,777 million and the net profit at Yen 124,303 million, respectively, compared with Yen 115621 million recurring profit and Yen 71,337 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 170,000 million and the net profit at Yen 126,000 million, respectively, on a 5% rise in turnover, to Yen 380,000 million. 

 

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

 

 

REGISTRATION

    

Date Registered:                       Oct 2008

Regd No.:                                 0100-01-120389 (Tokyo-Chiyodaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              160 million shares

Issued:                         43,632,360 shares

Sum:                            Yen 1,206,953 million

Major shareholders (%): Ministry of Finance (100)

 

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

 

 

OPERATION

           

Activities: A political bank, offering loans, investment, advisory services, other (--100%)

 

Clients: Business firms, corporations, mfrs, other  

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Government of Japan

 

Payment record: Regular

 

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

 

Bank References:

            Japan Finance Corporation (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

Terms Ending:

 

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

380,000

361,610

340,098

318,775

Recur. Profit

 

170,000

165,777

115,621

99,213

Net Profit

 

126,000

124,303

71,337

77,313

Total Assets

 

 

16,310,711

16,248,712

15,579,881

Net Worth

 

 

2,627,714

2,538,576

2,461,065

Capital, Paid-Up

 

 

1,205,953

1,205,953

1,205,953

Div.Ttl in Million (¥)

 

 

35,254

37,349

50,036

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.09

6.33

6.69

-7.65

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

16.11

15.62

15.80

    N.Profit/Sales

 

33.16

34.37

20.98

24.25

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.05

UK Pound

1

Rs.99.04

Euro

1

Rs.71.76

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

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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.