MIRA INFORM REPORT

 

 

Report No. :

300058

Report Date :

15.01.2015

 

IDENTIFICATION DETAILS

 

Name :

KAWASHIMA SELKON TEXTILE CO LTD

 

 

Registered Office :

265 Shizuichi-Ichiharacho Sakyoku Kyoto 601-1123

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May, 1938

 

 

Com. Reg. No.:

(Kyoto-Sakyoku) 000056

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Kimonos, Car/Train/Airplane Interiors.

 

 

No. of Employees :

860

 

 

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 :

Regular

 

 

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 and address

 

KAWASHIMA SELKON TEXTILE CO LTD

 

REGD NAME:   Kawashima Orimono KK

 

MAIN OFFICE:  265 Shizuichi-Ichiharacho Sakyoku Kyoto 601-1123 JAPAN

                                    Tel: 075-741-4111     Fax: 075-741-4309

                                    *.. (.Tokyo) is for the Tokyo Office

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfr of kimonos, car/train/airplane interiors

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Yokohama, other (Tot 19)

 

 

FACTORIES

 

At the caption address

 

 

OFFICERS

 

SUSUMU YAMAGUCHI, PRESYasuharu Hirata, mgn dir 

Shinzo Okuno, dir          Hitoshi Mori, dir            

Akira Mitsuoka, dir         Tadamasa Kondoh, dir 

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                  A/SALES       Yen 32,372 M

PAYMENTS      REGULAR          CAPITAL        Yen 9,381 M

TREND STEADY            WORTH         Yen 11,321 M

STARTED         1938                  EMPLOYES   860

 

 

COMMENT

 

MFR OF KIMONO, VEHICLES INTERIOR GOODS, OWNED BY LIXIL GROUP 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

 

HIGHLIGHTS

 

This is a long-established “Nishijin” (brand-name of kimono textiles) fabrics mfr founded as kimono store in1843 in Edo period.  Excels in high-quality products, such as traditional Japanese “obi” and art fabrics.  Top-ranked maker of “obi”.  Merged with Selkon Co, mfr of interiors for automobiles, trains and air planes, and advanced into this area.  The company plans to reinforce sales of own-brand environment-friendly curtains.  The kimono sales subsidiary will pull out from unprofitable stores, including in department stores.  In July 2010, transferred part of interior products for vehicles, such as autos, trains and airplanes, to a subsidiary equity-method firm, TB Kawashima KK, jointly founded with Toyota Tsusho Corp and Toyota Boshoku Corp.  In Aug 2011, the firm went into business tie-up with LIXIL Group Corp (See REGISTRATION) and became its wholly owned consolidated subsidiary, and delisted from the Tokyo S/E.  In Apr 2013 absorbed Juraku Co Ltd.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 32,372 million, a 1% up from Yen 32,024 million in the previous term.  The recurring profit was posted at Yen 1,715 million and the net profit at Yen 1,512 million, respectively, compared with Yen 1,283 million recurring profit and Yen 222 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,750 million and the net profit at Yen 1,550 million, on a 1% rise in turnover, to Yen 32,700 million. 

 

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

 

 

REGISTRATION

           

Date Registered:           May 1938

Regd No.:                                 (Kyoto-Sakyoku) 000056

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              176,167,000 shares

Issued:                         93,903,222 shares

Sum:                            Yen 9,381 million

Major shareholders (%):           LIXIL Group Corp* (100)

 

*.. LIXIL Group Corp, largest mfr of housing facilities and comprehensive maker of building Materials, Tokyo, founded 1949, listed Tokyo S/E, capital Yen 68,121 million, sales Yen 1,628,658 million, operating profit Yen 69,079 million, recurring profit Yen 74,937 million, net profit Yen 44,755 million, total assets Yen 1,773,717 million, net worth Yen 608,538 million, employees 52,747, pres Yoshiaki Fujimori

 

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

 

           

OPERATION

           

Activities: Manufactures: obi, kimono & artistic fabrics, interior fabrics (curtains, carpets, drapers, walling, other), others (--100%).

           

Clients: [Mfrs, wholesalers] Nafco Corp, Leo Palace 21, Takashimaya, Daimaru Matsuzakaya Department Store, Sogo Seibu Department Store, Isetan Mitsukoshi Department Stores, Scroll Corp, Kingrun Medicare Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Chori Co, NI Teijin Shoji, Tachikawa Co, Kawashima Textile Shanghai, Bridgestone Corp, Kawashima Selkon Sewing Co, Toso Co, Nichibei Co, Tajima Inc, Yamamoto Sangyo Co, Bridgestone Corp, other

 

Payment record: Regular

 

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

 

Bank References:

            SMBC (Kyoto)

            Bank of Kyoto (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

32,700

32,372

32,024

33,215

Recur. Profit

 

1,750

1,715

1,283

554

Net Profit

 

1,550

1,512

222

249

Total Assets

 

 

25,022

25,077

27,819

Current Assets

 

 

12,326

11,936

12,808

Current Liabs

 

 

10,275

10,963

12,566

Net Worth

 

 

11,321

10,236

10,017

Capital, Paid-Up

 

 

9,381

9,381

9,381

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

1.01

1.09

-3.59

-18.67

    Current Ratio

 

..

119.96

108.88

101.93

    N.Worth Ratio

 

..

45.24

40.82

36.01

    R.Profit/Sales

 

5.35

5.30

4.01

1.67

    N.Profit/Sales

 

4.74

4.67

0.69

0.75

    Return On Equity

 

..

13.36

2.17

2.49

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.15

UK Pound

1

Rs.94.24

Euro

1

Rs.73.30

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.