MIRA INFORM REPORT
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Report No. : |
349615 |
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Report Date : |
07.11.2015 |
IDENTIFICATION DETAILS
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Name : |
NIPPO CORPORATION |
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Registered Office : |
1-2-16 Yaesu Chuoku Tokyo 103-0028 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Feb., 1934 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Engineering Works of Road Pavement, Wholesale of Pavement Materials. |
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No. of Employees : |
4,002 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 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
NIPPO CORPORATION
REGD NAME: KK
Nippo
MAIN OFFICE: 1-2-16
Yaesu Chuoku Tokyo 103-0028 JAPAN
Tel: 03-3563-6751 Fax: 03-3567-7058
URL: http://www.nippo-c.co.jp/
E-Mail address: nippo-g@nippo-c.co.jp
ACTIVITIES
Engineering works
of road pavement, wholesale of pavement materials
BRANCHES
490 domestic
locations nationwide, from Hokkaido to Kyushu areas
FACTORIES
(Subsidiaries)
CHIEF
EXEC
HIROMI IWATA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 396,948 M
PAYMENTS REGULAR CAPITAL Yen 15,324 M
TREND STEADY WORTH Yen
250,913 M
STARTED 1934 EMPLOYES 4,002
COMMENT
ENGINEERING WORKS OF ROAD PAVEMENT
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
Unit: in Million Yen
Forecast (or estimated) figures for 31/03/2016
fiscal term
HIGHLIGHTS
This is a leading
road paver under auspices of JX
Holdings. Maintains strong market share in asphalt paving mixture, with many
factories located across nation. Diversifying into general construction, and
has track record in construction
of high-rise condominiums. Also engaged in real estate development.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 396,948 million, an 8.0% down from Yen
431,638 million in the previous term. The
recurring profit was posted at Yen 36,604 million and the net profit at Yen
22,437 million, respectively, compared with Yen 36,408 million recurring profit
and Yen 21,786 million net profit, respectively, a year ago.
(Apr/Jun/2015
results): Sales Yen 166,031 million (down 8.4%), operating profit Yen 12,761
million (down 4.4%), recurring profit Yen 13,620 million (down 5.0%), net
profit Yen 8,451 million (sown 7.1%). (%
as compared with the corresponding period a year ago).
For the current
term ending Mar 2016 the recurring profit is projected at Yen 35,500 million
and net profit at Yen 22,000 million, on a 5.3% rise in turnover, to Yen
418,000 million. Orders backlog will
stand at a high level.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Feb 1934
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
240 million shares
Issued:
119,401,836 shares
Sum:
Yen 15,324 million
Major shareholders (%): Nippon Oil Corp
(56.8), Japan Trustee Services Bank T (6.8), Master Trust Bank of Japan T
(2.9), State Street Bank & Trust 505001 (1.2), Evergreen (1.1), Bank of New
York Mellon SANV 10 (0.9), Japan
Trustee Services T9 (0.8), Mellon Bank Mellon Omnibus US P (0.8), BINY GCM Client JPRDIGFEAC (0.7), Mellon Bank Treaty
Cl. Omnibus (0.6); foreign owners (19.2)
No.
of shareholders: 3,672
Listed
on the S/Exchange (s) of: Tokyo, Sapporo
Managements: Kazunori Mizushima, ch; Hiromi Iwata, pres; Yukio Yamagata, v pres; Shigeru Yokoyama,
s/mgn dir; Koichi Ishikawa, s/mgn dir; Jun’ichi Terawaki, s/mgn dir; Shoji Takahashi, s/mgn dir; Yoshikazu
Yoshikawa, mgn dir; Yasushi
Kimura, dir; Takeshi Kimura, dir
Nothing detrimental is knows as to the commercial
morality of executives.
OPERATION
Activities: Engineering works: Pavement construction
(36%), construction (17%), manufacturing & marketing (18%), development
business (5%), others (3%)
Clients: [Government agencies, public agencies,
municipal offices] Ministry of Land, Infrastructure
& Transport, Japan Highway Public Corp, Tokyo Metrop Office, JX Nippon Oil & Mining Corp, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Refiners, mfrs]
JX Nippon Oil & Mining Corp, Nakanishi Asphalt, other
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank
References:
SMBC (Kyobashi)
Mizuho Bank
(Ginza)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
|
396,948 |
431,638 |
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Cost of Sales |
341,301 |
376,748 |
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GROSS PROFIT |
21,252 |
54,889 |
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Selling & Adm Costs |
21,252 |
20,199 |
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OPERATING PROFIT |
34,394 |
34,689 |
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Non-Operating P/L |
2,210 |
1,359 |
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RECURRING PROFIT |
36,604 |
36,048 |
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NET PROFIT |
22,437 |
21,786 |
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BALANCE SHEET |
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Cash |
|
54,696 |
47,865 |
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Receivables |
135,692 |
149,816 |
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Inventory |
28,111 |
27,843 |
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Securities, Marketable |
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Other Current Assets |
93,626 |
78,999 |
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TOTAL CURRENT ASSETS |
312,125 |
304,523 |
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Property & Equipment |
97,917 |
90,058 |
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Intangibles |
2,116 |
2,008 |
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Investments, Other Fixed Assets |
57,296 |
43,875 |
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TOTAL ASSETS |
469,454 |
440,464 |
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Payables |
127,535 |
142,133 |
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Short-Term Bank Loans |
1,985 |
1,965 |
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Other Current Liabs |
56,947 |
43,876 |
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TOTAL CURRENT LIABS |
186,467 |
187,974 |
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Debentures |
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Long-Term Bank Loans |
3,262 |
4,668 |
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Reserve for Retirement Allw |
8,309 |
6,757 |
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Other Debts |
|
20,502 |
18,055 |
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TOTAL LIABILITIES |
218,540 |
217,454 |
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MINORITY INTERESTS |
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Common
stock |
15,324 |
15,324 |
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Additional
paid-in capital |
15,916 |
15,916 |
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Retained
earnings |
191,170 |
172,899 |
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Evaluation
p/l on investments/securities |
24,553 |
16,263 |
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Others |
4,152 |
2,798 |
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Treasury
stock, at cost |
(202) |
(190) |
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TOTAL S/HOLDERS` EQUITY |
250,913 |
223,010 |
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TOTAL EQUITIES |
469,454 |
440,464 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
|
29,585 |
39,311 |
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Cash
Flows from Investment Activities |
-11,143 |
-9,146 |
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Cash
Flows from Financing Activities |
-4,520 |
-3,053 |
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Cash,
Bank Deposits at the Term End |
|
96,855 |
82,472 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
250,913 |
223,010 |
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Current
Ratio (%) |
167.39 |
162.00 |
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Net
Worth Ratio (%) |
53.45 |
50.63 |
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Recurring
Profit Ratio (%) |
9.22 |
8.35 |
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Net
Profit Ratio (%) |
5.65 |
5.05 |
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Return
On Equity (%) |
8.94 |
9.77 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.79 |
|
|
1 |
Rs.99.95 |
|
Euro |
1 |
Rs.71.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
-- |
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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.