MIRA INFORM REPORT

 

 

Report No. :

306771

Report Date :

14.02.2015

 

IDENTIFICATION DETAILS

 

Name :

KANEMATSU KGK CORPORATION

 

 

Registered Office :

1-1-6 Sakuradai Nerimaku Tokyo 176-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May 1963

 

 

Com. Reg. No.:

0116-01-001527 (Tokyo-Nerimaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of Machine Tools.

 

 

No. of Employees :

195

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 and address

 

KANEMATSU KGK CORPORATION

 

REGD NAME:               KK Kanematsu KGK

 

MAIN OFFICE:              1-1-6 Sakuradai Nerimaku Tokyo 176-8510 JAPAN

                                                Tel: 03-3557-2161     Fax: 03-3557-2230

URL:                             http://www.kgk-j.co.jp

E-Mail address:                        somubu@kgk-j.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of machine tools

 

 

BRANCHES   

 

Osaka, Nagoya, Yokohama, Hamamatsu, Kyoto, Fukuoka, other (Tot 18)

 

 

OVERSEAS

 

USA (2), Panama, Thailand, China, Vietnam, Indonesia, Czech, Korea, India (--subsidiaries)

 

 

OFFICER(S)

           

YASUO CHIBA, PRES                           Tadafumi Fuse, dir

Yuji Okamoto, dir                                  Hiroshi Kimura, dir

Toshihiko Matsumoto, dir                       Kiminori Yamada, dir

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 41,099 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 706 M

TREND STEADY                       WORTH                        Yen 4,819 M

STARTED         1963                             EMPLOYES                  195

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN MACHINE TOOLS.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

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.  In Mar 2013, opened subsidiaries in Hanoi (Vietnam) and Jakarta (Indonesia).  Domestic clients include machine tool mfrs, wholesalers, other, nationwide. 

 

 

FINANCIAL INFORMATION

 

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 780 million, respectively, on a 9% rise in turnover, to Yen 44,900 million.  Exports are increasing to Vietnam, Indonesia, other.

 

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

 

 

REGISTRATION

 

Date Registered:                       May 1963

Regd No.:                                 0116-01-001527 (Tokyo-Nerimaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  39.4 million shares

Issued:                         9.86 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 412,400 million, net worth Yen 72,200 million, employees 5,747, pres Masayuki Shimojima

                       

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

 

 

OPERATION

 

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, Futaba Machinery, Sanwa Seiki Co, 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

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

44,900

41,099

37,624

38,597

Recur. Profit

 

1,300

1,252

1,145

1,254

Net Profit

 

780

729

673

-231

Total Assets

 

 

22,230

16,625

19,501

Current Assets

 

 

19,128

13,740

16,634

Current Liabs

 

 

16,775

11,329

14,728

Net Worth

 

 

4,819

4,613

4,153

Capital, Paid-Up

 

 

706

706

706

Div.P.Share(¥)

 

 

45.00

38.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

9.25

9.24

-2.52

11.30

    Current Ratio

 

..

114.03

121.28

112.94

    N.Worth Ratio

 

..

21.68

27.75

21.30

    R.Profit/Sales

 

2.90

3.05

3.04

3.25

    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.62.14

UK Pound

1

Rs.95.78

Euro

1

Rs.71.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.