MIRA INFORM REPORT

 

 

Report No. :

328290

Report Date :

25.06.2015

 

IDENTIFICATION DETAILS

 

Name :

KAWATAKI CORPORATION

 

 

Registered Office :

212-1 Kuze-Tsukiyamacho Minamiku Kyoto 601-8203

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

February 1952

 

 

Com. Reg. No.:

1300-01-014144

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Imports, exports and wholesales: household goods, kitchen utensils, table goods, kitchen goods, bath/sanitary goods, house interior goods, other (--100%)

 

 

No. of Employees :

150

 

 

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 – 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

 

KAWATAKI CORPORATION

 

REGD NAME:   KK Kawataki Corporation

MAIN OFFICE:  212-1 Kuze-Tsukiyamacho Minamiku Kyoto 601-8203 JAPAN

                                    Tel: 075-925-1188      Fax: 075-925-1235

 

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

E-Mail address: webmaster@kawataki.co.jp

 

ACTIVITIES:     Wholesale of household goods (mainly metals), interior goods

BRANCHES:     Tokyo, Saitama, Fukuoka, other (Tot 8)

OVERSEAS:     Shanghai (China)

 

OFFICERS:       KENJI KAWABATA, PRES         Yoshio Kawabata, ch

                        Yasuo Kawabata, dir                 Kunio Yamada, dir

                        Kazuhiro Nagase, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 14,000 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 130 M

TREND STEADY                       WORTH            Yen 22,050 M   

STARTED         1952                             EMPLOYES      150

 

COMMENT:      WHOLESALER SPECIALIZING HOUSEHOLD GOODS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS. .

 

 

HIGHLIGHTS

           

The subject company is a wholesaler of household goods: cooking utensils, table goods, kitchen goods, bath/sanitary goods, house interior goods, other.  Goods are imported, mainly from China where the firm has is office.  Clients include consumer co-ops nationwide, other.

 

 

FINANCIAL INFORMATION

           

Financials are disclosed only partially.

 

The sales volume for Mar/2015 fiscal term amounted to Yen 14,000 million, a 5% down from Yen 14,700 million in the previous term.  The net profit was posted at Yen 750 million, compared with Yen 800 million a year ago.

 

For the current term ending Mar 2016 the net profit is projected at Yen 780 million, on a 3% rise in turnover, to Yen 14,450 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 252.9 million, on 30 days normal terms.  The proposed amount for 21 days terms is within the firm’s financial capabilities.

 

 

REGISTRATION

    

Date Registered:                                   Feb 1952

Regd No.:                                             1300-01-014144 (Kyoto-Minamiku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              1 million shares

Issued:                                     260,270 shares

Sum:                                        Yen 130,125,000

Major shareholders (%):                       Kawabata families, Employees’ S/Holding Assn (--100)

No. of shareholders:                             7

 

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

 

 

OPERATION

           

Activities: Imports, exports and wholesales: household goods, kitchen utensils, table goods, kitchen goods, bath/sanitary goods, house interior goods, other (--100%)

 

Clients: [Mfrs, wholesalers] Japanese Consumer Co-Operative, Co-op Kobe, Kyoto Consumer Co-op, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Yamazaki Corp, Kyocera Corp, Kureha, Pearl Metal, Iwatani Corp, other Imports from China, other

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Kyoto)

Bank of Kyoto (Fushimi)

Relations: Satisfactory

 

 

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

 

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

14,450

14,000

14,700

13,500

Recur. Profit

 

..

..

..

..

Net Profit

 

780

750

800

700

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

22,050

21,300

20,500

Capital, Paid-Up

 

 

130

130

130

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.21

-4.76

8.89

-0.74

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

..

..

    N.Profit/Sales

 

5.40

5.36

5.44

5.19

 

Notes: Financials are only partially disclosed.

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.66

UK Pound

1

Rs.100.50

Euro

1

Rs.71.31

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               

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%)

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