MIRA INFORM REPORT

 

 

Report Date :

04.02.2013

 

IDENTIFICATION DETAILS

 

Name :

KANEYO CO LTD

 

 

Registered Office :

Osaka Center Bldg 13F, 4-1-3 Kyutaromachi Chuoku Osaka 541-0056

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

October, 1949

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of textiles, fabrics, other

 

 

No. of Employees :

41

 

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

 

Maximum Credit limit:

Yen 106.9 million

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

(31.03.2012)

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

 

 

 

 

Company name

 

KANEYO CO LTD

 

 

REGD NAME 

 

Kaneyo KK

 

 

MAIN OFFICE

 

Osaka Center Bldg 13F, 4-1-3 Kyutaromachi Chuoku Osaka 541-0056 JAPAN

Tel: 06-6227-6500     Fax: 06-6227-6516

 

URL:                 http://www.kaneyo-net.co.jp/

E-Mail address: info@kaneyo-net.co.jp

 

 

ACTIVITIES  

 

Import, export, wholesale of textiles, fabrics, other

 

 

BRANCHES   

 

Tokyo, Hiroshima

 

 

OVERSEAS   

 

Shanghai

 

 

CHIEF EXEC

 

TOSHITATE TSUCHIDA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 10,261 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 703 M

TREND             UP                                WORTH            Yen 779 M

STARTED         1949                             EMPLOYES      41

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN TEXTILES & FABRICS, AFFILIATED TO        KANEMATSU CORP. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 106.9 MILLION, 30 DAYS NORMAL TERMS

 

Notes: Unit: In million Yen

Forecast (or estimated) figures for 31/03/2013 fiscal term

 

 

HIGHLIGHTS

           

The subject company was established on the basis of wool marketing division separated from Kanematsu Corp, Tokyo (See REGISTRATION).  This is a trading house specializing in textiles & fibers.  Mainstay was formerly special yarns, but diversified into bedding & interior materials as mainlines.  Handles knit textiles, too.  Stressing development of flame-retardant, deodorant and anti-bacterial bedding.  Second-ranked trader of bedding raw materials.  Emphasizing import goods. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 10,261 million, a 7.6% up from Yen 9,540 million in the previous term.  Bedding materials for large-lot customers were in good shape.  Europe-bound Chinese-made were also fared well.  The recurring profit was posted at Yen 37 million and the net profit at Yen 25 million, respectively, compared with Yen 19 million recurring profit and Yen 2 million net profit, respectively, a year ago.

 

(Apr/Dec/2012 results): Sales Yen 7,813 million (down 1.8%), operating profit Yen 101 million (up 34.1%), recurring profit Yen 63 million (up 76.3%), net profit Yen 57 million (up 125.3%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2013 the recurring profit is projected at Yen 60 million and the net profit at Yen 52 million, on a 1.3% rise in turnover, to Yen 10,400 million.  Bedding materials will show sales volume growth, offsetting price cuts.  Beddings will benefit from brisk sales of electric power-saving products. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 106.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Oct 1949

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         20 million shares

Issued:                14,066,208 shares

Sum:                   Yen 703 million

           

Major shareholders (%): Kanematsu Corp*(30.7), Customers’ S/Holding Assn (5.6), MUFG (3.4), Mitsui Sumitomo Ins (3.0), Tokio Marine & Nichido Fire Ins (3.0), Hokushin Co (1.9), Ohno Co (1.6), Nobuhiro Aofuji (1.4), Tomihiro Yamamoto (1.3), Employees’ S/Holding Assn (1.3); foreign owners (0.3)

           

No. of shareholders: 1,344

 

*.. General trading house, Tokyo, founded 1918, listed Tokyo S/E, capital 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 373,081 million, net worth Yen 43,403 million, employees 4,770, pres Masayuki Shimojima

 

Listed on the S/Exchange (s) of: Osaka (Second Section)

 

Managements: Toshio Tsuchida, pres & CEO; Kazuya Takahashi, mgn dir; Taizo Gunka, dir; Tetsuo Yamanari, dir

 

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales bedroom materials/interiors (73%) fashion line-related (15%), lifestyle products (12%).

Export ratio (4%)

 

(Handling products): knit fabrics, yarns, textiles, wool materials, beddings, interior goods, industrial materials, sheepskin, leather products, other.

 

Clients: [Wholesalers, mfrs] Nishikawa Sangyo, Nishikawa Living, Curtain & Jyutan Ogoku (Jyutan means carpets), Homac, Taido Living, Romance Kosugi, Sankyo Seiko Apparel Fashion, other.

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Daiwabo Co, Toray Ind, Nisshinbo Ind, Mitsui & Co, Toray    International  Star Glory Enterprise Co, Kwong Lung Enterprise, SAS Henri Arnaud,  other. 

Also imports from Belgium, India, France, UK, New Zealand, China, Italy, Germany, Poland, Hungary, UK, Taiwan, other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Osaka-Chuo)

Mizuho Corporate Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

10,261

9,540

 

  Cost of Sales

9,612

8,897

 

      GROSS PROFIT

649

643

 

  Selling & Adm Costs

556

571

 

      OPERATING PROFIT

93

71

 

  Non-Operating P/L

-56

-52

 

      RECURRING PROFIT

37

19

　

      NET PROFIT

25

2

BALANCE SHEET

 

 

 

 

  Cash

　

575

430

 

  Receivables

 

1,253

1,231

 

  Inventory

 

83

778

 

  Securities, Marketable

　

　

 

  Other Current Assets

2,897

1,766

 

      TOTAL CURRENT ASSETS

4,808

4,205

 

  Property & Equipment

587

562

 

  Intangibles

 

5

5

 

  Investments, Other Fixed Assets

437

487

 

      TOTAL ASSETS

5,837

5,259

 

  Payables

 

2,210

1,449

 

  Short-Term Bank Loans

1,520

1,750

 

　

 

　

　

 

  Other Current Liabs

920

995

 

      TOTAL CURRENT LIABS

4,650

4,194

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

146

129

 

  Reserve for Retirement Allw

31

23

 

  Other Debts

　

231

244

 

      TOTAL LIABILITIES

5,058

4,590

 

      MINORITY INTERESTS

 

 

 

Common stock

703

703

 

Additional paid-in capital

138

138

 

Retained earnings

(431)

(457)

 

Evaluation p/l on investments/securities

57

7

 

Others

 

314

279

 

Treasury stock, at cost

(2)

(2)

 

      TOTAL S/HOLDERS` EQUITY

779

668

　

      TOTAL EQUITIES

5,837

5,259

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

378

-177

 

Cash Flows from Investment Activities

-5

-16

 

Cash Flows from Financing Activities

-227

-243

　

Cash, Bank Deposits at the Term End

　

575

430

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

779

668

 

 

Current Ratio (%)

103.40

100.26

 

 

Net Worth Ratio (%)

13.35

12.70

 

 

Recurring Profit Ratio (%)

0.36

0.20

 

 

Net Profit Ratio (%)

0.24

0.02

 

 

Return On Equity (%)

3.21

0.30

 

           

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.32

UK Pound

1

Rs.84.60

Euro

1

Rs.72.63

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.