MIRA INFORM REPORT

 

 

Report Date :

20.03.2013

 

IDENTIFICATION DETAILS

 

Name :

KAWASAKI TRADING CO LTD

 

 

Registered Office :

Shinko Bldg, 8 Kaigandori Chuoku Kobe 650-0024

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

June 1951

 

 

Com. Reg. No.:

1400-01-006992 (Kobe-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of industrial machinery/equipment, other

 

 

No. of Employees :

276

 

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 :

Regular 

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)

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 and address

 

KAWASAKI TRADING CO LTD

REGD NAME:   Kawajyu Shoji KK

MAIN OFFICE:  Shinko Bldg, 8 Kaigandori Chuoku Kobe 650-0024 JAPAN

Tel: 078-392-1131      Fax: 078-391-1520

 

*.. The is its Osaka Office

 

URL:                 http://www.kawasakitrading.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of industrial machinery/equipment, other

 

BRANCHES

 

Tokyo, Osaka, Sendai, Chiba, Nagoya, Hiroshima, Fukuoka, other (Tot 22)

 

OVERSEAS

 

China (5), Hong Kong, Taiwan, Vietnam, Thailand, Singapore, Brazil, other

 

 

OFFICERS

 

SHIMPEI MORITA, PRES           Terunori Kitasjima, mgn dir

Takashi Kawashima, mgn dir      Isao Ueda, dir                          

Munehiro Takawa, dir                 Yoshio Arai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 108,050 M

PAYMENTSREGULAR   CAPITAL           Yen 600 M

TREND UP                    WORTH            Yen 5,547 M

STARTED         1951                 EMPLOYES      276

 

COMMENT

 

TRADING FIRM SPECIALIZING IN INDUSTRIAL MACHINERY, AFFILIATED

TO KAWASAKI HEAVY IND.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

The subject company was established on the basis of a trading division separated from Kawasaki Heavy Ind (See REGISTRATION).  This is a trading firm for import, export and wholesale of industrial machinery/equipment, air conditioners, petroleum products, steel products, other (See OPERATION).  Goods are widely exported.  Sales to group firms accounts for 25-30% of total sales.  Domestic clients include heavy machinery makers, shipping lines, steel works, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2012 fiscal term amounted to Yen 108,050 million, a 10% up from Yen 98,157 million in the previous term.  Exports were brisk into China and other S/E Asian countries.  The recurring profit was posted at Yen 1,413 million and the net profit at Yen 612 million, respectively, compared with Yen 996 million recurring profit and Yen 462 million net profit, respectively, a year ago.

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 1,500 million and the net profit at Yen 650 million, respectively, on a 6% rise in turnover, to Yen 115,000 million.  

 

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

 

 

REGISTRATION

 

Date Registered:       Jun 1951

Regd No.:           1400-01-006992 (Kobe-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         4.8 million shares

Issued:                1.2 million shares

Sum:                   Yen 600 million

     Major shareholders (%): Kawasaki Heavy Ind* (70), Kawasaki Kisen KK (10), JFE Steel

    (10), Showa Shell Sekiyu (10)

No. of shareholders: 4

 

*.. Comprehensive heavy electric machinery & engineering company, Kobe, founded

1896, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 104,484 million, sales 1,303,778 million, operating profit Yen 57,484 million, recurring profit Yen 63,627 million, net profit Yen 23,323 million, total assets Yen 1,380,896 million , net worth Yen 306,427 million, employees 33,267, pres Satoshi Hasegawa

           

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

OPERATION

           

Activities: Trading firm for import, export and wholesale of industrial machinery, construction & steel products, petroleum products, other:

 

(Sales Breakdown by Divisions):

Industrial Machinery/Equipment Div (60%): hydraulic equipment, hydraulic pumps, valves, motors, peripheral equipment, precision gear pumps, winders, textile machinery, industrial robots, air conditioning systems, boilers, absorption chillers, heaters, marine machinery, shipbuilding equipment, steelmaking equipment, power plants, factory equipment, other;

Construction Equipment/tools Div (5%): construction works, solar panels, flame detectors, other;

Petroleum Products Div (26%);

Steel Products Div (9%)

 

Clients: [Mfrs, wholesalers] Kawasaki Heavy Ind, Kawasaki Shipbuilding, JFE Steel, Kawasaki Kisen Kaisha, Fuji Kenzai (Building Materials), Kandenko, other 

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Showa Shell Sekiyu, Kawasaki Heavy Ind, Nippon Steel, Daikin Ind, Nagano Keiki Co, other

 

Payment record: Regular

 

Location: Business area in Kobe.  Office premises at the caption address are owned by the parent, Kawasaki Heavy Ind, and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (Kobe)

SMBC (Kobe)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

115,000

108,050

98,157

87,088

Recur. Profit

 

1,500

1,413

992

996

Net Profit

 

650

612

462

776

Total Assets

 

 

51,542

42,311

37,675

Current Assets

 

 

46,930

37,343

32,492

Current Liabs

 

 

45,074

36,191

31,493

Net Worth

 

 

5,547

5,237

5,256

Capital, Paid-Up

 

 

600

600

600

Div.P.Share(¥)

 

 

256.00

324.00

1,095.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

6.43

10.08

12.71

-27.75

    Current Ratio

 

..

104.12

103.18

103.17

    N.Worth Ratio

..

10.76

12.38

13.95

    R.Profit/Sales

 

1.30

1.31

1.01

1.14

    N.Profit/Sales

0.57

0.57

0.47

0.89

    Return On Equity

..

11.03

8.82

14.76

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.26

UK Pound

1

Rs.81.93

Euro

1

Rs.70.21

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.