MIRA INFORM REPORT

 

 

Report No. :

339171

Report Date :

02.09.2015

 

IDENTIFICATION DETAILS

 

Name :

KANAMOTO CO LTD

 

 

Registered Office :

K Bldg 3-1-19 Odori-Higashi Chuoku Sapporo Hokkaido 060-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.10.2014

 

 

Date of Incorporation :

Octomber 1964

 

 

Com. Reg. No.:

4300-01-003991

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is engaged in rental of construction machinery/equipment, wholesale of steel products.

 

 

No. of Employee :

1,584

 

 

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 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.

 

Source : CIA

 

Company name and address

 

KANAMOTO CO LTD

 

REGD NAME:   KK Kanamoto

MAIN OFFICE:  K Bldg 3-1-19 Odori-Higashi Chuoku Sapporo Hokkaido 060-0061 JAPAN

                                    Tel: 011-209-1600     Fax: 011-219-6130     -

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Rental of construction machinery/equipment, wholesale of steel products

 

 

BRANCHES

 

167 locations nationwide (Hokkaido 64, Northern Japan 52, Kanto 27, other)

 

 

OVERSEAS

 

Thailand, Vietnam & Hong Kong

 

 

FACTORIES

 

(subcontracted)

 

 

CHIEF EXEC

 

KANCHU KANAMOTO, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 125,555 M

PAYMENTSREGULAR   CAPITAL           Yen 13,652 M

TREND UP                    WORTH            Yen 65,513 M

STARTED         1964                 EMPLOYES      1,584

 

COMMENT

 

CONSTRUCTION MACHINERY LEASING FIRM

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                                   

Unit: In Million Yen

Forecast figures for the 31/10/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest leasing firm for construction and civil-engineering machinery.  Started off as marketer of steel products in Muroran, Hokkaido.  Aggressive in expanding sales footing into Kanto area.  Also has overseas offices in Vietnam, Thailand and Hong Kong.  One of pioneers in introducing on-line inventory management system. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Oct/2014 fiscal term amounted to Yen 125.555 million, a 13.3% up from Yen 110,831 million in the previous term.  The recurring profit was posted at Yen 16.078 million and the net profit at Yen 9,299 million, respectively, compared with Yen 11.073 million recurring profit and Yen 5809 million net profit, respectively, a year ago.

 

(Nov/2014-Apr/2015 results): Sales Yen 68,307 million (up 6.4%), operating profits Yen 10,652 million (up 5.8), recurring profit Yen 10,655 million (up 8.1%), net profit Yen 6,528 million (up 15.5).  (% as compared with the corresponding period a year ago)

 

For the current term ending Oct 2015 the recurring profit is projected at Yen 16,610 million and the net profit at Yen 9,520 million, respectively, on a 2.4% rise/fall in turnover, to Yen 128,600 million. 

 

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

REGISTRATION

           

Date Registered:　   Oct 1964

Regd No.:                      4300-01-003991 (Sapporo-Chuoku)

Legal Status:                   Limited Company (Kabushiki Kaisha

Authorized:                      130 million shares

Issued:                36,092,241 shares

Sum:                   Yen 13,652 million

 

Major shareholders (%): Japan Trustee Services T (5.7), ORIX Corp (4.5), Master Trust Bank of Japan T (3.0), Japan Trustee Services T9 (2.8), Komatsu Const. Equipment S&S J (2.6), Komatsu Capital Co (2.5), Hokkaido Bank (2.4), Tokio Marine & Nichido Fire Ins (2.2), North Pacific Bank (2.1), Tsukishima Kikai (1.9); foreign owners (24.9)

 

No. of shareholders: 6,889

 

Listed on the S/Exchange (s) of: Tokyo & Sapporo

 

Managements: Kanchu Kanamoto, pres; Tetsuo Kanamoto, v pres; Nobuto Utatsu, s/mgn dir; Hiroshi Narita, dir; Masakazu Hirata, dir; Keiichi Kitakata, dir; Hiroyuki Isono, dir; Tatsuo Kanamoto, dir; Manabu Nagasaki, dir; Yuichi Asano, dir

 

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

 

Related companies: Kyuken Corp, Kanki Co, Dai-ichi Kikai, other.

 

 

OPERATION

           

Activities: Construction machinery/equipment leasing (93%), wholesale of steel products, others (--7%)

           

Clients: [Mfrs, wholesalers] Taisei Corp, Hanwa Corp, Kajima Corp, Itochu Construction Machinery, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Hanwa Corp, Assist Corp, Sankyo Frontier, Marubeni Ito-              chu Techno  Steel, Mitsui Bussan Steel, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Sapporo)

Mizuho Bank (Sapporo)

Relations: Satisfactory

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/10/2014

31/10/2013

INCOME STATEMENT

  Annual Sales

　

125,555

110,831

  Cost of Sales

85,334

76,522

      GROSS PROFIT

40,220

34,309

  Selling & Adm Costs

23,766

22,916

      OPERATING PROFIT

16,454

11,392

  Non-Operating P/L

-376

-39

      RECURRING PROFIT

16,078

11,073

　

      NET PROFIT

9,299

5,809

BALANCE SHEET

  Cash

　

31,650

32,627

  Receivables

33,651

27,731

  Inventory

6,843

4,817

  Securities, Marketable

350

350

  Other Current Assets

1,586

1,443

      TOTAL CURRENT ASSETS

74,080

66,968

  Property & Equipment

106,341

95,322

  Intangibles

266

270

  Investments, Other Fixed Assets

7,804

6,690

      TOTAL ASSETS

188,491

169,250

  Payables

23,134

21,293

  Short-Term Bank Loans

612

591

　

　

　

  Other Current Liabs

36,909

32,535

      TOTAL CURRENT LIABS

60,655

54,419

  Debentures

　

　

  Long-Term Bank Loans

21,698

26,288

  Reserve for Retirement Allw

16

7

  Other Debts

　

40,609

32,344

      TOTAL LIABILITIES

122,978

113,058

      MINORITY INTERESTS

  Capital, Paid-Up

13,652

13,652

  Surplus

51,861

42,540

      SHAREHOLDERS' EQUITY

65,513

56,192

　

      TOTAL EQUITIES

188,491

169,250

CONSOLIDATED CASH FLOWS

Terms ending:

31/10/2014

31/10/2013

Cash Flows from Operating Activities

　

24,782

20,759

Cash Flows from Investment Activities

-3,374

-1,117

Cash Flows from Financing Activities

-22,405

-6,532

　

Cash, Bank Deposits at the Term End

　

31,980

32,957

ANALYTICAL RATIOS            Terms ending:

31/10/2014

31/10/2013

Net Worth (S/Holders' Equity)

65,513

56,192

Current Ratio (%)

122.13

123.06

Net Worth Ratio (%)

34.76

33.20

Recurring Profit Ratio (%)

12.81

9.99

Net Profit Ratio (%)

7.41

5.24

Return On Equity (%)

14.19

10.34

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.26

UK Pound

1

Rs.101.99

Euro

1

Rs.74.79

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.