.

MIRA INFORM REPORT

 

 

Report Date :

28.01.2014

 

IDENTIFICATION DETAILS

 

Name :

DAIICHI FINE CHEMICAL CO LTD

 

 

Registered Office :

530 Chokeiji Takaoka City Toyama-Pref 933-8511

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

December 1951

 

 

Com. Reg. No.:

2300-01-010803 (Toyama-Takaoka)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer and exporter of pharmaceuticals raw materials & intermediates, bulk chemicals, bio chemicals, veterinary drugs, food additives, feed additives, cosmetic ingredients, diagnostic & reagents

 

 

No. of Employees :

389

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 

DAIICHI FINE CHEMICAL CO LTD

 

 

REGD NAME

 

Daiichi Fine Chemical KK

 

 

MAIN OFFICE

 

530 Chokeiji Takaoka City Toyama-Pref 933-8511 JAPAN

Tel: 0766-21-3456     Fax: 0766-21-3792

 

URL:                 http://www.daiichi-fcj.co.jp/

E-Mail address:            dfk@daiichi-fcj.co.jp

 

 

ACTIVITIES

 

Mfg of pharmaceutical materials & intermediates, veterinary medicines, food additives, bio-chemicals, cosmetic ingredients

 

 

BRANCHES   

 

Tokyo, Osaka

 

 

OVERSEAS   

 

China (--subsidiary)

 

FACTORIES  

 

At the caption address

 

OFFICER(S)  

 

ETSUO OHSHIMA, PRES          Tadashi Takeuchi, dir

Yasuo Nagai, dir                        Chikayuki Kotani, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 12,822 M

PAYMENTSNo Complaints    CAPITAL           Yen 6,276 M

TREND UP                                WORTH            Yen 11,822 M

STARTED         1951                             EMPLOYES      389

           

 

COMMENT

 

MFR SPECIALIZING IN PHARMACEUTICAL MATERIALS & INTERMEDIATES, WHOLLY OWNED BY KYOWA HAKKO KOGYO CO LTD.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established on the basis of a fine chemicals mfg division separated from Daiichi Pharmaceutical Co Ltd, leading prescription drugs maker, Tokyo, for mfg pharmaceuticals materials & intermediates, and other fine chemicals.  Mfg items are expanded to include: pharmaceutical raw materials & intermediates, veterinary medicines, food additives, feed additives, cosmetic materials & ingredients, reagents, diagnostic, bio products.  In Jul 2007, the firm was transferred to Kyowa Hakko Kogyo Kirin Co Ltd, fermented chemical mfr, Tokyo (See REGISTRATION) and became its wholly owned subsidiary.  Integrated group fine chemicals operations into one at the subject.  Goods are also imported and exported.  Products are shipped mainly to the parent and its group companies.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2012 fiscal term amounted to Yen 12,822 million, a 9% up from Yen 11,734 million in the previous term.  Operations continued in the deficit, due to the heightened material costs, the firm says.  The recurring loss was posted at Yen 917 million and the net losses at Yen 1,013 million, respectively, compared with Yen 627 million recurring loss and Yen 1,057 million net losses, respectively, a year ago.  .

 

For the term ended Dec 2013 the operations were projected to come back to profitability to post Yen 200 million recurring profit and Yen 100 million net profit, respectively, on a 5% rise in turnover, to Yen 13,500 million.  Final results are yet to be released.

 

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

 

 

REGISTRATION

 

Date Registered:      Dec 1951

Regd No.:                2300-01-010803 (Toyama-Takaoka)

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      5.8 million shares

Issued:             3.4 million shares

Sum:                 Yen 6,276 million

Major shareholders (%): Kyowa Hakko Kirin Co Ltd*(100)

 

*.. Largest fermented chemical mfr, Tokyo, founded 1949, listed Tokyo S/E, turnover Yen 333,158 million, operating profit Yen 52,905 million, recurring profit Yen 49,001 million, net profit Yen 24,199 million, total assets Yen 691,403 million, net worth Yen 578,113 million, employees 7,243, pres Nobuo Hanai

 

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

 

 

OPERATION

 

Activities: Manufactures and exports pharmaceuticals raw materials & intermediates, bulk chemicals, bio chemicals (--87%), veterinary drugs, food additives, feed additives, cosmetic ingredients (--7%), diagnostic & reagents, others (6%).    

 

Exports (23%)

 

Clients: [Pharmaceutical mfrs, wholesalers] Daiichi Sankyo Pro Pharma, Sekisui

Medical, Meiji Seika Pharma, other.

            No. of accounts: 300

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Daiichi Sankyo, Sekisui Medical, Tada Chemical Co, other

 

Payment record: No Complaints 

 

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


Bank References:

SMBC (Toyama)

Hokuriku Bank (Takaoka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/12/2013

31/12/2012

31/12/2011

31/12/2010

Annual Sales

 

13,500

12,822

11,734

13,253

Recur. Profit

 

200

-917

-627

22

Net Profit

 

100

-1,013

-1,057

-1,406

Total Assets

 

 

24,158

21,375

19,339

Current Assets

 

 

11,435

11,257

10,157

Current Liabs

 

 

11,675

7,722

4,476

Net Worth

 

 

11,822

12,853

13,937

Capital, Paid-Up

 

 

6,276

6,276

6,276

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.29

9.27

-11.46

24.49

    Current Ratio

 

..

97.94

145.78

226.92

    N.Worth Ratio

..

48.94

60.13

72.07

    R.Profit/Sales

 

1.48

-7.15

-5.34

0.17

    N.Profit/Sales

0.74

-7.90

-9.01

-10.61

    Return On Equity

..

-8.57

-8.22

-10.09

 

Notes: Forecast (or estimated) figures for the 31/12/2013 fiscal term

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.71

UK Pound

1

Rs.103.50

Euro

1

Rs.85.82

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.