MIRA INFORM REPORT

 

 

Report Date :

19.05.2014

 

IDENTIFICATION DETAILS

 

Name :

OSAKI ELECTRIC CO LTD

 

 

Registered Office :

2-10-2 Higashi-Gotanda Shinagawaku Tokyo 141-0022

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

January 1937

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures watt-hour meters for electric power companies: watt-hour meters, current limiter, time switch, demand control equipment, centralized automatic meter reading system, fiber optical coupler, switch gear, information communication devises

 

 

No. of Employees

3,417

 

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 1,972.2 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 – 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

 

OSAKI ELECTRIC CO LTD

REGD NAME:    Osaki Denki Kogyo KK

MAIN OFFICE:  2-10-2 Higashi-Gotanda Shinagawaku Tokyo 141-0022 JAPAN

      Tel: 03-3443-7171         -

 

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

E-Mail address: general-ld@osaki.co.jp

 

 

ACTIVITIES

 

Mfg of watt-hour meters for electric power companies

 

 

BRANCHES   

 

Tokyo

 

 

OVERSEAS   

 

Singapore, Indonesia

 

 

FACTORIES  

 

Osaka

 

 

CHIEF EXEC 

 

YOSHIO MATSUI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 65,663 M

PAYMENTS      No complaints   CAPITAL           Yen 4,686 M

TREND             UP                    WORTH            Yen 42,760 M

STARTED         1937                 EMPLOYES      3,417

 

 

COMMENT    

 

MFR OF WATT-HOUR METERS FOR ELECTRIC POWERS COMPANY

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                                               

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

45,975

4,154

1,020

(%)

39,301

(Consolidated)

31/03/2012

47,362

3,215

1,339

3.02

36,204

 

31/03/2013

61,205

2,900

1,472

29.23

39,830

 

31/03/2014

65,663

1,905

783

7.28

42,760

 

31/03/2015

76,000

2,600

1,300

15.74

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked mfr of watt-hour meters for electric power companies.  Closely associated with power utilities in capital and personnel phases.  Half of entire sales goes to power companies.  Osaki Engineering, subsidiary, involved in production of LCD and FPD mfg systems.  The company intends to thoroughly review cost structure of those products, to enhance price competitiveness.  .

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2014 fiscal term amounted to Yen 65,663 million, a 7.3% up from Yen 61,205 million in the previous term.   The recurring profit was posted at Yen 1,905 million and the net profit at Yen 783 million, respectively, compared with Yen 2,900 million recurring profit and Yen 1,472 million net profit, respectively, a year ago. 

           

            For the current term ending Mar 2015 the recurring profit is projected at Yen 2,600 million and the net profit at Yen 1,300 million, on a 21.2% rise in turnover, to Yen 76,000 million.  Smart meters for Kansai Electric Power are likely to make a contribution for the full term in fiscal 2014, and those for Tokyo Electric Power will contribute from the second half of the fiscal 2014.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,972.2 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered: Jan 1937

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       100 million shares

Issued:                38,550,684 shares

Sum:                   Yen 4,686 million

 

Major shareholders (%): Company’s Treasury Stock (7.4), MUFG (4.0), Customers’ S/Holding Assn (3.8), Yoshihide Watanabe (2.9), Kyushu Electric Power (2.8), Chase London Al Omnibus Acct (2.8), Fukoku Life Ins (2.8), Chubu Electric Power (2.6), Kansai Electric Power (2.5), Master Trust Bank of Japan T (2.4); foreign owners (13.7)

 

No. of shareholders: 3,568

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Yoshihide Watanabe, ch; Yoshio Matsui, pres; Mitsuyasu Watanabe, v pres; Haruyuki Kawabata, s/mgn dir; Sumio Takano, mgn dir; Kazuo Nemoto, mgn dir; Kuniaki Numazaki, dir; Toshio Yamanaka, dir; Satoshi Komazawa, dir; Choichiro Hori, dir

 

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

 

Related companies: Osaki Engineering, OUI, Enegate Co, other.

 

 

OPERATION

           

Activities: Manufactures watt-hour meters for electric power companies: watt-hour meters, current limiter, time switch, demand control equipment, centralized automatic meter reading system, fiber optical coupler, switch gear, information communication devises (97%), flat panel displays (2%), real estate (1%

Overseas Sales Ratio (33%)

 

Clients: [Mfrs, wholesalers] Tokyo Electric Power, Chubu Electric Power, Tohoku Electric Power, Kansai Electric Power, Kyuden Techno Systems, Enegate, Chugoku Electric Power, Meidensha Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Iwate Osaki Electric, Enegate, Osaki Electric Systems,                  other

 

Payment record: No complaints

 

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

 

Bank References:

MUFG Bank (Gotanda)

SMBC Bank (Gotanda)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

65,663

61,205

 

  Cost of Sales

48,660

44,817

 

      GROSS PROFIT

17,003

16,387

 

  Selling & Adm Costs

15,237

14,108

 

      OPERATING PROFIT

1,766

2,278

 

  Non-Operating P/L

139

622

 

      RECURRING PROFIT

1,905

2,900

 

      NET PROFIT

783

1,472

BALANCE SHEET

 

 

 

 

  Cash

 

10,763

11,133

 

  Receivables

 

19,013

15,697

 

  Inventory

 

12,480

10,368

 

  Securities, Marketable

 

 

 

  Other Current Assets

4,363

4,700

 

      TOTAL CURRENT ASSETS

46,619

41,898

 

  Property & Equipment

28,877

29,040

 

  Intangibles

 

4,386

4,230

 

  Investments, Other Fixed Assets

8,036

7,488

 

      TOTAL ASSETS

87,918

82,656

 

  Payables

 

8,293

7,246

 

  Short-Term Bank Loans

5,232

5,923

 

 

 

 

 

 

  Other Current Liabs

6,296

6,963

 

      TOTAL CURRENT LIABS

19,821

20,132

 

  Debentures

 

13,000

8,000

 

  Long-Term Bank Loans

5,442

7,968

 

  Reserve for Retirement Allw

1,507

187

 

  Other Debts

 

5,388

6,538

 

      TOTAL LIABILITIES

45,158

42,825

 

      MINORITY INTERESTS

 

 

 

Common stock

4,686

4,686

 

Additional paid-in capital

4,775

4,775

 

Retained earnings

18,985

18,630

 

Evaluation p/l on investments/securities

769

398

 

Others

 

15,383

13,190

 

Treasury stock, at cost

(1,838)

(1,849)

 

      TOTAL S/HOLDERS` EQUITY

42,760

39,830

 

      TOTAL EQUITIES

87,918

82,656

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

1,052

8,741

 

Cash Flows from Investment Activities

-2,524

-5,828

 

Cash Flows from Financing Activities

-185

-1,102

 

Cash, Bank Deposits at the Term End

 

11,876

13,046

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

42,760

39,830

 

 

Current Ratio (%)

235.20

208.12

 

 

Net Worth Ratio (%)

48.64

48.19

 

 

Recurring Profit Ratio (%)

2.90

4.74

 

 

Net Profit Ratio (%)

1.19

2.41

 

 

Return On Equity (%)

1.83

3.70

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.86

UK Pound

1

Rs.98.82

Euro

1

Rs.80.71

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.