MIRA
INFORM REPORT
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Report Date : |
12.12.2013 |
IDENTIFICATION DETAILS
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Name : |
OKAYA & CO LTD |
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Registered Office : |
2-4-18 Sakae Nakaku Nagoya 460-866 |
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Country : |
Japan |
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Financials (as on) : |
28.02.2013 |
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Date of Incorporation : |
April, 1937 |
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Com. Reg. No.: |
1800-01-034964 (Nagoya-Nakaku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Importer, exporter, wholesaler of steel, machinery, electronics, chemicals & tools |
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No. of Employees : |
4,745 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – September 30th, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 |
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 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.
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Source
: CIA |
Company name
OKAYA & CO LTD
REGD NAME
Okaya Koki KK
MAIN OFFICE
2-4-18 Sakae
Nakaku Nagoya 460-866 JAPAN
Tel: 052-204-8121 Fax: 052-204-8385
E-Mail address: kikku@okaya.co.jp
ACTIVITIES
Import,
export, wholesale of steel, machinery, electronics, chemicals & tools
BRANCHES
Tokyo,
Osaka, Fukuoka, Niigata, Shizuoka, Hiroshima, other (Tot 64)
Tokyo Head Office
100-0005, Tokyo,
Marunouchi Central Bldg 14F, No. 9-1, Marunouchi 1-Chome, Chiyoda-ku, Japan
OVERSEAS
USA (6), Thailand (10), Philippines
(3), China (15), Vietnam (3), Indonesia, India, Korea, other
CHIEF EXEC
TOKUICHI
OKAYA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 692,096 M
PAYMENTS REGULAR CAPITAL Yen 9,128 M
TREND STEADY WORTH Yen
110,246 M
STARTED 1937 EMPLOYES 4,745
COMMENT
TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Notes: Unit: In Million Yen
Forecast (or estimated) figures for
28/02/2014 fiscal term
HIGHLIGHTS
A time-honored special trading firm dating back to 1669 when Sosuke Okaya started his own firm as a hardware dealership at the caption address, Nagoya, and has been succeeded by his descendants. Incorporated in 1937 and renamed as captioned in 1943. Tokuichi assumed the post of pres in 1990. This is a specialized trading house highly dependant on steel, special steel, and business linked to auto and construction industries. Excels in transactions with power and gas utilities and public agencies. Has a strong business connection with Toyota Motor. Strengthening operations in China. Actively advancing into food industry, too. The firm plans to establish a subsidiary in Indonesia aimed at supplying machine tools to local Japanese mfrs. The cutting & processing joint venture for construction machinery and automobile in Suzhou, China, started in May 2011. The company will invest Yen 1 billion in expansion of the automobile parts production plant in Thailand, boosting annual sales 50% from the present level to Yen 50 billion. Operations at the specialty steel-processing firm in Dalian, China were brought forward to December 2012.
FINANCIAL INFORMATION
The sales volume for Feb/2013 fiscal term amounted to Yen 692,096 million, a 1.8% up from Yen 680,040 million in the previous term. Sales of steel for automobiles made steady growth in USA & S/E Asia, and domestic sales also recovered. By divisions, Steel down 2.2% to Yen 285,966 million; Information & Electrical Equipment 3.8% to Yen 146,890 million; Industrial Materials up 13.2% to Yen 197,037 million. The recurring profit was posted at Yen 113,408 million and the net profit at Yen 8,731 million, respectively, compared with Yen 11,210 million recurring profit and Yen 8,483 million net profit, respectively, a year ago.
(Mar/May/2013 results): sales Yen 182,903 million (down
1.4%), operating profit Yen 3,411 million (down 0.8%), recurring profit Yen
3,594 million (down 5.6&), net profit Yen 1,931 million (down 20.4%). (% compared with the corresponding period a
year ago).
For the current term ending Feb 2014 the recurring profit is
projected at Yen 15,000 million and the net profit at Yen 9,000 million,
respectively, on an 8.4% rise in turnover, to Yen 750,000 million.
