MIRA INFORM REPORT

 

 

Report Date :

17.12.2014

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU TEXTILE CO., LTD.

 

 

Registered Office :

Osaki MT Building 10-11F,  5-9-11, Kita-shinagawa, Shinagawa-ku, Tokyo 141 0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

19.12.2011

 

 

Com. Reg. No.:

0107-01-026003

 

 

Legal Form :

Private

 

 

Line of Business :

Trader of Textiles & Raw Materials.

 

 

No of Employees :

173

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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

COMPANY NAME

 

KANEMATSU TEXTILE CO., LTD.

 

 

OUTLINE

========

Country:                                    Japan

Company name:                        KANEMATSU TEXTILE CO., LTD.

Name in local language:             KANEMATSU SENI K.K. 

Office address:                         Osaki MT Building 10-11F,  5-9-11, Kita-shinagawa, Shinagawa-ku, Tokyo 141-0001

Office tel:                                             03-5423-6300

Office fax:                                03-5423-6374

Website:                                   www.kanematsu-textile.com

Business type:                          Trader

Industry:                                               Textiles & Raw Materials

Established:                              December 19, 2011

Capital:                                                 Jp. 1,500,000,000 yen

Employees:                              173

Corporate formation:                 Private

Corporation No.:                       0107-01-026003 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

=====================

Paid in capital :                         Jp. 1,500,000,000 yen

Number of authorized shares :   60,000 shares

Shares issued :                         30,000 shares

Number of shareholder :                        1

 

Name of shareholders                           Number of shares (%)

--------------------------------------------------------------------------------------------

KTC trading (HK) Company Limited                    30,000 (100)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

===========================================

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Trading                                     Garments

Trading                                     Textile and raw materials

 

 

COMPANY MANAGEMENT

==================

President                      Mr. Ryoichi Osakabe

Nationality:                    Japan

 

Chairman                      Mr. Victor Fung Kwok King (inactive)

Nationality:                    Hong　Kong

 

Vice Chairman               Mr. William Winship Franz (inactive)

Nationality:                    Hong Kong

 

Director                                    Mr. Brian Donald Ching-yi Li

Nationality:                    Hong Kong

 

Director                                    Mr. Makoto Yasuda (inactive)

Nationality:                    Japan

 

Director                        Mr. Kyung Ping Soh (inactive)

Nationality:                    Hong Kong

 

Auditor                                     Mr. Jasente See (inactive)

Nationality:                    Hong Kong

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

==============

Mr. Ryoichi Osakabe

President and representative director

Born on January 13, 1949

Education: Shiga University

Business career:

  April 1972: Employed by Kosugi Sangyo.

  Feb. 1988: Employed by Fenix-international.

  May 1997: President of Fenix-international

  Feb. 2012: President of Fung Japan Development Co., Ltd and Kanematsu Textile Co., Ltd

Home address: 1283-241, Yawatano, Ito City, Shizuoka Pref. 413-0232

 

 

FINANCIALS

===========

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |       Net Income    

-------------------------------------------------------------------------------------

2011

1,141,071,000

loss 137,548,000

2012

33,701,726,000

69,489,000

2013

36,043,370,000

loss 98,395,000

 

Note: only 13 days period for 2011 term.

 

 

FINANCIAL DESCRIPTION

=====================

*Book Closing*

============

December 31st

 

 

*Financials*

==========

Balance Sheet

 

 

Unit: millions of JP yen

 

 

                          

12/31/2012

12/31/2013

Current Assets  

11,151　

11,480

 Cash & deposits      

1,083　

706

 Account receivables   

6,603　

7,611

 Inventories          

2,621　

2,380

 Others

844

786

Fixed assets           

305

2,717

 Tangible assets      

66　

59

 Intangible assets    

99　

111

 Investments & others  

139　

2,546

Total Assets       

11,458　

14,198

　

　

 

Current liabilities     

8,740　

11,343

 Account payables  

6,813　

6,668

 Short term loans    

500　

3,400

 Outstanding accounts  

1,021　

1,049

 Outstanding taxes    

27　

8

 Others

375

216

Fixed liabilities      

255　

485

 Retirement benefits    

28　

40

 Others

227

445

Shareholders' equity    

2,439　

2,341

 Paid up capital      

1,500　

1,500

 Capital reserves      

1,007　

1,007

 Retained earnings    

-68　

-166

Valuation & adjustment 

23　

28

Total Net Assets       

2,462　

2,369

Total Liabilities & Net Assets      

11,458　

14,198

 

 

Income Statement

 

 

Unit : millions of JP yen

 

 

                          

12/31/2012

12/31/2013

Sales          

33,701　

36,043

Cost of goods sold      

30,694　

33,417

Gross profit(loss)     

3,007　

2,626

Sales/administrative expenses  

2,890　

2,978

Operating profit(loss)    

117　

-351

 

 

 

Non operating income        

71　

404

Non operating expenses       

121　

139

Ordinary profit(loss)      

67　

‐85

Special profits                

23　

‐

Special losses             

2　

‐

Pretax profit                

88　

‐85

Taxes & adjustment           

19　

12

Net profit      

69　

‐98

 

*Bank Details*

============

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Shibuya-Meijidori

 

Bank Name :     Hongkong and Shanghai Banking Corporation Ltd.

