MIRA INFORM REPORT

 

 

Report No. :

332792

Report Date :

05.09.2015

 

IDENTIFICATION DETAILS

 

Name :

EASTERN OPTICAL CORPORATION

 

 

Registered Office :

2-1-13 Azusawa Itabashiku Tokyo 174-0051

 

 

Country :

Japan

 

 

Financials (as on) :

30.04.2015

 

 

Date of Incorporation :

July 1978

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Trading firm specializing in optical lenses, optical goods, others: Exports (90%), Domestic Sales (10%)

 

 

No. of Employees :

5

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 6.3 Million

 

 

Status :

Small Company

 

 

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

 

EASTERN OPTICAL CORPORATION

 

 

REGD NAME

 

KK Eastern Optical Corporation

 

 

MAIN OFFICE

 

2-1-13 Azusawa Itabashiku Tokyo 174-0051 JAPAN

Tel: 03-3968-2021      Fax: 03-3558-4119

 

 

URL

 

N/A

 

 

ACTIVITIES

 

Export of optical lenses, optical goods

 

 

BRANCHES

 

Nil

 

 

OFFICERS

 

YUZURU KANEKO, PRES

Toshiyuki Kaneko, ch

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                                               A/SALES          Yen 400 M

PAYMENTS      SLOW BUT CORRECT                           CAPITAL           Yen 10 M

TREND SLOW                                                   WORTH            Yen 292 M       

STARTED         1978                                                     EMPLOYES      5

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN OPTICAL GOODS.

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 6.3 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established by Toshiyuki Kaneko in order to make most of his experience in the subject line of business.  Yuzuru is his son, who took the pres office in Apr 2004.  This is a trading firm for export of optical lenses, optical goods, other.  Exports to China, and other S/E Asian countries.

 

 

FINANCIAL INFORMATION

           

Financials are disclosed only partially.  Profits are not precisely disclosed and only estimated.

 

The sales volume for Apr/2015 fiscal term amounted to Yen 400 million, a similar amount in the previous term.  The net profit is estimated posted at Yen 15 million, similarly in the previous term.

 

For the current term ending Apr 2016 the net profit is projected at Yen 16 million, on a 3% rise in turnover, to Yen 410 million.  The weaker Yen may increase export revenues in Yen terms.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 6.3 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:                       Jul 1978

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              80,000 shares

Issued:                         20,000 shares

Sum:                            Yen 10 million

Major shareholders (%):           Toshiyuki Kaneko and families (--100)

  No. of shareholders:                5

 

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

 

 

OPERATION

           

Activities: Trading firm specializing in optical lenses, optical goods, others: Exports (90%), domestic sales (10%)

 

Clients: [Mfrs, wholesalers] Leica Microsystems, Anjenieux Co, JML Inc, Fuse, other 

No. of accounts: Unavailable

Domestic areas of activities: Centered in the greater-Tokyo

 

Suppliers: [Mfrs, wholesalers] Hoya Corp, Ohara Optical, Hiki Optics Co, Miyaji Kogaku, other

 

Payment record: Slow but correct

 

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

 

Bank References:

                        MUFG (Shimura)

                        Mizuho Bank (Shimura)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

 

30/04/2016

30/04/2015

30/04/2014

30/04/2013

Annual Sales

 

410

400

400

400

Recur. Profit

 

..

..

..

..

Net Profit

 

16

15

15

15

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

292

277

247

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

2.50

0.00

0.00

2.56

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

 

..

..

..

    N.Profit/Sales

 

3.90

3.75

3.75

3.75

 

Notes: Financials are only partially disclosed.  Profits are not precisely disclosed and only estimated.

 

Forecast (or estimated) figures for the 30/04/2016 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.40

UK Pound

1

Rs.101.19

Euro

1

Rs.73.89

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

VNT

 

               

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%)

 

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