MIRA
INFORM REPORT
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Report Date : |
18.05.2011 |
IDENTIFICATION DETAILS
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Name : |
KOWA COMPANY LTD |
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Registered Office : |
3-6-29 Nishiki Nakaku Nagoya 460-8625 |
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Country : |
Japan |
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Financials (as on) : |
November 1939 |
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Date of Incorporation : |
31/03/2010 |
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Com. Reg. No.: |
(Nagoya-Nakaku) 035811 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of pharmaceuticals, medical
equipment; |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 4,792.8 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name and address
KOWA COMPANY LTD
REGD NAME: Kowa
KK
MAIN OFFICE: 3-6-29
Nishiki Nakaku Nagoya 460-8625 JAPAN
Tel: 052-963-3033
E-Mail address: info@kowa.co.jp
ACTIVITIES
Mfg of
pharmaceuticals, medical equipment;
Import, export, wholesale
of textiles, apparel, machinery, chemicals, other
BRANCHES
Tokyo, Osaka,
Sapporo, Sendai, Yokohama, Okayama, Fukuoka, etc. (Tot 23)
OVERSEAS
USA (4), Chile,
Europe (5), Asia/Pacific (3) (--affiliates)
FACTORIES
Chofu, Fuji,
Gamagori, Nagoya, Hamamatsu, Mooka
OFFICERS
Takayasu Miwa, ch YOSHIHIRO MIWA,
PRES
Torao Yamamoto, v
presr Yasunobu
Koyama, v pres
Koichi Shiraishi,
s/mgn dir Akira
Yamamoto, mgn dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 233,271 M
PAYMENTS REGULAR CAPITAL Yen 3,840 M
TREND SLOW WORTH Yen
108,546 M
STARTED 1939 EMPLOYES 4,777
COMMENT
MFR OF PHARMACEUTICALS; IMPORT, EXPORT AND WHOLESALE OF TEXTILES,
MACHINERY, OTHERS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 4,792.8 MILLION, 30 DAYS NORMAL TERMS
Note: Forecast for the
31/03/2011 term.
HIGHLIGHTS
The subject company
was established on the basis of mfg division separated from Kowa Spinning Co,
founded in 1912, Nagoya. The subject has
two major operations: Mfg Division:
pharmaceuticals, medical equipment, electronic devices, optical equipment,
broadcasting devices; Trading Division:
import, export, wholesale of textiles, apparel, machinery, building materials,
chemicals, consumer goods, other. This
is a well-known mfr of digestive medicines, such as cholesterol-lowering
agents, hypertensive agents, etc. Also handles
health-care foods. Group consists of
about 70 firms centering in 4 core firms: Kowa Spinning Co Ltd, Kowa Co Ltd,
Kowa Pharmaceutical Co Ltd, and Kowa Shinyaku Co Ltd. In Oct 2006 acquired Nikken Chemical Co Ltd,
mfr of pharmaceuticals, to make it a consolidated subsidiary. In Jul 2007, transferred R&D & mfg
divisions from Kowa Pharmaceutical Co Ltd in order to streamline group
operations. Kowa Pharmaceutical is now
engaged in marketing and wholesaling businesses. In Sept 2008 acquired ProEthic Pharmaceutical
Inc, USA, and renamed it as Kowa Pharmaceutical America Inc to make it a
consolidated subsidiary. In Jan 2011,
entered into a contract with Adani Group, who is one of India’s fastest-growing
business houses, says the firm. In Apr
2011, entered into contracts of BBHP (Bareboat hire & Purchase) with Adani
Group of two bulk carriers of Cape-size.
The BBHP is effective for 10 years for two vessels, each with 100,000
DWT size and will be constructed in 2012.
Overseas
affiliates (pharmaceuticals): Kowa Pharmaceutical Europe Co Ltd, Kowa Research
Europe Ltd (--UK); Kowa Research Institute Inc, Kowa Pharmaceutical America Inc
(--USA); Kowa Europe GmbH, La Esperanza Delaware Corp; Kowa Asia Ltd; Easiatic
Investment Ltd, other
FINANCIAL INFORMATION
The sales volume
for Mar/2010 fiscal term amounted to Yen 233,271 million, a 1.04% down from Yen
235,728 million in the previous term.
Industrial/Chemical Div down 9.5% to Yen 99,740 million: Medical Div
down 6.6% to Yen 15,522 million; Real Estate Div up 255.2% to Yen 6,174
million. The recurring profit was posted
at Yen 8,044 million and the net profit at Yen 8,044 million, compared with Yen
4,637 million recurring profit and Yen 492 million net losses, respectively, a
year ago.
(Apr/Sept/2010
results) Sales Yen 125,205 million (up 13.6%), recurring profit Yen 2,302
million (down 27.9%), net profit Yen 3,982 million (up 405.9%). (% compared with the corresponding period a
year ago).
For the term that
ended Mar 2011 the recurring profit was projected at Yen 8,500 million and the
net profit at Yen 2,000 million, respectively, on a 9% rise in turnover, to Yen
255,000 million. Final results are yet
to be released.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 4,792.8
million, on 30 days normal terms.
