MIRA INFORM REPORT

 

 

Report Date :

04.03.2013

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU CHEMICALS CORPORATION

 

 

Registered Office :

TT Daini (No.2) Bldg 10F, 3-8-1 Nihombashi-Ningyocho Chuoku Tokyo 103-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

September, 1974

 

 

Reg. No.:

040329

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of industrial chemicals

 

 

No. of Employees :

65

 

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 :

No Complaints

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

(31.03.2011)

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

 

 

 


 

Company name

 

KANEMATSU CHEMICALS CORPORATION

 

REGD NAME:  

 

Kanematsu Chemical KK

 

 

MAIN OFFICE: 

 

TT Daini (No.2) Bldg 10F, 3-8-1 Nihombashi-Ningyocho Chuoku Tokyo 103-0013, JAPAN

Tel: 03-5643-3011     Fax: 03-5643-3016

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Osaka

 

OFFICER(S)

 

KAZUYUKI MATSUNAGA, PRES                      

Toshio Kokaji, mgn dir

Shuji Yamakita, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 19,487 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 300 M

TREND             UP                                WORTH            Yen 683 M

STARTED         1974                             EMPLOYES      65

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, WHOLLY OWNED BY KANEMATSU CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a chemical division separated from Kanematsu Corp, trading house of Japan, Tokyo (see REGISTRATION), in order to import, export and wholesale of industrial chemicals.  Originally named as Kanematsu Kaseihin KK (Kaseihin means chemical products) and renamed as captioned in Mar 2002.  The firm separated and transferred one division to a sister firm in 2005.  In 2009, merged this a sister company.  Clients include major chemical mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 19,487 million, an 11% up from Yen 17,612 million in the previous term.  The growth was driven by active demand in Asia and emerging countries, particularly in China.  The recurring profit was posted at Yen 521 million and the net profit at Yen 287 million, respectively, compared with Yen 403 million recurring profit and Yen 229 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 540 million and the net profit at Yen 300 million, respectively, on a 5% rise in turnover, to Yen 20,500 million.  Exports continue robust into China and other S/E Asian countries.  Price hikes of some products will help increase sales.  High Yen may erode profits in Yen terms.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 460.5 million, on 30 days normal terms. 

 

REGISTRATION

 

Date Registered:  Sept 1974

Regd No.:            (Tokyo-Chuoku) 040329

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         800,000 shares

Issued:                600,000 shares

Sum:                   Yen 300 million

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

 

*.. Formerly general trading house, traditionally strong in textiles, Tokyo, now operations have been reduced to foods, energy, steel & plants and textiles, founded 1918, listed Tokyo S/E, capital Yen 27,781 million, turnover Yen 1,006,365 million, operating profit Yen 21,426 million, recurring profit Yen 17,752 million, net profit Yen 6,110 million, total assets Yen 399,753 million, net worth Yen 56,392 million, employees 4,770, pres Masayuki Shimojima.

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Trading house for import, export and wholesale of industrial chemicals

 

(Sales Breakdown by Divisions):

Functional Chemicals Div (33%): petrochemical products (aromatics, ketone, ester, alcohol, ethanol, other;

Paper Mill Chemicals Div (15%): paper mfg chemicals, medical & sanitary chemicals;

Functional Chemicals Div (Osaka Branch) (15%): plywood adhesives, anti-corrosive chemicals, naphthene, aroma chemicals, glycerin, furfural, sulfur alcohol, rosin, other;

Techno Chemicals Div (16%): inorganic chemicals for paper mfg, fertilizer, other industrial use, rare earth, active charcoal, other inorganic chemicals, adhesive agents, firming agents, synthetic resins, other;

Fine Chemicals Div (12%): functional food additives, raw materials, pharmaceuticals, intermediates, photosensitive plastics, water treatment chemicals, flame retardant, bactericide, fungicide, dyestuffs, pigments and additives, other;

Others (9%): auto chemicals, auto materials, building & construction materials, water-proofing agents, sealants, paints & coatings, other.

