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Report Date : |
31.08.2014 |
IDENTIFICATION DETAILS
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Name : |
KANEMATSU KGK CORPORATION |
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Registered Office : |
1-1-6 Sakuradai Nerimaku |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
May 1963 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of machine tools |
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No. of Employees |
195 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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. Prime Minister Shinzo ABE
has declared the economy his government's top priority; he has overturned his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus, monetary easing, and
structural reform. Japan joined the Trans Pacific Partnership negotiations in
2013, a pact that would open Japan's economy to increased foreign competition
and create new export opportunities for Japanese businesses. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2013 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 is
exceeding 230% of GDP. To help raise government revenue and reduce public debt,
Japan decided in 2013 to gradually increase the consumption tax to a total of
10% by the year 2015. Japan is making progress on ending deflation due to a
weaker yen and higher energy costs, but reliance on exports to drive growth and
an aging, shrinking population pose other major long-term challenges for the
economy.
|
Source
: CIA |
KANEMATSU KGK
CORPORATION
REGD NAME: KK Kanematsu KGK
MAIN OFFICE: 1-1-6 Sakuradai Nerimaku
Tel:
03-3557-2161 Fax: 03-3557-2230
E-Mail address: somubu@kgk-j.co.jp
Import, export, wholesale of machine tools
Osaka, Nagoya, Yokohama, Hamamatsu, Kyoto, Fukuoka, other (Tot 18)
USA (2), Panama, Thailand, China, Vietnam, Indonesia, Czech, Korea,
India (--subsidiaries)
YASUO CHIBA, PRES Tadafumi
Fuse, mgn dir
Toshihiko Matsumoto, mgn dir Yuji
Okamoto, dir
Hiroshi Kimura, dir Kiminori
Yamada, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 41,099 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
706 M
TREND STEADY WORTH Yen 4,819 M
STARTED 1963 EMPLOYES 195
TRADING HOUSE SPECIALIZING IN MACHINE TOOLS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established on the basis of a section separated
from Kanematsu Corp (see REGISTRATION)
in order to engage in trading of machining tools. In 2002 merged with two sister companies,
Kanematsu Industrial Machinery Ltd & Kanematsu Machinery Corp, to expand
business into industrial machinery dealing.
This is a trading firm having two divisions: Factory solution division
(machine tools) & Product solution division (industrial machinery). Has marketing offices in Malaysia, China,
USA, India, Vietnam, other. Domestic
clients are machine tool mfrs, wholesalers, other, nationwide.
The sales volume for Mar/2014 fiscal term amounted to Yen 41,099
million, a 9% rise from Yen 37,624 million in the previous term. Imports/exports of machining tools expanded
on the back of brisk demand from mfrs both at home and abroad. The recurring profit was posted at Yen 1,252
million and the net profit at Yen 729 million, respectively, compared with Yen
1,145 million recurring profit and Yen 673 million net profit, respectively, a
year ago.
For the current term ending Mar 2015 the recurring profit was projected
at Yen 1,300 million and the net profit at Yen 750 million, respectively, on a
5% rise in turnover, to Yen 43,100 million.
Business is seen expanding steadily.
The financial situation is considered FAIR
and good for ORDINARY business engagement.
Date
Registered: May 1963
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
3.9 million shares
Issued: 9.85 million shares
Sum: Yen 706 million
Major
shareholders (%): Kanematsu Corp (97.8), Employees’ S/Holding Assn (2.1), Company’s
Treasury Stock (0.1)
No.
of shareholders: 3
*.. Trading house, once one of major general
trading houses, reduced operations to focus on IT, foodstuffs, steel &
plants, textiles, Tokyo, listed Tokyo S/E, capital Yen 27,781 million, turnover
Yen 1,114,539 million, operating profit Yen 19,776 million, recurring profit
Yen 20,160 million, net profit Yen 11,799 million, total assets Yen 428,459
million, net worth Yen 71,657 million, employees 5,757, pres Masayuki Shimojima
Nothing detrimental is known as to the
commercial morality of executives.
Activities: Import, export,
wholesale of machining tools (73%), industrial machinery (21%), Solar systems,
other (6%)
(Export
13%).
Clients: [Mfrs,
wholesalers] KGK International Corp, Sumisho Lease Co, House Foods Corp,
Yamazaki Baking Co, Kaihara Sangyo, Central Lease, Uny Charm Materials, Mitsui
Finance & Lease Co, Mitsubishi UFJ Lease, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Okuma Corp,
Makino Milling Machine, OKK Corp, Mori Seiki, Okuma & Howa Machinery, Sodik
Co, Citizen Machinery, Yamazaki Mazax Systems, other.
Payment
record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption address
are leased and maintained satisfactorily.
Bank
References:
Mizuho Bank (Ikebukuro)
Gunma Bank (Ikebukuro)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
|
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Annual Sales |
|
43,100 |
41,099 |
37,624 |
38,597 |
|
Recur. Profit |
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1,300 |
1,252 |
1,145 |
1,254 |
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Net Profit |
|
750 |
729 |
673 |
-231 |
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Total Assets |
|
|
22,230 |
16,625 |
19,501 |
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Current Assets |
|
|
19,128 |
13,740 |
16,634 |
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Current Liabs |
|
|
16,775 |
11,329 |
14,728 |
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Net Worth |
|
|
4,819 |
4,613 |
4,153 |
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Capital, Paid-Up |
|
|
706 |
706 |
706 |
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Div.Ttl in Million (¥) |
|
|
650.4 |
295.6 |
206.9 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
|
4.87 |
9.24 |
-2.52 |
11.30 |
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Current Ratio |
|
.. |
114.03 |
121.28 |
112.94 |
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N.Worth Ratio |
|
.. |
21.68 |
27.75 |
21.30 |
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R.Profit/Sales |
|
3.02 |
3.05 |
3.04 |
3.25 |
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N.Profit/Sales |
|
1.74 |
1.77 |
1.79 |
-0.60 |
|
Return On Equity |
|
.. |
15.13 |
14.59 |
-5.56 |
Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.48 |
|
UK Pound |
1 |
Rs.100.35 |
|
Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.