MIRA INFORM REPORT

 

 

Report Date :

11.11.2013

 

IDENTIFICATION DETAILS

 

Name :

KAWASHIMA SELKON TECTILES 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.:

1300-01-000056 (Kyoto-Sgyoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfr of kimono, interior fabrics

 

 

No. of Employees :

860

 

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 TECTILES CO LTD

 

 

REGD NAMe 

 

KK Kawashima Orimono Selkon

 

 

MAIN OFFICE

 

265 Shizuichi-Ichiharacho Sakyoku Kyoto 601-1123 JAPAN

Tel: 075-741-4111     Fax: 075-741-4308

 

* The is its Tokyo Head Office

 

URL:                 Error! Hyperlink reference not valid.

E-Mail address: info@kawashimaselkon.co.jp

 

 

ACTIVITIES  

 

Mfr of kimono, interior fabrics

 

 

BRANCHES   

 

Tokyo, Shiga, Osaka, Sapporo, Nagoya, Morioka, Maebashi, Tsukuba, Chiba, Saitama, Kobe, Okayama, Hiroshima, Takamatsu, other (Tot 24)

 

 

OVERSEAS   

 

Kawashima Textiles USA, Shanghai

 

 

FACTORIES  

 

At the caption address, Shiga

 

 

OFFICERS

 

MASAO NAKANISHI, PRES       Hiroshi Okawa, s/mgn dir

Yasuharu Hirata, dir                   Shinzo Okuno, dir

Hitoshi Mori, dir                         Akira Mitsuoka, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 32,024 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 9,381 M

TREND             SLOW                          WORTH            Yen 10,236 M

STARTED         1938                             EMPLOYES      860

 

 

COMMENT           

 

MFR OF KIMONO & INTERIOR FABRICS.

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$250,000 / DA TERMS.

 

 

HIGHLIGHTS

 

This is a long-established “Nishijin” kimono fabrics mfr, founded as kimono store in Kyoto in 1843 in Edo period.  Excels in high-quality products, such as traditional Japanese      “obi” and art fabrics, top-ranked in “obi” mfg.  Also leading maker of carpets, curtains & other interiors.  In Aug 2011 the firm became a wholly owned subsidiary of LIXIL Group Corp (See REGISTRATION).   Expanding into automobile seats.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 32,024 million, a 4% DOWN FROM Yen 33,215 million in the previous term.  The recurring profit was posted at Yen 1,283 million and the net profit at Yen 222 million, respectively, compared with Yen 554 million recurring profit and Yen 249 million net losses, respectively, a year ago.

 

For the term just ended Mar 2014 the recurring profit is projected at Yen 1,350 million and the net profit at Yen 250 million, respectively, on a 3% rise in turnover, to Yen 33,000 million..

 

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

 

 

REGISTRATION

 

Date Registered:          May 1938

Regd No.:                    1300-01-000056 (Kyoto-Sgyoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  176,167,000 shares

Issued:                         141,877,506 shares

Sum:                            Yen 9,381,670,000

Major shareholders (%): LIXIL Group Corp* (100)

 

*..Largest mfr of housing facilities & comprehensive maker of building materials, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 68,121 million, sales Yen 1,436,395 million, operating profit Yen 50,485 million, recurring profit Yen 53,063 million, net worth Yen 571,525 million, employees 47,000, pres Yoshiaki Fujimori

 

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

 

 

OPERATION

 

Activities: Manufactures kimono & artistic fabrics (6%), interior fabrics (68%), interiors for automobiles, train & airplanes (25%), others (2%)  (Breakdown all about)

Overseas Sales Ratio (10.1%)

 

Clients: [Mfrs, wholesalers] Nafco Corp, Mitsukoshi Isetan, Daimaru Matsuzakaya, Sogo Seibu, Takashimaya, Scroll Corp, Kingrun Co, Moriyoshi Inc, other,

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Tachikawa Corp, Chori Co, NI Teijin Shoji, Mitsui & Co, Mitsui & Co, Selkon Technos, Kawashima Selkon Sewing, 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:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

33,000

32,024

33,215

36,690

Recur. Profit

 

1,350

1,283

554

-10

Net Profit

 

250

222

249

-480

Total Assets

 

 

25,077

27,819

28,998

Current Assets

 

 

11,936

11,519

12,380

Current Liabs

 

 

10,963

13,602

15,512

Net Worth

 

 

10,236

10,017

8,685

Capital, Paid-Up

 

 

9,381

9,381

9,381

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

S.Growth Rate

3.05

-3.59

-9.47

-21.10

Current Ratio

 

..

108.88

84.69

79.81

N.Worth Ratio

..

40.82

36.01

29.95

R.Profit/Sales

 

4.09

4.01

1.67

-0.03

N.Profit/Sales

0.76

0.69

0.75

-1.31

Return On Equity

..

2.17

2.49

..

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.73

UK Pound

1

Rs.100.92

Euro

1

Rs.84.06

 

 

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.