MIRA INFORM REPORT

 

 

Report Date :

11.01.2013

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU TRADING CORPORATION

 

 

Registered Office :

Akebono Nihombashi Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku Tokyo  103-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

December, 1970

 

 

Com. Reg. No.:

0100-01-013863

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, export, wholesale of steel products, steel raw materials, stainless steel products, steel structures

 

 

No. of Employees :

80

 

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

(31.03.2012)

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

 

KANEMATSU TRADING CORPORATION

 

 

REGD NAME 

 

Kanematsu Trading KK

 

 

MAIN OFFICE

 

Akebono Nihombashi Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku Tokyo  103-0016 JAPAN

Tel: 03-5860-2200     Fax: 03-5808-2321

 

URL:                 http://www.nik.e-kgt.com

E-Mail address: sumiko_tomari@kgt-kanematsu.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of steel products, steel raw materials, stainless steel products, steel structures

 

 

BRANCHES

 

Osaka, Sapporo

 

 

OFFICERS

 

TOMOFUSA EMI, PRES            Hiroyuki Harita, mgn dir                                                             

Shigeru Takeda, dir                    Kunio Mori, dir

Michio Nakano, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 40,814 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 260 M

TREND             UP                                WORTH            Yen 926 M

STARTED         1970                             EMPLOYES      80

 

 

COMMENT

 

TRADING HOUSE FOR IMPORT, EXPORT AND WHOLESALE OF STEEL &  STAINLESS STEEL PRODUCTS, WHOLLY OWNED BY KANEMATSU CORPORATION.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDIANRY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Shingo Mochizuki as Nikko Boeki KK for exporting specialty steel products.  In 1995, Kanematsu Corp (See REGISTRATION) acquired 100% of the share and made it a wholly owned subsidiary.  In Oct 2006 merged into Kanematsu Trading Corporation.  This is a trading firm specializing in import, export and wholesale of specialty steel products, stainless steel products, steel raw materials, construction materials, others.  Offers construction works, too.   

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 40,814 million, a 2% up from Yen 40,069 in the previous term.  Price hikes of steel products contributed.  Exports continued rising.  The recurring profit was posted at Yen 180 million and the net profit at Yen 107 million, respectively, compared with Yen 155 million recurring profit and Yen 75 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 200 million and the net profit at Yen 120 million, respectively, on a 3% rise in turnover, to Yen 42,000 million.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:          Dec 1970

Regd No.:                                 0100-01-013863 (Tokyo-Chuoku)

Legal Status:              Limited Company (Kabushiki Kaisha)

Authorized:                  1.6 million shares

Issued:                         520,000 shares

Sum:                            Yen 260 million

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

 

*..Specialized trading house of foods & IT-related business, Tokyo, founded 1918 (originally as textile merchant in Osaka), 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 6,510 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: Imports, exports and wholesales special steel products (100%):

 

(Handling Items):

Flat Products: stainless steel coils/sheets & plates, all flat rolled products for various use, high nickel & titanium products, clad plates;

Rolls & Components: various kinds of mill rolls, machine & parts for steel mills, components for cars, agricultural & various machinery, cast & forged products;

Tubular & Long Products: specialty steel seamless and welded pipers & tubes, non-ferrous copper alloy tubes, stainless steel bars in various shapes, wire rods & wires, high alloy items including pipes, tubes & bars;

Specialty Steel: alloy steel, tool steel, bearing steel, high speed steel items, welding consumables in all grades.

 

Clients: [Mfrs, wholesalers] Kyowa Steel, Mukoyama Steel, Itoi Shoji, Taiyo Bussan

Kaisha, Kyoei Steel, Nitoh Rail Co, Nodaki KK, Tanaka Tekko Hambai, Nakayama Steel

Works, H&CS Holdings Pte Ltd, Daiwa Steel, Kanematsu Corp, other.

Exports to India, USA, Australia, Peru, Pakistan, Thailand, Taiwan, Indonesia, Egypt, Russia as main arkets, including other worldwide          destinations in over 27 countries. 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Kanematsu Corp, Nisshin Steel,     Sangyo Metal Ind, Aichi Steel, Kobe Steel, Nippon Metal Ind, Nakayama Steel Works, Daiwa Steel, Nabesho Co, Azuma Metal Co, Maruichi Steel Tube Ltd, etc

 

Payment record: No Complaints

 

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

           

Bank References:

Mizuho Corporate Bank (Nihombashi)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

42,000

40,814

40,069

37,666

Recur. Profit

 

200

180

155

252

Net Profit

 

120

107

75

239

Total Assets

 

 

12,615

11,641

11,224

Current Assets

 

 

11,275

10,224

9,566

Current Liabs

 

 

11,247

9,095

8,618

Net Worth

 

 

926

896

833

Capital, Paid-Up

 

 

260

260

260

Div.P.Share(¥)

 

 

 

 

557.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.91

1.86

6.38

-48.86

    Current Ratio

 

..

100.25

112.41

111.00

    N.Worth Ratio

..

7.34

7.70

7.42

    R.Profit/Sales

 

0.48

0.44

0.39

0.67

    N.Profit/Sales

0.29

0.26

0.19

0.63

    Return On Equity

..

11.56

8.37

28.69

 

Notes: Forecast (or estimated) 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.54.63

UK Pound

1

Rs.87.50

Euro

1

Rs.71.32

 

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.