MIRA INFORM REPORT

 

 

Report Date :           

21.07.2011

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU TRADING CORPORATION

 

 

Registered Office :

Akebono Nihombashi Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku Tokyo 103-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

December  1970

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 013863

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of steel products, steel raw materials, stainless steel products, steel structures

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 229.6 Million

 

 

Status :

Moderate

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

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

 

KANEMATSU TRADING CORPORATION

 

 

REGD NAME 

 

Kanematsu Trading KK

 

 

MAIN OFFICE

 

Akebono Nihombashi Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku Tokyo 103-0016 JAPAN

Tel: 03-5860-2200     Fax: 03-5808-2321

URL:                             http://www.nik.e-kgt.com

E-Mail address:            sumiko_tomari@kgt-kanematsu.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of steel products, steel raw materials, stainless steel products, steel structures

 

 

BRANCHES

 

Osaka, Sapporo

 

 

OFFICERS

 

TOMOFUSA EMI, PRES                        Kazuhiro Yamamoto, mgn dir                                         

Yasumi Suzuki, mgn dir                         Hirofumi Kouchi, dir

Hiroyuki Harita, dir                                 Shigeru Takeda, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 37,666 M

PAYMENTS      REGULAR                     CAPITAL           Yen 260 M

TREND             SLOW                          WORTH            Yen 833 M

STARTED                     1970                             EMPLOYES      80

COMMENT    

 

TRADING HOUSE FOR IMPORT, EXPORT AND WHOLESALE OF STEEL & STAINLESS STEEL PRODUCTS, WHOLLY OWNED BY KANEMATSU CORPORATION.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDIANRY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 229.6 MILLION, 30 DAYS NORMAL TERMS.  .

 

 

HIGHLIGHTS

 

The subject company was established by Shingo Mochizuki as Nikko Boeki KK for exporting specialty steel products.  In 1995, Kanematsu Corp (See REGISTRATION) acquired 100% of the share and made it a wholly owned subsidiary.  In Oct 2006 merged into Kanematsu Trading Corporation.  This is a trading firm specializing in import, export and wholesale of specialty steel products, stainless steel products, steel raw materials, construction materials, others.  Offers construction works, too.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 37,666 million, a 49% down from Yen 73,659 million in the previous term.  Sales were substantially affected by the global economic downturn particularly in the first half of the term.  Construction business was slump in Japan.  Iron & steel business produced weak results with the adverse effects of reduced business with US customers.  Exports declined substantially because of decline in demand and the appreciation of the Yen.  The recurring profit was posted at Yen 252 million and the net profit at Yen 239 million, respectively, compared with Yen 647 million recurring profit and Yen 350 million net profit, respectively, a year ago.

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 250 million and the net profit at Yen 240 million, respectively, on a 1% rise in turnover, to Yen 38,200 million.  Steel exports will struggle due to the higher Yen.  Sales of automobile parts are robust.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 229.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Dec 1970

Regd No.:                                 (Tokyo-Chuoku) 013863

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  1.6 million shares

Issued:                         520,000 shares

Sum:                            Yen 260 million

 

Major shareholders (%): Kanematsu Corporation*(100)

 

*..Specialized trading house of foods & IT-related business, Tokyo, founded 1918 (originally as textile merchant in Osaka), listed Tokyo, Osaka S/E’s, capital Yen 27,781 million, turnover Yen 861,277 million, operating profit Yen 12,186 million, recurring profit Yen 8,238 million, net profit Yen 3,528 million, total assets Yen 398,629 million, net worth Yen 45,804 million, employees 4,709, pres Masayuki Shimojima

 

Consolidated Financials are attached (See SUPPLEMENTS)

           

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales special steel products (100%):

 

(Handling Items):

Flat Products: stainless steel coils/sheets & plates, all flat rolled products for various use, high nickel & titanium products, clad plates;

 

Rolls & Components: various kinds of mill rolls, machine & parts for steel mills, components for cars, agricultural & various machinery, cast & forged products;

 

Tubular & Long Products: specialty steel seamless and welded pipers & tubes, non-ferrous copper alloy tubes, stainless steel bars in various shapes, wire rods & wires, high alloy items including pipes, tubes & bars;

 

Specialty Steel: alloy steel, tool steel, bearing steel, high speed steel items, welding consumables in all grades.

