MIRA INFORM REPORT
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Report No. : |
335887 |
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Report Date : |
08.08.2015 |
IDENTIFICATION DETAILS
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Name : |
KANEMATSU CORPORATION |
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Registered Office : |
119 Itocho Chuoku Kobe |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
March, 1918 |
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Com. Reg. No.: |
0104-01-007153 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of IT-related
equipment, foods, machinery, energy |
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No. of Employee : |
6,002 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.
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Source
: CIA |
COMPANY
NAME AND ADDRESS
KANEMATSU CORPORATION
REGD NAME: Kanematsu
KK
MAIN OFFICE: 1-2-1
Shibaura Minatoku Tokyo 105-0023 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
ACTIVITIES
Import, export, wholesale of IT-related
equipment, foods, machinery, energy
BRANCHES
Osaka, Nagoya, Sapporo, Sendai, Yokohama,
Kobe, Fukuoka (Tot 7)
OVERSEAS
USA (9), Europe (7), Australia (3), Mid
East/Africa (3), China (6), Taiwan (2),
Vietnam (3), Korea, Singapore, Indonesia,
Philippines, other (Tot 39 subsidiaries)
CHIEF
EXEC
MASAYUKI SHIMOJIMA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR
A/SALES Yen 1,117,096 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 27,781 M
TREND STEADY WORTH Yen 118,731 M
STARTED 1918 EMPLOYES 6,002
COMMENT
GENERAL TRADING HOUSE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGGEMENTS.
Unit:
In Million Yen
Forecast
figures for the 31/03/2016 fiscal term.
HIGHLIGHTS
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, the firm 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. Now concentrates on areas such as
electronics, IT, foods, steel, environmental, and materials. Business results are showing a steady
improvement on a result of the restructuring.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted
to Yen 1,117,096 million, a 0.2% up from Yen 1,114,539 million in the previous
term. The recurring profit was posted at
Yen 22,895 million and the net profit at Yen 11,470 million, respectively,
compared with Yen 20,160 million recurring profit and Yen 11,799 million net
profit, respectively, a year ago.
For the current term ending Mar 2016 the
recurring profit is projected at Yen 23,000 million and the net profit at Yen
12,500 million, respectively, on a 7.4% rise in turnover, to Yen 1,200,000 million. Earnings will be contributed from the
inclusion of Kanematsu NNK Corporation in the consolidated account and the
electronics business will be boosted.
The vehicle and aircraft business will also continue growing.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
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 Trustee
Services T (3.9), Master Trust Bank of Japan T (3.3), MUFG (3.1), Norin Chukin
Bank (2.9), Japan Trustee Services T (2.9), Mitsui Sumitomo Ins (2.7), Tokio
Marine & Nichido Fire Ins (2.7), Tokio Marine & Nichido Fire Ins (2.7),
HAYAT (1.2), Japan Trustee Services T9 (1.2), Japan Trustee Services T1 (1.0),
Japan Trustee Services T2 (1.0); foreign owners (21.2)
No. of shareholders: 20,987
Listed on the S/Exchange (s) of: Tokyo
Managements: Masayuki Shimojima, pres; Masao
Hasegawa, v pres; Takashi Gunji, s/mgn dir; Kaoru Tanigawa, s/mgn dir; Morihiro
Toida, mgn dir; Tetsuya Kaneko, mgn dir; Yoshiya Miyabe, mgn dir; Nobuyoshi
Sakuyama, mgn dir; Kazuo Shibata, mgn dir; Keiichi Inabe, mgn dir; Eiji Kan,
dir; Katsumi Morita, dir; Masayuki Hamasaki, dir; Hiroyasu Hirasawa, dir
Related companies: Kanematsu KGK, Kanematsu
Communications, Kanematsu Electronics, other (Tot 46 subsidiaries: domestic 7
& overseas 39)
OPERATION
Activities: Trading house for import, export and wholesale of:
electronics & devices (25%), foods (28%), steel, material and plants (42%),
motor vehicle & aerospace (5%) Overseas Sales Ratio (37%)
Clients: [Mfrs, wholesalers] JX Nippon Oil
& Energy Corp, Kanematsu USA, Kanematsu Trading, Idemitsu Kosan KK, Showa
Shell Oil, CGC Japan, Marudai Food Co, Zen-Noh Group, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Taiyo Oil,
Yamaha Motor, Kignus Sekiyu, Idemitsu Kosan KK, EMG Marketing, Soltec Japan,
Seiko Epson, Yamahisa Corp, Zen-Noh Group, JFE Steel, Danish Crown, Wilmar
Trading (China) Pte Ltd, JFE Steel, Mitsubishi Heavy Ind, Kobe Steel, 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)
Mizuho Bank (Uchisaiwaicho)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms
Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual
Sales |
1,117,096 |
1,114,539 |