The financial situation is considered FAIR and good for
ORDINARY business engagements
REGISTRATION
Date Registered: Apr 1937
Regd No.: 1800-01-034964
(Nagoya-Nakaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 177,856,000 shares
Issued:
48,600,000 shares
Sum: Yen
9,128 million
Major shareholders (%): Okaya Estate (12.4), Tokuichi
Okaya (4.9), MUFG (4.7),Nippon Steel (4.3), Chuo Mitsui Trust Bank (4.1),
Resona Bank (2.7), Nipponkoa Ins (2.7), Employees’ S/Holding Assn (1.7), Okuma
Corp (1.5), Shinshokai Foundation (1.4); foreign owners (0.1)
No. of shareholders:
3,210
Listed on the S/Exchange (s) of:
Nagoya
Managements: Tokuichi Okaya, pres & CEO,
Kokichi Kawamatsu, s/mgn dir; Tadahiko Katsuta, s/mgn dir; Shuji Ninomiya, mgn
dir; Noriaki Baba, mgn dir; Yutaka Inao, mgn dir; Takehiro Okaya, mgn dir;
Masaaki Takizawa, dir; Shin’ichi Watanabe, dir; Seiichi Hattori, dir; Kenji
Iwata, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Okaya USA Inc, Tokai Press Ind, Chubu Gosei Jushi Kogyo, other
OPERATION
Activities: Imports, exports and wholesales steel
products & machinery:
(Sales breakdown by divisions);
Steel Div (41.3%): steel plates, tubes, bars, H-section
steel, steel alloys, stainless steel;
Information & electrical equipment Div (21.2%):
electrical parts & components, aluminum materials, semiconductors,
software, A/V equipment;
Industrial materials Div (28.5%): machine
tools, industrial robots, auto parts & components, plastic materials,
semiconductor & electronics equipment & facilities, etc;
Lifestyle area Div (9.0%): housing equipment, pipe
fittings & materials, livestock products, marine products, sale of housing
& condominiums, etc;
Overseas Sales Ratio (20%)
Clients: [Mfrs, public agencies] Tokyo Gas,
Tokyo-Metrop Office, Toyota Motor, Takara Kotsu, Nichirei Fresh, Suzuki Motor
Corp, Nichicon Corp, other.
No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers: [Steel mills, wholesalers] JFE Steel, Nippon Steel, JFE Engineering Corp, Mitsubishi Electric, Daido Nachi-Fujikoshi Corp, Daido Special Steel, other.
Payment record:
Regular
Location:
Business area in Nagoya. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG
(Nagoya)
Chuo
Mitsui Trust Bank (Nagoya)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
28/02/2013 |
29/02/2012 |
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INCOME STATEMENT |
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Annual Sales |
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692,096 |
680,040 |
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Cost of Sales |
646,454 |
636,702 |
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GROSS PROFIT |
45,642 |
43,337 |
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Selling & Adm Costs |
34,237 |
33,802 |
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OPERATING PROFIT |
11,404 |
9,534 |
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Non-Operating P/L |
2,004 |
1,676 |
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RECURRING PROFIT |
13,408 |
11,210 |
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NET PROFIT |
8,731 |
8,483 |
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BALANCE SHEET |
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Cash |
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10,628 |
8,267 |
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Receivables |
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159,627 |
171,260 |
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Inventory |
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39,257 |
30,972 |
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Securities, Marketable |
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Other Current Assets |
11,233 |
20,111 |
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TOTAL CURRENT ASSETS |
220,745 |
230,610 |
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Property & Equipment |
40,252 |
40,091 |
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Intangibles |
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976 |
830 |
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Investments, Other Fixed Assets |
100,510 |
86,129 |
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TOTAL ASSETS |
362,483 |
357,660 |
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Payables |
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93,531 |
103,980 |
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Short-Term Bank Loans |
102,341 |
108,042 |
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Other Current Liabs |
13,912 |
12,796 |
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TOTAL CURRENT LIABS |
209,784 |
224,818 |
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Debentures |
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Long-Term Bank Loans |
17,018 |
19,623 |
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Reserve for Retirement Allw |
1,961 |
1,986 |
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Other Debts |
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23,474 |
19,031 |
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TOTAL LIABILITIES |
252,237 |
265,458 |
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MINORITY INTERESTS |
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Common
stock |
9,128 |
9,128 |
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Additional
paid-in capital |
7,798 |
7,798 |
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Retained
earnings |
60,036 |
52,461 |
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Evaluation
p/l on investments/securities |
29,756 |
21,859 |
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Others |
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3,974 |
1,401 |
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Treasury
stock, at cost |
(446) |
(446) |
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TOTAL S/HOLDERS` EQUITY |
110,246 |
92,201 |
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TOTAL EQUITIES |
362,483 |
357,660 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
28/02/2013 |
28/02/2012 |
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Cash Flows
from Operating Activities |
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16,104 |
1,733 |
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Cash
Flows from Investment Activities |
-3,346 |
-3,753 |
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Cash
Flows from Financing Activities |
-12,260 |
2,633 |
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Cash,
Bank Deposits at the Term End |
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8,307 |
6,985 |
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ANALYTICAL RATIOS Terms ending: |
28/02/2013 |
29/02/2012 |
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Net
Worth (S/Holders' Equity) |
110,246 |
92,201 |
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Current
Ratio (%) |
105.22 |
102.58 |
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Net
Worth Ratio (%) |
30.41 |
25.78 |
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Recurring
Profit Ratio (%) |
1.94 |
1.65 |
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Net
Profit Ratio (%) |
1.26 |
1.25 |
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Return
On Equity (%) |
7.92 |
9.20 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.33 |
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UK Pound |
1 |
Rs.100.79 |
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Euro |
1 |
Rs.84.38 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
-- |
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.