Import (15%); Export (20%); Domestic (70%)

 

Clients: [Chemical mfrs, other mfrs, wholesalers] Hokushin Co (10%), Shin-Etsu Astec, Daio Paper, Iwaki Daio Paper Corp, Kanematsu Corp, Sanyo Kaseihin, Yamaichi Chemical Ind, Kowa Shoji, Nagasawa Shoji, Omiya Seishi Co, Elleair Paper Chemical Co, other.

            No. of accounts: 800

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Tokuyama Corp (7%), Mitsui Chemical, Maruzen Petrochemical, Shell Chemicals Japan, NSC Japan, Teijin Fiber, Sojitz Corp, Miyoshi Fats & Oils Corp, Mitsui Bussan Chemicals Co, Sakai Chemical Ind, other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (H/O)

SMBC (Tokyo-Chuo)

Relations: Satisfactory

 


FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

20,500

19,487

17,612

16,994

Recur. Profit

 

540

521

403

350

Net Profit

 

300

287

229

233

Total Assets

 

 

6,710

5,802

6,291

Current Assets

 

 

6,293

5,416

5,942

Current Liabs

 

 

5,859

5,026

5,531

Net Worth

 

 

683

624

645

Capital, Paid-Up

 

 

300

300

300

Div.Ttl in Million (¥)

 

 

229

250

207

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.20

10.65

3.64

-17.61

    Current Ratio

 

..

107.41

107.76

107.43

    N.Worth Ratio

..

10.18

10.75

10.25

    R.Profit/Sales

 

2.63

2.67

2.29

2.06

    N.Profit/Sales

1.46

1.47

1.30

1.37

    Return On Equity

..

42.02

36.70

36.12

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 

 


SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, KANEMATSU CORPORATION

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

1,006,365

936,891

 

  Cost of Sales

925,464

859,986

 

      GROSS PROFIT

80,900

76,905

 

  Selling & Adm Costs

59,473

58,875

 

      OPERATING PROFIT

21,426

18,029

 

  Non-Operating P/L

-3,674

-3,772

 

      RECURRING PROFIT

17,752

14,257

 

      NET PROFIT

6,510

9,175

BALANCE SHEET

 

 

 

 

  Cash

 

70,835

69,014

 

  Receivables

 

163,782

146,546

 

  Inventory

 

57,113

57,089

 

  Securities, Marketable

 

 

 

  Other Current Assets

 

 

 

      TOTAL CURRENT ASSETS

318,581

299,283

 

  Property & Equipment

27,028

27,884

 

  Intangibles

 

1,905

1,859

 

  Investments, Other Fixed Assets

 

 

 

      TOTAL ASSETS

399,753

388,676

 

  Payables

 

108,956

96,137

 

  Short-Term Bank Loans

78,444

100,488

 

 

 

 

 

 

  Other Current Liabs

 

 

 

      TOTAL CURRENT LIABS

246,837

252,120

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

82,403

73,138

 

  Reserve for Retirement Allw

2,736

2,516

 

  Other Debts

 

 

 

 

      TOTAL LIABILITIES

343,360

339,099

 

      MINORITY INTERESTS

 

 

 

Common stock

27,781

27,781

 

Additional paid-in capital

27,597

27,606

 

Retained earnings

1,540

8,914

 

Evaluation p/l on investments/securities

137

(166)

 

Others

 

 

 

 

Treasury stock, at cost

(550)

(569)

 

      TOTAL S/HOLDERS` EQUITY

56,392

49,576

 

      TOTAL EQUITIES

399,753

388,676

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

 

15,822

7,827

 

Cash Flows from Investment Activities

1,291

17,322

 

Cash Flows from Financing Activities

-13,411

-20,664

 

Cash, Bank Deposits at the Term End

 

70,594

67,426

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

56,392

49,576

 

 

Current Ratio (%)

129.07

118.71

 

 

Net Worth Ratio (%)

14.11

12.76

 

 

Recurring Profit Ratio (%)

1.76

1.52

 

 

Net Profit Ratio (%)

0.65

0.98

 

 

Return On Equity (%)

11.54

18.51

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.38

UK Pound

1

Rs.82.04

Euro

1

Rs.69.58

 

 

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%)

 

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.