 

Clients: [Mfrs, wholesalers] Kyowa Steel, Mukoyama Steel, Itoi Shoji, Taiyo Bussan Kaisha, Kyoei Steel, Nitoh Rail Co, Nodaki KK, Tanaka Tekko Hambai, Nakayama Steel Works, H&CS Holdings Pte Ltd, Daiwa Steel, Kanematsu Corp, other.

 

Exports to India, USA, Australia, Peru, Pakistan, Thailand, Taiwan, Indonesia, Egypt, Russia as main markets, including other worldwide destinations in over 27 countries. 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Steel, Sumitomo Metal Ind, Kanematsu Corp, Nisshin Steel, Sangyo Metal Ind, Aichi Steel, Kobe Steel, Nippon Metal Ind, Nakayama Steel Works, Daiwa Steel, Nabesho Co, Azuma Metal Co, Maruichi Steel Tube Ltd, etc

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Nihombashi)

Ikeda Senshu Bank (Honmachi)

Relations: Satisfactory

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

38,200

37,666

73,659

70,868

Recur. Profit

　

250

252

647

496

Net Profit

　

240

239

350

289

Total Assets

　

　

11,224

12,901

18,437

Current Assets

　

　

9,566

10,734

15,928

Current Liabs

　

　

8,618

8,966

14,875

Net Worth

　

　

833

1,192

1,146

Capital, Paid-Up

　

　

260

260

260

Div.Total (Million \)

　

　

557

209

256

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.42

-48.86

3.94

644.18

    Current Ratio

 

..

111.00

119.72

107.08

    N.Worth Ratio

..

7.42

9.24

6.22

    R.Profit/Sales

 

0.65

0.67

0.88

0.70

    N.Profit/Sales

0.63

0.63

0.48

0.41

    Return On Equity

..

28.69

29.36

25.22

 

Notes: Forecast (or estimated) for the 31/03/2011 fiscal term.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, KANEMATSU CORPORATION

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

861,277

1,138,755

 

  Cost of Sales

787,173

1,052,463

 

      GROSS PROFIT

74,104

86,292

 

  Selling & Adm Costs

61,918

67,264

 

      OPERATING PROFIT

12,186

19,027

 

  Non-Operating P/L

-3,948

-5,900

 

      RECURRING PROFIT

8,238

13,127

　

      NET PROFIT

-12,787

3,528

BALANCE SHEET

 

 

 

 

  Cash

　

83,752

79,025

 

  Receivables

 

133,153

144,470

 

  Inventory

 

55,827

60,241

 

  Securities, Marketable

　

15

 

  Other Current Assets

31,295

32,545

 

      TOTAL CURRENT ASSETS

304,027

316,296

 

  Property & Equipment

28,218

30,094

 

  Intangibles

 

1,843

2,054

 

  Investments, Other Fixed Assets

64,541

66,484

 

      TOTAL ASSETS

398,629

414,928

 

  Payables

 

90,559

92,211

 

  Short-Term Bank Loans

104,133

103,534

 

　

 

　

　

 

  Other Current Liabs

56,378

53,599

 

      TOTAL CURRENT LIABS

251,070

249,344

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

88,969

110,073

 

  Reserve for Retirement Allw

2,648

2,860

 

  Other Debts

　

10,137

10,615

 

      TOTAL LIABILITIES

352,824

372,892

 

      MINORITY INTERESTS

 

 

 

Common stock

27,781

27,781

 

Additional paid-in capital

27,644

27,644

 

Retained earnings

(261)

(3,786)

 

Evaluation p/l on investments/securities

57

(891)

 

Others

 

(8,778)

(8,081)

 

Treasury stock, at cost

(639)

(632)

 

      TOTAL S/HOLDERS` EQUITY

45,804

42,035

　

      TOTAL EQUITIES

398,629

414,927

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

26,441

17,177

 

Cash Flows from Investment Activities

-19,149

-370

 

Cash Flows from Financing Activities

-21,572

-10,613

　

Cash, Bank Deposits at the Term End

　

64,479

78,655

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

45,804

42,035

 

 

Current Ratio (%)

121.09

126.85

 

 

Net Worth Ratio (%)

11.49

10.13

 

 

Recurring Profit Ratio (%)

0.96

1.15

 

 

Net Profit Ratio (%)

-1.48

0.31

 

 

Return On Equity (%)

-27.92

8.39

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.46

UK Pound

1

Rs.71.67

Euro

1

Rs.62.94

 

 

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.