MIRA INFORM REPORT

 

 

Report Date :

18.11.2013

 

IDENTIFICATION DETAILS

 

Name :

KOBAYASHI PHARMACEUTICAL CO LTD

 

 

Registered Office :

4-4-10 Doshomachi Chuoku Osaka 541-0045

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

August 1919

 

 

Com. Reg. No.:

077402

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of medical equipment, pharmaceuticals

 

 

No. of Employees :

2,259

 

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 and address

                                                                                                                                                                                                                                                                                                                          

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 36)

 

 

OVERSEAS   

 

USA (8), UK, China (3), Singapore, Taiwan, Malaysia, Indonesia (--subsidiaries)

 

 

FACTORIES  

 

Osaka

 

 

CHIEF EXEC 

 

AKIHIRO KOBAYASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 121,532 M

PAYMENTS      REGULAR         CAPITAL           Yen 3,450 M

TREND             SLOW               WORTH            Yen 114,872 M

STARTED         1919                 EMPLOYES      2,259

 

 

COMMENT    

 

MFR OF OTC PHARMACEUTICALS, MEDICAL EQUIPMENT, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Notes: Unit: In Million Yen.

Forecast figures for the 31/03/2014 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.  The company is promoting oral-care products by appealing people with high interest in trouble prevention through sample distribution at dental clinics.  In mail-order sales in breading stage, it is shifting the focus form mass media advertising to direct mails to existing customers, aiming to buoy up earnings by improving efficiency.

 

 

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 121,532 million, a 7.3% down from Yen 131,166 million in the previous term.  Sales of seasonal products such as “Netsusama” cooling gel sheets were weak, besides nominal sales declined accompanying sell-off of a subsidiary.  The recurring profit was posted at Yen 18,677 million and the net profit at Yen 12,176 million, respectively, compared with Yen 20,092 million recurring profit and Yen 11,726 million net profit, respectively, a year ago. 

           

(Apr/Sept/2013 results): Sales Yen 58,247 million (down 0.1%), operating profit Yen 8,623 million (up 4.7%), recurring profit Yen 8,840 million (up 0.1%), net profit Yen 5,953 million (down 16.4%).  (% compared with the corresponding period a year ago).   

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 19,400 million and the net profit at Yen 12,600 million, respectively, on a 4.5% rise in turnover, to Yen 127,000 million.  Sales of main profit-earner aromatics will grow on launch of new products and revamping, led by main brand products.  But demand for “Netsusama” cooling gel sheets will rally slowly after falling in the preceding term.  Advertising and promotional costs will pose a burden. 

 

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

 

 

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 (23.6).

 

No. of shareholders: 12,597

 

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

 

Managements: Kazumasa Kobayashi, ch; Yutaka Kobayashi, v pres; Akihiro Kobayashi, pres; Takashi Tsujino, v pres; Satoshi Yamane, mgn dir

 

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

 

 

OPERATION

           

Activities: Manufactures consumer goods (89%), mail-order sales (8%), medical equipment (2%), others (1%).

 

(Mfg Items): OTC pharmaceuticals, oral hygiene products, deodorizing air fresheners, sanitary & other products

           

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

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers:                    [Mfrs, wholesalers] Sendai Kobayashi Seiyaku, Toyama Kobayashi Seiyaku,                                                       Yagi Tsusho Ltd, Hakuhodo, Dentsu Inc, Daiko Advertising Inc, other.

 

Payment record:           Regular

 

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

           

Bank References:         Mizuho Bank (Osaka)

                                    MUFG (Osaka)

                                    Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

　

121,532

131,166

  Cost of Sales

51,732

54,635

      GROSS PROFIT

69,799

76,531

  Selling & Adm Costs

52,895

57,233

      OPERATING PROFIT

16,903

19,298

  Non-Operating P/L

1,774

794

      RECURRING PROFIT

18,677

20,092

　

      NET PROFIT

12,176

11,726

BALANCE SHEET

  Cash

　

45,862

42,835

  Receivables

30,818

32,113

  Inventory

11,197

12,011

  Securities, Marketable

1,506

11,004

  Other Current Assets

4,970

4,575

      TOTAL CURRENT ASSETS

94,353

102,538

  Property & Equipment

13,730

13,628

  Intangibles

5,092

5,287

  Investments, Other Fixed Assets

43,931

26,437

      TOTAL ASSETS

157,106

147,890

  Payables

11,577

12,823

  Short-Term Bank Loans

4

5

　

　

　

  Other Current Liabs

22,896

24,963

      TOTAL CURRENT LIABS

34,477

37,791

  Debentures

　

　

  Long-Term Bank Loans

　

　

  Reserve for Retirement Allw

4,883

5,312

  Other Debts

　

2,874

2,908

      TOTAL LIABILITIES

42,234

46,011

      MINORITY INTERESTS

Common stock

3,450

3,450

Additional paid-in capital

4,219

4,219

Retained earnings

109,946

101,127

Evaluation p/l on investments/securities

4,357

1,998

Others

(2,397)

(4,213)

Treasury stock, at cost

(4,703)

(4,702)

      TOTAL S/HOLDERS` EQUITY

114,872

101,879

　

      TOTAL EQUITIES

157,106

147,890

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

　

9,242

17,250

Cash Flows from Investment Activities

-26,605

-2,929

Cash Flows from Financing Activities

-3,729

-3,292

　

Cash, Bank Deposits at the Term End

　

22,322

42,835

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

114,872

101,879

Current Ratio (%)

273.67

271.33

Net Worth Ratio (%)

73.12

68.89

Recurring Profit Ratio (%)

15.37

15.32

Net Profit Ratio (%)

10.02

8.94

Return On Equity (%)

10.60

11.51

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.