MIRA INFORM REPORT

 

 

 

Report Date :

16.05.2013

 

IDENTIFICATION DETAILS

 

Name :

Kyoritsu Seiyaku Corporation

 

 

Registered Office :

Mori Kaitan 2F, 1-11-5 Kudan-Kita Chiyodaku Tokyo 102-0073

 

 

Country :

Japan

 

 

Financials (as on) :

31.05.2012

 

 

Date of Incorporation :

May, 1955

 

 

Com. Reg. No.:

0100-01-014420 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export, Wholesale and Manufacture of Veterinary Medicines, Pet Foods

 

 

No. of Employees :

427

 

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 :

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 – 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 and Address

 

KYORITSU SEIYAKU CORPORATION

 

REGD NAME:               Kyoritsu Seiyaku KK (Seiyaku means Pharmaceuticals)

 

MAIN OFFICE:              Mori Kaikan 2F, 1-11-5 Kudan-Kita Chiyodaku Tokyo 102-0073 JAPAN

Tel: 03-3263-2931          Fax: 03-3230-2308

 

                                    *.. Registered at: 1-5-10 Kudan-Minami Chiyodaku Tokyo

 

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

E-Mail address:            kyoritsu@kyoritsuseiyaku.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale, mfg of veterinary medicines, pet foods

 

 

BRANCHES

 

Sapporo, Sendai, Saitama, Osaka, Nagoya, Okayama, Fukuoka, Kagoshima

 

 

FACTORIES

 

Daiba (distribution center); Tsukuba (R&D center), Hiroshima

 

 

OFFICER(S)

 

TAKAAKI TAKAI, PRES             Yuhei Okamoto, ch

Seiichi Hirano, v pres                 Kazuhiro Fujita, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 32,754 M

PAYMENTSREGULAR   CAPITAL           Yen 55 M

TREND STEADY           WORTH            Yen 20,230 M

STARTED         1955                 EMPLOYES      427

 

 

COMMENT    

 

TRADING HOUSE SPECIALIZING IN VETERINARY MEDICINES & PET  FOODS. 

FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

 

The subject company is a leading trading house specializing in animal medicines, established by late Yuriko Takei’s husband.  This is a specialized trader, with mfg division, for import and wholesale of veterinary drugs, all for prescription by veterinary surgeons, such as vaccine, vitamins, etc.  Also handles pulicide, antibacterial agents, anthelmintic agents, pet foods, supplement foods, all for animals.  Animal feeds are also handled.  Nation’s top-ranked wholesaler of animal drugs.  Vaccines are produced by a subsidiary maker, starting in 1969.  Have wide business tie-ups with about 20 overseas mfrs, such as Fort Dodge Animal Health, Master Foods (--USA), Inter-bet International, Abbot Laboratories, Animal Health Options, Addison Biological Laboratory, other.  In May 2009, launched production of flea/hard tick exterminator, the nation’s first of such agents, and distributed in the market.  In Jun 2010, merged a subsidiary, Kawasaki Seiyaku KK, producer of pharmaceuticals for agricultural & aquatic animals, Kawasaki.  Went into business tie-up with Idemitsu Kosan in the area of livestock.  Domestic clients include pharmaceuticals mfrs, wholesalers, other. 

 

           

FINANCIAL INFORMATION

 

The sales volume for May/2012 fiscal term amounted to Yen 32,754 million, an 8% up from Yen 30,297 million in the previous term.  Demand for animal drugs & foods rapidly grew amid pet booms nationwide, particularly by ballooning retired elderly population.  The recurring profit was posted at Yen 3,397 million and the net profit at Yen 2,201 million, respectively, compared with Yen 2,893 million recurring profit and Yen 1,763 million net profit, respectively, a year ago. 

 

For the current term ending May 2013 the recurring profit is projected at Yen 3,700 million and the net profit at Yen 2,500 million, respectively, on a 14% rise in turnover, to Yen 37,200 million.  Business continues steady and upswing.  The said business tie-ups with Idemitsu Kosan Kaisha will contribute.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:       May 1955

Regd No.:                  0100-01-014420 (Tokyo-Chiyodaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         280,000 shares

Issued:                110,000 shares

Sum:                   Yen 55 million

Major shareholders (%): Yuriko Takai (52.6), Takaaki Takai (25.4), Yuhei Okamoto (14.1)

No. of shareholders: 14

           

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

 

 

OPERATION

 

Activities:                     Imports and wholesales veterinary prescription animal drugs: vaccine, vitamin,   antibacterial agents, anthelmintic agents, animal feeds, pet foods, supplement, other (--100%).

 

(Handling items):

 

Companion Animal Products: canine vaccine, feline vaccine, interferon, antimicrobial,  parasiticide, cardiovascular drug, hormone, anesthetic, diagnostic kit/medium, Chinese herbal medicine, medical device, care took, supplement for animals, others;

Production Animal Products: vaccine, vitamin, metabolic drug, antimicrobial, parasiticide, disinfectant, electrolyte, feed additives, equine products, diagnostic kit/medium, poultry vaccines, fish vaccines, special equipment;

Pet Care Products: milk replacer, nutritional supplement, others;

Veterinary diet/Pet Foods: dry/wet, powder type, supplement, pet foods (vets plan).

 

Clients:                        [Pharmaceutical firms, traders] Aesop Yakuhin, Morikubo Yakuhin, Asuko, Atol Co, Sun  Daiko, Maruzen Yakuhin, Yuwa Yakuhin, Everlth Agrotech, other.

                                    No. of accounts: 700

                                    Domestic areas of activities: Nationwide

 

Suppliers:                    [Mfrs, wholesalers] Master Foods, Toray Ind, Kyowa Hakko Kogyo, Idemitsu       Kosan   Co, Suntory Ltd, Toray Ind, Canine Japan, other.      

Imports from: Fort Dodge Animal Health, Master Foods, Pet Ag, other.

 

Payment record:           Regular

 

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

 

Bank References:

                                    Mizuho Bank (Kudan)

                                    MUFG (Shin-Marunouchi)

                                    Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/05/2013

31/05/2012

31/05/2011

31/05/2010

Annual Sales

 

37,200

32,754

30,297

22,440

Recur. Profit

 

3,700

3,397

2,893

2,366

Net Profit

 

2,500

2,201

1,763

1,240

Total Assets

 

 

27,975

26,701

21,594

Current Assets

 

 

17,495

16,390

 

Current Liabs

 

 

5,709

6,441

 

Net Worth

 

 

20,230

18,181

15,246

Capital, Paid-Up

 

 

55

55

55

Div.P.Share(¥)

 

 

1,000.00

1,000.00

1,000.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

13.57

8.11

35.01

10.71

    Current Ratio

 

..

306.45

254.46

..

    N.Worth Ratio

..

72.31

68.09

70.60

    R.Profit/Sales

 

9.95

10.37

9.55

10.54

    N.Profit/Sales

6.72

6.72

5.82

5.53

    Return On Equity

..

10.88

9.70

8.13

 

Notes: Forecast (or estimated) figures for the 31/05/2013 fiscal term.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.78

UK Pound

1

Rs.83.38

Euro

1

Rs.70.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.