MIRA INFORM REPORT

 

 

Report Date :

07.08.2010

 

IDENTIFICATION DETAILS

 

Correct Name :

OTSUKA CHEMICAL CO LTD

 

 

Registered Office :

3-2-27 Otedori Chuoku Osaka 540-0021

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

September 2002

 

 

Com. Reg. No.:

(Osaka-Chuoku) 077380

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of industrial chemicals, agricultural chemicals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 19,326.Million

Status :

Good

Payment Behaviour :

Regular 

Litigation :

---

 

 

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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

OTSUKA CHEMICAL CO LTD

 

 

REGD NAME

 

Otsuka Kagaku KK

 

 

MAIN OFFICE

 

3-2-27 Otedori Chuoku Osaka 540-0021 JAPAN

Tel: 06-6943-7711     Fax: 06-6496-0860

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

E-Mail address:             info@otsukac.co.jp

 

 

ACTIVITIES

 

Mfg of industrial chemicals, agricultural chemicals

 

 

BRANCHES

           

Tokyo, Osaka, Nagoya, Sendai, Fukuoka, Sapporo, other (Tot 7)

 

OVERSEAS

New York, Barcelona, Shanghai

 

 

FACTORIES  

 

Tokushima, Naruto, Matsushige

 

OVERSEAS

Spain (Barcelona), Korea, Indonesia

 

OFFICERS

 

Yujiro Otsuka, ch                                   Masatoshi Taniguchi, v ch

SADANOBU TOBE, PRES                     Minpei Mori, v pres

Kenji Umezu, s/mgn dir                          Hideitsu Inoue, s/mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 1,084,291 M

PAYMENTS      REGULAR         CAPITAL           Yen 5,000 M

TREND             STEADY           WORTH            Yen 948,456 M

STARTED                     2002                 EMPLOYES      2,591

 

 

COMMENT

           

MFR SPECIALIZING IN INDUSTRIAL & AGRICULTURAL CHEMICALS,     WHOLLY OWNED BY OTSUKA CHEMICAL HOLDINGS CO LTD.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

                       

MAX CREDIT LIMIT: YEN 19,326.MILLION, 30 DAYS NORMAL TERMS.  .

 

                        Notes: Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

           

The subject company was established originally in 1950 when Otsuka Pharmaceutical        Factory Inc separated its Organic Chemicals Division as Otsuka Kagaku Yakuhin KK (which later in 1984 renamed Otsuka Chemical Co Ltd).  In Sept 2002, renamed as captioned, and then separated two divisions into independent entities: Otsuka Chemical Co Ltd (as captioned) and Otsuka Furniture Mfg & Sales Ltd. Both firms became consolidated subsidiaries of Otsuka Chemical Holdings Co Ltd (see REGISTRATION). Subsequently in July 2009, the subject

merged with Otsuka Chemical Holdings Co Ltd and began business anew as a wholly-owned

 

subsidiary of Otsuka Holdings Co Ltd.  Simultaneously, Otsuka Foods Co, Otsuka Furniture Co & Otsuka Beverage Co were made as the subject’s subsidiaries.  Subsequently in Jan 2010 Otsuka Beverage was merged into Otsuka Foods.  This is a specialized mfr of pharmaceuticals, industrial chemicals, nutraceuticals, fertilizer, foods, other.  Well-known as maker of health drink, Oronamin-C, launched in 1965.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2010 fiscal term amounted to Yen 1,084,291 million, a 13.4% up from Yen 955,947 million in the previous term. This is attributed to the added operations/products by the said merger, such as foods, beverage & furniture. From the second half of the period, demand for functional chemical products recovered remarkably, mainly from automakers and electronic component producers – the principal users of these products, and over the fiscal period, sales remained at approximately the same level as the previous year.  The recurring profit was posted at Yen 109,057 million and the net profit at Yen 67,443 million, respectively, compared with Yen 96,103 million recurring profit and Yen 47,083 million net profit, respectively, a year ago.

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 110,000 million and the net profit at Yen 68,000 million, on a 1.5% rise in turnover, to Yen 1,100,000 million.

Exports may be hurt by rising Yen, reducing revenues/profits in Yen terms.  Earnings prospects may well be revised.

