MIRA INFORM REPORT

 

 

Report Date :

22.08.2014

 

IDENTIFICATION DETAILS

 

Name :

ELI LILLY JAPAN KK

 

 

Registered Office :

Sannomiya Plaza Bldg, 7-1-5 Isogamidori Chuoku Kobe 651-0086

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

November 1975

 

 

Com. Reg. No.:

1400-01-012176

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures pharmaceutical drugs for: central nerve system, endocrine system, metabolic, osteoporosis, oncology, animal drugs, other (--100%).

 

 

No of Employees :

2,600

 

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

Company Name & address

 

ELI LILLY JAPAN KK

 

 

REGD NAME

 

Nihon Eli Lilly KK

 

 

MAIN OFFICE

 

Sannomiya Plaza Bldg, 7-1-5 Isogamidori Chuoku Kobe 651-0086 JAPAN

Tel: 078-242-9000    

Fax: 078-242-9502

 

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

E-mail:             (thru the URL)   

 

ACTIVITIES:     Mfg, processing of pharmaceutical drugs

BRANCHES:     Tokyo, Nagoya, Osaka, Sapporo, Niigata, Chiba, Kanazawa, other (Tot 22)

FACTORIES:     Kobe (Laboratory is attached)

 

OFFICER(S):     PATRIK JOHNSON, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 192,009 M

PAYMENTS      SATISFACTORY            CAPITAL                       Yen 12,773 M

TREND             STEADY                       WORTH                        Yen 41,677 M

STARTED         1975                             EMPLOYES                  2,600

 

COMMENT:       MFR OF PHARMACEUTICAL DRUGS. 

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

 

 

HIGHLIGHTS

           

The subject company was established originally in 1965 as JV with Shionogi & Co Ltd, major pharmaceutical mfr, Osaka, and Eli Lilly USA, and subsequently in 1975 founded the independent entity as captioned.  Patrik Johnson took the pres office in Jan 2014.  This firm specializes in mfg pharmaceutical drugs for: central nerve, metabolic, oncology, osteoporosis, endocrine system, and animal drugs.  Clients include pharmaceutical makers, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2013 fiscal term amounted to Yen 192,009 million, a 9% up from Yen 175,740 million in the previous term.  Drugs particularly for osteoporosis and endocrine systems were in robust demand, the firm says.  The recurring profit was posted at Yen 17,178 million and the net profit at Yen 10,697 million, respectively, compared with Yen 13,742 million recurring profit and Yen 6,616 million net profit, respectively, a year ago.  .

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 18,000 million and the net profit at Yen 11,000 million, respectively, on a 5% rise in turnover, to Yen 201,500 million.  Business is seen expanding steadily.   

           

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,043.3 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:          Nov 1975

Regd No.;                     1400-01-012176 (Kobe-Chuoku)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  25,545,000 shares

Issued:                           25,545,000 shares

Sum:                              Yen 12,773 million

Major shareholders (%): Eli Lilly USA (100)

           

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

 

 

OPERATION

 

Activities: Manufactures pharmaceutical drugs for: central nerve system, endocrine system, metabolic, osteoporosis, oncology, animal drugs, other (--100%).

 

Clients: [Mfrs, wholesalers] Suzuken Co, Alfresa Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Supplied from Eli Lilly and group firms.

 

Payment record: Satisfactory

 

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

 

Bank References:

Mizuho Bank (Kobe)

MUFG (Kobe)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

　

201,500

192,009

175,740

159,436

Recur. Profit

　

18,000

17,178

13,742

19,788

Net Profit

　

11,000

10,697

6,616

11,387

Total Assets

　

　

97,134

83,976

75,363

Current Assets

　

　

82,214

71,526

62,680

Current Liabs

　

　

46,068

30,534

23,294

Net Worth

　

　

41,677

42,980

41,064

Capital, Paid-Up

　

　

12,773

12,773

12,773

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

4.94

9.26

10.23

18.57

    Current Ratio

　

..

178.46

234.25

269.08

    N.Worth Ratio

　

..

42.91

51.18

54.49

    R.Profit/Sales

　

8.93

8.95

7.82

12.41

    N.Profit/Sales

　

5.46

5.57

3.76

7.14

    Return On Equity

　

..

25.67

15.39

27.73

 

Notes: Forecast (or estimated) figures for the 31/12/2014 fiscal term. 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.77

UK Pound

1

Rs.100.72

Euro

1

Rs.80.55

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

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.