MIRA INFORM REPORT

 

 

Report Date :

27.01.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

KINTETSU WORLD EXPRESS INC

 

 

Registered Office :

Ohtemachi Bldg 5F, 1-6-1 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

January 1970

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 014251

 

 

Legal Form :

Limited Company

 

 

Line of Business :

International freight forwarder for air & ocean cargo

 

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

 

Maximum Credit Limit :

Yen 8,541.7 Million

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

---

 

 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

KINTETSU WORLD EXPRESS INC

 

 

REGD NAME 

 

Kintetsu World Express KK

 

 

MAIN OFFICE

 

 Ohtemachi Bldg 5F, 1-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN

Tel: 03-3201-2580-

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

International freight forwarder for air & ocean cargo

 

 

BRANCHES

 

Narita, Baraki (4), Nagoya, Osaka (--air terminals

 

 

CHIEF EXEC 

 

SATOSHI ISHIZAKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 211,836 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 7,216 M

TREND             SLOW              　WORTH         Yen 68,038 M

STARTED                     1970                 　EMPLOYES   8,984

 

COMMENT    

 

INTERNATIONAL AIR/OCEAN FREIGHT FORWARDER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 8,541.7 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

 

The subject company is a second-ranked international cargo transporter in Japan.  Strengthening small lot, faster transportation of electronic parts & products.  Handling ratio is high in this field.  Has capital and business alliance with Mitsui OSK Lines.  The firm is working with Asia-based airline firms to cope with higher airfares and decreased cargo spaces due to JAL’s withdrawal from cargo flights.  It has established JV in Saudi Arabia.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 211,836 million, an 18.6% down from Yen 260,331 million in the previous terms.  Global economic downturn affected the sales.  Exports were hurt by the high Yen.  The recurring profit was posted at Yen 8,032 million and the net profit at Yen 9,203 million,　respectively, compared with Yen 4,570 million recurring profit and Yen 3,478 million net profit, respectively, a year ago.　. 

           

(Apr/Sept/2010 results): Sales Yen 132,912 million (up 40.3%), operating profit Yen 4,932 million (up 78.2%), recurring profit Yen 5,399 million (up 84.4%), net profit Yen 3,956 million (up 168.0%).  (% compared with the corresponding period a year ago).  The major contributing factors were a significant rebound since last year in the amount of overseas freight particularly centering on the Asian region, the firm says.       

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 11,700 million and the net profit at Yen 7,800 million, on a 27.5% rise in turnover, to Yen 270,000 million.  Shipments of LCD-related items, electronics components and semiconductor mfg equipment recovered significantly particularly into China and Taiwan.  Cargo services for US and Europe are also growing stronger than projections.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 8,541.7 million, on 30 days normal terms.

 

 

 

REGISTRATION

 

Date Registered:　      Jan 1970

Regd No.:                                 (Tokyo-Chiyodaku) 014251

Legal Status:               Limited Company (Kabushiki Kaisha

Authorized:                  120 million shares

Issued:                        86 million shares

Sum:                            Yen 7,216 million

 

Major shareholders (%): Kintetsu Corp (40.9), Mitsui OSK Lines (4.9), Japan Trustee Services T (4.2), Master Trust Bank of Japan T (4.1), Chase London SL Omnibus Acct (2.9), State Street Bank & Trust (2.9), Hokko Daiwa Taxi (2.6), Juniper (2.1), Okunikko Kogen Hotel (1.6), Hakone Kogen Hotel (1.4); foreign owners (24.1)

 

No. of shareholders: 3,797

 

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

 

Managements: Akio Doi, ch; Satoshi Ishizaki, pres; Masakazu Hattori, s/mgn dir; Hirohiko Ueno, s/mgn dir; Kenji Ueda, s/mgn dir; Kenji Ueda, s/mgn dir; Joji Tomiyama, s/mgn dir; Haruhito Nakada, mgn dir

 

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

 

Related companies: KWE USA, KWE Hong Kong, KWE Singapore, other.

 

 

OPERATION

           

Activities: International air freight forwarding (60%), international ocean freight forwarding (20%), domestic air freight forwarding (7%), logistics, others (13%).

 

Overseas Sales Ratio (56%)

           

Clients: [Mfrs, wholesalers] Toshiba Corp, Kintetsu World Express USA Inc, Beijing Kintetsu World Express, Hyundai Logistics Co, Panasonic, other

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Beijing Kintetsu World Express Co, Korean Airlines Co, Japan Air Lines, Kintetsu World Express USA, Kintetsu World Express Hong Kong, other

 

Payment record: Regular

 

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

 

Bank References:

·         MUFG (Nihombashi)

·         Mizuho Bank (Marunouchi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

211,836

260,330

 

  Cost of Sales

175,720

220,207

 

      GROSS PROFIT

36,116

40,123

 

  Selling & Adm Costs

28,665

31,097

 

      OPERATING PROFIT

7,451

9,025

 

  Non-Operating P/L

581

178

 

      RECURRING PROFIT

8,032

9,203

　

      NET PROFIT

4,570

3,478

BALANCE SHEET

 

 

 

 

  Cash

　

25,933

26,294

 

  Receivables

 

41,133

35,235

 

  Inventory

 

　

　

 

  Securities, Marketable

　

　

 

  Other Current Assets

2,977

3,578

 

      TOTAL CURRENT ASSETS

70,043

65,107

 

  Property & Equipment

34,631

31,207

 

  Intangibles

 

2,071

2,544

 

  Investments, Other Fixed Assets

9,895

10,295

 

      TOTAL ASSETS

116,640

109,153

 

  Payables

 

19,528

15,871

 

  Short-Term Bank Loans

11,955

12,602

 

　

 

　

　

 

  Other Current Liabs

10,549

12,159

 

      TOTAL CURRENT LIABS

42,032

40,632

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

3,349

4,762

 

  Reserve for Retirement Allw

2,200

1,120

 

  Other Debts

　

1,021

765

 

      TOTAL LIABILITIES

48,602

47,279

 

      MINORITY INTERESTS

 

 

 

Common stock

7,216

7,216

 

Additional paid-in capital

4,867

4,867

 

Retained earnings

57,496

53,681

 

Evaluation p/l on investments/securities

173

(415)

 

Others

 

(1,713)

(3,475)

 

Treasury stock, at cost

(1)

(1)

 

      TOTAL S/HOLDERS` EQUITY

68,038

61,873

　

      TOTAL EQUITIES

116,640

109,153

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

6,259

9,687

 

Cash Flows from Investment Activities

-3,834

-6,481

 

Cash Flows from Financing Activities

-3,995

-1,663

　

Cash, Bank Deposits at the Term End

　

25,045

25,904

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

68,038

61,873

 

 

Current Ratio (%)

166.64

160.24

 

 

Net Worth Ratio (%)

58.33

56.68

 

 

Recurring Profit Ratio (%)

3.79

3.54

 

 

Net Profit Ratio (%)

2.16

1.34

 

 

Return On Equity (%)

6.72

5.62

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.53

UK Pound

1

Rs.72.78

Euro

1

Rs.62.14

 

 

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

 

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.