MIRA INFORM REPORT

 

 

Report Date :

25.06.2013

 

IDENTIFICATION DETAILS

 

Name :

QUALICAPS CO LTD

 

 

Registered Office :

321-5 Ikezawacho Yamatokoriyama Nara City 639-1032

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

April, 1965

 

 

Com. Reg. No.:

005846

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacture of capsules, capsule filling & sealing equipment

 

 

No. of Employees :

304

 

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 :

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

QUALICAPS CO LTD

 

 

REGD NAME 

 

Qualicaps KK

 

 

MAIN OFFICE

 

321-5 Ikezawacho Yamatokoriyama Nara City 639-1032 JAPAN

Tel: 0473-56-0651     Fax: 0743-56-6666

                       

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

E-Mail address: contact@qualicaps.co.jp

 

 

ACTIVITIES

 

Mfg of capsules, capsule filling & sealing equipment

 

 

BRANCHES   

 

Nil

 

 

FACTORY

 

At the caption address

 

 

OVERSEAS         

 

Qualicaps Inc (USA); Qualicaps Europe SA (Spain), Rumania, Canada

(--subsidiaries)

 

 

 

OFFICERS

 

TAKAYUKI KAWAMURA, PRES            

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 9,460 M

PAYMENTS      REGULAR         CAPITAL           Yen 2,833 M

TREND             UP                    WORTH            Yen 11,176 M

STARTED         1965                 EMPLOYES      304

 

 

COMMENT

           

MFR OF GELATIN CAPSULES, CAPSULE FILLING MACHINED, OWNED BY       CARLYLE GROUP, PRIVATE EQUITY FIRM.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

           

HIGHLIGHTS

           

The subject company was established originally as JV between Eli Lilly (USA) and

Shionogi & Co Ltd, major antibiotics mfr, Osaka, for advancing into mfg gelatin capsules and capsule filling machines for the pharmaceutical & dietary supplement industries.   In Dec 2005, Singe’s stocks were bought by Carlyle Group’s private equity firm, USA by means of MBO and its name was deleted from the corporate title and became independent as Qualicaps Co Ltd.  The firm specializes in mfg hard gelatin capsules, HPMC capsules, capsule filling & sealing equipment.  Two overseas subsidiaries in USA and Spain are also engaged in mfg of these capsules.  They are imported, too.

 

 

FINANCIAL INFORMATION

           

The sales volume for Dec/2012 fiscal term amounted to Yen 9,460 million, a 16% up from Yen 8,147 million in the previous term.  The recurring profit was posted at 2,748 million and the net profit at Yen 1,408 million, respectively, compared with Yen 1,286 million recurring profit and Yen 570 million net profit, respectively, a year ago.

 

For the current term ending Dec 2013 the recurring profit is projected at Yen 2,800 million and the net profit at Yen 1,500 million, respectively, on a 5% rise in turnover, to Yen 9,950 million.    

 

The financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

 

Date Registered:                      Apr 1965

Regd No.:                                             (Nara-Yamatokoriyama) 005846

Legal Status:                           Limited Company (Kabushiki Kaisha)

Authorized:                              56,600 shares

Issued:                                     56,600 shares

Sum:                                        Yen 2,833 million

                                                * Increased the capital in 2008.

Major shareholders (%):           Carlyle Group*(100)

*.. Private equity finance firm, USA with its office in Tokyo

           

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

 

 

OPERATION

 

Activities: Manufactures hard gelatin capsules, HPMC capsules, capsule filling & sealing   equipment, other related supplies (--100%).

 

Clients: [Pharmaceutical mfrs, dietary supplement mfrs] Eisai Co, Shionogi & Co, Tanabe Seiyaku, Takeda Pharmaceutical, Dainippon Sumitomo Pharma, Chugai      Pharmaceutical, Ono Pharmaceutical, Astellas Pharma, Sato Yakuhin Kogyo, FNCL,

DHC, other.  

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Eisai Co, Takeda Pharmaceutical, Nitta Gelatin,  Shin-Etsu Chemical Ind, Rousselot Japan, Yamamoto Seiko, Eisai Machinery, Ono

Pharmaceuticals, other.

 

Payment record: Regular

 

Location: Business area in Yamatokoriyama City, Nara-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

JP Morgan Bank (Tokyo)

SMBC (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

9,950

9,460

8,147

6,317

Recur. Profit

 

2,800

2,748

1,286

534

Net Profit

 

1,500

1,408

570

384

Total Assets

 

 

23,165

22,396

22,826

Current Assets

 

 

6,126

6,561

6,368

Current Liabs

 

 

4,667

3,263

2,782

Net Worth

 

 

11,176

10,503

9,930

Capital, Paid-Up

 

 

2,833

2,833

2,833

Div.P.Share(¥)

 

 

 

 

 

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.18

16.12

28.97

-2.58

    Current Ratio

 

..

131.26

201.07

228.90

    N.Worth Ratio

..

48.25

46.90

43.50

    R.Profit/Sales

 

28.14

29.05

15.78

8.45

    N.Profit/Sales

15.08

14.88

7.00

6.08

    Return On Equity

..

12.60

5.43

3.87

 

Note: Forecast (or estimated) for the 31/12/2013 fiscal term.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.73

UK Pound

1

Rs.91.82

Euro

1

Rs.78.23

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

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.