MIRA INFORM REPORT

 

 

Report Date :

07.11.2013

 

IDENTIFICATION DETAILS

 

Name :

OG CORPORATION

 

 

Registered Office :

4-1-43 Miyahara Yodogawaku Osaka 532-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

January 1923

 

 

Com. Reg. No.:

1200-01-054400 (Osaka Yodogawaku)

 

 

Legal Form :

Limited Company (Kanushiki Kaisha)

 

 

Line of Business :

Trading house specializing in Industrial Chemicals.

 

 

No. of Employees :

471

 

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

 

OG CORPORATION

 

 

REGD NAME

 

O. G. KK

 

 

MAIN OFFICE

 

4-1-43 Miyahara Yodogawaku Osaka 532-0003 JAPAN

Tel: 06-6395-5100    

Fax: 06-6395-5115

*.. The is its Tokyo Head Office at: 2-8-7 Nihombashi-Honcho Chuoku Tokyo, as given

                       

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

E-Mail address: honsha@ogcorp.co.jp/ (each division has its own E-mail address)

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Tokyo, Sapporo, Nagoya, Takamatsu, Fuji, Hiroshima, Fukuoka, other (Tot 14)

 

 

OVERSEAS

 

Mumbai, Shanghai (Affiliates): China (4, including one in Hong Kong), USA (2), Taiwan, Korea, UK, Dubai,    Thailand

                       

 

OFFICERS

 

 FUKUI EIJI, PRES                    Hiroyuki Takano, ch

Norio Katoh, s/mgn dir                Junzo Takahashi, mgn dir                      

Takeyasu Yasuda, mgn dir         Tetsuya Fukuda, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 104,017 M

PAYMENTS                  NO COMPLAINTS          CAPITAL           Yen 1,110 M

TREND             SLOW                          WORTH            Yen 10,755 M

STARTED                     1923                             EMPLOYES      471

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ODINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

This is an old-established trading house founded on the basis of the merger of 5 local dye-trading houses, as Osaka Godo Co Ltd.  In Jul 1991 renamed as captioned.  Specializes in import, export and wholesale of industrial chemicals, such as pigments, dyestuff, paints, resins, pharmaceutical ingredients, food additives, and others.  The firm operates 6 core business divisions: color & fine chemicals, paper & pulps, chemicals, plastics, electronic materials, and R&D divisions (See OPERATION for details & products).  Top-ranked in dyestuffs & pigments.  Goods are imported from and exported to India, Taiwan, China, USA, etc.  Domestic clients total 3,300 nationwide.

 

Brief history: Jun 1958, founded Daiwa Chemical Ind (mfr of textile chemicals & industrial chemicals; Mar 1963, capital participation in Nitto Plastics Co (synthetic resign molding); Apr 1987, founded Suzukawa Chemical Ind (mfr of industrial chemicals); Dec 1971, founded Toa Kasei Co (mfr of industrial chemicals); Jul 1980, founded OG Chemical Ind (mfr of industrial chemicals); Sept 1982, moved the head office to the caption address; Aug 1983, opened Osakagodo America Inc; Sept 1985, capital participation in Yamago Kasei Ind (synthetic resin molding); Oct 1990, founded ICG Co Ltd (import/export of chemical products); Jul 1991, renamed as captioned; Sept 1995, founded FO Tec Co (mfr of industrial chemicals); Oct 1995, founded OG Asia (Taiwan) Corp (import/export of chemical products); Dec 1995, founded Qingdao OG Plastic Products Co (mfr of synthetic resin products); Apr 1996, founded OG Wakayama Co (wholesale of chemicals); Oct 1997, capital participation in Daido Sangyo Co (wholesale of chemicals); Dec 1997, founded Shanghai OG Trading Co (import/export of chemical products); Apr 1999, founded NOAC Co Ltd (design/plan/development of computer software); Apr 2002, founded OG Film Co (film mfr, product processing & sales); Oct 2002, founded Shanghai OG T&D Techno Co (laboratory center, mfr of dyestuff & dyeing auxiliaries); Aug 2003, capital participation in Ike Trading Co.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2013 fiscal term amounted to Yen 104,017 million, a 10% down from Yen 115,011 million in the previous term.  Exports into China decreased due to the economic slowdown in the country.  High Yen also hurt sales for imports & exports, decreasing revenues in Yen terms.  The recurring profit was posted at Yen 460 million and the net profit at Yen 436 million, respectively, compared with Yen 650 million and Yen 284 million net profit, respectively, a year ago. 

