MIRA INFORM REPORT

 

 

Report Date :

15.12.2012

 

IDENTIFICATION DETAILS

 

Name :

DAIKYO SEIKO LTD

 

 

Registered Office :

3-38-2 Sumida Sumidaku Tokyo 131-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.10.2012

 

 

Date of Incorporation :

May 1960

 

 

Com. Reg. No.:

0106-01-012331 (Tokyo-sumidaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of rubber stoppers for glass bottles (pharmaceuticals), resin CZ

 

 

No. of Employees :

568 employees

 

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 487.0 Million

Status :

Good

Payment Behaviour :

Regular

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 – June 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 a technologically 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. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - 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 after effects 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

 

Source : CIA


Company name

 

DAIKYO SEIKO LTD

 

 

REGD NAME 

 

KK Daikyo Seiko

 

 

MAIN OFFICE

 

3-38-2 Sumida Sumidaku Tokyo 131-0031 JAPAN

Tel: 03-3614-5461      Fax: 03-3610-1241

 

URL:                 http://www.daikyoseiko.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of rubber stoppers for glass bottles (pharmaceuticals), resin CZ, other

 

 

BRANCHES

 

Osaka

 

 

FACTORIES

 

At the caption address, Haneda (2), Sakae, Oomachi

 

 

OFFICERS

 

NAOMICHI SUDO, PRES           Nobuo Sudo, v pres     

Hiromi Taguchi, dir                    Hideyuki Sudo, dir

Yasushi Kawauchi, dir                Ken’ichi Noto, dir

           

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        GOOD              A/SALES          Yen 15,914 M

PAYMENTSREGULAR   CAPITAL           Yen 100 M

TREND UP                    WORTH            Yen 13,830 M

STARTED         1960                 EMPLOYES      568

 

 

COMMENT

 

MFR OF BOTTLE CLOSURES, RESIN CZ.

 

FINANCIAL SITUATION CONSIDERED GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS. MAX CREDIT LIMIT: YEN 487.0 MILLION, 30 DAYS NORMAL TERMS

                       

 

HIGHLIGHTS

           

The subject company was established by Naomichi Sudo in order to make most of his experience in the subject line of business, originally as Kanegafuchi Gomu Kaku Co Ltd.  Renamed as captioned in 1993.  This is a specialized mfr of rubber stoppers for glass bottles (flurotec closures), resin CZ for use in pharmaceutical and medical industries.  The rubber stoppers are applied to the drug contact side of pharmaceutical closures.  Holds about 70% market share in this field.  Clients include pharmaceutical mfrs, medical industries, chemical industries, other.

 

 

FINANCIAL INFORMATION

 

Financials are only partially disclosed.

 

The sales volume for Oct/2011 fiscal term amounted to Yen 15,914 million, a 9% up from Yen 14,525 million in the previous term.  Sales of flurotec closures (rubber stoppers for glass bottles) sold well as demand rose not only from pharmaceutical makers but also from other industries, such as beverage mfrs, food makers, other.  The recurring profit was posted at Yen 2,712 million and the net profit at Yen 2,318 million, respectively, compared with Yen 2,168 million recurring profit and yen 1,212 million net profit, respectively, a year ago.

 

For the term that ended Aug 2012 the recurring profit was projected at Yen 2,800 million and the net profit at Yen 2,400 million, respectively, on a 5% rise in turnover, to Yen 16,700 million.  Business is seen expanding steadily.  Final results are yet to be released.

 

The financial situation is considered GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 487.0 million, on 30 days normal terms.

 


REGISTRATION

 

Date Registered:           May 1960

Regd No.:           0106-01-012331 (Tokyo-sumidaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1.2 million shares

Issued:                303,000 shares

Sum:                   Yen 100 million

 

Major shareholders (%): Naomichi Sudo (32.7), West Pharmaceutical Services (25.0)

 

No. of shareholders: 16

 

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

 

 

OPERATION

 

Activities: Manufactures flurotec closures (rubber stoppers for glass bottles), resin CZ, all used in pharmaceutical & medical industries: rubber stoppers for medical/pharmaceuticals (48%), rubber products for medical use (26%), plastic containers (26%).

 

Exports (45%)

 

Clients: [Mfrs, wholesalers] Asahi Kasei Pharma Co, Fuso Pharmaceutical Ind, Daiichi Sankyo Co, Takeda Pharmaceutical Co, Otsuka Pharmaceutical Co, Roche Novartis, other 

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] ExxonMobil Corp, Zeon Corp, Mitsui Chemical Inc, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Oshiage)

MUFG (Mukojima)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

 

 

31/10/2012

31/10/2011

31/10/2010

31/10/2009

Annual Sales

 

16,700

15,914

14,625

13,717

Recur. Profit

 

2,800

2,712

2,168

1,870

Net Profit

 

2,400

2,318

1,212

892

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

13,830

12,208

11,360

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

100.00

100.00

100.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.94

8.81

6.62

9.21

    Current Ratio

..

..

..

    N.Worth Ratio

..

..

..

    N.Profit/Sales

14.37

14.57

8.29

6.50

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/10/2012 fiscal term.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.87.78

Euro

1

Rs.71.29

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.