|
Report Date : |
19.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
KANEMATSU CORPORATION |
|
|
|
|
Registered Office : |
1-2-1 Shibaura Minatoku Tokyo 106-8006 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
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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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|
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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|
|
|
Line of Business : |
Import, export, wholesale of IT-related equipment, foods, machinery,
energy |
|
|
|
|
No. of Employees : |
4,770 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
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 – 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
KANEMATSU CORPORATION
Kanematsu KK
1-2-1 Shibaura
Minatoku Tokyo 106-8006 JAPAN
Tel:
03-5440-8111 Fax: 03-5440-6500
*.. Registered at:
119 Itocho Chuoku Kobe
URL: http://www.kanematsu.co.jp/
E-Mail address: pr@kanematsu.co.jp
Import, export,
wholesale of IT-related equipment, foods, machinery, energy
Osaka, Nagoya, Sapporo,
Sendai, Yokohama, Kobe, Fukuoka (Tot 7)
USA (9), Europe (7), Australia (3), Mid
East/Africa (3), China (6), Taiwan (2), Vietnam (3), Korea, Singapore, Indonesia, Philippines, other (Tot 41)
MASAYUKI
SHIMOJIMA, PRES
Yen Amount: In million Yen, unless otherwise stated
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
TRADING HOUSE
FOCUSING ON IT-RELATED AND FOODS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGGEMENTS.
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 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.
For the current
term ending Mar 2014 the recurring profit is projected at Yen 17,000 million
and the net profit at Yen 6,000 million, respectively, on a 3.0% rise in
turnover, to Yen 1,050,000 million.
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.
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 (%): Japan Trust Services T (3.3), MUFG (3.1), Norin Chukin Bank (2.9),
Mitsui Sumitomo Ins (2.7), Tokio Marine & Nichido Fire Ins (2.7), Master
Trust Bank of Japan T (1.9), Daio Paper (1.0), State Street Bank & Trust
(0.9), Japan Trustee Services T1 (0.9), Melon Bank Treaty Ci Omnibus (0.8);
foreign owners (14.9)
No. of shareholders: 27,089
Listed on the S/Exchange (s) of: Tokyo
Managements: Toshihiro Kashizawa, ch;
Masayuki Shimojima, pres; Tetsuro Murao, mgn dir; Hirokazu Tamura, dir; Takashi
Gunji, dir; Morihiro Toida, dir; Hideo Kazusa, dir; Tetsuya Kaneko, dir.
Yoshiya Miyabe, dir; Nobuyoshi Sakuyama, dir
Related
companies: Kanematsu KGK, Kanematsu Communications, Kanematsu Electronics, other
Activities: Trading house for import, export and
wholesale of:
(Sales breakdown by divisions)
IT Div (25%): electronics
equipment, printers, information-related equipment, optical goods, aircraft
& parts, semiconductor mfg equipment & devices;
Foodstuffs Div
(29%): 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 (27%): functional chemicals, feed materials, adhesive materials, solvents,
health-care foods & supplements, pharmaceuticals intermediates, gasoline, kerosene, jet fuel, lubricants, LPG,
LNG, other;
Steel & Plant Div (10%): 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 (9%): 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, other.
No. of accounts:
1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs,
wholesalers] Honda Motors, Nippon Steel, Seiko Epson, IBM Japan, Kobe Steel,
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
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
||||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
||
|
INCOME STATEMENT |
||||||
|
Annual Sales |
|
1,019,232 |
1,006,365 |
|||
|
Cost of Sales |
939,210 |
925,464 |
||||
|
GROSS PROFIT |
80,021 |
80,900 |
||||
|
Selling & Adm Costs |
61,758 |
59,473 |
||||
|
OPERATING PROFIT |
18,262 |
21,423 |
||||
|
Non-Operating P/L |
-1,557 |
-3,671 |
||||
|
RECURRING PROFIT |
16,705 |
17,752 |
||||
|
|
NET PROFIT |
9,564 |
6,110 |
|||
|
BALANCE SHEET |
||||||
|
Cash |
|
60,421 |
70,835 |
|||
|
Receivables |
165,378 |
163,782 |
||||
|
Inventory |
65,246 |
57,113 |
||||
|
Securities, Marketable |
16 |
|
||||
|
Other Current Assets |
25,493 |
26,851 |
||||
|
TOTAL CURRENT ASSETS |
316,554 |
318,581 |
||||
|
Property & Equipment |
26,990 |
27,028 |
||||
|
Intangibles |
7,226 |
1,905 |
||||
|
Investments, Other Fixed Assets |
48,416 |
52,239 |
||||
|
TOTAL ASSETS |
399,186 |
399,753 |
||||
|
Payables |
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 |
||||
|
Other Debts |
|
8,911 |
11,784 |
|||
|
TOTAL LIABILITIES |
323,273 |
343,760 |
||||
|
MINORITY INTERESTS |
||||||
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Common
stock |
27,781 |
27,781 |
||||
|
Additional
paid-in capital |
27,526 |
27,597 |
||||
|
Retained
earnings |
24,567 |
15,003 |
||||
|
Evaluation
p/l on investments/securities |
1,048 |
137 |
||||
|
Others |
(4,653) |
(13,976) |
||||
|
Treasury
stock, at cost |
(357) |
(550) |
||||
|
TOTAL S/HOLDERS` EQUITY |
75,912 |
55,992 |
||||
|
|
TOTAL EQUITIES |
399,186 |
399,753 |
|||
|
CONSOLIDATED CASH FLOWS |
||||||
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
Cash
Flows from Operating Activities |
|
1,355 |
15,822 |
|||
|
Cash
Flows from Investment Activities |
1,466 |
1,291 |
||||
|
Cash
Flows from Financing Activities |
-15,721 |
-13,411 |
||||
|
|
Cash,
Bank Deposits at the Term End |
|
60,032 |
70,594 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
Net
Worth (S/Holders' Equity) |
75,912 |
55,992 |
||||
|
Current
Ratio (%) |
129.32 |
129.07 |
||||
|
Net
Worth Ratio (%) |
19.02 |
14.01 |
||||
|
Recurring
Profit Ratio (%) |
1.64 |
1.76 |
||||
|
Net
Profit Ratio (%) |
0.94 |
0.61 |
||||
|
Return
On Equity (%) |
12.60 |
10.91 |
||||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.63 |
|
|
1 |
Rs.101.06 |
|
Euro |
1 |
Rs.84.56 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.