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Report No. : |
332561 |
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Report Date : |
07.09.2015 |
IDENTIFICATION DETAILS
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Name : |
KANEMATSU KGK CORPORATION |
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Registered Office : |
1-1-6 Sakuradai Nerimaku Tokyo 176-8510 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
May 1963 |
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Com. Reg. No.: |
0116-01-001527 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, export, wholesale of machining tools (82.1%), industrial machinery (17.9%). |
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No. of Employees : |
208 |
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 : |
Regular |
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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) |
|
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.
|
Source
: CIA |
KANEMATSU KGK CORPORATION
REGD NAME: KK
Kanematsu KGK
MAIN OFFICE: 1-1-6
Sakuradai Nerimaku Tokyo 176-8510 JAPAN
Tel: 03-3557-2161 Fax: 03-3557-2230
E-Mail address: somubu@kgk-j.co.jp
ACTIVITIES: Import,
export, wholesale of machine tools
BRANCHES: Osaka,
Nagoya, Yokohama, Hamamatsu, Kyoto, Fukuoka, other (Tot 18)
OVERSEAS: USA
(2), Panama, Thailand, China, Vietnam, Indonesia, Czech, Korea, India
(--subsidiaries)
OFFICER(S): YASUO
CHIBA, PRES Tadafumi Fuse,
mgn dir
Toshihiko
Matsumoto, mgn dir Yuji Okamoto, dir
Hiroshi
Kimura, dir Kiminori
Yamada, dir
Yen Amount: In
million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 43,606 M
PAYMENTSREGULAR CAPITAL Yen 706 M
TREND STEADY WORTH Yen 4,926 M
STARTED 1963 EMPLOYES 208
COMMENT: TRADING HOUSE SPECIALIZING IN MACHINE TOOLS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established on the basis of a section separated
from Kanematsu Corp (see
REGISTRATION) in order to
engage in trading of machining tools. In
2002 merged with two sister companies, Kanematsu Industrial Machinery Ltd &
Kanematsu Machinery Corp, to expand business into industrial machinery
dealing. This is a trading firm having
two divisions: Factory solution division (machine tools) & Product solution
division (industrial machinery). Has
marketing offices in Malaysia, China, USA, India, Vietnam, other. In Mar 2013, opened subsidiaries in Hanoi
(Vietnam) and Jakarta (Indonesia).
Domestic clients include machine tool mfrs, wholesalers, leasing
companies, other, nationwide.
The sales volume for Mar/2015 fiscal term amounted to Yen 43,606 million, a 6% rise from Yen 41,099 million in the previous term. Imports/exports of machining tools expanded on the back of brisk demand from mfrs both at home and abroad. The weaker Yen contributed to sales hike in Yen terms. The recurring profit was posted at Yen 1,367 million and the net profit at Yen 831 million, respectively, compared with Yen 1,252 million recurring profit and Yen 229 million net profit, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit was projected at Yen 1,450 million and the net profit at Yen 860 million, respectively, on a 5% rise in turnover, to Yen 45,700 million. Exports continue increasing to Vietnam, Indonesia, other.
The financial situation is considered FAIR and good for
ORDINARY business engagement.
Date Registered:
May 1963
Regd No.:
0116-01-001527
(Tokyo-Nerimaku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 39.4
million shares
Issued:
9.86 million shares
Sum: Yen
706 million
Major
shareholders (%): Kanematsu Corp (97.8), Employees’ S/Holding Assn (2.1), Company’s
Treasury Stock (0.1)
No. of shareholders: 3
*.. Trading house, once one of major general
trading houses, reduced operations to focus on IT, foodstuffs, steel &
plants, textiles, Tokyo, 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: Import, export,
wholesale of machining tools (82.1%), industrial machinery (17.9%).
(Export
18%).
Clients: [Mfrs,
wholesalers] KGK International Corp, Sumisho Lease Co, House Foods Corp,
Yamazaki Baking Co, Kaihara Sangyo, Central Lease, Uny Charm Kokko Nonwoven Co,
Mitsui Finance & Lease Co, Mitsubishi UFJ Lease, Futaba Machinery, Sanwa
Seiki Co, TKK, other.
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Okuma Corp,
Makino Milling Machine, OKK Corp, Mori Seiki DMG, Okuma & Howa Machinery,
Sodik Co, Citizen Machinery, Yamazaki Mazax Systems, Toshiba Machine, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank (Ikebukuro)
Gunma Bank
(Ikebukuro)
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 |
|
45,700 |
43,606 |
41,099 |
37,624 |
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Recur.
Profit |
|
1,450 |
1,367 |
1,252 |
1,145 |
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Net
Profit |
|
860 |
831 |
229 |
673 |
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Total
Assets |
|
|
22,818 |
22,230 |
16,625 |
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Current
Assets |
|
|
19,498 |
19,128 |
13,710 |
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Current
Liabs |
|
|
17,243 |
16,775 |
11,329 |
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Net
Worth |
|
|
4,926 |
4,819 |
4,613 |
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Capital,
Paid-Up |
|
|
706 |
706 |
706 |
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Div.Ttl
in Million (¥) |
|
|
729.2 |
650.4 |
295.6 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
4.80 |
6.10 |
9.24 |
31.57 |
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Current Ratio |
|
.. |
113.08 |
114.03 |
121.02 |
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N.Worth Ratio |
|
.. |
21.59 |
21.68 |
27.75 |
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R.Profit/Sales |
|
3.17 |
3.13 |
3.05 |
3.04 |
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N.Profit/Sales |
|
1.88 |
1.91 |
0.56 |
1.79 |
|
Return On Equity |
|
.. |
16.87 |
4.75 |
14.59 |
Notes: Forecast
(or estimated) figures for the 31/03/2016 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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 |
-- |
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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.