MIRA
INFORM REPORT
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Report Date : |
18.12.2013 |
IDENTIFICATION DETAILS
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Name : |
KANEMATSU CORPORATION |
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Registered Office : |
119 Itocho Chuoku Kobe |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
March 1918 |
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Com. Reg. No.: |
0104-01-007153 (Kobe-Chuoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Importer, exporter, wholesaler of IT-related equipment, foods, machinery & energy |
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No. of Employees : |
4,770 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 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
KANEMATSU CORPORATION
REGD NAME
Kanematsu KK
MAIN OFFICE
1-2-1 Shibaura
Minatoku Tokyo 106-8006 JAPAN
Tel:
03-5440-8111 Fax: 03-5440-6500
*.. The given Dept is a part of Foods &
Foodstuffs Division
*.. Registered at: 119 Itocho Chuoku Kobe
URL: www.kanematsu.co.jp/
E-Mail address: pr@kanematsu.co.jp
Tokyo Head Office
2-1,Shibaura
1-chome,Minato-ku,Tokyo 105-8005, Japan
ACTIVITIES
Import, export,
wholesale of IT-related equipment, foods, machinery & energy
BRANCHES
Osaka, Nagoya,
Sapporo, Sendai, Yokohama, Kobe, Fukuoka (Tot 7)
OVERSEAS
USA (9), Europe (7), Australia (3), Mid East/Africa (3), China (6), Taiwan
(2), Vietnam (3), Korea, Singapore, Indonesia, Philippines, other (Tot 41)
CHIEF EXEC
MASAYUKI SHIMOJIMA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR
A/SALES Yen 1,019,232 M
PAYMENTS REGULAR CAPITAL Yen 27,781 M
TREND UP WORTH Yen 75,912 M
STARTED 1918 EMPLOYES 4,770
COMMENT
TRADING HOUSE
FOCUSING ON IT-RELATED AND FOODS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2014 fiscal term.
HIGHLIGHTS
The subject company was established originally as a textile specialized
trader and later has grown into one of the leading general trading houses of
Japan. Traditionally strong in textiles,
but financial structure deteriorated, resulting in trimming down of
operations. Following debt forgiveness
by the main bank, made a new start, focusing operations on 4 key sectors
including food and IT-related areas under supervision of Bank of Tokyo-Mitsubishi
UFJ (MUFG). Sold majority of
less-profitable textile subsidiaries’ shares.
It-related continuing growth led by solutions, including mobile
communications equipment. Foods and
steel products plant expanding.
Cultivation of non-gene modified soybeans with Canadian farmers
expanding; studying cultivation in other countries. Plant division is striving to win new orders
for geothermal power generation in Asia.
The company’s new medium-term plan is focusing on smartphone-related
M&A, overseas expansion of the grains business, and increased sales of
automobile parts. The company will
upgrade grains bases in S/E Asia and India, and also consider
joint-venture. Benefits will emerge in
the March 2016 term, excluding smartphones.
The firm acquired a local firm in Kyushu for Yen 3 billion, aiming to
reinforce mobile phone sales in the area, where its presence is low. It will advance into the compound feeds with
a leading dairy company in Vietnam, and establish a joint compound feeds
facility in 2015.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 1,019,232
million, a 1.3% up from Yen 1,006,365 million in the previous term. The Japanese economy was generally subdued,
primarily because of the effect of the weaker overseas economies in China &
emerging Asian nations. The recurring
profit was posted at Yen 16,705 million and the net profit at Yen 9,564
million, respectively, compared with Yen 17,752 million recurring profit and Yen
6,110 million net profit, respectively, a year ago.
(Apr/Sept/2013 results): Sales Yen 537,583 million (up 10.3%), operating
profit Yen 10,512 million (up 6.2%), recurring profit Yen 10,954 million (up
24.5%), net profit Yen 6,288 million (up 4.5%).
(% compared with the corresponding period a year ago.)
For the current term ending Mar 2014 the recurring profit is projected
at Yen 19,000 million and the net profit at Yen 9,000 million, respectively, on
a 7.9% rise in turnover, to Yen 1,100,000 million. Foods business will recover from poor crops
in the US in the preceding term. Steel
business will benefit from growing sales oil well pipes in North America, and
construction machinery in India.
