MIRA INFORM REPORT

 

 

Report No. :

324926

Report Date :

29.05.2015

 

IDENTIFICATION DETAILS

 

Name :

OKANO VALVE MFG CO LTD

 

 

Registered Office :

1-14 Nakamachi Mojiku Kitakyushu City Fukuoka-Pref 600-8601

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2014

 

 

Date of Incorporation :

February 1936

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures various types of cast & forged steel valves and fittings for thermal & nuclear power plants, marine service, chemical industries, other, maintenance works & services

 

 

No. of Employee :

268

 

 

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 425.8 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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

OKANO VALVE MFG CO LTD

 

REGD NAME:   Okano Valve Seizo KK

MAIN OFFICE:  1-14 Nakamachi Mojiku Kitakyushu City Fukuoka-Pref 600-8601 JAPAN

                                    Tel: 093-372-9244     Fax: 093-382-1200     -

 

URL:                 http://www.okano-valve.co.jp

E-Mail address: okano-kaiei@themis.ocn.ne.jp

 

 

ACTIVITIES

 

Mfg of steel valves, other

 

 

BRANCHES

 

Tokyo, Osaka, Fukushima, Niigata, Hokkaido, Chiba, Shizuoka, other (Tot 17)

 

 

FACTORIES

 

At the caption address, Yukuhashi (Fukuoka)

 

 

CHIEF EXEC

 

MASAKI OKANO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 7,437 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 1,286 M

TREND UP                                WORTH            Yen 8,895 M

STARTED         1936                             EMPLOYES      268

 

COMMENT

 

MFR OF VALVES FOR POWER PLANTS

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 425.8 MILLION, 30 DAYS NORMAL TERMS

 

 

Unit: In Million Yen

Forecast figures for the 30/11/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the Japan’s largest and pioneer mfr of large high-temperature, high-pressure valves for electric power utilities including Tokyo Electric Power.  Also strong in valves for N-power and thermal power plants.  Expanding overseas sales ratio.

 

 

FINANCIAL INFORMATION

 

The sales volume for Nov/2014 fiscal term amounted to Yen 7,437 million, a 0.5% up from Yen 7,404 million in the previous term.  The recurring profit was posted at Yen 351 million and the net profit at Yen 197 million, respectively, compared with Yen 304 million recurring profit and Yen 187 million net profit, respectively, a year ago.

 

(Dec/2014-Feb/2015 results): Sales Yen 1,324 million (up 19.9%), operating loss Yen 61 million (previously Yen 171 million loss), recurring loss Yen 39 million (previously Yen 152 million loss), net loss Yen 28 million (previously Yen 95 million loss).  (% & figures as compared with the corresponding period a year ago).

 

For the current term ending Nov 2015 the recurring profit is projected at Yen 325 million and the net profit at Yen 205 million, respectively, on a 3.6% rise in turnover, to Yen 7,704 million.  Sales of mainstay valves will remain unchanged, buoyed by strong demand for products for thermal power plants in Asia and other areas.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 425.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Feb 1936

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              59,400,000 shares

Issued:                         17,930,000 shares

Sum:                            Yen 1,286 million

 

Major shareholders (%): Okano Trading (20.7), Masatoshi Okano (7.4), Mitsui & Co (6.7), BONY GCM Client (3.5), Company’s Treasury Stock (3.1), Deutche Bank LDN (2.8), Bank of Fukuoka (2.6), Kitakyushu Bank (2.6), Employees’ S/Holding Assn (2.3), Masaki Okano (2.2); foreign owners (9.5)

 

No. of shareholders: 1,858

 

Listed on the S/Exchange (s) of: Tokyo (Second section), Fukuoka

 

Managements: Masatoshi Okano, ch; Masaki Okano, pres; Toshio Satoh, dir; Hirotoshi Kiyomatsu, dir; Takeji Okano, dir; Toshihiro Ohta, dir

 

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

 

Related companies: Okano Service, Okano Maintenance, other.

 

OPERATION

           

Activities: Manufactures various types of cast & forged steel valves and fittings for thermal & nuclear power plants, marine service, chemical industries, other (66%), maintenance works & services (34%)

 

Overseas Sales Ratio (25%)

Clients: [Mfrs, wholesalers] Mitsui Bussan Plant System, Marubeni Techno Service, Ka-   wasaki Heavy Ind, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Okano Craft, Okano Shoji, Nippon Gear Ind, TLV, other

 

Payment record: No Complaints

 

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

 

Bank References:

Bank of Fukuoka (Moji-Ekimae)

Oita Bank (Moji-Ekimae)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

30/11/2014

30/11/2013

INCOME STATEMENT

　

　

  Annual Sales

　

7,437

7,404

　

  Cost of Sales

6,183

6,041

　

      GROSS PROFIT

1,253

1,362

　

  Selling & Adm Costs

1,093

1,228

　

      OPERATING PROFIT

159

134

　

  Non-Operating P/L

192

170

　

      RECURRING PROFIT

351

304

　

      NET PROFIT

197

187

BALANCE SHEET

　

　

  Cash

　

1,571

2,174

　

  Receivables

4,914

4,641

　

  Inventory

1,303

1,162

　

  Securities, Marketable

　

　

　

  Other Current Assets

259

371

　

      TOTAL CURRENT ASSETS

8,047

8,348

　

  Property & Equipment

2,044

2,155

　

  Intangibles

31

28

　

  Investments, Other Fixed Assets

642

609

　

      TOTAL ASSETS

10,764

11,140

　

  Payables

397

516

　

  Short-Term Bank Loans

　

　

　

　

　

　

　

  Other Current Liabs

581

824

　

      TOTAL CURRENT LIABS

978

1,340

　

  Debentures

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

619

669

　

  Other Debts

　

271

323

　

      TOTAL LIABILITIES

1,868

2,332

　

      MINORITY INTERESTS

　

　

Common stock

1,286

1,286

　

Additional paid-in capital

543

543

　

Retained earnings

7,209

7,047

　

Evaluation p/l on investments/securities

62

25

　

Others

(9)

(7)

　

Treasury stock, at cost

(196)

(87)

　

      TOTAL S/HOLDERS` EQUITY

8,895

8,807

　

      TOTAL EQUITIES

10,764

11,140

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

30/11/2014

30/11/2013

　

Cash Flows from Operating Activities

　

-166

-834

　

Cash Flows from Investment Activities

-239

-418

　

Cash Flows from Financing Activities

-196

-131

　

Cash, Bank Deposits at the Term End

　

1,251

1,854

ANALYTICAL RATIOS            Terms ending:

30/11/2014

30/11/2013

　

Net Worth (S/Holders' Equity)

8,895

8,807

　

Current Ratio (%)

822.80

622.99

　

Net Worth Ratio (%)

82.64

79.06

　

Recurring Profit Ratio (%)

4.72

4.11

　

Net Profit Ratio (%)

2.65

2.53

　

　

Return On Equity (%)

2.21

2.12

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.90

UK Pound

1

Rs.98.16

Euro

1

Rs.69.74

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 

 

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.