MIRA INFORM REPORT

 

 

Report Date :

20.11.2012

 

IDENTIFICATION DETAILS

 

Name :

KOBAYASHI  PHARMACEUTICAL CO Ltd

 

 

Registered Office :

4-4-10 Doshomachi Chuoku Osaka 541-0045

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

August 1919

 

 

Com. Reg. No.:

(Osaka-Chuoku) 077402

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Mfg of medical equipment, pharmaceuticals

 

 

No. of Employees :

2,414

 

 

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

 

Status :

Satisfactory

Payment Behaviour :

No complaints

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

 

KOBAYASHI PHARMACEUTICAL CO Ltd

REGD NAME:    Kobayashi Seiyaku KK

MAIN OFFICE:  4-4-10 Doshomachi Chuoku Osaka 541-0045 JAPAN

Tel: 06-6231-1144     Fax: 06-6222-6324

 

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

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

 

 

ACTIVITIES

 

Mfg of medical equipment, pharmaceuticals

 

 

BRANCHES

 

Tokyo, Sapporo, Nagoya, Hiroshima, other (Tot 26)

 

 

OVERSEAS   

 

USA (2), UK, China (2)

 

 

FACTORIES

 

Osaka

 

 

CHIEF EXEC 

 

YUTAKA KOBAYASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 131,166 M

PAYMENTS                  No complaints   CAPITAL           Yen 3,450 M

TREND             STEADY           WORTH            Yen 101,879 M

STARTED                     1919                 EMPLOYES      2,414

 

 

COMMENT    

 

MFR OF PHARMACEUTICALS, MEDICAL EQUIPMENT, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

           

 

                        Notes: Unit: In Million Yen. Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked mfr/wholesaler of OTC pharmaceuticals.  But mainline lines in household products such as cosmetics & deodorants.  Renown for its development abilities, creating products for niche markets.  Has mfg/sales unit in USA set up in 1998.  Disaster-hit Sendai Plant started full production in Jun 2011.  The company has started increased production of antipyretic produce and other heat guard products.  In autumn 2012, the firm started online sales of pharmaceuticals along with health foods and cosmetics, in anticipation of drug sale deregulation.  It is stepping up web advertising to increase recognition.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 131,166 million, a 0.3% up from Yen 130,824 million in the previous term.  During the year the firm introduced 10 new products.  By Divisions: Consumer Products up 1.5% to Yen 112,423 million; Mail-Order sales up 5.1% to Yen 10,380 million; Medical Devices down 14.0% to Yen 10,476 million.  The recurring profit was posted at Yen 20,092 million and the net profit at Yen 11,726 million, respectively, compared with Yen 19,010 million recurring profit and Yen 9,335 million net profit, respectively, a year ago. 

           

              (Apr/Sept/2012 results): Sales Yen 58,253 million (down 9.0%), operating profit Yen 8,237 million (down 23.1%), recurring profit Yen 8,830 million (down 19.4%), net profit Yen 7,120 million (up 15.8%).  (% compared with the corresponding period a year ago).       

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 20,900 million and the net profit at Yen 12,500 million, respectively, on a 0.6% rise in turnover, to Yen 132,000 million.  Sales of cooling gel sheet and other seasonal products will not grow sharply as anticipated.  But aromatic sales will be boosted by new products, fading of the impact of the Earthquake.  Mail-order sales and overseas sales will also grow. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,136.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:  Aug 1919

Regd No.:         (Osaka-Chuoku) 077402

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:       170 million shares

Issued:                42,625,000 shares

Sum:                   Yen 3,450 million

 

Major shareholders (%): Akihiro Kobayashi (10.8), Kobayashi Int’l Scholarship (7.0), Yukako Iue (6.1), Company’s Treasury Stock (3.7), Master Trust Bank of Japan T (3.4), Ikuko Watanabe (3.2), Teruhisa Miyata (3.0), State Street Bank & Trust (2.5), Ohtori Ltd (2.5), Forum Co (2.4); foreign owners 21.6).

 

No. of shareholders: 10,295

Listed on the S/Exchange (s) of: Tokyo, Osaka

 

Managements: Kazumasa Kobayashi, ch; Yutaka Kobayashi, pres; Akihiro Kobayashi, s/mgn dir; Takashi Tsujino, s/mgn dir; Satoshi Yamane, mgn dir; Haruo Tsuji, dir

 

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

 

 

OPERATION

           

Activities: Manufactures consumer goods (83%), mail-order sales (8%), medical equipment (8%), others (1%).

           

Clients: [Mfrs, wholesalers] Arata Co, Paltac KS, Reed Healthcare, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sendai Kobayashi Seiyaku, Toyama Kobayashi Seiyaku,                other.

 

Payment record: Regular

 

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

           

Bank References:

Mizuho Corporate Bank (Osaka)

MUFG (Osaka)

Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

131,166

130,824

 

  Cost of Sales

54,635

56,184

 

      GROSS PROFIT

76,531

74,640

 

  Selling & Adm Costs

57,233

56,019

 

      OPERATING PROFIT

19,298

18,620

 

  Non-Operating P/L

794

390

 

      RECURRING PROFIT

20,092

19,010

　

      NET PROFIT

11,726

9,335

BALANCE SHEET

 

 

 

 

  Cash

　

42,835

31,963

 

  Receivables

 

32,113

29,879

 

  Inventory

 

12,011

10,894

 

  Securities, Marketable

11,004

11,005

 

  Other Current Assets

4,575

5,096

 

      TOTAL CURRENT ASSETS

102,538

88,837

 

  Property & Equipment

13,628

14,156

 

  Intangibles

 

5,287

5,922

 

  Investments, Other Fixed Assets

26,437

25,441

 

      TOTAL ASSETS

147,890

134,356

 

  Payables

 

12,823

12,880

 

  Short-Term Bank Loans

5

25

 

　

 

　

　

 

  Other Current Liabs

24,963

21,620

 

      TOTAL CURRENT LIABS

37,791

34,525

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

5,312

5,159

 

  Other Debts

　

2,908

3,329

 

      TOTAL LIABILITIES

46,011

43,013

 

      MINORITY INTERESTS

 

 

 

Common stock

3,450

3,450

 

Additional paid-in capital

4,219

4,219

 

Retained earnings

101,127

92,185

 

Evaluation p/l on investments/securities

1,998

489

 

Others

 

(4,213)

(4,300)

 

Treasury stock, at cost

(4,702)

(4,701)

 

      TOTAL S/HOLDERS` EQUITY

101,879

91,342

　

      TOTAL EQUITIES

147,890

134,356

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

17,250

13,168

 

Cash Flows from Investment Activities

-2,929

-8,378

 

Cash Flows from Financing Activities

-3,792

-5,154

　

Cash, Bank Deposits at the Term End

　

42,835

31,963

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

101,879

91,342

 

 

Current Ratio (%)

271.33

257.31

 

 

Net Worth Ratio (%)

68.89

67.99

 

 

Recurring Profit Ratio (%)

15.32

14.53

 

 

Net Profit Ratio (%)

8.94

7.14

 

 

Return On Equity (%)

11.51

10.22

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.96

UK Pound

1

Rs.87.49

Euro

1

Rs.70.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.