Branch :            Tokyo

 

Bank Name:      Hokuriku Bank, Ltd.

Branch:             Tokyo

 

Bank Name:      Sumitomo Mitsui Banking Corp.

Branch:             Shibuya

 

 

*Credit Opinion*

=============

The subject is a newly founded company by the method of company split from the former “Kanematsu Textile Co., Ltd.” on December 19, 2011.

Some loss was posted for Dec. 2013 term after the subject made a turnaround for Dec. 2012 term.

It would also be advisable to research the latest status of the parent company now that KTC Trading Hong Kong is the only shareholder of the subject though the subject still carries the name of “Kanematsu.”

 

 

BRANCHES & MANAGEMENT

=========================

Branch name:                Osaka branch

Branch address:            Maruito Namba Bldg. 15F, 1-2-3, Minatomachi, Naniwa-ku,

                                    Osaka City, Osaka 556-0017

Branch tel:                    06-4397-6620

Branch fax:                   06-4397-6630

----------------------------------------------------------------------------------------------------

Branch name:                Okayama business facility

Branch address:            Okayama Ekimae Bldg. 6F, 1-1-602, Nishiki-machi, Kita-ku,

                                    Okayama City, Okayama Pref. 700-0902

Branch tel:                    086-233-1612

Branch fax:                   086-223-5074

----------------------------------------------------------------------------------------------------

Branch name:                Fukui liaison office

Branch address:            Fukui Yamamoto Bldg. 3F, 1-2201, Seiwa, Fukui City,

Fukui Pref. 918-8239

Branch tel:                    0776-21-2550

Branch fax:                   0776-21-2562

----------------------------------------------------------------------------------------------------

Branch name:                Taipei

Branch address:            3/F, 70 Rueiguang Road, Neihu Dierict, Taipei, Taiwan

----------------------------------------------------------------------------------------------------

Branch name:                Jakarta

Branch address:            23/F, Gedung Wisma76(Wisma Calindra)J1.Let.Jend.S.

Parmankav.76, Slipi, Palmerah, Jakarta 11410, Indonesia

----------------------------------------------------------------------------------------------------

Branch name:                Milano

Branch address:            Via Fabio Filzi, 23, 20124, Milano, Italy

----------------------------------------------------------------------------------------------------

Branch name:                Hong Kong

Branch address:                        4/F,HK Spinners industrial Buildong,Phase I&II, 800 cheung Sha

                                    Wan ERoad, Kowloon, Hong Kong

----------------------------------------------------------------------------------------------------

Branch name:                Shanghai

Branch address:                        Room 1002,10/F,LINFUNG Plaza Tower,2000 Yishan Road,

Shanghai 201103, China

----------------------------------------------------------------------------------------------------

Branch name:                Suzhou

Branch address:                        4/F, Chuangye Building, No.625, Binhe Road, NewDistirct, Suzhou,

                                    215011,China

----------------------------------------------------------------------------------------------------

 

Branch name:                New York

Branch address:                        75 Rockefeller Plaza, 22/F, New York, NY 10019

----------------------------------------------------------------------------------------------------

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

========================================

*Main Products & Services*

======================

Specializing in import, export and domestic sales of the following products: 

1. Textile materials.

2. Garments.

3. Brand licensing & branded products.

 

 

ORGANIZATION STRUCTURE

======================

*Address*

=========

Registered address is the same as the operational address.

 

*Company History*

================

Date                 Development

-----------------------------------------------------------------------------------------------

Started business by Mr. Kanematsu in Kobe City.

Became independent from Kanematsu Corporation.

2007                     Li & Fung became the largest shareholder of the subject.

December 19, 2013       Newly incorporated under the current name.

January 1, 2015             The subject company will be renamed to “Forward Apparel Trading

Corporation”.

 

TRADE REFERENCES

================

*Suppliers*

==========

KTC trading(HK) Co., Ltd.

Toyobo Stc Co., Ltd.

Sct Japan Co., Ltd.

Kurabo Industries Ltd.

KB Seiren Ltd.

Unitika Trading Co., Ltd.

 

Kuraray Co., Ltd.

Mitsubishi Rayon Co., Ltd.

Nisshinbo Textile Inc.

Toray Industries Inc.

 

(total 400 companies)

 

*Customers*

==========

Right-on Co., Ltd.

Daiwabo Neu Co., Ltd.

Kurodaruma Co., Ltd.

Xebio Co., Ltd.

Renown Inc.

United Arrows Ltd.

Estamoda Co., Ltd.

Sanrio Co., Ltd.

 

(total 700 companies)

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

================================================

Company name:            KTC trading (HK) Co., Ltd.

Country:                        Hong Kong

Status:                          Parent company

----------------------------------------------------------------------------------------------------

Company name:            Fung Japan Development Co., Ltd.

Country:                        Japan

Status:                          Affiliate

----------------------------------------------------------------------------------------------------

Company name:            Fenix International Co., Ltd.

Country:                        Japan

Status:                          Affiliate

----------------------------------------------------------------------------------------------------

Company name:            Li & Fung Ltd.

Country:                        Hong Kong

Status:                          Affiliate

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.41

UK Pound

1

Rs.99.31

Euro

1

Rs.79.00

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 

 

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.