|
Report Date : |
08.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
KAWASHIMA SELKON
TEXTILE CO LTD |
|
|
|
|
Registered Office : |
265 Shizuichi-Ichiharacho Sakyoku Kyoto 601-1123 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
May 1938 |
|
|
|
|
Com. Reg. No.: |
(Kyoto-Sakyoku) 000056 |
|
|
|
|
Legal Form : |
Limited
Company (Kabushiki Kaisha |
|
|
|
|
Line of Business : |
Mfr of
kimonos, car/train/airplane interiors |
|
|
|
|
No. of Employees : |
1,031 |
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 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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. Japan's industrial
sector is heavily dependent on imported raw materials and fuels. A tiny
agricultural sector is highly subsidized and protected, with crop yields among
the highest in the world. Usually self-sufficient in rice, Japan imports about
60% of its food on a caloric basis. Japan maintains one of the world's largest
fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in
business investment and global demand for Japan's exports in late 2008 pushed
Japan further 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 in March disrupted manufacturing. Electricity
supplies remain tight because Japan has temporarily shut down almost all of its
nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled
by the earthquake and resulting tsunami. Estimates of the direct costs of the
damage - rebuilding homes, factories, and infrastructure - range from $235
billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister
Yoshihiko NODA has proposed opening the agricultural and services sectors to
greater foreign competition and boosting exports through membership in the
US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements
with the EU and others, but debate continues on restructuring the economy and
reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent
deflation, reliance on exports to drive growth, and an aging and shrinking
population are other major long-term challenges for the economy
|
Source
: CIA |
KAWASHIMA SELKON TEXTILE CO Ltd
REGD NAME: Kawashima
Orimono KK
MAIN OFFICE: 265
Shizuichi-Ichiharacho Sakyoku Kyoto 601-1123 JAPAN
Tel:
075-741-411 Fax: 075-741-4309
*.. The is
its Tokyo Headquarters-(International Division)
URL: http://www.kawashimaselkon.co.jp
E-Mail
address: (thru the URL)
Mfr of
kimonos, car/train/airplane interiors
Tokyo,
Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Yokohama, other (Tot 24)
At the
caption address
MASAO
NAKANISHI, PRES Ken Ohkawa, s/mgn
dir
Yasuharu
Hirata, mgn dir Shinzo
Okuno, dir
Hitoshi
Mori, dir Akira
Mitsuoka, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen
33,215 M
PAYMENTSSlow
but correct CAPITAL Yen 9,381 M
TREND SLOW WORTH Yen
10,017 M
STARTED 1938 EMPLOYES 1,031
MFR OF KIMONO, VEHICLES INTERIOR GOODS, OWNED BY LIXIL
GROUP
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
This
is a long-established “Nishijin” (brand-name of kimono textiles) fabrics mfr
founded as kimono store in1843 in Edo period.
Excels in high-quality products, such as traditional Japanese “obi” and
art fabrics. Top-ranked maker of
“obi”. Merged with Selkon Co, mfr of
interiors for automobiles, trains and air planes, and advanced into this
area. The company plans to reinforce
sales of own-brand environment-friendly curtains. The kimono sales subsidiary will pull out
from unprofitable stores, including in department stores. In July 2010, transferred part of interior
products for vehicles, such as autos, trains and airplanes, to a subsidiary
equity-method firm, TB Kawashima KK, jointly founded with Toyota Tsusho Corp
and Toyota Boshoku Corp. In Aug 2011,
the firm went into business tie-up with LIXIL Group Corp (See REGISTRATION) and became its wholly
owned consolidated subsidiary, and delisted from the Tokyo S/E.
The sales
volume for Mar/2012 fiscal term amounted to Yen 33,215 million, a 19% down from
Yen 40,841 million in the previous term.
This is largely referred to the said transfer of vehicle interior
operations to another firm, and the effects of Great East Japan Earthquake that
occurred in Mar 2011. The operations
came back to profitability to post Yen 554 million recurring profit and Yen 249
million net profit, respectively, compared with Yen 149 million recurring loss
and Yen 1,372 million net losses, respectively, a year ago.
For the
current term ending Mar 2013 the recurring profit is projected at Yen 570
million and the net profit at Yen 260 million, on a 4% rise in turnover, to Yen
34,500 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
Date Registered: May 1938
Regd No.: (Kyoto-Sakyoku) 000056
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 176,167,000 shares
Issued:
93,903,222 shares
Sum: Yen 9,381
million
Major shareholders (%): LIXIL Group Corp* (100)
*.. LIXIL Group Corp, largest
mfr of housing facilities and comprehensive maker of building Materials, Tokyo,
founded 1949, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 68,121 million,
sales Yen 1,291,396 million, operating profit Yen 17,915 million, recurring
profit Yen 16,125 million, net profit Yen 1,868 million, total assets Yen
1,481,063 million, net worth Yen 538,776 million, employees 48,163, pres
Yoichiro Ushioda
Consolidated
Financials are attached (See SUPPLEMENTS)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Manufactures: kimono & artistic
fabrics, interior fabrics (curtains, carpets, drapers, walling, other), others
(--100%).
Clients: [Mfrs, wholesalers] Nafco Corp, Leo
Palace 21, Takashimaya, Daimaru Matsuzakaya Department Store, Sogo Seibu Department
Store, Isetan Mitsukoshi Department Stores, Scroll Corp, Kingrun Medicare Corp,
other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Chori Co, NI
Teijin Shoji, Tachikawa Co, Kawashima Textile Shanghai, Bridgestone Corp,
Kawashima Selkon Sewing Co, Toso Co, Nichibei Co, Tajima Inc, Yamamoto Sangyo
Co, Bridgestone Corp, other
Payment record:
Regular
Location:
Business area in Kyoto. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
SMBC
(Kyoto)
Bank
of Kyoto (H/O)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
|
|
Annual
Sales |
|
34,500 |
33,215 |
40,841 |
56,336 |
|
Recur.
