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Report Date : |
08.02.2014 |
IDENTIFICATION DETAILS
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Name : |
KOWA COMPANY LTD |
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Registered Office : |
3-6-29 Nishiki Nakaku |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
15.11.1939 |
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Com. Reg. No.: |
1800-01-035811 (Nagoya-Nakaku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is a trading house & has two major operations: Manufacturing Division (pharmaceuticals, Medical Equipment, Electronic Devices, Optical Equipment, Broadcasting Devices) Trading Division (importer, exporter & wholesaler of textiles, apparel, machinery, building materials, chemicals & consumer goods.) Subject is also well-known manufacturer of digestive
medicines, cholesterol-lowering agents & hypertensive agents |
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No. of Employees : |
5,202 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 5,649.2 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source : CIA |
KOWA COMPANY LTD
Kowa KK
3-6-29 Nishiki Nakaku
Nagoya 460-8625 JAPAN
Tel: 052-963-3033
E-Mail address: info@kowa.co.jp
Mfg of
pharmaceuticals & medical equipment;
Import,
export, wholesale of textiles, apparel, machinery & chemicals
Tokyo, Osaka, Sapporo, Sendai, Yokohama, Okayama, Fukuoka, etc. (Tot 23)
USA
(4), Chile, Europe (5), Asia/Pacific (3) (--affiliates)
Chofu,
Fuji, Gamagori, Nagoya, Hamamatsu, Mooka
YOSHIHIRO
MIWA, PRES Torao Yamamoto, v pres
Koichi Shiraishi, s/mgn dir Takaharu Yamashita, dir
Tanio Nohara, mgn dir Toshio Inagi, mgn dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 220321 M
PAYMENTS No
Complaints CAPITAL Yen
3,840 M
TREND STEADY WORTH Yen
109,779 M
STARTED 1939 EMPLOYES 5,202
MFR OF PHARMACEUTICALS; IMPORT, EXPORT AND WHOLESALE OF
TEXTILES, MACHINERY.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 5,649.2 MILLION, 30 DAYS NORMAL TERMS
The subject company was established on the basis of mfg division separated from Kowa Spinning Co, founded in 1912, Nagoya. The subject has two major operations: Mfg Division: pharmaceuticals, medical equipment, electronic devices, optical equipment, broadcasting devices; Trading Division: import, export, wholesale of textiles, apparel, machinery, building materials, chemicals & consumer goods. This is a well-known mfr of digestive medicines, cholesterol-lowering agents & hypertensive agents. Also handles health-care foods. Group consists of about 70 firms centering in 4 core firms: Kowa Spinning Co Ltd, Kowa Co Ltd, Kowa Pharmaceutical Co Ltd, and Kowa Shinyaku Co Ltd. In Oct 2006 acquired Nikken Chemical Co Ltd, mfr of pharmaceuticals, to make it a consolidated subsidiary. In Jul 2007, transferred R&D & mfg divisions from Kowa Pharmaceutical Co Ltd in order to streamline group operations. Kowa Pharmaceutical is now engaged in marketing and wholesaling businesses. In Sept 2008 acquired ProEthic Pharmaceutical Inc, USA, and renamed it as Kowa Pharmaceutical America Inc to make it a consolidated subsidiary.
Overseas affiliates (pharmaceuticals): Kowa
Pharmaceutical Europe Co Ltd, Kowa Research Europe Ltd (--UK); Kowa Research
Institute Inc, Kowa Pharmaceutical America Inc (--USA); Kowa Europe GmbH, La
Esperanza Delaware Corp; Kowa Asia Ltd; Easiatic Investment Ltd, other
The sales volume for Mar/2013 fiscal term amounted to Yen 220,321 million, a 25% dpwn from Yen 292,332 million in the previous term. The recurring profit was posted at Yen 2,536 million and the net profit at Yen 1,350 million, respectively, compared with Yen 9,616 million recurring profit and Yen 11,721 million net profit, respectively, a year ago
For the current term ending Mar 2014 the recurring profit is projected at Yen 2,600 million and the net profit at Yen 1,600 million, respectively, on a 5% rise in turnover, to Yen 231,000 million. Business is seen steadily expanding. .
