MIRA INFORM REPORT

 

 

Report Date :

07.12.2013

 

IDENTIFICATION DETAILS

 

Name :

OSAKA KOHKI CO LTD

 

 

Registered Office :

1-6-7 Andojimachi Chuoku Osaka 542-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May, 1950

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export and Wholesale of cutting tools, tooling systems, resist friction, other machine tools. 

 

 

No. of Employees :

259

 

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, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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. The new government will continue a longstanding debate 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 & address

 

OSAKA KOHKI CO LTD

 

REGD NAME:   Osaka Kohki KK

MAIN OFFICE:  1-6-7 Andojimachi Chuoku Osaka 542-0061 JAPAN

Tel: 06-6765-8221     Fax: 06-6762-1974     -

 

URL:                 www.osk-k.co.jp

 

E-Mail address: accweb@osk-k.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of cutting tools, resist friction, other

 

 

BRANCHES   

 

Tokyo, Nagoya, Hiroshima, Fukuoka, Himeji, Higashi-Osaka, other (Tot17)

 

 

OVERSEAS   

 

China (5), Thailand, Philippines, Indonesia, Vietnam, India, Mexico

 

 

CHIEF EXEC 

 

SHIGEMASA YANAGAWA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 15,057 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 350 M

TREND             UP                                WORTH            Yen 3,555 M

STARTED         1950                             EMPLOYES      259

 

 

COMMENT    

 

TRDING FIRM SPECIALIZING IN CUTTING TOOLS, OTHER MACHINE TOOLS 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established by Jihei Hayashi for selling cutting tools, on his account.  Incorporated in 1950 the firm has been succeeded by the present executives.  In 1953 obtained dealership agreement from Sumitomo Denko (now Sumitomo Electric Ind) for handling electric machinery & supplies.  This is a trading firm for import, export and wholesale of cutting tools, tooling systems, resist friction, other machine tools.  In Mar 2012 the firm was listed on the JASDAQ.  It has sales representative offices in China and other Asian countries.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 15,057 million, a 1.1% up from Yen 14,900 million in the previous term.  The recurring profit was posted at Yen 440 million and the net profit at Yen 273 million, respectively, compared with Yen 474 million recurring profit and Yen 224 million net profit, respectively, a year ago. 

 

 (Apr//Sept/2013 results): Sales Yen 8,202 million (up 9.4%), operating profit Yen 205 million (down 7.4%), recurring profit Yen 216 million (down 0.8%), net profit Yen 74 million (down 55.4%).  (% compared with the corresponding period a year ago.)

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 521 million and the net profit at Yen 246 million, on a 17.4% rise in turnover, to Yen 17,678 million. 

 

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

 

 

 

 

REGISTRATION

           

Date Registered:　         May 1950

Legal Status:                 Limited Company (Kabushiki Kaisha

Authorized:                    4,800,000 shares

Issued:                          3,434,420 shares

Sum:                            Yen 350 million

 

Major shareholders (%): Yusuke Hayashi (15.5), Employees’ S/Holding Assn (8.0), Osaka Business Planning (7.1), Shuichi Yanagawa (6.1), Taeko Yanagawa (5.8), Shigemasa Yanagawa (5.4), Toshihisa Yanagawa (4.9), Junko Yado (4.6), Junko Yanagawa (4.4), Ayumu Yanagawa (3.4); foreign owners (0.5)

 

No. of shareholders: 1,146

 

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

 

Managements: Shigemasa Yanagawa, pres; Masahide Fuchigami, mgn dir; Toshihisa Yanagawa, mgn dir; Hideki Tanaka, dir; Yuji Minami, dir

 

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

 

           

OPERATION

           

Activities:                      Imports and wholesales cutting tools (68%), wear-resistant tools (16%), overseas trading (13%), optical products (4%)

 

(Products handled):        cutting tools, high speed steel, tooling systems, resist friction, connected parts, optical fiber, shrinking tooling systems, anti-pollution systems, other

           

Clients:                          [firs, wholesalers] Sumitomo Electric Ind, Seco Tools Japan, Iscar Japan Ltd, Kenna Metal Japan, other

                                    No. of accounts: 500

                                    Domestic areas of activities: Nationwide

Suppliers:                       [Mfrs, wholesalers] Sumitomo Electric, Seco Tools Japan, Iscar Japan, Kenna Metal Japan, other

 

Payment record:            No complaints

 

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

 

Bank References:

                                    MUFG (Uemachi)

                                    SMBC (Bingomachi)

                                    Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

15,057

14,900

 

  Cost of Sales

12,077

12,005

 

      GROSS PROFIT

2,980

2,895

 

  Selling & Adm Costs

2,556

2,384

 

      OPERATING PROFIT

423

510

 

  Non-Operating P/L

17

-36

 

      RECURRING PROFIT

440

474

　

      NET PROFIT

273

224

BALANCE SHEET

 

 

 

 

  Cash

　

765

743

 

  Receivables

 

3,001

3,193

 

  Inventory

 

2,756

3,044

 

  Securities, Marketable

　

　

 

  Other Current Assets

268

358

 

      TOTAL CURRENT ASSETS

6,790

7,338

 

  Property & Equipment

1,406

1,410

 

  Intangibles

 

39

49

 

  Investments, Other Fixed Assets

385

338

 

      TOTAL ASSETS

8,620

9,135

 

  Payables

 

2,940

3,439

 

  Short-Term Bank Loans

809

1,061

 

　

 

　

　

 

  Other Current Liabs

692

800

 

      TOTAL CURRENT LIABS

4,441

5,300

 

  Debentures

 

　

100

 

  Long-Term Bank Loans

389

216

 

  Reserve for Retirement Allw

227

199

 

  Other Debts

　

8

4

 

      TOTAL LIABILITIES

5,065

5,819

 

      MINORITY INTERESTS

 

 

 

Common stock

350

350

 

Additional paid-in capital

330

330

 

Retained earnings

2,852

2,648

 

Evaluation p/l on investments/securities

11

10

 

Others

 

29

695

 

Treasury stock, at cost

(17)

(717)

 

      TOTAL S/HOLDERS` EQUITY

3,555

3,316

　

      TOTAL EQUITIES

8,620

9,135

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

208

-65

 

Cash Flows from Investment Activities

2

-61

 

Cash Flows from Financing Activities

-206

346

　

Cash, Bank Deposits at the Term End

　

765

743

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

3,555

3,316

 

 

Current Ratio (%)

152.89

138.45

 

 

Net Worth Ratio (%)

41.24

36.30

 

 

Recurring Profit Ratio (%)

2.92

3.18

 

 

Net Profit Ratio (%)

1.81

1.50

 

 

Return On Equity (%)

7.68

6.76

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.67

UK Pound

1

Rs.100.65

Euro

1

Rs.84.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.