Profit |
|
570 |
554 |
-149 |
-1,307 |
|
Net
Profit |
|
260 |
249 |
-1,372 |
-1,454 |
|
Total
Assets |
|
|
27,819 |
28,829 |
42,037 |
|
Current
Assets |
|
|
12,808 |
13,104 |
22,225 |
|
Current
Liabs |
|
|
12,566 |
15,783 |
26,567 |
|
Net
Worth |
|
|
10,017 |
8,218 |
7,176 |
|
Capital,
Paid-Up |
|
|
9,381 |
9,381 |
8,277 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
3.87 |
-18.67 |
-27.50 |
-23.02 |
|
|
Current Ratio |
.. |
101.93 |
83.03 |
83.66 |
|
|
N.Worth Ratio |
.. |
36.01 |
28.51 |
17.07 |
|
|
R.Profit/Sales |
1.65 |
1.67 |
-0.36 |
-2.32 |
|
|
N.Profit/Sales |
0.75 |
0.75 |
-3.36 |
-2.58 |
|
|
Return On Equity |
.. |
2.49 |
.. |
.. |
|
Notes:
Forecast (or estimated) figures for the 31/03/2013 fiscal term.
SUPPLEMENTS:
CONSOLIDATED FINANCIALS OF THE PARENT,
LIXIL GROUP CORP
|
FINANCES: (Consolidated
in million yen) |
||||||
|
|
|
Terms Ending: |
31/03/2012 |
31/03/2011 |
||
|
INCOME STATEMENT |
||||||
|
Annual Sales |
|
1,291,396 |
1,214,939 |
|||
|
Cost of Sales |
915,334 |
834,277 |
||||
|
GROSS PROFIT |
376,061 |
380,661 |
||||
|
Selling & Adm Costs |
358,146 |
340,251 |
||||
|
OPERATING PROFIT |
17,915 |
40,409 |
||||
|
Non-Operating P/L |
-1,790 |
-1,249 |
||||
|
RECURRING PROFIT |
16,125 |
39,160 |
||||
|
|
NET PROFIT |
1,868 |
15,779 |
|||
|
BALANCE SHEET |
||||||
|
Cash |
|
175,103 |
97,029 |
|||
|
Receivables |
365,590 |
283,134 |
||||
|
Inventory |
172,386 |
139,799 |
||||
|
Securities, Marketable |
2,698 |
4,522 |
||||
|
Other Current Assets |
116,946 |
85,409 |
||||
|
TOTAL CURRENT ASSETS |
832,723 |
609,893 |
||||
|
Property & Equipment |
443,552 |
421,943 |
||||
|
Intangibles |
73,617 |
23,742 |
||||
|
Investments, Other Fixed Assets |
131,171 |
111,256 |
||||
|
TOTAL ASSETS |
1,481,063 |
1,166,834 |
||||
|
Payables |
214,427 |
162,810 |
||||
|
Short-Term Bank Loans |
140,367 |
61,396 |
||||
|
|
|
|
||||
|
Other Current Liabs |
266,769 |
155,195 |
||||
|
TOTAL CURRENT LIABS |
621,563 |
379,401 |
||||
|
Debentures |
20,000 |
50,140 |
||||
|
Long-Term Bank Loans |
203,352 |
116,995 |
||||
|
Reserve for Retirement Allw |
31,910 |
30,815 |
||||
|
Other Debts |
|
65,461 |
53,074 |
|||
|
TOTAL LIABILITIES |
942,286 |
630,425 |
||||
|
MINORITY INTERESTS |
||||||
|
Common
stock |
68,121 |
68,121 |
||||
|
Additional
paid-in capital |
261,366 |
260,179 |
||||
|
Retained
earnings |
250,281 |
260,154 |
||||
|
Evaluation
p/l on investments/securities |
4,721 |
1,953 |
||||
|
Others |
(3,974) |
(1,117) |
||||
|
Treasury
stock, at cost |
(41,739) |
(52,882) |
||||
|
TOTAL S/HOLDERS` EQUITY |
538,776 |
536,408 |
||||
|
|
TOTAL EQUITIES |
1,481,063 |
1,166,834 |
|||
|
CONSOLIDATED CASH FLOWS |
||||||
|
Terms ending: |
31/03/2012 |
31/03/2011 |
||||
|
Cash Flows
from Operating Activities |
|
33,979 |
48,680 |
|||
|
Cash
Flows from Investment Activities |
-142,066 |
-13,542 |
||||
|
Cash
Flows from Financing Activities |
138,348 |
-41,686 |
||||
|
|
Cash,
Bank Deposits at the Term End |
|
127,350 |
92,329 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
||||
|
Net
Worth (S/Holders' Equity) |
538,776 |
536,408 |
||||
|
Current
Ratio (%) |
133.97 |
160.75 |
||||
|
Net
Worth Ratio (%) |
36.38 |
45.97 |
||||
|
Recurring
Profit Ratio (%) |
1.25 |
3.22 |
||||
|
Net
Profit Ratio (%) |
0.14 |
1.30 |
||||
|
Return
On Equity (%) |
0.35 |
2.94 |
||||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.61 |
|
|
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.67.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.