MIRA INFORM REPORT

 

 

Report Date :

14.06.2013

 

IDENTIFICATION DETAILS

 

Name :

OKAMOTO ELECTRONICS CORPORATION

 

 

Registered Office :

4-8-4 Nipponbashi Naniwaku Osaka 556-0005

 

 

Country :

Japan

 

 

Financials (as on) :

31/03/2012

 

 

Date of Incorporation :

May 1985

 

 

Com. Reg. No.:

1200-01-037604 (Osaka-Naniwaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of electronic equipment, parts, components

 

 

No. of Employees :

535

 

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

 

Maximum Credit Limit:

Yen 991.9 Million

Status :

Satisfactory

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 – 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 and address

 

OKAMOTO ELECTRONICS CORPORATION

REGD NAME:   Okamoto Musen Denki KK

MAIN OFFICE:  4-8-4 Nipponbashi Naniwaku Osaka 556-0005 JAPAN

Tel: 06-6643-4671      Fax: 06-6633-6389

 

                        *.. The is its Higashi-Osaka Branch Office

                                               

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of electronic equipment, parts, components

 

BRANCHES

 

Tokyo, Sendai, Nagoya, Kyoto, Himeji, Hiroshima, Fukuoka (Tot 16)

 

OVERSEAS

 

China (3), Hong Kong, Singapore, Thailand, Vietnam

 

 

OFFICERS

 

HIROSHI OKAMOTO, PRES       Akihiko Kurano, dir

Ryuichi Hashiguchi, dir              Tsutomu Hosobuchi, dir

Yoshiyuki Nakashima, dir                       Yoshinori Fukuma, dir                           

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 36,457 M

PAYMENTSREGULAR   CAPITAL           Yen 350 M

      TREND       SLOW               WORTH            Yen 7,019 M

STARTED         1985                 EMPLOYES      535

 

COMMENT

TRADING FIRM SPECIALIZING IN ELECTRONIC MATERIALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 991.9 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was established originally in 1940 by Katsuyoshi Okamoto for selling electronic parts, on his account.  Incorporated in 1950, and then in 1985 reorganized by merging sister companies, the present Okamoto Electronics Corporation was established.  Hiroshi is the founder’s son.  This is a trading firm specializing in import, export and wholesale of electronics parts & equipment: semiconductors, automation components, measuring instruments, tools, other.  Goods are actively exported.  Domestic suppliers include major electronics mfrs, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

           

            The sales volume for Mar/2012 fiscal term amounted to Yen 36,457 million, a 6% down from Yen 38,974 million in the previous term.  High Yen hurt exports, reducing revenues and profits in Yen terms.  The recurring profit was posted at Yen 155 million and the net profit at Yen 44 million, respectively, compared with Yen 484 million recurring profit and Yen 288 million net profit, respectively, a year ago.

 

            For the term that ended Mar 2013 the recurring profit was projected at Yen 160 million and the net profit at Yen 45 million, respectively, on a 2% rise in turnover, to Yen 37,000 million.  Final results are yet to be released. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 991.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:        May 1985

Regd No.:                 1200-01-037604 (Osaka-Naniwaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         7,200 shares

Issued:                1,800 shares

Sum:                   Yen 350 million

Major shareholders (%): Ohtori Corp* (100)

 

*.. Ohtori Corp, Osaka, founded 1950, trading firm specializing in the similar line of business with the subject, and a sister company, presided by Hiroshi Okamoto concurrently, with executives and employees the same with the subject, sales Yen 2,092 million, net profit Yen 204 million, employees 5, pres Hiroshi Okamoto, concurrently

 

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

OPERATION

           

Activities: Imports, exports and wholesales electronics parts & components (50%), semiconductors (35%), automatic components (10%), measuring instruments (5%).

Exports (5%)

 

Clients: [Mfrs, wholesalers] Denso Digital Corp, Furuno Electric Co, Daikoku Denki Co,

NORITZ Corp, DX Antenna, RB Controls Inc, other

No. of accounts: 300

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sharp Corp, Panasonic Corp, TDK, Murata Mfg Co, Kyocera Corp, Hirose Electric Co, Sanshin Electric Co, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Namba)

MUFG (Semba-Chuo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

37,000

36,457

38,974

33,035

Recur. Profit

 

160

155

484

80

Net Profit

 

45

44

288

42

Total Assets

 

 

18,780

19,525

17,398

Current Assets

 

 

17,565

18,193

15,804

Current Liabs

 

 

10,420

11,420

10,069

Net Worth

 

 

7,019

6,973

6,689

Capital, Paid-Up

 

 

350

350

350

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.49

-6.46

17.98

-17.90

    Current Ratio

 

..

168.57

159.31

156.96

    N.Worth Ratio

..

37.37

35.71

38.45

    R.Profit/Sales

 

0.43

0.43

1.24

0.24

    N.Profit/Sales

0.12

0.12

0.74

0.13

    Return On Equity

..

0.63

4.13

0.63

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.41

UK Pound

1

Rs.91.62

Euro

1

Rs.78.12

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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