MIRA INFORM REPORT

 

 

Report Date :

07.03.2014

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU CHEMICALS CORPORATION

 

 

Registered Office :

TT-2 Bldg 10F, 3-8-1 Nihombashi-Ningyocho Chuoku Tokyo 103-0013

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

September 1974

 

 

Com. Reg. No.:

040329

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of industrial chemicals

 

 

No. of Employees :

64

 

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, 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 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 exceeds 225% 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 CHEMICALS CORPORATION

 

REGD NAME:    Kanematsu Chemical KK

MAIN OFFICE:  TT-2 Bldg 10F, 3-8-1 Nihombashi-Ningyocho Chuoku Tokyo 103-0013

JAPAN

                                    Tel: 03-5643-3011    

                                    Fax: 03-5643-3016

 

URL:                 http://www.kccjp.co.jp/

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES   

 

Osaka

 

 

OFFICER(S)  

 

KAZUYUKI MATSUNAGA, PRES           

Masana Takahashi, dir               Hiroshi Shimada, dir

Makoto Kudo, dir                       Hiroki Shimokawa, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 18,187 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 300 M

TREND             UP                                WORTH            Yen 731 M

STARTED                     1974                             EMPLOYES      64

 


 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS, WHOLLY OWNED BY KANEMATSU CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a chemical division separated from Kanematsu Corp, trading house of Japan, Tokyo (see REGISTRATION), in order to import, export and wholesale of industrial chemicals.  Originally named as Kanematsu Kaseihin KK (Kaseihin means chemical products) and renamed as captioned in Mar 2002.  The firm separated and transferred one division to a sister firm in 2005.  In 2009, merged a sister company, Kowashouji Co Ltd.  In Feb 2013, merged Kanematsu Wellness Corp and made it’s a wholly owned subsidiary.  Clients include major chemical mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

In the previous term.  The high Yen ate into earnings in Yen terms.  Total demand from China declined.  The recurring profit was posted at Yen 504 million and the net profit at Yen 327 million, respectively, compared with Yen 521 million recurring profit and Yen 287 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 530 million and the net profit at Yen 350 million, respectively, on a 9% rise in turnover, to Yen 19,800 million.  This is attributed to the said merger of Kanematsu Wellness Corp, which will contribute in full terms.  The firm posted sales in Yen 668 million for the Mar/2013 fiscal term.  Weaker Yen will also contribute to increase sales in Yen terms.

 

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

 

 

REGISTRATION

 

Date Registered:  Sept 1974

Regd No.:         (Tokyo-Chuoku) 040329

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800,000 shares

Issued:                600,000 shares

Sum:                   Yen 300 million

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

 

*.. Formerly general trading house, traditionally strong in textiles, Tokyo, now operations have been reduced to foods, energy, steel & plants and textiles, founded 1918, 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: Trading house for import, export and wholesale of industrial chemicals

 

(Sales Breakdown by Divisions):

 

Functional Chemicals Div (33%): petrochemical products (aromatics, ketone, ester, alcohol, ethanol, other;

Paper Mill Chemicals Div (15%): paper mfg chemicals, medical & sanitary chemicals;

Functional Chemicals Div (Osaka Branch) (15%): plywood adhesives, anti-corrosive chemicals, naphthene, aroma chemicals, glycerin, furfural, sulfur alcohol, rosin, other;

Techno Chemicals Div (16%): inorganic chemicals for paper mfg, fertilizer, other industrial use, rare earth, active charcoal, other inorganic chemicals, adhesive agents, firming agents, synthetic resins, other;

Fine Chemicals Div (12%): functional food additives, raw materials, pharmaceuticals, intermediates, photosensitive plastics, water treatment chemicals, flame retardant, bactericide, fungicide, dyestuffs, pigments and additives, other;

Others (9%): auto chemicals, auto materials, building & construction materials, water-proofing agents, sealants, paints & coatings, other.

Import (15%); Export (20%) (Breakdown % are all about)

 

Clients: [Chemical mfrs, other mfrs, wholesalers] Hokushin Co (10%), Daio Paper, Yamaichi Chemical Ind, Kanematsu Corp (3.6%), Sanyo Kaseihin, Daido Chemical Ind, Maruzen Petrochemical, other.

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Tokuyama Corp, Mitsui Chemical, Maruzen Petrochemical, Shell Chemicals Japan, Miyoshi Fats & Oils Corp, Daiichi Sankyo Co, other.

 

Payment record: No complaints

 

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

 

Bank References:        MUFG (H/O)

                                    SMBC (Tokyo-Chuo)

                                    Relations: Satisfactory


 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

19,800

18,187

19,487

17,612

Recur. Profit

 

530

504

521

403

Net Profit

 

350

327

287

229

Total Assets

 

 

7,368

6,710

5,802

Current Assets

 

 

6,757

6,293

5,416

Current Liabs

 

 

6,457

5,859

5,026

Net Worth

 

 

731

683

624

Capital, Paid-Up

 

 

300

300

300

Div.Ttl in Million (¥)

 

 

287.4

229.8

250.8

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

8.87

-6.67

10.65

3.64

    Current Ratio

 

..

104.65

107.41

107.76

    N.Worth Ratio

..

9.92

10.18

10.75

    R.Profit/Sales

 

2.68

2.77

2.67

2.29

    N.Profit/Sales

1.77

1.80

1.47

1.30

    Return On Equity

..

44.73

42.02

36.70

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.32

UK Pound

1

Rs.102.54

Euro

1

Rs.84.19

 

 

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.