MIRA INFORM REPORT

 

 

Report No. :

332812

Report Date :

17.07.2015

 

IDENTIFICATION DETAILS

 

Name :

KANEKA CORPORATION

 

 

Registered Office :

3-2-4 Nakanoshima Kitaku Osaka 530-8288

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Sept., 1949

 

 

Com. Reg. No.:

1200-01-059628 (Osaka-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Chemicals, Foodstuffs, Electronic Materials.

 

 

No. of Employees :

8,529

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Good 

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

 

 

Company Name and address

 

KANEKA CORPORATION

 

REGD NAME:               Kaneka KK

 

MAIN OFFICE:              3-2-4 Nakanoshima Kitaku Osaka 530-8288 JAPAN

                                                Tel: 06-6226-5050     Fax: 06-6226-5117

 

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

E-Mail address:                        info@kaneka.co.jp

 

 

ACTIVITIES

 

Mfg of chemicals, foodstuffs, electronic materials

 

 

BRANCHES

 

Tokyo, Nagoya

 

 

OVERSEAS

 

Belgium, Singapore, Malaysia, Australia, USA, China, other (Tot 8)

 

 

FACTORIES

 

Takasago (Hyogo), Settsu (Osaka), Otsu (Shiga), Kashima (Chiba)

 

 

CHIEF EXEC

 

MAMORU KADOKURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 552,189 M

PAYMENTSREGULAR   CAPITAL                       Yen 33,046 M

TREND STEADY           WORTH                        Yen 309,227 M

STARTED         1949                 EMPLOYES                  8,529

 

 

COMMENT

 

MFR OF PVC RESINS & CAUSTIC SODA. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2016 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a mfg division separated from the former Kanebo Ltd, apparel, cosmetic mfr, Tokyo, in order to mfg PVC for the first time in Japan.  Now has grown to be a leading chemical mfg firm with top level engineering development capacity. Strength in high polymer, synthesizing, and fermentation technologies. Holds one of world’s largest market shares in MBS resin and MS polymer. Expanding into pharmaceutical intermediates, electronic materials, synthetic fibers & bio-chemicals. Focusing on development of materials in growing fields, including medical devices, functional foodstuffs and other life science products, as well as thin-film solar cells.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 552,189 million, a 5.2% up from Yen 524,785 million in the previous term. Sales of functional resins expanded. The recurring profit was posted at Yen 24,752 million and the net profit at 18,033 million, respectively, compared with Yen 25,961 million recurring profit and Yen 13,650 million net profit, respectively, a year ago.      

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 33,000 million and the net profit at Yen 20,000 million, on an 8.7% rise in turnover, to Yen 600,000 million.  Production at the plant in Malaysia will start to get in full swing, and sales of electronics products for smartphones will grow.

 

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

 

 

REGISTRATION

           

Date Registered:　                   Sept 1949

Regd No.:                                 1200-01-059628 (Osaka-Kitaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  750 shares

Issued:                         350 shares

Sum:                            Yen 33,046 million

           

Major shareholders (%): Japan Trustee Services T (4.7), Master Trust Bank of Japan T (4.4), Nippon Life Ins (4.4), SMBC (4.4), Company’s Treasury Stock (4.2), Japan Trustee Services T4 (4.2), Meiji Yasuda Life Ins (3.7), MUFG (3.2), Mitsui Sumitomo Ins (3.0), Japan Trustee Services T9 (2.1); foreign owners (25.5)

           

No. of shareholders: 13,786

 

Listed on the S/Exchange (s) of: Tokyo, Nagoya

 

Managements: Kimikazu Sugawara, ch, Mamoru Kadokura, pres; Hirosaku Nagao, v pres; Toshio Nakamura, s/mgn dir; Shigeru Kamemoto, s/mgn dir; Minoru Tanaka, s/mgn dir; Masami Kishine, mgn dir; Akira Inazawa, mgn dir; Hidesuke Amachi, mgn dir; Shin’ichiro Kametaka, mgn dir; Shinobu Ishihara, mgn dir

 

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

 

Related companies: Kaneka Belgium, Kaneka Texas, Showa Kasei, other

           

 

OPERATION

           

