MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

OHMI INDUSTRIES LTD

 

 

Registered Office :

3-11-10 Minamisemba Chuoku Osaka 542-0081

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

October 1977

 

 

Com. Reg. No.:

1200-01-076600

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Export of steel, steel products

 

 

No. of Employees

24

 

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 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

 

OHMI INDUSTRIES LTD

REGD NAME:    Ohmi Industries KK

MAIN OFFICE:  3-11-10 Minamisemba Chuoku Osaka 542-0081 JAPAN

Tel: 06-6252-2470     Fax: 06-6252-9884

 

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

E-Mail address: ohmi@ohmiinds.co.jp

 

 

ACTIVITIES  

 

Export of steel, steel products

 

 

BRANCHES   

 

Tokyo

 

 

OVERSEAS

 

Ohmi Tetsu (India) Pvt Ltd (Delhi), Ohmi Steel India Pvt Ltd (Pune) (--subsidiaries),

SMPC Industries (India) Pvt Ltd (26% shareholding)

 

OFFICER(S):     KATSUHIKO KOYAGI, PRES     Shinji Koyagi, s/mgn dir

Akira Bando, dir                         Yoshihiro Kato, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 20,315 M

PAYMENTSNo Complaints         CAPITAL           Yen 200 M

TREND UP                    WORTH            Yen 1,349 M

STARTED         1977                 EMPLOYES      24

 

 


COMMENT    

 

TRADING FIRM SPECIALIZING IN STEEL & STEEL PRODUCTS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY   BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

            The subject company was established on the basis of Export Division separated from Ohmi Sangyo Co Ltd, steel service center operator, at the caption address.  The subject firm specializes in exporting steel products: HR/CR for re-rolling/galvanizing, coated sheets, automotive steel, other.  65% of the products are exported into India, other to Africa, Latin America, Middle East, etc.  In 2005 opened office in New Delhi and in 2007 in Pune.  In 2007, acquired 26% capital share of SMPC Industries (India) Pvt Ltd.  80% of exporting products are supplied from JFE Steel Corp. 

           

 

FINANCIAL INFORMATION

 

            The sales volume for Sept/2013 fiscal term amounted to Yen 20,315 million, a 13% up from Yen 17,753 million in the previous term.  The recurring profit was posted at Yen 302 million and the net profit at Yen 188 million, respectively, compared with Yen 259 million recurring profit and Yen 60 million net profit, respectively, a year ago.

 

For the current term ending Sept 2014 the recurring profit is projected at Yen 315 million and the net profit at Yen 200 million, respectively, on a 6% rise in turnover, to Yen 21,500 million.  Weaker Yen raises revenues in Yen terms.  Exports are robust.  Some products prices went up.

           

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

 

 

REGISTRATION

 

Date Registered:       Oct 1977

Regd No.:         1200-01-076600 (Osaka-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         1.6 million shares

Issued:                400,000 shares

Sum:                   Yen 200 million

Major shareholders (%): Taiyo Fudosan (77), Shinji Koyagi (8), other

No. of shareholders: 7

 

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


OPERATION

 

Activities: Exports steel, steel products: HR/CR for re-rolling/galvanizing (81.6%), building materials (5.4%), automotive steel (7.7%), tin plates (2.2%), stainless steel (2.9%), others (--0.2%).  (Breakdowns are all about)

 

Also handles: steel sheet galvanizing equipment, color coating line, corrugating, roll forming machines, leveling & shearing line, slitting line, metal sheets process line, wire & nail making machines, others.

 

Exports to: India, Bangladesh, Pakistan, Africa, Oceania, Latin America, Middle East, other.

 

Clients: [Mfrs, wholesalers] Exports to India, Bangladesh, Pakistan, Nigeria, Ghana, Australia, other.

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Steel mfrs, wholesalers] JFE Steel Corp (80%), Metal One Corp, Marubeni-Itochu Steel Inc, JFE Galvanizing & Coating Co, Nippon Steel Sumitomo Metal Ind, JFE Shoji Trade Corp, Nippon Steel & Sumikin Bussan, Shin Kansai Steel Co, other.

 

Payment record: No Complaints

 

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

 

Bank References:

MUFG (Semba)

Mizuho Bank (Minamisemba)

Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

       Terms Ending:

30/09/2014

30/09/2013

30/09/2012

30/09/2011

Annual Sales

 

21,500

20,315

17,953

20,646

Recur. Profit

 

315

302

259

353

Net Profit

 

200

188

60

198

Total Assets

 

 

2,931

2,733

3,640

Current Assets

 

 

2,259

1,968

2,840

Current Liabs

 

 

1,211

1,162

2,189

Net Worth

 

 

1,349

1,205

1,191

Capital, Paid-Up

 

 

200

200

200

Div.Ttl in Million (¥)

 

 

46.2

46.2

46.2

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.83

13.16

-13.04

15.92

    Current Ratio

 

..

186.54

169.36

129.74

    N.Worth Ratio

..

46.03

44.09

32.72

    R.Profit/Sales

 

1.47

1.49

1.44

1.71

    N.Profit/Sales

0.93

0.93

0.33

0.96

    Return On Equity

..

13.94

4.98

16.62

 

Notes: Forecast (or estimated) figures for the 30/09/2014 fiscal term.

 

           

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.57

UK Pound

1

Rs.98.87

Euro

1

Rs.80.05

 

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.