MIRA INFORM REPORT

 

 

Report No. :

348555

Report Date :

04.11.2015

 

IDENTIFICATION DETAILS

 

Name :

OG CORPORATION

 

 

Registered Office :

4-1-43 Miyahara Yodogawaku Osaka 532-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

January 1923

 

 

Com. Reg. No.:

1200-01-054400 (Osaka-Yodogawaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export and wholesale of dyestuffs, pigments, tex-tile chemicals, industrial & fine chemicals, paints, raw resins, and their finished products, pharmaceutical ingredients, reprographic materials, food additives, other industrial chemicals (--100%)

 

 

No. of Employee :

351

 

 

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 :

Slow but correct

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company name and address 

 

OG CORPORATION

 

REGD NAME:               O. G. KK

MAIN OFFICE:              4-1-43 Miyahara Yodogawaku Osaka 532-0003 JAPAN

                                                Tel: 06-6395-5100     Fax: 06-6395-5115

 

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

E-Mail address:             honsha@ogcorp.co.jp/ (each division has its own E-mail address)

 

 

ACTIVITIES

 

Import, export, wholesale of industrial chemicals

 

 

BRANCHES

 

Tokyo, Sapporo, Nagoya, Takamatsu, Fuji, Hiroshima, Fukuoka, other (Tot 14)

 

 

OVERSEAS

 

USA, China, Korea, Hong Kong, Thailand, India, Indonesia, UK, Dubai (--subs)

           

           

OFFICERS

 

EIJI FUKUI, PRES                     Hiroyuki Takano, ch

Norio Katoh, dir                         Takeyasu Yasuda, mgn dir        

Kotaro Akashiroi, dir                  Toru Haruna, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 108,500 M

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 1,110 M

TREND UP                                            WORTH            Yen 12,513 M

STARTED         1923                                         EMPLOYES      351

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN INDUSTRIAL CHEMICALS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ODINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

This is an old-established trading house founded on the basis of the merger of 5 local dye-trading houses, as Osaka Godo Co Ltd.  In Jul 1991 renamed as captioned.  Specializes in import, export and wholesale of industrial chemicals, such as pigments, dyestuff, paints, resins, pharmaceutical ingredients, food additives, and others.  The firm operates 6 core business divisions: color & fine chemicals, paper & pulps, chemicals, plastics, electronic materials, and R&D divisions (See OPERATION for details & products).  Top-ranked in dyestuffs & pigments.  Goods are imported from and exported to India, Taiwan, China, USA, etc.  In Feb 2014, acquired 3 firms in Thailand and made them as a subsidiary, MC Group firm. 

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 104,880 million, an almost similar amount of Yen 104,340 million in the previous term.   The recurring profit was posted at Yen 493 million and the net profit at Yen 362 million, respectively, compared with Yen 280 million and Yen 139 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 550 million and the net profit at Yen 370 million, on a 3% rise in turnover, to Yen 108,500 million.  Weaker Yen will contribute to raise earnings in Yen terms. 

 

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

 

 

REGISTRATION

 

Date Registered:                       Jan 1923

Regd No.:                    1200-01-054400 (Osaka-Yodogawaku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  60 million shares

Issued:                         15 million shares

Sum:                            Yen 1,110 million

 

Major shareholders (%): Employees’ S/Holding Assn (7.4), Mizuho Bank (4.7)), MUFG (4.7), SMBC (4.6), Fukusuke Ikeda (4.3)

No. of shareholders: 310

           

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

 

 

OPERATION

 

Activities: A trading house for import, export and wholesale of dyestuffs, pigments, tex-            tile chemicals, industrial & fine chemicals, paints, raw resins, and their finished products, pharmaceutical ingredients, reprographic materials, food additives, other industrial chemicals (--100%)

Exports (29%) covering Asia, USA

 

 

BUSINESS DIVISIONS

 

(major handling products)

 

Color & fine chemicals: Dyestuffs, Pigments, Textile auxiliaries, Antibacterial agent, Germicide, Flame retardant, Non-woven fabric, CCM, Colorimeters, Automatic color matching devices, Raw material for medicine and agricultural chemicals, Organic intermediates and Fragrant materials.

Paper & pulps: All sorts of chemicals used in every process of paper mfg, non-wood pulp, such as kenaf & bamboo, used paper recycling

Chemicals: Organic chemicals, Industrial chemicals, Inorganic chemicals, Acrylic resins, Epoxy resins and basic ingredients of the following items- Paint/Ink, Electronic components, Urethane and other resins, Transport equipment accessories, Synthetic leathers, Surfactants, Food related materials, Building materials, Acrylic resins and Epoxy resins.

Plastic: Raw resins, resin additives, films, sheets, laminated manufactured products, injection-molded parts, extrusion-molded parts, blow-molded parts, packaging-related machines, bolding-related machines

Electronic Materials: Color filters, Pigment dispersing agents, Overcoat materials, Anti-reflection materials, Toner binder resins, Charge control agents, Ink, Image receiving sheets, Dyestuffs, Pigments, Base film sheets, Insulation sheets, Electrode materials, Resist solvents, Sensitizers, Near-infrared ray absorbents, Ultraviolet absorbents

R&D Division (projects): Specialty chemicals, pharmaceuticals, China projects, specialty films, new materials

 

Clients: [Chemical mfrs, wholesalers, specialty traders] Nippon Paper Ind, DIC Corp, Dainichiseika Color & Chemicals Mfg Co, AICA Inc, Oji Paper Ind, Fukusuke Kogyo Co, Dynic Corp, Daio Paper Ind, Daiichi Kigenso Kagaku Kogyo Co, Wako Ind Co, Fujicopian Co, Mitsui Chemical, Shanghai OG Trading, Showa Denko, Daio Paper, other

 

No. of accounts: 3,300

           

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, DIC Corp, Nippon Kayaku, Sanyo Chemical Ind, Tosoh Corp, Prime Polymer, Clariant Japan, Daicel Corp, other.

 

 

Payment record: Slow but Correct

 

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

 

Bank References:

Mizuho Bank (Minamisemba)

MUFG (Semba-Chuo)

Relations: Satisfactory.

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

108,500

104,880

104,340

104,017

Recur. Profit

 

550

493

280

460

Net Profit

 

370

362

139

436

Total Assets

 

 

62,132

57,742

59,823

Current Assets

 

 

43,486

40,393

43,194

Current Liabs

 

 

36,736

34,578

38,714

Net Worth

 

 

12,513

11,074

10,755

Capital, Paid-Up

 

 

1,110

1,110

1,110

Div.Ttl in Million (¥)

 

 

127

278

127

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.45

0.52

0.31

-9.56

    Current Ratio

 

..

118.37

116.82

111.57

    N.Worth Ratio

 

..

20.14

19.18

17.98

    R.Profit/Sales

 

0.51

0.47

0.27

0.44

    N.Profit/Sales

 

0.34

0.35

0.13

0.42

    Return On Equity

 

..

2.89

1.26

4.05

 

Notes: Forecast figures for the 31/03/2016 fiscal term.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.45

UK Pound

1

Rs.100.96

Euro

1

Rs.72.10

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.