MIRA INFORM REPORT

 

 

Report Date :

14.07.2011

 

IDENTIFICATION DETAILS

 

Name :

MEIJI SEIKA PHARMA CO LTD

 

 

Registered Office :

2-4-16 Kyobashi Chuoku Tokyo 104-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

October 1916

 

 

Com. Reg. No.:

008333

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of confectionery, foods, chemicals, pharmaceuticals

 

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 5,926.6 Million

Status :

Satisfactory

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 – December 31st, 2010

 

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

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

 

MEIJI SEIKA PHARMA CO LTD

 

 

REGD NAME 

 

Meiji Seika Pharma KK

 

 

MAIN OFFICE

 

2-4-16 Kyobashi Chuoku Tokyo 104-0031 Japan　

Tel: 033272-6511    

Fax: 03-3271-3529

URL:                 http://www.meijiseika-pharma.co.jp/

E-mail:              (thru the URL)   

 

 

ACTIVITIES  

 

Mfg of confectionery, foods, chemicals, pharmaceuticals

 

 

BRANCHES   

 

Nationwide (19 locations)

 

 

FACTORIES       

 

Saitama, Shizuoka, Osaka, Gifu, Odawara, other (Tot 6)

 

 

Overseas   

 

Singapore, other (Tot 3)

 

 

OFFICER(S)  

 

MASAHIKO MATSUO, PRES                 Toyomi Satoh, s/mgn dir

Hitoshi Uchida, mgn dir                          Ryuzo Asada, mgn dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 306,076 M

PAYMENTS      REGULAR         CAPITAL           Yen 28,363 M

TREND             STEADY           WORTH            Yen 135,077 M

STARTED         1916                 EMPLOYES      2,165

 

 

COMMENT    

 

Mfr of confectionery & pharmaceuticals, wholly owned by meiji holdings co ltd 

 

Financial situation considered fair and good for ordinary business engagements

 

Max credit limit: yen 5,926.6 million, 30 days normal terms

 

 

HIGHLIGHTS

           

This is a leading confectionery mfr, with pharmaceuticals such as antibiotics and central nervous system drugs being second mainline.  Top-ranked chocolate mfr.  Aggressive toward overseas operations and has JVs for confectionery & pharmaceuticals in many countries.  In Apr 2009, established a joint holding company, Meiji Holdings Co Ltd (See REGISTRATION), jointly with Meiji Dairies Corporation and became its wholly owned consolidated subsidiary, and was delisted from Tokyo S/E.  In Apr 2011, the firm split into two entities: Meiji Seika Pharma Co Ltd and Meiji Co Ltd.  The subject will transfer confectionery operations to Meiji Seika Co in Apr 2013 and will focus on mfg pharmaceuticals, agrochemicals, other. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 306,076 million, a 1% up from Yen 306,076 in the previous term.  Sluggish sales for powdered milk, beverages and certain drinking milk products offset growth in ice cream sales during the hot summer.  After the North East Japan Earthquake, however, operations suffered severe limitations due to an interruption in the supply chain.  Drinking milk was similarly affected and the fresh dairy business as a whole finished the year almost flat.  In the pharmaceuticals, two new drugs launched grew steadily.  The Earthquake had little effect on the results of the pharmaceutical business.  The recurring profit was posted at Yen 10,553 million and the net profit at Yen 4,459 million, respectively, compared with Yen 8,090 million recurring profit and Yen 4,135 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 11,000 million and the net profit at Yen 4,500 million, respectively, on a 6% rise in turnover, to Yen 325,000 million.  Business is seen steadily growing.

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,926.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Oct 1916

Regd No.:                      (Tokyo-Chuoku) 008333

Legal Status:     　         Limited Company (Kabushiki Kaisha)

Authorized:        　         796,104,000 shares

Issued:              　         379,072,000 shares

Sum:                　         Yen 28,363 million

Major shareholders (%): Meiji Holdings Co Ltd* (100)

 

*.. Joint Holding Company, set up in Apr 2009 jointly with Meiji Dairies Corporation, capital Yen 30,000 million, listed Tokyo S/E, sales Yen 1,114,095 million, operating profit Yen 28,873 million, recurring profit Yen 30,451 million, net profit Yen 9,552 million, total assets Yen 716,368 million, net worth Yen 293,530 million, employees 14,861, pres Naotada Sato Consolidated Financials are attached (See SUPPLEMENTS)

           

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

 

 

