MIRA INFORM REPORT

 

 

Report Date :           

16.03.2011

 

IDENTIFICATION DETAILS

 

Name :

RIKEN VITAMIN CO LTD

 

 

Registered Office :

TDC Bldg, 2-9-18 Misakicho Chiyodaku Tokyo 101-8370

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

August 1949

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 008815

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of vitamins, nutritional supplements, foodstuffs

 

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 2,951.5. 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 31, 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

 

RIKEN VITAMIN CO LTD

 

 

REGD NAME

 

Riken Vitamin KK

 

 

MAIN OFFICE

 

TDC Bldg, 2-9-18 Misakicho Chiyodaku Tokyo 101-8370JAPAN

Tel: 03-5275-5130     Fax: 03-3237-2770

URL:                 http://www.rike-vita.co.jp/

E-Mail address:            info@rike-vita.co.jp

 

 

ACTIVITIES

 

Mfg of vitamins, nutritional supplements, foodstuffs

 

 

BRANCHES   

 

Tokyo, Osaka, Sapporo, Sendai, Gunma, Nagoya, Hiroshima, Fukuoka

 

 

OVERSEAS   

 

China (5), Taiwan, Malaysia, Singapore, USA (2), Germany

 

 

FACTORIES  

 

Tokyo, Osaka, Chiba, Kyoto, Soka (Saitama)

 

 

CHIEF EXEC 

 

YOSHIYASU SAKAI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 76,550 M

PAYMENTS      REGULAR                     CAPITAL           Yen 2,537 M

TREND             SLOW                          WORTH            Yen 56,272 M

STARTED         1949                             EMPLOYES      3,135

 

 

COMMENT    

 

MFR SPECIALIZING IN VITAMINS & NUTRITIOUS SUPPLEMENTS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 2,951.5. MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established on the basis of a division separated from Riken Eiyo Yakuhin to become independent, with natural vitamin A as mainline.  Gradually diversified into food additives, seasonings & processed foods.  Strong in fast foods and features seaweed-based products, both for consumers and commercial use.  Has capital/business alliance with Kikkoman Corp since June 2008.  Venturing into India.  In Sept 2009, the firm withdrew from production/marketing of raw Wakame seaweed, also terminated production & marketing of electronics precision parts due to stagnant orders.  Production/marketing subsidiary became chemical product mfg plant from spring 2010.  Some dried seaweed products, mainline, were found to be falsely labeled by their supplier in July 2010, the company launched a quality assurance HQ in November 2010, and plans to enhance QC-related staff.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 76,550 million, a 3.0% down from Yen 78,915 million in the previous term.  The global economic downturn affected, particularly in the first half of the term.  The firm stopped sales of home-use seaweed.  By divisions, Foods down 2.5% to Yen 64,657 million (Home-use Foods down 2.4% to Yen 16,868 million, Commercial-use Foods down 1.2% to Yen 11,181 million, Processed Food Materials down 3.6% to Yen 16,298 million); Chemicals down 1.3% to Yen 6,392 million; Vitamins & others down 10.6% to Yen 5,499 million.  The recurring profit was posted at Yen 4,953 million and the net profit at Yen 2,584 million, respectively, compared with Yen 2,664 million recurring profit and Yen 1,509 million net profit, respectively, a year ago.

 

(Apr/Dec/2010 results): Sales Yen 59,024 million (up 1.7%), operating profit Yen 4,687 million (up 18.3%), recurring profit Yen 4,788 million (up 18.1%), net profit Yen 2,161 million (up 0.9%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 5,000 million and the net profit at Yen 2,500 million, respectively, on a 3.2% rise in turnover, to Yen 79,000 million.  In mainstay domestic food segment, salad dressings will be selling poorly, reflecting soaring vegetable prices.  Sales of dried “Wakame” seaweed products will feel the impact of product recall, but food additives and others will increase overseas.  Operating profit will grow, backed by lower costs of material oils & fats.  Special loss on product recall will surface..

