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MIRA INFORM REPORT
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Report No. : |
497721 |
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Report Date : |
14.03.2018 |
IDENTIFICATION DETAILS
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Name : |
KANEMATSU CORPORATION |
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Registered Office : |
1-2-1 Shibaura Minatoku Tokyo 105-0023 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
March, 1918 |
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Com. Reg. No.: |
1400-01-005647 (Tokyo-Minatoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export and wholesale of IT-related equipment, foods,
machinery, energy |
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No. of Employees : |
711 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2016 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
name and address
KANEMATSU CORPORATION
REGD NAME: Kanematsu
KK
MAIN OFFICE: 1-2-1
Shibaura Minatoku Tokyo 105-0023 JAPAN
Tel: 03-5440-8111 Fax: 03-5440-6500
URL: http://www.kanematsu.co.jp
E-Mail address: pr@kanematsu.co.jp
ACTIVITIES
Import, export,
wholesale of IT-related equipment, foods, machinery, energy
BRANCHES
Osaka, Nagoya,
Sapporo, Sendai, Yokohama, Kobe, Fukuoka (Tot 7)
OVERSEAS
USA, Europe, Australia Mid East/Africa, China, Taiwan, Vietnam, Korea,
Singapore, Indonesia, Philippines, other (Tot 36 subsidiaries)
CHIEF
EXEC
KAORU TANIGAWA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR
A/SALES Yen 675,579 M
PAYMENTS REGULAR CAPITAL Yen 27,781 M
TREND STEADY WORTH Yen
100,357 M
STARTED 1918 EMPLOYES 711
COMMENT
GENERAL TRADING
HOUSE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGGEMENTS.
HIGHLIGHTS
The subject company was established originally as a textile specialized
trader and later has grown into one of the leading general trading houses of Japan. Traditionally
strong in textiles, but financial structure deteriorated, resulting in trimming down of operations. Following debt
forgiveness by the main bank, the firm made a new start, focusing operations on
4 key sectors including food and IT-related areas under supervision of Bank of Tokyo-Mitsubishi UFJ (MUFG). Sold majority of
less-profitable textile subsidiaries’ shares.
It-related continuing growth led by solutions, including mobile
communications equipment. Foods and steel products plant expanding. Cultivation of
non-gene modified soybeans with Canadian farmers expanding; studying cultivation in other countries. Plant division is
striving to win new orders for geothermal power generation in Asia. Now concentrates on areas such as
electronics, IT, foods, steel,
environmental, and materials. Business results are showing a steady improvement
on a result of the restructuring.
FINANCIAL
INFORMATION
The sales volume for
Mar/2017 fiscal term amounted to Yen 675,579 million, a 1.08% up from Yen
668,375 million in the previous
term.
The recurring profit was posted at Yen 17,875 million and the net profit at Yen
8,049 million, respectively, compared with Yen 18,122 million recurring profit
and Yen 8,959 million net profit, respectively, a year ago.
For the current
term ending Mar 2018 the recurring profit is projected at Yen 25,500 million
and the net profit at Yen 12,500 million, respectively, on a 3.61% rise in
turnover, to Yen 700,000 million.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Mar 1918
Regd
No.: 1400-01-005647 (Tokyo-Minatoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,016,653,604
shares
Issued: 422,501,010 shares
Sum:
Yen 27,781 million
Major
shareholders (%): Japan Trustee Services T (8.7), Master Trust Bank of
Japan T (5.1), Mitsui Sumitomo Ins (2.7), Tokio Marine & Nichido Fire Ins
(2.7), Tokio Marine & Nichido Fire Ins (2.7), Government of Norway (2.4),
MUFG (2.4), Norin Chukin Bank (2.2), Japan Trustee Services T5 (1.8), Japan
Trustee Services T1 (1.3), Japan Trustee Services T2 (1.3); foreign owners
(30.8)
No.
of shareholders: 15,222
Listed
on the S/Exchange (s) of: Tokyo
Managements: Masayuki Shimojima, pres; Kaoru Tanigawa, pres; Satoo
Hasegawa, v pres; Takashi Gunji, s/mgn dir; Tsutomu Yajima, advisor; Tetsuro Tobino,
dir; Yutaka Hirai, dir; Seiichi Katayama, dir
Related companies: Kanematsu KGK,
Kanematsu Communications, Kanematsu Electronics, other
OPERATION
Activities: Trading house
for import, export and wholesale of: electronics & devices (38%), foods (34%), steel, material and plants
(19%), motor vehicle & aerospace (7%), others (2%)
Overseas
Sales Ratio (15%)
Clients: [Mfrs,
wholesalers] JX Nippon Oil & Energy Corp, Kanematsu USA, Kanematsu Trading,
Idemitsu Kosan KK, Showa Shell Oil, CGC Japan, Marudai Food Co, Zen-Noh Group,
other.
No.
of accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Taiyo Oil, Yamaha Motor, Kignus Sekiyu, Idemitsu Kosan KK, EMG
Marketing, Soltec Japan, Seiko Epson, Yamahisa Corp, Easter Corp, Kamigumi
Corp, other.
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased
and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mizuho Bank (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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700,000 |
675,579 |
668,374 |
1,117,096 |
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Recur.
Profit |
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25,500 |
17,875 |
18,122 |
22,895 |
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Net
Profit |
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13,500 |
8,049 |
8,959 |
11,470 |
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Total
Assets |
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479,717 |
443,592 |
462,368 |
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Current
Assets |
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371,329 |
346,574 |
366,811 |
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Current
Liabs |
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265,455 |
233,034 |
252,347 |
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Net
Worth |
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100,357 |
91,599 |
90,101 |
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Capital,
Paid-Up |
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27,781 |
27,781 |
27,781 |
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Div.Ttl
in Million (¥) |
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2,317 |
1,658 |
1,658 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.61 |
1.08 |
-40.17 |
0.23 |
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Current Ratio |
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.. |
139.88 |
148.72 |
145.36 |
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N.Worth Ratio |
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.. |
20.92 |
20.65 |
19.49 |
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R.Profit/Sales |
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3.64 |
2.65 |
2.71 |
2.05 |
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N.Profit/Sales |
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1.93 |
1.19 |
1.34 |
1.03 |
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Return On Equity |
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.. |
8.02 |
9.78 |
12.73 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.95 |
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1 |
INR 90.23 |
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Euro |
1 |
INR 80.09 |
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Yen |
1 |
INR 0.61 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.