OPERATION

 

Activities: Manufactures confectionery & health care/foods (71%), pharmaceuticals (antibiotics, central nervous system drugs, other) (28%), other (1%)

 

Clients: [Mfrs, wholesalers] Marubeni Corp, Paltac, Alfresa, Tanpei Nakata, Medival Holdings, Matsuo Seika, Itochu Corp, other

           

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers [Mfrs, wholesalers] Otsuka Chemical, Proctor & Gamble Far East Inc, Fuji Oil, Meiji Seika Singapore, Mitsui & Co, Cargill Japan, Mizuho Factor, other

 

Payment record: Regular

 

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

 

 

Bank References

 

Mizuho Bank (Kyobashi)

MUFG (Kyobashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2012

31/03/2011

31/03/2010

31/03/2009

Annual Sales

　

325,000

306,076

303,156

306,112

Recur. Profit

　

11,000

10,553

8,090

8,822

Net Profit

　

4,500

4,459

4,135

3,984

Total Assets

　

　

307,754

317,716

306,436

Current Assets

　

　

135,828

132,938

126,256

Current Liabs

　

　

104,382

115,123

111,057

Net Worth

　

　

135,077

132,830

133,969

Capital, Paid-Up

　

　

29,363

29,363

29,363

Div.P.Share(¥)

　

　

0.00

16.00

7.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

6.18

0.96

-0.97

1.51

    Current Ratio

 

..

130.13

115.47

113.69

    N.Worth Ratio

..

43.89

41.81

43.72

    R.Profit/Sales

 

3.38

3.45

2.67

2.88

    N.Profit/Sales

1.38

1.46

1.36

1.30

    Return On Equity

..

3.30

3.11

2.97

 

Notes: Forecast (or estimated) figures for the 31/03/2012 fiscal term

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, MEIJI HOLDINGS CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,114,095

1,106,645

 

  Cost of Sales

732,860

734,665

 

      GROSS PROFIT

381,234

371,980

 

  Selling & Adm Costs

352,361

343,194

 

      OPERATING PROFIT

28,873

28,786

 

  Non-Operating P/L

1,578

-470

 

      RECURRING PROFIT

30,451

28,316

　

      NET PROFIT

9,552

13,088

BALANCE SHEET

 

 

 

 

  Cash

　

21,759

16,682

 

  Receivables

 

146,377

154,589

 

  Inventory

 

105,150

111,298

 

  Securities, Marketable

　

　

 

  Other Current Assets

28,390

27,016

 

      TOTAL CURRENT ASSETS

301,676

309,585

 

  Property & Equipment

334,869

332,875

 

  Intangibles

 

9,726

10,476

 

  Investments, Other Fixed Assets

70,097

77,108

 

      TOTAL ASSETS

716,368

730,044

 

  Payables

 

92,157

95,164

 

  Short-Term Bank Loans

87,989

76,768

 

　

 

　

　

 

  Other Current Liabs

121,187

128,809

 

      TOTAL CURRENT LIABS

301,333

300,741

 

  Debentures

 

55,000

55,000

 

  Long-Term Bank Loans

28,821

39,631

 

  Reserve for Retirement Allw

17,125

15,711

 

  Other Debts

　

20,559

21,189

 

      TOTAL LIABILITIES

422,838

432,272

 

      MINORITY INTERESTS

 

 

 

Common stock

30,000

30,000

 

Additional paid-in capital

98,852

98,852

 

Retained earnings

172,128

169,618

 

Evaluation p/l on investments/securities

3,072

5,851

 

Others

 

(1,267)

2,575

 

Treasury stock, at cost

(9,255)

(9,125)

 

      TOTAL S/HOLDERS` EQUITY

293,530

297,771

　

      TOTAL EQUITIES

716,368

730,044

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

57,995

47,707

 

Cash Flows from Investment Activities

-32,440

-33,641

 

Cash Flows from Financing Activities

-19,570

-12,674

　

Cash, Bank Deposits at the Term End

　

21,741

16,061

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

293,530

297,771

 

 

Current Ratio (%)

100.11

102.94

 

 

Net Worth Ratio (%)

40.97

40.79

 

 

Recurring Profit Ratio (%)

2.73

2.56

 

 

Net Profit Ratio (%)

0.86

1.18

 

 

Return On Equity (%)

3.25

4.40

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.59

UK Pound

1

Rs.71.07

Euro

1

Rs.62.40

 

 

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.