MIRA INFORM REPORT

 

 

Report Date :

10.05.2014

 

IDENTIFICATION DETAILS

 

Name :

OAK-TREES INC

 

 

Registered Office :

1-1-3 Kawayanagicho Koshigaya Saitama-Pref 343-6540

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2013

 

 

Date of Incorporation :

October, 2000

 

 

Com. Reg. No.:

0300-01-065024 (Saitama-Koshigaya)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of plastic insulators, plastic products

 

 

No. of Employees :

40

 

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 :

Slow but correct

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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 and address

 

OAK-TREES INC

 

REGD NAME:    KK Kashinoki Seisakusho

MAIN OFFICE:  1-1-3 Kawayanagicho Koshigaya Saitama-Pref 343-6540 JAPAN

                        Tel: 048-990-6540     

Fax: 048-990-6550

 

URL:                 http://www.oak-tree.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of plastic insulators, plastic products

 

 

BRANCHES

 

Nil

 

 

OVERSEAS   

 

China, Hong Kong

 

 

FACTORIES  

 

At the caption address, China

 

 

OFFICERS

 

HIROSHI OKUMA, PRES

                                   

 

Yen Amount

 

In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 800 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 10 M

TREND             UP                                            WORTH            Yen 101 M

STARTED         2000                                         EMPLOYES      40

 

 

COMMENT

 

MFR OF PLASTIC INSULATORS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally in 1995 by Hiroshi Okuma, on his account, and was incorporated in 2000.  This is a family-based mfr of plastic insulators (See OPERATION).  More than 50% of the products are exported to China, other.  The firm has mfg base in China (Changli Plastic products Co Ltd).  Domestic clients include Hitachi Ltd group firms.

 

 

FINANCIAL INFORMATION

           

Financials are only partially disclosed as is the case with family-based companies.

 

The sales volume for Aug/2013 fiscal term amounted to Yen 800 million, a 12% up from Yen 716 million in the previous term.  Exports were robust.  Production in China rose.  The net profit was posted at Yen 24 million, compared with Yen 11 million net loss a year ago.

 

For the current term ending Aug 2014 the net profit is projected at Yen 25 million, on a 6% rise in turnover, to Yen 850 million.  Business is seen expanding steadily. 

 

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

 

 

REGISTRATION

 

Date Registered:  Oct 2000

Regd No.:             0300-01-065024 (Saitama-Koshigaya)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         800 shares

Issued:                200 shares

Sum:                   Yen 10 million

Major shareholders (%): Hiroshi Okuma (82), Kesako Okuma (18)

No. of shareholders: 2

 

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

 

 

OPERATION

           

Activities: Manufactures plastic insulators: micro coaxial cables, low loss antenna cable, heat seal colored tapes, medical multi coaxial cables, skin tapes, shield tapes, color tapes, insulation tapes, others (--100%)

More than 50% of the products are exported to China, other

 

Clients: [Mfrs, wholesalers] Hitachi Electric Wire, Hitachi Cable Manchester, Hitachi Cable Johor, Hitachi Cable Shanghai, Shin Din Cable Ltd, Totoku Electric Co, other  

            No. of accounts: 300

            Domestic areas of activities: Centered in greater-Tokyo

Suppliers: [Mfrs, wholesalers] Seiwa Co, Tokai Rubber Ind, MA Packaging, Ryoju Corp, Hiyama Ind, other

 

Payment record: Slow but correct

 

Location: Business area in Koshigaya, Saitama-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        MUFG (Koshigaya)

                        Saitama Resona Bank (Koshigaya)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

Terms Ending:

 

31/08/2014

31/08/2013

31/08/2012

31/08/2011

Annual Sales

 

850

800

716

853

Recur. Profit

 

..

..

..

..

Net Profit

 

25

24

-11

3

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

101

84

95

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

6.25

11.73

-16.06

-41.17

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

2.94

3.00

-1.54

0.35

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/08/2014 fiscal term.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.65

Euro

1

Rs.83.07

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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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.