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Cost
of Sales |
1,025,655 |
1,028,136 |
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GROSS
PROFIT |
91,441 |
86,402 |
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Selling
& Adm Costs |
69,315 |
66,626 |
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OPERATING
PROFIT |
23,125 |
19,776 |
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Non-Operating
P/L |
-230 |
384 |
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RECURRING
PROFIT |
22,895 |
20,160 |
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NET
PROFIT |
11,470 |
11,799 |
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BALANCE SHEET |
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Cash |
68,468 |
73,867 |
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Receivables |
180,319 |
178,984 |
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Inventory |
87,254 |
66,256 |
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Securities,
Marketable |
3 |
16 |
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Other
Current Assets |
30,767 |
26,243 |
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TOTAL
CURRENT ASSETS |
366,811 |
345,366 |
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Property
& Equipment |
28,931 |
24,218 |
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Intangibles |
14,725 |
11,706 |
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Investments,
Other Fixed Assets |
48,544 |
47,169 |
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TOTAL
ASSETS |
459,011 |
428,459 |
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Payables |
116,567 |
115,210 |
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Short-Term
Bank Loans |
61,688 |
80,792 |
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Other
Current Liabs |
74,092 |
62,633 |
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TOTAL
CURRENT LIABS |
252,347 |
258,635 |
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Debentures |
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Long-Term
Bank Loans |
74,426 |
61,113 |
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Reserve
for Retirement Allw |
5,137 |
4,630 |
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Other
Debts |
8,369 |
7,877 |
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TOTAL
LIABILITIES |
340,279 |
332,255 |
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MINORITY
INTERESTS |
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Common
stock |
27,784 |
27,784 |
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Additional
paid-in capital |
27,502 |
27,493 |
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Retained
earnings |
44,845 |
35,737 |
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Evaluation
p/l on investments/securities |
4,020 |
1,743 |
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Others |
14,802 |
3,768 |
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Treasury
stock, at cost |
(222) |
(321) |
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TOTAL
S/HOLDERS` EQUITY |
118,731 |
96,204 |
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TOTAL
EQUITIES |
459,011 |
428,459 |
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CONSOLIDATED CASH FLOWS |
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Terms
ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
10,115 |
22,384 |
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Cash Flows
from Investment Activities |
-8,903 |
-1,111 |
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Cash
Flows from Financing Activities |
-9,895 |
-9,351 |
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Cash,
Bank Deposits at the Term End |
67,377 |
73,548 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
118,731 |
96,204 |
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Current
Ratio (%) |
145.36 |
133.53 |
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Net
Worth Ratio (%) |
25.87 |
22.45 |
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Recurring
Profit Ratio (%) |
2.05 |
1.81 |
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Net
Profit Ratio (%) |
1.03 |
1.06 |
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Return
On Equity (%) |
9.66 |
12.26 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.81 |
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|
1 |
Rs.98.93 |
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Euro |
1 |
Rs.69.66 |
INFORMATION DETAILS
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Analysis Done by
: |
SAN |
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Report Prepared
by : |
ASH |
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 |
-- |
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.