 

The financial situation is considered FAIR to EXCELLENT and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 19,326.7 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Sept 2002

Regd No.:         (Osaka-Chuoku) 077380

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         192 million shares

Issued:                98,989,600 shares

Sum:                   Yen 5,000 million

Major shareholders (%): Otsuka Chemical Holdings Co Ltd*(100)

 

*.. Holding company & mfr of pharmaceuticals (Oronamin C) at the caption address, founded 1950, capital Yen 42,946 million, turnover Yen 1,084,291 million, operating

profit Yen 98,481 million, recurring profit Yen 109,057 million, net profit Yen 67,443 million, total assets Yen 1,458,375 million, net worth Yen 948,456 million, employees 2,591, pres Sadanobu Tobe, concurrently

           

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

 

 

OPERATION

 

Activities: Manufactures Industrial chemicals, agrochemicals, fertilizers (53%), foods, beverages, furniture (43%), others (4%).

Exports (40%)

 

(Mfg items):

 

Chemical products: potassium titanate fibers, lepidocrocite, hydrazine derivatives, hydrazide compounds, dehydration condensing agent, polymerization initiator, chemical foaming agent, fine aromatics, B-Lactan synthetic intermediates;

 

Agricultural chemicals: insecticide, fungicide, herbicide, fertilizers for horticulture, drip fertigation cultivation system;

 

Oronamin-C drink: health drink launched in 1965

 

Clients: [Mfrs, farm coops, wholesalers] Zen-Noh, Taiho Pharmaceutical, Moriroku Co, Maruzen Chemicals, Itochu Chemical Frontier Corp, other. 

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Mitsubishi Corp, Otsuka Pharmaceutical Factory, Sankyo Shoji Corp, Sumitomo Corp, Arysta Lifescience Corp, Tosoh Ltd, Syngenta Japan, Naruto Salt Mfg, Daisho Glass, other.

 

Payment record: Regular

 

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

 

Bank References:

Resona Bank (Kitahama)

SMBC (Osaka H/O)

Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,084,291

955,947

 

  Cost of Sales

356,607

322,596

 

      GROSS PROFIT

727,683

633,351

 

  Selling & Adm Costs

629,202

541,830

 

      OPERATING PROFIT

98,481

91,520

 

  Non-Operating P/L

10,576

4,583

 

      RECURRING PROFIT

109,057

96,103

　

      NET PROFIT

67,443

47,083

BALANCE SHEET

 

 

 

 

  Cash

　

300,668

235,839

 

  Receivables

 

231,734

226,766

 

  Inventory

 

115,419

104,006

 

  Securities, Marketable

　

　

 

  Other Current Assets

103,694

55,676

 

      TOTAL CURRENT ASSETS

751,515

622,287

 

  Property & Equipment

260,935

244,326

 

  Intangibles

 

88,399

86,449

 

  Investments, Other Fixed Assets

357,526

345,727

 

      TOTAL ASSETS

1,458,375

1,298,789

 

  Payables

 

93,967

84,210

 

  Short-Term Bank Loans

62,707

37,422

 

　

 

　

　

 

  Other Current Liabs

155,135

111,655

 

      TOTAL CURRENT LIABS

311,809

233,287

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

62,388

92,848

 

  Reserve for Retirement Allw

45,081

40,614

 

  Other Debts

　

90,641

68,224

 

      TOTAL LIABILITIES

509,919

434,973

 

      MINORITY INTERESTS

 

 

 

Common stock

42,946

42,946

 

Additional paid-in capital

432,482

355,816

 

Retained earnings

532,032

468,065

 

Evaluation p/l on investments/securities

4,258

(715)

 

Others

 

(17,908)

19,776

 

Treasury stock, at cost

(45,354)

(22,073)

 

      TOTAL S/HOLDERS` EQUITY

948,456

863,815

　

      TOTAL EQUITIES

1,458,375

1,298,789

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

173,508

58,470

 

Cash Flows from Investment Activities

-59,014

-213,610

 

Cash Flows from Financing Activities

-28,139

172,196

　

Cash, Bank Deposits at the Term End

　

321,306

230,104

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

948,456

863,815

 

 

Current Ratio (%)

241.02

266.75

 

 

Net Worth Ratio (%)

65.04

66.51

 

 

Recurring Profit Ratio (%)

10.06

10.05

 

 

Net Profit Ratio (%)

6.22

4.93

 

 

Return On Equity (%)

7.11

5.45

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the ^ fiscal term. 


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.02

UK Pound

1

Rs.73.21

Euro

1

Rs.60.70

 

 

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

 

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.