MIRA
INFORM REPORT
|
Report Date : |
01.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
OKAYA & CO LTD |
|
|
|
|
Registered Office : |
2-4-18 Sakae Nakaku |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
28.02.2014 |
|
|
|
|
Date of Incorporation : |
April 1937 |
|
|
|
|
Com. Reg. No.: |
1800-01-034964 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Import, export, wholesale of steel, machinery, electronics, chemicals,
tools |
|
|
|
|
No. of Employees |
44,835 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
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. 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
OKAYA & CO LTD
REGD NAME: Okaya
Koki KK
MAIN OFFICE: 2-4-18
Sakae Nakaku
Tel:
052-204-8121 Fax: 052-204-8385
E-Mail address: kikku@okaya.co.jp
ACTIVITIES
Import, export,
wholesale of steel, machinery, electronics, chemicals, tools, other
BRANCHES
Tokyo, Osaka,
Fukuoka, Niigata, Shizuoka, Hiroshima, other (Tot 67)
OVERSEAS
USA, Thailand, Philippines, China, Vietnam,
Indonesia, India, Korea, other
CHIEF EXEC
TOKUICHI OKAYA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 744,403 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 9,128 M
TREND STEADY WORTH Yen 134,647 M
STARTED 1937 EMPLOYES 44,835
COMMENT
TRADING HOUSE SPECIALIZING IN STEEL PRODUCTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Notes: Unit: In Million Yen
Forecast (or estimated) figures for 28/02/2015
fiscal term
HIGHLIGHTS
A time-honored special trading firm dating back to 1669 when Sosuke
Okaya started his own firm as a hardware dealership at the caption address, Nagoya,
and has been succeeded by his descendants.
Incorporated in 1937 and renamed as captioned in 1943. Tokuichi assumed the post of pres in 1990. This is a specialized trading house highly
dependant on steel, special steel, and business linked to auto and construction
industries. Excels in transactions with
power and gas utilities and public agencies.
Has a strong business connection with Toyota Motor. Strengthening operations in China. Actively advancing into food industry,
too.
FINANCIAL INFORMATION
The sales volume for Feb/2014 fiscal term amounted to Yen 744,403
million, a 7.6% up from Yen 692,096 million in the previous term. The recurring profit was posted at Yen 16,750
million and the net profit at Yen 10,242 million, respectively, compared with
Yen 13,408 million recurring profit and Yen 8,731 million net profit,
respectively, a year ago.
(Mar/May/2014 results): sales Yen 200,098 million (up 9.4%), operating
profit Yen 4,009 million (up 17.5%), recurring profit Yen 4,370 million (up
21.6%), net profit Yen 12,314 million (up 19.8%). (% compared with the corresponding period a
year ago).
For the current term ending Feb 2015 the recurring profit is projected
at Yen 17,000 million and the net profit at Yen 11,000 million, respectively,
on a 7.5% rise in turnover, to Yen 800,000 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Apr
1937
Regd No.:
1800-01-034964 (Nagoya-Nakaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 177,856,000 shares
Issued:
48,600,000 shares
Sum: Yen 9,128 million
Major
shareholders (%): Okaya Estate (12.4), Tokuichi Okaya (4.9), MUFG (4.7),
Nippon Steel (4.3), Chuo Mitsui Trust Bank (4.1),
Resona Bank (2.7), Nipponkoa Ins (2.7), Employees’ S/Holding Assn (1.7), Okuma
Corp (1.5), Shinshokai Foundation (1.4); foreign owners (0.2)
No. of shareholders: 3,312
Listed on the S/Exchange (s) of: Nagoya
Managements: Tokuichi Okaya,
pres & CEO, Kokichi Kawamatsu, v pres; Noriaki Baba, s/mgn dir; Shuji
Ninomiya, mgn dir; Yutaka Inao, mgn dir; Takehiro Okaya, mgn dir; Seiichi
Hattori, dir; Akihiko Tsubouchi, dir; Nobukuni Kongo, dir; Muneki Wada, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Okaya USA Inc, Tokai Press Ind, Chubu
Gosei Jushi Kogyo, other
OPERATION
Activities: Imports, exports
and wholesales steel products & machinery:
(Sales
breakdown by divisions);
Steel
Div (42%): steel plates, tubes, bars, H-section steel, steel alloys, stainless
steel, etc;
Information
& electrical equipment Div (21%): electrical parts & components, aluminum
materials, semiconductors, software, A/V equipment, etc;
Industrial
materials Div (29%): machine tools, industrial robots, auto parts &
components, plastic materials, semiconductor & electronics equipment &
facilities, etc;
Lifestyle
area Div (8.0%): housing equipment, pipe fittings & materials, livestock products, marine products, sale of housing
& condominiums, etc;
Overseas
Sales Ratio (26%)
Clients: [Mfrs, public agencies] Tokyo Gas,
Tokyo-Metrop Office, Toyota Motor, Takara Kotsu, Nichirei Fresh, Suzuki Motor Corp, Nichicon Corp,
other.
