MIRA INFORM REPORT

 

 

Report Date :

01.11.2012

 

IDENTIFICATION DETAILS

 

Name :

OBARA GROUP INC

 

 

Registered Office :

3-2-10 Chuorinkan Yamato City Kanagawa-Pref 242-0007

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

December 1958

 

 

Com. Reg. No.:

0210-01-027278 (Kanagawa-Yamato)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of resistance welding machinery

 

 

No. of Employees :

1,639 employees

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 a technologically 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. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - 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 after effects 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

 

 

 

Company name

 

OBARA GROUP INC

 

 

REGD NAME 

 

Obara Group KK

 

 

MAIN OFFICE

 

3-2-10 Chuorinkan Yamato City Kanagawa-Pref 242-0007 JAPAN

Tel: 055-266-5432     Fax: 055-266-5444     -

 

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

E-Mail address:            adm@obara.co.jp

 

 

ACTIVITIES

 

Mfg of resistance welding machinery

 

 

BRANCHES

 

Utsunomiya, Toyoda, Ikeda, Kitakyushu, other (Tot 7)

 

 

OVERSEAS

 

Australia, China (2), Czech, France, India, Korea, Malaysia, Mexico, Russia, Thailand, USA

 

 

FACTORIES

 

At the caption address, other; USA, China

 

 

CHIEF EXEC 

 

YASUSHI OBARA

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES       Yen 35,460 M

PAYMENTSREGULAR   　CAPITAL        Yen 1,925 M

TREND UP                    　WORTH         Yen 21,210 M

STARTED         1958                 　EMPLOYES   1,639

 

 

COMMENT    

 

MFR OF RESISTANCE WELDING MACHINERY 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

Forecast figures for the 30/09/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is the mfr of resistance welding machinery in use for welding line at automakers.  Holds more than 50% market share.  Supplies products to all domestic automakers.  Established new welding machine company and split up to form holding company in Oct 2011, with welding and surface polishing businesses as core operating companies.  Group consists of 12 companies/subsidiaries.

 

 

FINANCIAL INFORMATION

 

The sales volume for Sept/2011 fiscal term amounted to Yen 35,460 million, a 24.6% up from Yen 28,450 million in the previous term.  New orders fared well.  Automobile production rose in Japan, USA, Asian countries.  By Divisions, Resistance Welding Equipment up 13.1% to Yen 18,233 million; Surface Grinders up 39.6% to Yen 17,230 million.  The recurring profit was posted at Yen 4,256 million and the net profit at Yen 3,382 million, respectively, compared with Yen 2,379 million recurring profit and Yen 699 million net profit, respectively, a year ago.

 

(Oct/2011-Jun/2012 results): Sales Yen 23,983 million, operating profit Yen 3,257 million, recurring profit Yen 3,405 million, net profit Yen 1,986 million.  (% compared with the corresponding period a year ago)

 

For the term that ended Sept 2012 the recurring profit was projected at Yen 3,800 million and the net profit at Yen 2,600 million, on a 14% fall in turnover, to Yen 30,500 million.  Overall sales showed setback, affected by reactionary fall in sales of surface grinders after sharp recovery.  Final results are yet to be released.

 

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

 

 

REGISTRATION

           

   Date Registered:       　Dec 1958

   Regd No.:                    0210-01-027278 (Kanagawa-Yamato)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:         38 million shares

Issued:                20,869,380

Sum:                   Yen 1,925 million

 

Major shareholders (%): Magome Kosan (15.3), Hiroshi Obara (10.8), Company’s Treasury Stock (6.8), Japan Trustee Services T (4.8), Master Trust Bank of Japan T (3.6), Northern Trust (AVFC) American (3.3), Yasushi Obara (2.9), MUFG (1.7), Noriko Obata (1.4), Employees’ S/Holding Assn (1.1); foreign owners (8.1)

 

No. of shareholders: 4,455

 

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

 

Managements: Yasushi Obara, pres; Toshiaki Watanabe, dir; Norio Kobayashi, dir; Ken Suzawa, dir

 

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

 

Related companies: Obara, Speed Fam, other.

 

 

OPERATION

           

Activities: Manufactures resistance welding equipment (51%), surface grinders-related (49%)

 

Overseas Sales Ratio (75%)

 

(Mfg Items)

 

Resistance welder-related): guns, electrodes, changers, controllers, cables, transformers, dressers, other;

 

Arc Welder: semi-automatic torches, robot torches, consumable parts, flexible cables, automatic torches, extension cables;

 

Laser: YAG laser, optical system equipment, other

           

 

Clients: [Mfrs, wholesalers] Obara Corp USA, Obara Korea, Obara India Pvt Ltd, Obara Thailand Co Ltd, Obara shanghai Ltd, other

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Obara Shanghai, Kuramitsu Gokin Kogyo, Techno Associe Co, Ishikawa Metal Finishing Co, Ishii Kikai Seisakusyo, other

 

Payment record: Regular

 

Location: Business area in Yamato City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Atsugi)

Resona Bank (Kamata)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

30/09/2011

30/09/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

35,460

28,459

 

  Cost of Sales

25,362

20,449

 

      GROSS PROFIT

10,097

8,009

 

  Selling & Adm Costs

5,759

5,715

 

      OPERATING PROFIT

4,338

2,294

 

  Non-Operating P/L

-82

85

 

      RECURRING PROFIT

4,256

2,379

　

      NET PROFIT

3,382

699

BALANCE SHEET

 

 

 

 

  Cash

　

7,198

6,194

 

  Receivables

 

8,755

7,309

 

  Inventory

 

6,363

5,714

 

  Securities, Marketable

32

58

 

  Other Current Assets

784

1,561

 

      TOTAL CURRENT ASSETS

23,132

20,836

 

  Property & Equipment

7,221

7,805

 

  Intangibles

 

235

273

 

  Investments, Other Fixed Assets

1,395

1,456

 

      TOTAL ASSETS

31,983

30,370

 

  Payables

 

3,611

3,613

 

  Short-Term Bank Loans

1,627

3,047

 

　

 

　

　

 

  Other Current Liabs

3,609

3,173

 

      TOTAL CURRENT LIABS

8,847

9,833

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

75

45

 

  Reserve for Retirement Allw

133

129

 

  Other Debts

　

1,718

1,331

 

      TOTAL LIABILITIES

10,773

11,338

 

      MINORITY INTERESTS

 

 

 

Common stock

1,925

1,925

 

Additional paid-in capital

2,373

2,373

 

Retained earnings

20,170

17,176

 

Evaluation p/l on investments/securities

49

76

 

Others

 

(2,230)

(1,442)

 

Treasury stock, at cost

(1,077)

(1,077)

 

      TOTAL S/HOLDERS` EQUITY

21,210

19,031

　

      TOTAL EQUITIES

31,983

30,370

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

30/09/2011

30/09/2010

 

Cash Flows from Operating Activities

　

3,208

1,523

 

Cash Flows from Investment Activities

39

-28

 

Cash Flows from Financing Activities

-1,755

-586

　

Cash, Bank Deposits at the Term End

　

5,224

4,086

ANALYTICAL RATIOS            Terms ending:

30/09/2011

30/09/2010

 

 

Net Worth (S/Holders' Equity)

21,210

19,031

 

 

Current Ratio (%)

261.47

211.90

 

 

Net Worth Ratio (%)

66.32

62.66

 

 

Recurring Profit Ratio (%)

12.00

8.36

 

 

Net Profit Ratio (%)

9.54

2.46

 

 

Return On Equity (%)

15.95

3.67

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.12

UK Pound

1

Rs.87.08

Euro

1

Rs.70.15

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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