REGISTRATION
Date Registered: Nov
1939
Regd No.:
(Nagoya-Nakaku) 035811
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 96.3 million shares
Issued: 37,770,000 shares
Sum: Yen 3,840 million
Major
shareholders (%): Company’s Treasury Sock (18.7), Kowa Spinning (18.6), MUFG (4.0),
Mizuho Corporate Bank (3.7), Meito Sangyo (3.1)
No. of shareholders: 1,127
Nothing detrimental
is known as to the commercial morality of executives.
OPERATION
Activities: This is a
trading house with mfg division:
(Sales Breakdown
by divisions):
Manufacturing
Division (46%): Ethical products (analgesic drugs, anti-allergic drugs, cardiovascular
drugs, dermatological drugs, ophthalmologic drugs; OTC products (dermatological
products, gastrointestinal products, respiratory products, topical analgesic
products, tonic, quasi-drugs, health foods & drinks; Sporting optics
(binoculars, dig scoping, eye pieces, lenses); Medical equipment (automatic
perimeters, binocular loops, digital imaging, digital imaging, fundus camera,
anterior segment of the eye, tonometers/perimeters); Audio Video (PXID flash
memory, hotkey audio player, professional video & broadcasting equipment);
fishing gears, others;
Wholesaling
Division (46%): Imports, exports and wholesales textiles, textile materials, apparel,
machinery, building materials, chemicals, consumer goods;
Other Divisions
(8%): Real estate business, hotel operation, insurance brokerage, printing,
others.
Overseas sales
ratio (28.5%): Asia (China, Taiwan, Korea) (21.1%); USA/Europe, other (5.4%).
Clients: [Pharmaceutical
mfrs, wholesalers] Takisada Osaka, Mediceo Paltac Holdings, Kowa Shinyaku, Kurabo Ind, Suzuken Co,
Alfresa Corp, Kowa Pharmaceutical, Toho Pharmaceutical, Adani Global Pte,
Gudami International, other.
Exports to Europe, USA, Korea, India,
Australia, China, other.
No. of accounts:
3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Kowa Spinning, Mitsubishi Rayon, Sanrio Co, Nissan Chemical Ind, Teika
Pharmaceutical, SQM Japan, Yutaka Sangyo, Gudami International, Nissan Chemical
Ind, PT Lamindo Inter Multikon Som Europe NV, other.
Payment record: Regular
Location: Business area in
Nagoya. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
MUFG (Nagoya)
Mizuho Corporate
Bank (Nagoya)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2010 |
31/03/2009 |
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INCOME STATEMENT |
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Annual Sales |
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233,271 |
235,728 |
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Cost of Sales |
142,458 |
149,054 |
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GROSS PROFIT |
90,813 |
86,674 |
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Selling & Adm Costs |
82,862 |
82,936 |
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OPERATING PROFIT |
7,951 |
3,738 |
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Non-Operating P/L |
93 |
899 |
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RECURRING PROFIT |
8,044 |
4,637 |
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NET PROFIT |
1,736 |
-492 |
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BALANCE SHEET |
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Cash |
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16,328 |
16,299 |
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Receivables |
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52,463 |
51,888 |
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Inventory |
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24,487 |
18,979 |
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Securities, Marketable |
1,304 |
303 |
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Other Current Assets |
13,519 |
13,084 |
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TOTAL CURRENT ASSETS |
108,101 |
100,553 |
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Property & Equipment |
93,134 |
79,640 |
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Intangibles |
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5,755 |
6,047 |
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Investments, Other Fixed Assets |
61,873 |
49,716 |
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TOTAL ASSETS |
268,863 |
235,956 |
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Payables |
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26,042 |
21,611 |
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Short-Term Bank Loans |
66,743 |
61,823 |
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Other Current Liabs |
19,479 |
18,807 |
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TOTAL CURRENT LIABS |
112,264 |
102,241 |
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Debentures |
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Long-Term Bank Loans |
22,102 |
15,510 |
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Reserve for Retirement Allw |
10,767 |
11,439 |
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Other Debts |
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15,183 |
10,112 |
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TOTAL LIABILITIES |
160,316 |
139,302 |
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MINORITY INTERESTS |
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Common
stock |
3,840 |
3,840 |
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Additional
paid-in capital |
2,140 |
2,116 |
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Retained
earnings |
97,189 |
96,134 |
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Evaluation
p/l on investments/securities |
16,013 |
9,955 |
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Others |
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(23,259) |
(29,240) |
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Treasury
stock, at cost |
12,623 |
13,849 |
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TOTAL S/HOLDERS` EQUITY |
108,546 |
96,654 |
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TOTAL EQUITIES |
268,863 |
235,956 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2010 |
31/03/2009 |
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Cash
Flows from Operating Activities |
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12,857 |
9,760 |
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Cash
Flows from Investment Activities |
-17,097 |
-20,795 |
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Cash
Flows from Financing Activities |
11,718 |
3,051 |
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Cash,
Bank Deposits at the Term End |
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15,969 |
15,803 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2010 |
31/03/2009 |
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Net
Worth (S/Holders' Equity) |
108,546 |
96,654 |
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Current
Ratio (%) |
96.29 |
98.35 |
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Net
Worth Ratio (%) |
40.37 |
40.96 |
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Recurring
Profit Ratio (%) |
3.45 |
1.97 |
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Net
Profit Ratio (%) |
0.74 |
-0.21 |
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Return
On Equity (%) |
1.60 |
-0.51 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.07 |
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1 |
Rs.72.97 |
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Euro |
1 |
Rs.63.57 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.