No. of accounts:
2,000
Domestic areas of
activities: Nationwide
Suppliers: [Steel mills,
wholesalers] JFE Steel, Nippon Steel & Sumitomo Metal Ind, JFE Engineering
Corp, Mitsubishi Electric, Daido Nachi-Fujikoshi Corp, Daido Special Steel,
other.
Payment record: No complaints
Location: Business area in
Nagoya. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
MUFG (Nagoya)
Chuo Mitsui Trust
Bank (Nagoya)
Relations:
Satisfactory
FINANCES
(In Million
Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
28/02/2014 |
28/02/2013 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
744,403 |
692,096 |
|
|
Cost of Sales |
695,014 |
646,454 |
|
|
|
GROSS PROFIT |
49,389 |
45,642 |
|
|
|
Selling & Adm Costs |
35,369 |
34,237 |
|
|
|
OPERATING PROFIT |
14,020 |
11,404 |
|
|
|
Non-Operating P/L |
2,730 |
2,004 |
|
|
|
RECURRING PROFIT |
16,750 |
13,408 |
|
|
|
NET PROFIT |
10,242 |
8,731 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
11,486 |
10,628 |
|
|
Receivables |
|
183,660 |
159,627 |
|
|
Inventory |
|
41,449 |
39,257 |
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
8,694 |
11,233 |
|
|
|
TOTAL CURRENT ASSETS |
245,289 |
220,745 |
|
|
|
Property & Equipment |
40,243 |
40,252 |
|
|
|
Intangibles |
|
1,015 |
976 |
|
|
Investments, Other Fixed Assets |
119,934 |
100,510 |
|
|
|
TOTAL ASSETS |
406,481 |
362,483 |
|
|
|
Payables |
|
109,340 |
93,531 |
|
|
Short-Term Bank Loans |
101,187 |
102,341 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
11,153 |
13,912 |
|
|
|
TOTAL CURRENT LIABS |
221,680 |
209,784 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
18,139 |
17,018 |
|
|
|
Reserve for Retirement Allw |
1,901 |
1,961 |
|
|
|
Other Debts |
|
30,113 |
23,474 |
|
|
TOTAL LIABILITIES |
271,833 |
252,237 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common
stock |
9,128 |
9,128 |
|
|
|
Additional
paid-in capital |
7,798 |
7,798 |
|
|
|
Retained
earnings |
69,074 |
60,036 |
|
|
|
Evaluation
p/l on investments/securities |
41,461 |
29,756 |
|
|
|
Others |
|
7,635 |
3,974 |
|
|
Treasury
stock, at cost |
(449) |
(446) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
134,647 |
110,246 |
|
|
|
TOTAL EQUITIES |
406,481 |
362,483 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
28/02/2014 |
28/02/2013 |
|
|
Cash
Flows from Operating Activities |
|
6,011 |
16,104 |
|
|
Cash
Flows from Investment Activities |
-1,662 |
-3,346 |
|
|
|
Cash
Flows from Financing Activities |
-5,050 |
-12,260 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
8,801 |
8,307 |
|
ANALYTICAL RATIOS Terms ending: |
28/02/2014 |
28/02/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
134,647 |
110,246 |
|
|
|
Current
Ratio (%) |
110.65 |
105.22 |
|
|
|
Net
Worth Ratio (%) |
33.13 |
30.41 |
|
|
|
Recurring
Profit Ratio (%) |
2.25 |
1.94 |
|
|
|
Net
Profit Ratio (%) |
1.38 |
1.26 |
|
|
|
Return
On Equity (%) |
7.61 |
7.92 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.48 |
|
|
1 |
Rs.100.35 |
|
Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.