MIRA INFORM REPORT

Report Date :

08.08.2014

IDENTIFICATION DETAILS

Name :	OSAKA RASENKAN KOGYO CO LTD (ORS CORPORATION)

Registered Office :	3-12-33 Himesato Higashiyodogawaku Osaka 555-0025

Country :	Japan

Financials (as on) :	30.11.2013

Date of Incorporation :	October 1937

Com. Reg. No.:	1200-01-051003

Legal Form :	Limited Company

Line of Business :	Manufacturer of hoses, bellows, other

No of Employees :	90

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	Yen 95.9 Million

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 – June 01, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

Source : CIA

COMPANY NAME:

OSAKA RASENKAN KOGYO CO LTD (ORS Corporation)

REGD NAME:

Osaka Rasenkan Kogyo KK

MAIN OFFICE:

3-12-33 Himesato Higashiyodogawaku Osaka 555-0025 JAPAN

Tel: 06-6473-6151 Fax: 06-5473-6150

URL: Error! Hyperlink reference not valid.ork.co.jp

E-Mail address: (thru the URL)

ACTIVITIES:

Mfg of hoses, bellows, other

BRANCHES:

Tokyo

FACTORIES:

At the caption address, Fukuroi (Shizuoka) (2)

OFFICERS:

KAZUO KOIZUMI, PRES Noboru Ogawa, dir

Eiichi Kuno, dir Seiji Ogawa, dir

Megui Koizumi, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY:

FINANCES FAIR A/SALES Yen 1,931 M

PAYMENTSNO COMPLAINTS CAPITAL Yen 80 M

TREND UP WORTH Yen 2,389 M

STARTED 1937 EMPLOYES 90

COMMENT:

MFR OF HOSES & BELLOWS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: ESTIMATED AT YEN 95.9 MILLION, ON 30 DAYS NORMAL TERMS.

HIGHLIGHTS:

The subject company was established originally in 1912 by father of Kazuo Koizumi for making metallic flexible hoses, on own account, and was incorporated in 1937. Kazuo took the pres office in Mar 1990. This is a specialized mfr of hoses & bellows, used in steel, gas power, shipbuilding, electric powers, semiconductor mfg, and other industries. Goods are widely exported. Clients include major gas powers, heavy machinery makers, electronics makers, other, nationwide.

FINANCIAL INFORMATION:

The sales volume for Apr/2014 fiscal term amounted to Yen 1,931 million, a 2% up from Yen 1,900 million in the previous term. Exports rose. Domestic demand increased due to disaster coming from the heavy rains, typhoons, heat fevers, etc, damaging gas supply, electric shortage, other. The recurring profit was posted at Yen 108 million and the net profit at Yen 114 million, respectively, compared with Yen 7 million recurring profit and Yen 16 million net profit, respectively, a year ago. Cost-cutting efforts raised profits.

For the current term ending Apr 2015 the recurring profit is projected at Yen 150 million and the net profit at Yen 120 million, respectively, on a 4% rise in turnover, to Yen 2,000 million. Business is seen expanding steadily.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 95.7 million, on 30 days normal terms.

REGISTRATION:

Date Registered: Oct 1937

Regd No.: 1200-01-051003 (Osaka-Nishiyodogawaku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 640,000 shares

Issued: 160,000 shares

Sum: Yen 80 million

Major shareholders (%): Osaka Small & Medium Business Investment & Promotion Assn (48.7), Company’s Treasury Stock (30), Kazuo Koizumi (20)

No. of shareholders: 7

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

OPERATION:

Activities: Manufactures hoses & bellowers: flexible hoses, expansion joints (bellowers), vibration absorbers, flexible hoses conforming to Fire Service Act, Teflon hoses, joint pipes, Helical pipes, other (--100%)

(Application industries): steel, shipbuilding, petrochemical, gas & water, electrical powers, building/residential gas & water, nuclear energy & space development, medical & disaster prevention services, semiconductors, other

Clients: [Mfrs, wholesalers] Osaka Gas, Hitachi Ltd, Mitsubishi Heavy Ind, Sumitomo Chemical Ind, Yanmar Co, Mitsubishi Electric, Asahi Kasei Corp, Asahi Glass, JX Nippon Steel & Sumitomo Mining Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nas Trading, Iwatani Corp, Matsumoto Sangyo Corp, Valqua Techno, Shinwa Sangyo Co, other

Imports from China, other

Payment record: No Complaints

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

Bank References:

SMBC (Osaka-Nishi)

Osaka Shinkin Bank (H/O)

Relations: Satisfactory

FINANCES (In Million Yen)

Terms Ending:	30/11/2014	30/11/2013	30/11/2012	30/11/2011
Annual Sales	2,000	1,931	1,900	2,354
Recur. Profit	150	108	7	174
Net Profit	120	114	16	183
Total Assets		4,196	4,057	4,061
Current Assets		2,604	2,410	2,300
Current Liabs		407	378	387
Net Worth		3,389	3,279	3,271
Capital, Paid-Up		80	80	80
Div.Ttl in Million (¥)		4	4	8
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	3.57	1.63	-19.29	6.71
Current Ratio	..	639.80	637.57	594.32
N.Worth Ratio	..	80.77	80.82	80.55
R.Profit/Sales	7.50	5.59	0.37	7.39
N.Profit/Sales	6.00	5.90	0.84	7.77
Return On Equity	..	3.36	0.49	5.59

Notes: Forecast (or estimated) figures for the 30/11/2014 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.41
UK Pound	1	Rs. 103.42
Euro	1	Rs. 82.16

INFORMATION DETAILS

Analysis Done by :	SMT

Report Prepared by :	DPT

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.