MIRA INFORM REPORT

 

 

Report Date :           

03.01.2012

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU TEXTILE CORPORATION

 

 

Registered Office :

Osaki MT Bldg 6F, 5-9-11 Kita-Shinagawa Shinagawaku Tokyo 141-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

November 1993

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, Export, Wholesale of textile materials

 

 

No. of Employees :

144

 

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 454.0 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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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 TEXTILE CORPORATION

 

 

REGD NAME

 

Kanematsu Sen-I KK

 

 

MAIN OFFICE

 

Osaki MT Bldg 6F, 5-9-11 Kita-Shinagawa Shinagawaku Tokyo 141-0001 JAPAN

Tel: 03-5423-6300     Fax: 03-5423-6374

 

* The given address is its Osaka Branch Office

 

Registered at: 4-2-15 Awajicho Chuoku Osaka

 

URL:                             www.kanematsu-textiles.jp 

E-mail:                         info@kanematsu-textiles.jp          

 

 

ACTIVITIES

 

Import, Export, Wholesale of textile materials

 

 

BRANCHES

 

Osaka, Okayama, Fukui

 

 

OVERSEAS

 

Milan, China (2), Bangkok, New York, Jakarta, Paris

 

 

FACTORIES

 

(subcontracted)

 

OFFICER(S)  

 

Victor Fung, ch                          William Flanz, v ch

Masahiro Kawashima, v ch         BRIAN LEE, PRES

Robert Adams, dir                      Makoto Yasuda, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 36,296 M

PAYMENTS                  REGULAR         CAPITAL           Yen 1,500 M

TREND             SLOW              WORTH            Yen 3,040 M

STARTED                     1993                 EMPLOYES      144

                                   

           

COMMENT

 

TRADING HOUSE SPECALIZING IN TEXTILES. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 454.0 MILLION, 30 DAYS NORMAL TERMS

                        Notes: Forecast (or estimated) figures for the 31/12/2011 fiscal term.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of textile division separated from Kanematsu Corp, general trading house tops in Japan in automobile-use pulley for motor engine power (See REGISTRATION).  The subject company specializes in importing and exporting textile materials, OEM to apparel stores and brand-business expansion.  Handles fashion brands, sports casual, other.  Operates 6 subsidiaries in USA, China, Hong Kong, Paris, Italy, Malaysia and Jakarta.  In 2007, became a subsidiary company of LI & Fung Group, Hong Kong. (See REGISTRATION).  In Dec 2010, the firm acquired Fenix International Co Ltd, a wholesaler of knit & leather fashion products. (See REGISTRATION).

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2010 fiscal term amounted to Yen 36,296 million, an 8% down from Yen 39,440 million in the previous term.  Amid the global economic downturn consumer spending was sluggish.  Apparel was most seriously hurt.  The recurring profit was posted at Yen 182 million and the net profit at Yen 766 million, respectively, compared with Yen 172 million recurring profit and Yen 77 million net profit, respectively, a year ago.  Profits include extraordinary profits coming from equity assets revaluation.

 

For the current term ending Dec 2011 the recurring profit is projected at Yen 200 million and the profit at Yen150 million, on a 10% rise in turnover, to Yen 40,000 million.  The acquired Fenix International Co Ltd will contribute in full term.

           

The financial situation is considered FIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 454.0 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Nov 1993

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　120,000 shares

Issued:             　30,000 shares

Sum:                　Yen 1,500 million

Major shareholders (%): LF Japan Development (75), Kanematsu Corp* (25)

No. of shareholders: 2

 

* Leading general trading house of Japan, founded 1984, listed Tokyo S/E, capital Yen 27,781 million, sales Yen 936,891 million, operating profit Yen 18,029 million, recurring profit Yen 14,257 million, net profit Yen 9,175 million, total assts Yen 388,676 million, net worth Yen 49,576 million, employees 4,857, pres Masayuki Shimojima

           

**.. Fung Capital Group is the private investment arm of the families of Dr Victor Fung and Dr William Fung, the controlling share holder of the Li & Fung Group of companies.  It is involved in consumer supply chain management, logistics & consumer products businesses with total stall of over 35,000 across 40 economies worldwide, and with total revenues of US$16 billion in 2009.i 

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales textile materials, apparel, OEM supply to apparel retail stores and brand-business expansion (--100%)

 

Clients: [Wholesalers, apparel retailers] Comme de Garcon, United arrows, Nike Japan, San Rio Co, Right-On Co, United Arrows, EPTAMODA Co, KURODARUMA Corp, other.

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Takisada Osaka, Toyobo Specialties Trading Co, Kura Rey Co, Global Gate Co, other

 

Payment record: Regular

 

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

 

Bank References:

·         MUFG (Shibuya-Meijidori)

·         Mizuho Corporate Bank (Uchisaiwaicho)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2010

31/12/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

36,296

39,440

 

  Cost of Sales

31,402

35,804

 

      GROSS PROFIT

3,893

3,635

 

  Selling & Adm Costs

3,728

3,351

 

      OPERATING PROFIT

164

283

 

  Non-Operating P/L

18

-111

 

      RECURRING PROFIT

182

172

　

      NET PROFIT

766

77

BALANCE SHEET

 

 

 

 

  Cash

　

2,155

1,587

 

  Receivables

 

5,927

5,316

 

  Inventory

 

1,727

1,862

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,719

3,805

 

      TOTAL CURRENT ASSETS

13,528

12,570

 

  Property & Equipment

154

128

 

  Intangibles

 

233

143

 

  Investments, Other Fixed Assets

3,606

2,065

 

      TOTAL ASSETS

17,521

14,906

 

  Payables

 

1,939

2,400

 

  Short-Term Bank Loans

300

　

 

　

 

　

　

 

  Other Current Liabs

7,933

6,478

 

      TOTAL CURRENT LIABS

10,172

8,878

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

3,246

3,209

 

  Reserve for Retirement Allw

208

23

 

  Other Debts

　

854

336

 

      TOTAL LIABILITIES

14,480

12,446

 

      MINORITY INTERESTS

 

 

 

Common stock

1,500

1,500

 

Additional paid-in capital

　

　

 

Retained earnings

1,774

1,004

 

Evaluation p/l on investments/securities

(21)

　

 

Others

 

(213)

(45)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

3,040

2,459

　

      TOTAL EQUITIES

17,521

14,906

ANALYTICAL RATIOS            Terms ending:

31/12/2010

31/12/2009

 

 

Net Worth (S/Holders' Equity)

3,040

2,459

 

 

Current Ratio (%)

132.99

141.59

 

 

Net Worth Ratio (%)

17.35

16.50

 

 

Recurring Profit Ratio (%)

0.50

0.44

 

 

Net Profit Ratio (%)

2.11

0.20

 

 

Return On Equity (%)

25.20

3.13

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.30

UK Pound

1

Rs.82.66

Euro

1

Rs.68.91

 

 

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%)

 

 

 

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.