For the current term ending Mar 2014 the recurring profit is projected at Yen 500 million and the net profit at Yen 500 million, on a 10% rise in turnover, to Yen 114,500 million.  Pharmaceuticals including generic drugs will grow.  Weaker Yen will contribute to raise earnings in Yen terms. 

 

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

 

 

REGISTRATION

 

Date Registered: Jan 1923

Regd No.:           1200-01-054400 (Osaka-Yodogawaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:          60 million shares

Issued:                 15 million shares

Sum:                    Yen 1,110 million

Major shareholders (%): Company’s Treasury Stock (22.7), Employees’ S/Holding Assn (6.7), Mizuho Bank (3.6)), MUFG (3.6), SMBC (3.5), Fukusuke Ikeda (3.3)

No. of shareholders: 309

           

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

 

 

OPERATION

 

Activities: A trading house for import, export and wholesale of dyestuffs, pigments, tex-tile chemicals, industrial & fine chemicals, paints, raw resins, and their finished products, pharmaceutical ingredients, reprographic materials, food additives, other industrial chemicals (--100%)

Overseas trading ratio (22%) covering Asia, USA, etc).

 

BUSINESS DIVISIONS (major handling products)

 

Color & fine chemicals: Dyestuffs, Pigments, Textile auxiliaries, Antibacterial agent, Germicide, Flame retardant, Non-woven fabric, CCM, Colorimeters, Automatic color matching devices, Raw material for medicine and agricultural chemicals, Organic intermediates and Fragrant materials.

 

Paper & pulps: All sorts of chemicals used in every process of paper mfg, non-wood pulp, such as kenaf & bamboo, used paper recycling

 

Chemicals: Organic chemicals, Industrial chemicals, Inorganic chemicals, Acrylic resins, Epoxy resins and basic ingredients of the following items- Paint/Ink, Electronic components, Urethane and other resins, Transport equipment accessories, Synthetic leathers, Surfactants, Food related materials, Building materials, Acrylic resins and Epoxy resins.

 

Plastic: Raw resins, resin additives, films, sheets, laminated manufactured products, injection-molded parts, extrusion-molded parts, blow-molded parts, packaging-related machines, bolding-related machines

Electronic Materials: Color filters, Pigment dispersing agents, Overcoat materials, Anti-reflection materials, Toner binder resins, Charge control agents, Ink, Image receiving sheets, Dyestuffs, Pigments, Base film sheets, Insulation sheets, Electrode materials, Resist solvents, Sensitizers, Near-infrared ray absorbents, Ultraviolet absorbents

 

R&D Division (projects): Specialty chemicals, pharmaceuticals, China projects, specialty films, new materials, etc.

 

Clients: [Chemical mfrs, wholesalers, specialty traders] Nippon Paper Ind, DIC Corp, AICA Inc, Oji Paper Ind, Fukusuke Kogyo Co, Dynic Corp, Daio Paper Ind, Daiichi Kigenso Kagaku Kogyo Co, Wako Ind Co, Fujicopian Co, Mitsui Chemical, other 

 

No. of accounts: 3,300

Domestic areas of activities: Nationwide

 

Suppliers:  [Mfrs, wholesalers] Mitsui & Co, DIC Corp, Nippon Kayaku, Sanyo Chemical Ind, Fimatec Ltd, Daiwa Chemical Ind, Clariant Japan, Mitsui Chemicals Tohcello Inc, Prime Polymer, other.

 

Payment record: No Complaints

 

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

 

Bank References        

Mizuho Bank (Minamisemba)

MUFG (Semba-Chuo)

Relations: Satisfactory.

 

 

FINANCES

 

 (In Million Yen)

 

Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

　

114,500

104,017

115,011

117,454

Recur. Profit

　

500

460

650

901

Net Profit

　

500

436

284

407

Total Assets

　

　

59,823

61,421

62,699

Current Assets

　

　

43,194

46,717

47,162

Current Liabs

　

　

38,714

40,047

47,266

Net Worth

　

　

10,755

10,040

9,769

Capital, Paid-Up

　

　

1,110

1,110

1,110

Div.P.Share(¥)

　

　

242.00

11.00

11.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

10.08

-9.56

-2.08

6.63

    Current Ratio

 

..

111.57

116.66

99.78

    N.Worth Ratio

..

17.98

16.35

15.58

    R.Profit/Sales

 

0.44

0.44

0.57

0.77

    N.Profit/Sales

0.44

0.42

0.25

0.35

    Return On Equity

..

4.05

2.83

4.17

 

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

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.92

UK Pound

1

Rs.99.60

Euro

1

Rs.83.64

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIA

 

 

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.