MIRA INFORM REPORT

 

 

Report Date :

22.02.2014

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU TRADING CORPORATION

 

 

Registered Office :

Akebono Nihombashi Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku Tokyo  103-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

December 1970

 

 

Com. Reg. No.:

0100-01-013863

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of steel products, steel raw materials, stainless steel  products, steel structures

 

 

No. of Employees :

80

 

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 :

Slow but correct

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 and address

 

KANEMATSU TRADING CORPORATION

 

REGD NAME:   Kanematsu Trading KK

MAIN OFFICE:  Akebono Nihombashi Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku Tokyo

                        103-0016 JAPAN

                        Tel: 03-5860-2200     Fax: 03-5808-2321

 

URL:                 http://www.nik.e-kgt.com

E-Mail address:sumiko_tomari@kgt-kanematsu.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of steel products, steel raw materials, stainless steel     products, steel structures

 

 

BRANCHES   

 

Osaka, Sapporo

 

 

OFFICERS

 

TOMOFUSA EMI, PRES            Shigeru Takeda, mgn dir

Kunio Mori, dir                          Michio Nakano, dir

Takeshi Gunji, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 35,300 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 260 M

TREND             SLOW                           WORTH            Yen 1,022 M

STARTED         1970                             EMPLOYES      80

 


 

COMMENT    

 

TRADING HOUSE FOR IMPORT, EXPORT AND WHOLESALE OF STEEL & STAINLESS STEEL PRODUCTS, WHOLLY OWNED BY KANEMATSU CORPORATION.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDIANRY

BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Shingo Mochizuki as Nikko Boeki KK for exporting specialty steel products.  In 1995, Kanematsu Corp (See REGISTRATION) acquired 100% of the share and made it a wholly owned subsidiary.  In Oct 2006 merged into Kanematsu Trading Corporation.  This is a trading firm specializing in import, export and wholesale of specialty steel products, stainless steel products, steel-making raw materials, construction materials, others.  Offers construction works, too.    

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2013 fiscal term amounted to Yen 35,300 million, a 14% down from Yen 40,814 million in the previous term.  Construction industry was slow to recover from the North Japan Earthquake.  Exports were hurt by the high Yen, reducing revenues in Yen terms.  The recurring profit was posted at Yen 200 million and the net profit at Yen 144 million, respectively, compared with Yen 180 million recurring profit and Yen107 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 210 million and the net profit at Yen 150 million, respectively, on a 5% rise in turnover, to Yen 37,000 million.   Weaker Yen will contribute to increase revenues & profits in Yen terms.

 

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

 

 

REGISTRATION

 

Date Registered:  Dec 1970

Regd No.:           0100-01-013863 (Tokyo-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1.6 million shares

Issued:                520,000 shares

Sum:                   Yen 260 million

Major shareholders (%): Kanematsu Corporation*(100)

 

*..Specialized trading house of foods & IT-related business, Tokyo, founded 1918                       (originally as textile merchant in Osaka), listed Tokyo S/E, capital Yen 27,781   million, turnover Yen 1,019,232 million, operating profit Yen 18,262 million, recurring profit Yen 16,705 million, net profit Yen 9,564 million, total assets Yen 398,122 million, net worth Yen 63,858 million, employees 5,522, pres Masayuki Shimojima

           

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales special steel products (100%):

 

            (Handling Items):

Flat Products: stainless steel coils/sheets & plates, all flat rolled products for various use, high nickel & titanium products, clad plates;

Rolls & Components: various kinds of mill rolls, machine & parts for steel mills, components for cars, agricultural & various machinery, cast & forged products;

Tubular & Long Products: specialty steel seamless and welded pipers & tubes, non-ferrous copper alloy tubes, stainless steel bars in various shapes, wire rods & wires, high alloy items including pipes, tubes & bars;

Specialty Steel: alloy steel, tool steel, bearing steel, high speed steel items, welding consumables in all grades.

 

Clients: [Mfrs, wholesalers] Kyowa Steel, Mukoyama Steel, Itoi Shoji, Taiyo Bussan

Kaisha, Kyoei Steel, Nitoh Rail Co, Nodaki KK, Tanaka Tekko Hambai, Nakayama Steel

Works, H&CS Holdings Pte Ltd, Daiwa Steel, Kanematsu Corp, Kubota Corp, other.

Exports to India, USA, Australia, Peru, Pakistan, Thailand, Taiwan, Indonesia, Egypt, Russia as main markets, including other worldwide         destinations in over 27 countries. 

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Kanematsu Corp, Nisshin Steel, Sangyo Metal Ind, Aichi Steel, Kobe Steel, Nippon Metal Ind, Nakayama

Steel Works, Daiwa Steel, Nabesho Co, Azuma Metal Co, Maruichi Steel Tube Ltd, JFE

Bars & Shapes Corp, other

 

Payment record: slow but correct

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

           

Bank References:         Mizuho Bank (Tokyo)

                                    MUFG (H/O)

                                    Relations: Satisfactory

 

 


 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

37,000

35,300

40,814

40,069

Recur. Profit

 

210

200

180

155

Net Profit

 

150

144

107

75

Total Assets

 

 

11,062

12,615

11,641

Current Assets

 

 

10,036

11,275

10,224

Current Liabs

 

 

10,004

11,247

9,095

Net Worth

 

 

1,022

926

896

Capital, Paid-Up

 

 

260

260

260

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.82

-13.51

1.86

6.38

    Current Ratio

..

100.32

100.25

112.41

    N.Worth Ratio

..

9.24

7.34

7.70

    R.Profit/Sales

0.57

0.57

0.44

0.39

    N.Profit/Sales

0.41

0.41

0.26

0.19

    Return On Equity

..

14.09

11.56

8.37

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.103.44

Euro

1

Rs.85.27

 

 

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%)

 

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.