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Report No. : |
333789 |
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Report Date : |
25.07.2015 |
IDENTIFICATION DETAILS
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Name : |
KANEMATSU TRADING CORPORATION |
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Registered Office : |
Akebono Nihombashi Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku
Tokyo,103-0016 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2016 |
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Date of Incorporation : |
December 1970 |
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Com. Reg. No.: |
0100-01-013863 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is import, export, wholesale of steel products, steel raw materials, stainless steel products, steel structures |
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No. of Employee : |
85 |
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 : |
Slow but correct |
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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
|
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 first-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 |
KANEMATSU TRADING CORPORATION
Kanematsu Trading
KK
Akebono Nihombashi
Bldg 5F, 19-5 Nihombashi-Koamicho Chuoku Tokyo,103-0016 JAPAN
Tel:
03-5860-2200 Fax: 03-5808-2321
http://www.nik.e-kgt.com
E-Mail
address: sumiko_tomari@kgt-kanematsu.co.jp
Import,
export, wholesale of steel products, steel raw materials, stainless steel
products, steel structures
Osaka,
Sapporo
TOMOFUSA
EMI, PRES Kunio Mori, dir
Nobuyuki
Shimizu, dir Kazutaka
Hosaka, dir
Michio
Nakano, dir Takeshi
Gunji, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 37,430 M
PAYMENTSSLOW
BUT CORRECT CAPITAL Yen 260 M
TREND SLOW WORTH Yen 1,133 M
STARTED 1970 EMPLOYES 85
TRADING HOUSE FOR IMPORT, EXPORT AND WHOLESALE OF STEEL
&
STAINLESS STEEL PRODUCTS, WHOLLY OWNED BY KANEMATSU
CORPORATION.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDIANRY
BUSINESS ENGAGEMENTS.
The subject company was established by Shingo Mochizuki as Nikko
Boeki KK for exporting specialty steel products. In 1995, Kanematsu Corp (See REGISTRATION) acquired 100% of the
share and made it a wholly owned subsidiary.
In Oct 2006 merged into Kanematsu Trading Corporation. This is a trading firm specializing in
import, export and wholesale of specialty steel products, stainless steel
products, steel-making raw materials, construction materials, others. Offers construction works, too. Aggressive to overseas business
expansion.
The sales volume for Mar/2015 fiscal term
amounted to Yen 37,430 million, a 3% down from Yen 38,465 million in the
previous term. Construction industry was
slow to recover. The recurring profit
was posted at Yen 234 million and the net profit at Yen 189 million,
respectively, compared with Yen 213 million recurring profit and Yen212 million
net profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is
projected at Yen 250 million and the net profit at Yen 200 million,
respectively, on a 5% rise in turnover, to Yen 39,300 million. Weaker Yen will contribute to increase
revenues & profits in Yen terms.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
Date Registered: Dec 1970
Regd No.: 0100-01-013863 (Tokyo-Chuoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1.6 million shares
Issued:
520,000 shares
Sum: Yen 260
million
Major shareholders (%): Kanematsu Corporation*(100)
*..Specialized trading house of
foods & IT-related business, Tokyo, founded 1918 (originally as textile
merchant in Osaka), listed Tokyo S/E, capital Yen 27,781 million, turnover Yen
1,117,096 million, operating profit Yen 22,125 million, recurring profit Yen
22,895 million, net profit Yen 11,470 million, total assets Yen 459,011
million, net worth Yen 90,101 million, employees 6,002, pres Masayuki Shimojima
Nothing detrimental is known as
to the commercial morality of executives.
Activities:
Imports, exports and wholesales special steel products (100%):
(Handling Items):
Flat Products: stainless steel coils/sheets &
plates, all flat rolled products for various use, high nickel & titanium
products, clad plates;
Rolls & Components: various kinds of mill rolls,
machine & parts for steel mills, components for cars, agricultural &
various machinery, cast & forged products;
Tubular & Long Products: specialty steel seamless and
welded pipers & tubes, non-ferrous copper alloy tubes, stainless steel bars
in various shapes, wire rods & wires, high alloy items including pipes,
tubes & bars;
Specialty Steel: alloy steel, tool steel, bearing
steel, high speed steel items, welding consumables in all grades.
Clients: [Mfrs,
wholesalers] Mukoyama Ind Corp (10%), Kyowa Steel (4%), Kubota Corp (4%), Nakanishi Ind Co, Itoi Shoji,
ADOPLEX Corp, Nakayama Steel Works, Godo Steel, Taiyo Bussan Kaisha, other.
Exports to India, USA,
Australia, Peru, Pakistan, Thailand, Taiwan, Indonesia, Egypt, Russia as main
markets, including other worldwide destinations in over 27 countries.
No. of accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Nippon Steel & Sumitomo Metal Corp, Kanematsu Corp (20%),
Winfirst Co (10%), Kyoei Steel, Nabesho Co, Maruichi Steel Tube Ltd, Maruei Co,
JFE Bars & Shapes Co, Azuma Metal Co, Godo Steel, other
Payment record: Slow
but correct
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Mizuho
Bank (Tokyo)
MUFG
(H/O)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
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Annual
Sales |
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39,300 |
37,430 |
38,465 |
35,300 |
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Recur.
Profit |
|
250 |
234 |
213 |
200 |
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Net
Profit |
|
200 |
189 |
212 |
144 |
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Total
Assets |
|
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10,916 |
10,971 |
11,062 |
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Current
Assets |
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|
9,781 |
9,866 |
10,036 |
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Current
Liabs |
|
|
9,385 |
9,764 |
10,004 |
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Net
Worth |
|
|
1,133 |
1,128 |
1,022 |
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Capital,
Paid-Up |
|
|
260 |
260 |
260 |
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Div.Ttl
in Million (¥) |
|
|
212.09 |
92.72 |
92.72 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.00 |
-2.69 |
8.97 |
-13.51 |
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Current Ratio |
|
.. |
104.22 |
101.04 |
100.32 |
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N.Worth Ratio |
|
.. |
10.38 |
10.28 |
9.24 |
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R.Profit/Sales |
|
0.64 |
0.63 |
0.55 |
0.57 |
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N.Profit/Sales |
|
0.51 |
0.50 |
0.55 |
0.41 |
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Return On Equity |
|
.. |
16.68 |
18.79 |
14.09 |
Notes:
Forecast (or estimated) for the 31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
|
|
1 |
Rs.99.10 |
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Euro |
1 |
Rs.70.12 |
INFORMATION DETAILS
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Analysis Done by
: |
TRS |
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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.