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,951.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Aug 1949

Regd No.:           (Tokyo-Chiyodaku) 008815

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         90 million shares

Issued:                23,652,550 shares

Sum:                   Yen 2,537 million

           

Major shareholders (%): Kikkoman Corp (32.1), Takeda Pharmaceutical (8.7), Mizuho Bank (4.7), Customers’ S/Holding Assn (4.3), Company’s Treasury Stock (4.1), Itochu Corp (3.3), Takanoshin Nagamochi (2.9), Mitsubishi UFJ Trust Bank (2.5), MUFG (2.3),  MTBJ (Miyoshi Oil & Fat) (2.2); foreign owners (1.6)

 

No. of shareholders: 2,840

 

Listed on the S/Exchange (s) of: Tokyo (Second Section)

 

Managements: Yoshiyasu Sakai, pres; Takashi Yamashita, s/mgn dir; Shinpei Itoh, mgn dir; Hiroshi Osawa, mgn dir; Kazumi Nakayama, mgn dir; Fujio Kobayashi, dir; Hideo Sekine, dir; Shigeru Horii, dir

 

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

 

Related companies: Riken Food, Kenseido, Eiken Shoji, Shinwa Food, other

 

 

OPERATION

 

Activities: Manufactures foodstuffs (85%): consumer & commercial foods, processed food ingredients, seasonings, food additives, flavoring agents; nutritional supplements (8%); vitamins, plastic additives, others (7%). 

 

(Overseas trading ratio (14.2%): US & Europe 7.2%; Asia & others 7.0%

 

Clients: [Wholesalers, food processors] Ryoshoku Ltd, Itochu Shokuhin, Japan Access, Kato Sangyo, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Riken Food, Dainippon Pharmaceutical, Arden Co, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Hibiya)

MUFG (Jinbocho)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

76,550

78,915

 

  Cost of Sales

52,897

56,994

 

      GROSS PROFIT

23,653

21,920

 

  Selling & Adm Costs

18,798

19,062

 

      OPERATING PROFIT

4,854

2,857

 

  Non-Operating P/L

99

-193

 

      RECURRING PROFIT

4,953

2,664

　

      NET PROFIT

2,584

1,509

BALANCE SHEET

 

 

 

 

  Cash

　

13,379

10,963

 

  Receivables

 

17,990

17,629

 

  Inventory

 

14,259

13,058

 

  Securities, Marketable

813

1,312

 

  Other Current Assets

2,324

1,978

 

      TOTAL CURRENT ASSETS

48,765

44,940

 

  Property & Equipment

23,245

24,081

 

  Intangibles

 

847

861

 

  Investments, Other Fixed Assets

11,206

10,275

 

      TOTAL ASSETS

84,063

80,157

 

  Payables

 

7,922

7,983

 

  Short-Term Bank Loans

7,509

6,418

 

　

 

　

　

 

  Other Current Liabs

7,441

5,788

 

      TOTAL CURRENT LIABS

22,872

20,189

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

959

1,143

 

  Reserve for Retirement Allw

1,106

727

 

  Other Debts

　

2,853

2,322

 

      TOTAL LIABILITIES

27,790

24,381

 

      MINORITY INTERESTS

 

 

 

Common stock

2,537

2,537

 

Additional paid-in capital

2,466

2,466

 

Retained earnings

51,442

49,668

 

Evaluation p/l on investments/securities

2,852

1,911

 

Others

 

(447)

(739)

 

Treasury stock, at cost

(2,578)

(67)

 

      TOTAL S/HOLDERS` EQUITY

56,272

55,776

　

      TOTAL EQUITIES

84,053

80,157

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

6,029

4,781

 

Cash Flows from Investment Activities

-1,730

-2,487

 

Cash Flows from Financing Activities

-2,521

-590

　

Cash, Bank Deposits at the Term End

　

13,303

11,486

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

56,272

55,776

 

 

Current Ratio (%)

213.21

222.60

 

 

Net Worth Ratio (%)

66.95

69.58

 

 

Recurring Profit Ratio (%)

6.47

3.38

 

 

Net Profit Ratio (%)

3.38

1.91

 

 

Return On Equity (%)

4.59

2.71

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.15

UK Pound

1

Rs.72.59

Euro

1

Rs.62.95

 

 

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.