MIRA INFORM REPORT

 

 

Report Date :

30.04.2013

 

IDENTIFICATION DETAILS

 

Name :

KAWASHIMA SELKON TEXTILE CO Ltd

 

 

Registered Office :

265 Shizuichi-Ichiharacho Sakyoku Kyoto 601-1123

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1938

 

 

Com. Reg. No.:

(Kyoto-Sakyoku) 000056

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of kimonos, car/train/airplane interiors

 

 

No. of Employees :

1031

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

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)

 

 

ACTIVITIES

 

Mfr of kimonos, car/train/airplane interiors

 

BRANCHES   

 

Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Yokohama, other (Tot 24)

 

 

FACTORIES  

 

At the caption address

 

 

OFFICERS

 

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

SUMMARY    

 

FINANCES        FAIR                           A/SALES          Yen 33,215 M

PAYMENTSNo  Complaints  CAPITAL           Yen 9,381 M

TREND SLOW                         WORTH            Yen 10,017 M

STARTED         1938                           EMPLOYES      1,031

 

 

COMMENT

 

MFR OF KIMONO, VEHICLES INTERIOR GOODS, OWNED BY LIXIL GROUP 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

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.  In Apr 2013 absorbed Juraku Co Ltd.

 

 

FINANCIAL INFORMATION

 

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.

 

(Apr/Sept/2012 results): Sales Yen 15,061 million (down 3.1%), operating profit Yen 307 million (previously Yen 141 million losses), recurring profit Yen 328 million (previously Yen 291 million losses), net profit Yen 301 million (previously Yen 325 million loss).  (% & figures compared with the corresponding period a year ago).  Sales of interior fabrics were slow, particularly for government/corporate/commercial institutions.  On the profit side, reduction efforts on costs & expenses worked and profit was yielded.

 

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. 

 

REGISTRATION

 

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 Yoshiaki Fujimori

 

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

 

           

OPERATION

           

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: No  Complaints 

 

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

 

 


FINANCES

(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.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.27

UK Pound

1

Rs.84.23

Euro

1

Rs.70.90

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.