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Report Date : |
04.03.2013 |
IDENTIFICATION DETAILS
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Name : |
KANEMATSU CHEMICALS CORPORATION |
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Registered Office : |
TT Daini (No.2) Bldg 10F, 3-8-1 Nihombashi-Ningyocho Chuoku Tokyo
103-0013 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
September, 1974 |
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Reg. No.: |
040329 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of industrial chemicals |
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No. of Employees : |
65 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source : CIA |
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
E-Mail address: (thru the URL)
Import, export, wholesale of industrial chemicals
Osaka
KAZUYUKI MATSUNAGA, PRES
Toshio Kokaji, mgn dir
Shuji Yamakita, dir
Yen Amount: In million Yen,
unless otherwise stated
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
TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, WHOLLY OWNED BY
KANEMATSU CORP.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS
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.
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.
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.
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
(In Million Yen)
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Terms Ending: |
31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
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Annual Sales |
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20,500 |
19,487 |
17,612 |
16,994 |
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Recur. Profit |
|
540 |
521 |
403 |
350 |
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Net Profit |
|
300 |
287 |
229 |
233 |
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Total Assets |
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6,710 |
5,802 |
6,291 |
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Current Assets |
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6,293 |
5,416 |
5,942 |
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Current Liabs |
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5,859 |
5,026 |
5,531 |
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Net Worth |
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|
683 |
624 |
645 |
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Capital, Paid-Up |
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300 |
300 |
300 |
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Div.Ttl in Million (¥) |
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229 |
250 |
207 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
5.20 |
10.65 |
3.64 |
-17.61 |
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Current Ratio |
|
.. |
107.41 |
107.76 |
107.43 |
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N.Worth
Ratio |
.. |
10.18 |
10.75 |
10.25 |
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R.Profit/Sales |
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2.63 |
2.67 |
2.29 |
2.06 |
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N.Profit/Sales |
1.46 |
1.47 |
1.30 |
1.37 |
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Return
On Equity |
.. |
42.02 |
36.70 |
36.12 |
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Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.
CONSOLIDATED
FINANCIALS OF THE PARENT, KANEMATSU CORPORATION
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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1,006,365 |
936,891 |
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Cost of Sales |
925,464 |
859,986 |
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GROSS PROFIT |
80,900 |
76,905 |
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Selling & Adm Costs |
59,473 |
58,875 |
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OPERATING PROFIT |
21,426 |
18,029 |
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Non-Operating P/L |
-3,674 |
-3,772 |
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RECURRING PROFIT |
17,752 |
14,257 |
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NET PROFIT |
6,510 |
9,175 |
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BALANCE SHEET |
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Cash |
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70,835 |
69,014 |
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Receivables |
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163,782 |
146,546 |
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Inventory |
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57,113 |
57,089 |
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Securities, Marketable |
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Other Current Assets |
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TOTAL CURRENT ASSETS |
318,581 |
299,283 |
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Property & Equipment |
27,028 |
27,884 |
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Intangibles |
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1,905 |
1,859 |
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Investments, Other Fixed Assets |
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TOTAL ASSETS |
399,753 |
388,676 |
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Payables |
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108,956 |
96,137 |
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Short-Term Bank Loans |
78,444 |
100,488 |
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Other Current Liabs |
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TOTAL CURRENT LIABS |
246,837 |
252,120 |
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Debentures |
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Long-Term Bank Loans |
82,403 |
73,138 |
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Reserve for Retirement Allw |
2,736 |
2,516 |
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Other Debts |
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TOTAL LIABILITIES |
343,360 |
339,099 |
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MINORITY INTERESTS |
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Common stock |
27,781 |
27,781 |
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Additional paid-in capital |
27,597 |
27,606 |
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Retained earnings |
1,540 |
8,914 |
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Evaluation p/l on
investments/securities |
137 |
(166) |
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Others |
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Treasury stock, at cost |
(550) |
(569) |
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TOTAL S/HOLDERS` EQUITY |
56,392 |
49,576 |
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TOTAL EQUITIES |
399,753 |
388,676 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash Flows from Operating Activities |
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15,822 |
7,827 |
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Cash Flows from Investment Activities |
1,291 |
17,322 |
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Cash Flows from Financing Activities |
-13,411 |
-20,664 |
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Cash, Bank Deposits at the Term End |
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70,594 |
67,426 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net Worth (S/Holders' Equity) |
56,392 |
49,576 |
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Current Ratio (%) |
129.07 |
118.71 |
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Net Worth Ratio (%) |
14.11 |
12.76 |
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Recurring Profit Ratio (%) |
1.76 |
1.52 |
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Net Profit Ratio (%) |
0.65 |
0.98 |
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Return On Equity (%) |
11.54 |
18.51 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.38 |
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|
1 |
Rs.82.04 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.