MIRA INFORM REPORT

Report Date :

17.07.2014

IDENTIFICATION DETAILS

Name :	DENKA SEIKEN CO LTD
Registered Office :	Nihombashi Mitsui Tower 7F, 2-1-1 Nihombashi-Muromachi Chuoku Tokyo 103-022
Country :	Japan
Financials (as on) :	31.03.2013
Date of Incorporation :	February 1950
Com. Reg. No.:	0100-01-051288
Legal Form :	Limited Company
Line of Business :	Manufacturing of vaccines, clinical chemicals, testing reagents
No. of Employees	610

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

Maximum Credit Limit :	Yen 1,102.1 Million
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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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 and address

DENKA SEIKEN CO LTD

REGD NAME: Denka Seiken KK

MAIN OFFICE: Nihombashi Mitsui Tower 7F, 2-1-1 Nihombashi-Muromachi Chuoku Tokyo

103-022 JAPAN

Tel: 03-6214-3231 Fax: 03-6214-3241

*.. The is its Factory in Niigata

URL: http://www.denka-seiken.jp

E-Mail address: (thru the URL)

ACTIVITIES

Mfg of vaccines, clinical chemicals, testing reagents, other

BRANCHES

Osaka, Sapporo, Sendai, Hiroshima, Fukuoka, Niigata

OVERSEAS

UK, USA

FACTORIES

Niigata (2)

OFFICERS

TETSURO MAEDA, PRES Shigetoshi Toyooka, ch

Akira Fujiwara, s/mgn dir Yoshitaka Kubota, mgn dir

Chikai Sato, mgn dir Akira Obata, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 25,094 M

PAYMENTS NO COMPLAINTS CAPITAL Yen 1,000 M

TREND UP WORTH Yen 21,743 M

STARTED 1950 EMPLOYES 610

COMMENT

MFG OF PHARMACEUTICALS, VACCINES, REAGENTS, OTHER.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: ESTIMATED AT YEN 1,102.1 MILLION, ON 30 DAYS NORMAL TERMS.

HIGHLIGHTS

The subject company was established on basis of a division separated from Toshiba Corp, for producing bacteriological diagnostic reagents. In 1979 the ownership changed to Denki Kagaku Kogyo KK (See REGISTRATION). This is a specialized mfg of vaccines for human use, immunological, clinical chemical, bacteriological, and virological diagnostic reagents and food/environmental testing reagents. Clients include pharmaceutical makers, hospitals, laboratories, other, nationwide.

FINANCIAL INFORMATION

The sales volume for Mar/2013 fiscal term amounted to Yen 25,094 million, a 17% up from Yen 21,517 million in the previous term. Sales of vaccines and testing reagents rose. The recurring profit was posted at Yen 8,127 million and the net profit at Yen 5,145 million, respectively, compared with Yen 4,128 million recurring profit and Yen 2,387 million net profit, respectively, a year ago.

For the term that ended Mar 2014 the recurring profit was projected at Yen 4,128 million and the net profit at Yen 2,387 million, respectively, on a 5% rise in turnover, to Yen 26,300 million. Final results are yet to be released.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,102.1 million, on 30 days normal terms.

REGISTRATION

Date Registered: Feb 1950

Regd No.: 0100-01-051288 (Tokyo-Chuoku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 2 million shares

Issued: 500,000 shares

Sum: Yen 1,000 million

Major shareholders (%): Denki Kagaku Kogyo KK* (100)

*.. Leading second-tier comprehensive chemical mfr, at the caption address, founded 1915, listed Tokyo S/E, capital Yen 16,998 million, sales Yen 376,809 million, operation profit Yen 21,230 million, recurring profit Yen 20,604 million, net profit Yen 13,573 million, total assets Yen 431,347 million, net worth Yen 187,656 million, employees 5,249, pres Shinsuke Yoshitaka

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

OPERATION

Activities: Manufactures vaccines for human use (31%), reagents* (40%), overseas sales (29%).

*.. immunological, clinical chemical, bacteriological & virological diagnostic reagents & food/environmenttesting reagents, laboratory animal monitoring reagents, immunochemistry serum protein diagnostic reagents, automatable LDL reagent, other

Clients: [Mfrs, wholesalers] Takeda Pharmaceutical Co, Otsuka Pharmaceutical, Astellas Pharma Inc, Abott International LLC, Suzuken Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Dako Japan, Nippon Bio-Test Laboratories Inc, JSR Life Science, Fuji Chemical, Fuji Science, other

Payment record: No complaints

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

Bank References:

Mizuho Bank (Niigata)

Daishi Bank (Gosen)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/03/2014	31/03/2013	31/03/2012	31/03/2011
Annual Sales		26,300	25,094	21,517	18,849
Recur. Profit		8,300	8,127	4,128	2,607
Net Profit		5,400	5,145	2,387	1,622
Total Assets			30,268	24,563	22,056
Current Assets			21,067	15,120	12,175
Current Liabs			7,966	6,290	5,706
Net Worth			21,743	17,831	16,048
Capital, Paid-Up			1,000	1,000	1,000
Div.Ttl in Million (¥)			635	605	809
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		4.81	16.62	14.15	-10.38
Current Ratio		..	264.46	240.38	213.37
N.Worth Ratio		..	71.83	72.59	72.76
R.Profit/Sales		31.56	32.39	19.18	13.83
N.Profit/Sales		20.53	20.50	11.09	8.61
Return On Equity		..	23.66	13.39	10.11

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.103.14
Euro	1	Rs.81.66

INFORMATION DETAILS

Analysis Done by :	KAR
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%)

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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.