MIRA INFORM REPORT

 

 

Report No. :

307034

Report Date :

07.02.2015

 

IDENTIFICATION DETAILS

 

Name :

O-WELL CORPORATION

 

 

Registered Office :

5-13-9 Mitejima Nishiyodogawaku Osaka 555-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Nov., 1943

 

 

Com. Reg. No.:

(Osaka-Nishiyodogawaku) 049291

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export, Wholesale of Paints and Coatings, Chemicals, Electronics.

 

 

No. of Employees :

449

 

 

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 Limits :

YEN 1,190.1 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 – 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

 

O-WELL CORPORATION

 

REGD NAME:                O-Well KK

 

MAIN OFFICE:              5-13-9 Mitejima Nishiyodogawaku Osaka 555-0012 JAPAN

                                                Tel: 06-6473-0138      Fax: 06-6476-2200

 

                                    *.. The is its Onomichi-Fukuyama Office in Hiroshima-Pref

                                               

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Import, export, wholesale of paints & coatings, chemicals, electronics

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Sendai, Fukushima, other (Tot 35)

 

 

OVERSEAS

 

Vietnam, Korea, China (2)

 

 

FACTORIES

 

(Subcontracted)

 

 

OFFICERS

 

KATSUJI TOBITO, PRES            Fumiyoshi Miyamoto, ch

Shin’ya Tanaka, mgn dir Makoto Tega, mgn dir

Shuhei Nishida, dir                     Naoki Otsu, dir             

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 54,376 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 857 M

TREND UP                                WORTH            Yen 9,260 M

STARTED         1943                             EMPLOYES      449

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN PAINTS & COATINGS, CHEMICALS, ELECTRONICS, OTHER.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 1,190.1 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established by father of Fumiyoshi Miyamoto in order to make most of his experience in the subject line of business.  This is a trading firm specializing for import, export and wholesale of paints & coatings, chemicals, electronics products, other.  Operates 4 overseas offices: China (2), Korea and Vietnam.  Goods are exported to China, Thailand, Korea, India, other S/E Asian markets.  Local clients include major automakers, electronics makers, other, nationwide. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 54,376 million, a 6% up from Yen 51,232 million in the previous term.  This is attributed to the robust exports into China, Vietnam, India, Korea, other S/E Asian countries, supported by increased car production.  The recurring profit was posted at Yen 996 million and the net profit at Yen 529 million, respectively, compared with Yen 821 million recurring profit and Yen 394 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,100 million and the net profit at Yen 540 million, respectively, on a 5% rise in turnover, to Yen 57,000 million.  Exports continue rising steadily.  The weaker Yen may increase export revenues in Yen terms. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,190.1 million, on 30 days normal terms.

 

 


REGISTRATION

 

Date Registered:  Nov 1943

Regd No.:         (Osaka-Nishiyodogawaku) 049291

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         40 million shares

Issued:                10.5 million shares

Sum:                   Yen 857 million

Major shareholders (%): Employees’ S/Holding Assn (15.1), Nippon Paint (9.3), Kansai Paint (7.2), Dai Nippon Toryo Co (5.7), MUFG (4.3)

No. of shareholders: 199

           

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

 

 

OPERATION

           

Activities: A trading firm for import, export and wholesale of paints & coatings, chemicals, electronics products, other:

 

(Sales Breakdown by Divisions):

Paints & Coatings Div (56%): paints & coatings, coating equipment & materials, surface treatment agents, other;

Chemicals Div (18%): adhesives, sealants, tapes, films, resins, filters, heat resistant materials, other;

Electronics Div (20%): Hall IC, microcontroller, motor driver, magnetic circuit, other semiconductor-related materials;

Others (6%).

 

 

Clients: [Mfrs, wholesalers] Denso Corp, Nissan Motors, Fuji Heavy Ind, LIXIL, Mitsubishi Motors, Panasonic Corp, Nippon Steel & Sumikin Coating Steel Corp, Yutaka Giken, Universal Shipbuilding Corp, Okamura Corp, Nippon Steel & Sumitomo Metal Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nippon Paint Co, Kansai Paint Co, Sumitomo 3M, Dai Nippon Toryo Co, Nippon Fine Coatings, Micronas International, Nippon Bee Chemical Co, Nihon Tokushu Toryo Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

            MUFG (Semba-Chuo)

            SMBC (Midosuji)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

57,000

54,376

51,232

49,838

Recur. Profit

 

1,100

996

821

592

Net Profit

 

540

529

394

307

Total Assets

 

 

32,784

30,483

30,785

Current Assets

 

 

22,800

22,226

23,433

Current Liabs

 

 

19,514

19,361

20,260

Net Worth

 

 

9,260

7,680

6,781

Capital, Paid-Up

 

 

857

857

857

Div.P.Share(¥)

 

 

8.00

6.00

6.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

4.83

6.14

2.80

3.41

    Current Ratio

 

..

116.84

114.80

115.66

    N.Worth Ratio

 

..

28.25

25.19

22.03

    R.Profit/Sales

 

1.93

1.83

1.60

1.19

    N.Profit/Sales

 

0.95

0.97

0.77

0.62

    Return On Equity

 

..

5.71

5.13

4.53

 

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.94.65

Euro

1

Rs.70.79

 

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.