MIRA INFORM REPORT

 

 

Report No. :

306612

Report Date :

04.02.2015

 

IDENTIFICATION DETAILS

 

Name :

ORION MACHINERY CO LTD

 

 

Registered Office :

246 Kotaka Suzaka City Nagano-Pref 382-8502

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Nov., 1946

 

 

Com. Reg. No.:

1000-01-005488 (Nagano-Suzaka)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Industrial Machinery, Dairy Equipment, Other.

 

 

No. of Employees :

602

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Japan

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

 

ORION MACHINERY CO LTD

 

REGD NAME:                Orion Kikai KK

 

MAIN OFFICE:              246 Kotaka Suzaka City Nagano-Pref 382-8502 JAPAN

                                                Tel: 026-245-1263     Fax: 026-245-5358

 

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

E-mail:                         siji@orionkikai.co.jp         

 

 

ACTIVITIES

 

Mfg of industrial machinery, dairy equipment, other

 

 

BRANCHES

 

Tokyo, Chikuma, Nagano, Chitose

 

 

OVERSEAS

 

Shanghai, Taipei, Hong Kong

 

 

FACTORIES

 

Chikuma (Nagano), Chitose (Hokkaido)

 

 

OVERSEAS

 

Shanghai, Dongguan (--China), Taiwan, Korea, Hong Kong

 

 

OFFICER(S)

 

TETSURO OHTA, PRES                        Masuo Yoshioka, mgn dir                                                           Shigenori Sakai, mgn dir              Tsugio Kobayashi, dir

Shigemi Yanagisawa, dir                        Tohru Kaneko, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 23,461 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 100 M

TREND UP                                WORTH            Yen 23,330 M

STARTED         1946                             EMPLOYES      602

 

 

COMMENT

 

MFR OF INDUSTRIAL MACHINERY & DAIRY EQUIPMENT. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FORORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established by father of Tetsuo Ohta in order to make most of his experience in the subject line of business. This is a specialized mfr of industrial machinery and dairy equipment (See OPERATION). Tops in the mfg of dairy equipment (milking parlor). Sales are conducted by 9 subsidiary dealerships from Hokkaido to Kyushu, with a total 34 offices nationwide.  Goods are also exported.  In 2011, the firm bought up a dairy products sales company in China.  The firm plans to set up a new plant in Thailand to make a footstep into Asean countries. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 23,461 million, an 8% up from Yen 21,767 million in the previous term.  The recurring profit was posted at Yen 3,308 million and the net profit at Yen 2,604 million, respectively, compared with Yen 2,934 million recurring profit and Yen 1,478 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 3,450 million and the net profit at Yen 2,750 million, respectively, on a 4% rise in turnover, to Yen 24,500 million. 

           

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

 

 

REGISTRATION

 

Date Registered:              Nov 1946

Regd No.:                         1000-01-005488 (Nagano-Suzaka)

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        800,000 shares

Issued:               200,000 shares

Sum:                  Yen 100 million

Major shareholders (%): Employees’ S/Holding Assn (39.2), Tetsuo Ohta (22.3), Tokyo Small & Medium Business Promotion and Investment Corp (15.7), Executives’ S/Holding Assn (6.3)

No. of shareholders: 36

           

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

 

 

OPERATION

 

Activities: Manufactures industrial machinery/equipment (60%), dairy equipment, other (40%)

Exports (5%)

 

(Mfg items): Industrial machinery & equipment: plate heat exchangers, refrigeration equipment (chillers, dehumidifiers, food service equipment), clean air systems (DC inverter air dryers, Digi-Eco refrigerated air dryers, inverter air dryers, heatless air dryers, refrigerated air dryers, air filters, vacuum pumps, jet heaters, precision temp & humidity control systems, dairy machinery/equipment (milking parlor), other.

 

Clients: [Mfrs, wholesalers] Hokkaido Orion, Nishinippon Orion, Tohoku Orion, Higashinippon Orion, Chubu Orion, Kansai Orion, other (--subsidiary wholesalers)

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Orion Seiko Co, Orion West Falia Surge Co, Clean Kagaku Kogyo, Rion Thermology Co, Panasonic Corp, other

 

Payment record: No Complaints

 

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

 

Bank References:

            Hachijuni Bank (Suzaka)

            Shoko Chukin Bank (Nagano)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

24,500

23,461

21,767

22,760

Recur. Profit

 

3,450

3,308

2,934

2,603

Net Profit

 

2,750

2,604

1,478

1,617

Total Assets

 

 

34,574

31,452

29,370

Current Assets

 

 

21,730

20,035

17,399

Current Liabs

 

 

8,804

8,407

7,557

Net Worth

 

 

23,330

20,673

19,087

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

14.30

10.40

10.40

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.43

7.78

-4.36

6.93

    Current Ratio

 

..

246.82

238.31

230.24

    N.Worth Ratio

 

..

67.48

65.73

64.99

    R.Profit/Sales

 

14.08

14.10

13.48

11.44

    N.Profit/Sales

 

11.22

11.10

6.79

7.10

    Return On Equity

 

..

11.16

7.15

8.47

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term. 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.74

UK Pound

1

Rs.92.71

Euro

1

Rs.69.94

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.