Activities: Manufactures PVC resins, soda, foods, other (--100%):

 

(Sales Breakdown by Divisions):

Chemicals (20%): Polyvinyl chloride (PVC), rigid PVC compounds, caustic soda, paste PVC, hydrochloric acid, flexible PVC compounds, chlorinated PVC;

Functional Plastics (17%): modifier, heat-resistant ABS resins, self-extinguishing ABS resins, modified silicone polymer (MS Polymer), Alkyl terminated, polyisobuthylenes;

Expandable Plastics & Products (12%): extruded polystyrene foam boards, insulating PVC sash windows, polystyrene foam sheets, polyolefin foam (boards & moldings), expandable polystyrene;

Foodstuffs (25%): margarine & shortening, confectionary fats, bakery yeast;

Life Science Products (10%): ubidecarenone (Coenzyme Q10), anti-hypertensive drug intermediates, intermediates for antibiotics, liposorber system (LDL-cholesterol adsorption system), adsorption column for dialysis-related amyloidosis);

Electronic Products (10%): ultra heat-resistant polyimide film, bonded magnets, magnet wire, PVC pipes for underground cables, solar cells, optical films;

Synthetic Fibers, Others (16%): modacrylic fibers, others;

Overseas Sales Ratio (38%)

 

Clients: [Mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp, Kubota Corp, Kyowa Hakko Kogyo, Mitsubishi Plastics, Showa Chemical Ind, Kaneka Medics, Kaneka Foods, other

No. of accounts: 1,000 – 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp, Mitsui Chemical, Kaneka Solar Tech, Marubeni  Corp, Mitsubishi Chemical, Kyowa Leather, other

 

Payment record: Regular

 

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

 

Bank References:

            SMBC (Osaka-Chuo)

            MUFG (Higashi-Osaka-Chuo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

552,189

524,785

　

  Cost of Sales

413,389

391,987

　

      GROSS PROFIT

138,799

132,798

　

  Selling & Adm Costs

114,164

107,976

　

      OPERATING PROFIT

24,635

24,821

　

  Non-Operating P/L

117

1,140

　

      RECURRING PROFIT

24,752

25,961

　

      NET PROFIT

18,033

13,650

BALANCE SHEET

　

　

  Cash

　

28,070

34,042

　

  Receivables

122,083

118,745

　

  Inventory

91,183

88,415

　

  Securities, Marketable

110

110

　

  Other Current Assets

15,201

15,128

　

      TOTAL CURRENT ASSETS

256,647

256,440

　

  Property & Equipment

207,588

184,244

　

  Intangibles

11,714

12,112

　

  Investments, Other Fixed Assets

82,013

67,327

　

      TOTAL ASSETS

557,962

520,123

　

  Payables

63,071

66,461

　

  Short-Term Bank Loans

55,636

49,610

　

　

　

　

　

  Other Current Liabs

43,006

46,123

　

      TOTAL CURRENT LIABS

161,713

162,194

　

  Debentures

10,000

10,000

　

  Long-Term Bank Loans

47,274

38,445

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

29,748

24,351

　

      TOTAL LIABILITIES

248,735

234,990

　

      MINORITY INTERESTS

　

　

Common stock

33,046

33,046

　

Additional paid-in capital

34,836

34,836

　

Retained earnings

218,746

209,449

　

Evaluation p/l on investments/securities

19,659

10,534

　

Others

15,011

7,788

　

Treasury stock, at cost

(12,071)

(10,520)

　

      TOTAL S/HOLDERS` EQUITY

309,227

285,133

　

      TOTAL EQUITIES

557,962

520,123

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

33,602

33,924

　

Cash Flows from Investment Activities

-38,214

-38,716

　

Cash Flows from Financing Activities

-804

5,858

　

Cash, Bank Deposits at the Term End

　

28,020

33,803

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

309,227

285,133

　

Current Ratio (%)

158.71

158.11

　

Net Worth Ratio (%)

55.42

54.82

　

Recurring Profit Ratio (%)

4.48

4.95

　

Net Profit Ratio (%)

3.27

2.60

　

　

Return On Equity (%)

5.83

4.79

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.50

UK Pound

1

Rs.99.17

Euro

1

Rs.69.39

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.