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,649.2 million, on 30 days normal terms.
Date Registered: 15 Nov 1939
Regd No.: 1800-01-035811 (Nagoya-Nakaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
96.3 million shares
Issued:
37,770,000 shares
Sum: Yen 3,840 million
Major shareholders (%): Company’s Treasury Stock
(18.7), Kowa Spinning (18.5), MUFG
(3.9), Mizuho Corporate Bank (3.6), other
No. of shareholders:
1,117
Nothing
detrimental is known as to the commercial morality of executives.
Activities: This is a trading house with mfg division:
(Sales Breakdown by divisions):
Manufacturing Division (45%): Ethical products (analgesic drugs, anti-allergic drugs, cardiovascular drugs, dermatological drugs, ophthalmologic drugs; OTC products (dermatological products, gastrointestinal products, respiratory products, topical analgesic products, tonic, quasi-drugs, health foods & drinks; Sporting optics (binoculars, dig scoping, eye pieces, lenses); Medical equipment (automatic perimeters, binocular loops, digital imaging, digital imaging, fundus camera, anterior segment of the eye, tonometers/perimeters); Audio Video (PXID flash memory, hotkey audio player, professional video & broadcasting equipment); fishing gears, others;
Wholesaling Division (40%): Imports, exports and
wholesales textiles, textile materials, apparel, machinery, building materials,
chemicals & consumer goods;
Other Divisions (15%): Real estate business, hotel
operation, insurance brokerage, printing, others.
Overseas sales ratio (33%).
Clients: [Pharmaceutical mfrs, wholesalers] Takisada Osaka, Mediceo Paltac Holdings, Kowa Shinyaku, Kurabo Ind, Suzuken Co, Alfresa Corp, Kowa Pharmaceutical, Toho Pharmaceutical, Adani Global Pte, Gudami International, other.
Exports to Europe, USA, Korea, India, Australia, China, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Kowa Spinning, Mitsubishi Rayon, Sanrio Co, Nissan Chemical Ind, Teika Pharmaceutical, SQM Japan, Yutaka Sangyo, Gudami International, Nissan Chemical Ind, other.
Payment record: No Complaints
Location: Business area in Nagoya. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG
(Nagoya)
Mizuho
Corporate Bank (Nagoya)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
31/03/2014 |
31/03/2013 |
31/03/2012 |
31/03/2011 |
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Annual
Sales |
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231,000 |
220,321 |
292,332 |
266,254 |
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Recur.
Profit |
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2,600 |
2,536 |
9,616 |
6,224 |
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Net
Profit |
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1,600 |
1,550 |
11,721 |
1,639 |
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Total
Assets |
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283,859 |
259,443 |
234,288 |
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Current
Assets |
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104,321 |
102,975 |
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Current
Liabs |
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115,556 |
111,766 |
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Net
Worth |
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109,779 |
104,328 |
94,477 |
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Capital,
Paid-Up |
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3,840 |
3,840 |
3,840 |
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Div.P.Share(¥) |
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18.00 |
18.00 |
18.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
4.85 |
-24.63 |
9.79 |
14.14 |
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Current Ratio |
|
.. |
90.28 |
92.13 |
.. |
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N.Worth Ratio |
.. |
38.67 |
40.21 |
40.33 |
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R.Profit/Sales |
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1.13 |
1.15 |
3.29 |
2.34 |
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N.Profit/Sales |
0.69 |
0.70 |
4.01 |
0.62 |
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Return On Equity |
.. |
1.41 |
11.23 |
1.73 |
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Notes: Forecast figures for the
31/03/2014 fiscal term
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.32 |
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UK Pound |
1 |
Rs.101.78 |
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Euro |
1 |
Rs.84.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.