Operating profit will expand, despite rising purchasing costs on food
materials due to the weaker Yen, and costs on staff increases. Smartphone sales will lead growth. Sales of grains will recover, but upfront
costs for the expansion of business scope will pose a pressure.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Mar 1918
Regd No.: 0104-01-007153 (Kobe-Chuoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1,016,653,604 shares
Issued: 422,501,010 shares
Sum: Yen 27,781 million
Major shareholders
(%): MUFG (3.1), Norin Chukin Bank (2.9), Japan Trustee Services T (2.9),
Mitsui Sumitomo Ins (2.7), Tokio Marine & Nichido Fire Ins (2.7), Tokio
Marine & Nichido Fire Ins (2.7), Master Trust Bank of Japan T (1.9), State
Street Bank & Trust (1.1), Daio Paper (1.0), Japan Trustee Services T1
(0.9), Melon Bank Treaty Ci Omnibus (0.9); foreign owners (17.6)
No. of
shareholders: 25,563
Listed on the
S/Exchange (s) of: Tokyo
Managements: Toshihiro Kashizawa, ch; Masayuki Shimojima, pres; Tetsuro
Murao, mgn dir; Takashi Gunji, mgn dir; Morihiro Toida, dir; Hideo Kazusa, dir;
Tetsuya Kaneko, dir. Yoshiya Miyabe, dir; Nobuyoshi Sakuyama, dir; Kaoru
Tanigawa, dir
Related companies: Kanematsu KGK,
Kanematsu Communications, Kanematsu Electronics, other
OPERATION
Activities: Trading house
for import, export and wholesale of:
(Sales breakdown
by divisions):
Electronics &
Devises Div (27%): electronics equipment, printers, information-related equipment, optical
goods, aircraft & parts, semiconductor mfg equipment & devices;
Foods &
Foodstuffs Div (28%): canned/bottled foods, coffee, cocoa, sugar,
wines, dried fruits, livestock products, marine products, feeds, pet foods,
barley, rice, other processed foods;
Life Science &
Energy Div (29%): functional chemicals, feed materials, adhesive materials, solvents,
health-care foods & supplements, pharmaceuticals intermediates, gasoline, kerosene, jet fuel, lubricants, LPG, LNG,
other;
Steel & Plant
Div (14%): steel & iron products, coax, iron ore, seamless pipes, chemical
plant machinery, ships, ship apparatus, cars, motorbikes, electric power
equipment, machine tools, textile machinery, other industrial machinery, other.
Textiles Div,
others (2%): textile materials, OEM business in casual products, uniforms, other;
Overseas sales
ratio 25.0%:
Clients: [Governments,
food processors, steel makers, IT-related firms] Food Agency, Defense Agency,
Marudai Food, Idemitsu Kosan, Showa-Shell Sekiyu, LG Micron, Prima Meat
Packers, Japan Energy, Guangzhou Showa Autoparts, Nippon Meat Packers, Chugoku
Electric Power, JX Nippon Steel & Mining Corp, CGC Japan, Marudai Food Co,
Zen-Noh Group, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Taiyo Oil, EMG Marketing, Showa Shell Sekiyu, Idemitsu Kosan,
Zen-Noh Group, Kignus Oil, JFE Steel, Danish Crown, Wilmar Trading (China) Pte
Ltd, JX Nippon Oil & Mining Corp, JFE Steel, Mitsubishi Heavy Ind, Kobe
Steel, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank
References:
MUFG (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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1,019,232 |
1,006,365 |
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Cost of Sales |
939,210 |
925,464 |
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GROSS PROFIT |
80,021 |
80,900 |
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Selling & Adm Costs |
61,758 |
59,473 |
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OPERATING PROFIT |
18,262 |
21,423 |
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Non-Operating P/L |
-1,557 |
-3,671 |
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RECURRING PROFIT |
16,705 |
17,752 |
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NET PROFIT |
9,564 |
6,110 |
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BALANCE SHEET |
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Cash |
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60,421 |
70,835 |
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Receivables |
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165,378 |
163,782 |
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Inventory |
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65,246 |
57,113 |
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Securities, Marketable |
16 |
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Other Current Assets |
25,493 |
26,851 |
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TOTAL CURRENT ASSETS |
316,554 |
318,581 |
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Property & Equipment |
26,990 |
27,028 |
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Intangibles |
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7,226 |
1,905 |
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Investments, Other Fixed Assets |
48,416 |
52,239 |
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TOTAL ASSETS |
399,186 |
399,753 |
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Payables |
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104,372 |
108,956 |
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Short-Term Bank Loans |
81,570 |
78,444 |
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Other Current Liabs |
58,834 |
59,437 |
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TOTAL CURRENT LIABS |
244,776 |
246,837 |
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Debentures |
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Long-Term Bank Loans |
65,290 |
82,403 |
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Reserve for Retirement Allw |
4,296 |
2,736 |
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Other Debts |
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8,911 |
11,784 |
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TOTAL LIABILITIES |
323,273 |
343,760 |
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MINORITY INTERESTS |
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Common
stock |
27,781 |
27,781 |
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Additional
paid-in capital |
27,526 |
27,597 |
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Retained
earnings |
24,567 |
15,003 |
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Evaluation
p/l on investments/securities |
1,048 |
137 |
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Others |
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(4,653) |
(13,976) |
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Treasury
stock, at cost |
(357) |
(550) |
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TOTAL S/HOLDERS` EQUITY |
75,912 |
55,992 |
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TOTAL EQUITIES |
399,186 |
399,753 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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1,355 |
15,822 |
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Cash
Flows from Investment Activities |
1,466 |
1,291 |
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Cash Flows
from Financing Activities |
-15,721 |
-13,411 |
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Cash,
Bank Deposits at the Term End |
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60,032 |
70,594 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
75,912 |
55,992 |
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Current
Ratio (%) |
129.32 |
129.07 |
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Net
Worth Ratio (%) |
19.02 |
14.01 |
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Recurring
Profit Ratio (%) |
1.64 |
1.76 |
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Net
Profit Ratio (%) |
0.94 |
0.61 |
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Return
On Equity (%) |
12.60 |
10.91 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.96 |
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UK Pound |
1 |
Rs.101.14 |
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Euro |
1 |
Rs.85.33 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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.