MIRA INFORM REPORT

 

 

Report Date :

15.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MEIJI SEIKA PHARMA CO LTD

 

 

Registered Office :

2-4-16 Kyobashi Chuoku Tokyo 104-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 1916

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 008333

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of confectionery, foods, chemicals, pharmaceuticals

 

 

No. of Employees

1,035

 

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 :

Good

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 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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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

 

MEIJI SEIKA PHARMA CO LTD

REGD NAME:    Meiji Seika Pharma KK

MAIN OFFICE:  2-4-16 Kyobashi Chuoku Tokyo 104-0031 JAPAN 

Tel: 033272-6511     Fax: 03-3271-3529

 

URL:                 http://www.meijiseika-pharma.co.jp/

E-mail:                         (thru the URL)   

 

 

ACTIVITIES  

 

Mfg of confectionery, foods, chemicals, pharmaceuticals

 

 

BRANCHES   

 

Nationwide (30 locations)

 

 

FACTORIES  

 

Kitagami, Odawara, Gifu

 

 

Overseas   

 

Singapore, other (Tot 3)

 

 

OFFICER(S)  

 

MASAHIKO MATSUO, PRES     Ryuzo Asada, dir

Yasushi Murai, dir                                  Daikichiro Kobayashi, dir

Taro Nomo, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 113,228 M

PAYMENTS      REGULAR         CAPITAL           Yen 28,363 M

TREND             STEADY           WORTH            Yen 79,338 M

STARTED                     1916                 EMPLOYES      1,035

 

 

COMMENT    

 

MFR OF CONFECTIONERY & PHARMACEUTICALS, WHOLLY OWNED BY

MEIJI HOLDINGS CO LTD 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

                       

HIGHLIGHTS

           

            This is a pharmaceuticals mfr such as antibiotics and central nervous system drugs being second mainline.  Top-ranked chocolate mfr.  Aggressive toward overseas operations and has JVs for confectionery & pharmaceuticals in many countries.  In Apr 2009, established a joint holding company, Meiji Holdings Co Ltd (See REGISTRATION), jointly with Meiji Dairies Corporation and became its wholly owned consolidated subsidiary, and was delisted from Tokyo S/E.  In Apr 2011, the firm split into two entities: Meiji Seika Pharma Co Ltd and Meiji Co Ltd.  The subject transferred confectionery operations to Meiji Seika Co in Apr 2013 and will focus on mfg pharmaceuticals, agrochemicals, other. 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2013 fiscal term amounted to Yen 113,228 million, a 2% up from Yen 111,200 million in the previous term.  Anticancer drugs were in good demand.  The recurring profit was posted at Yen 7,347 million and the net profit at Yen 4,882 million, respectively, compared with Yen 8,740 million recurring profit and Yen 4,683 million net profit, respectively, a year ago. 

 

For the term that ended Mar 2014 the recurring profit was projected at Yen 7,400 million and the net profit at Yen 4,900 million, respectively, on a 5% rise in turnover, to Yen 118,500 million.  Final results are yet to be released.

           

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

 

 

 

 

 

 

 

REGISTRATION

 

Date Registered:  Oct 1916

Regd No.:        (Tokyo-Chuoku) 008333

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:       796,104,000 shares

Issued:              379,072,000 shares

Sum:                 Yen 28,363 million

Major shareholders (%): Meiji Holdings Co Ltd* (100)

 

*.. Joint Holding Company, set up in Apr 2009 jointly with Meiji Dairies Corporation, capital Yen 30,000 million, listed Tokyo S/E, sales Yen 1,148,076 million, operating profit Yen 36,496 million, recurring profit Yen 39,089 million, net profit Yen 19,080 million, total assets Yen 779,461 million, net worth Yen 328,121 million, employees 14,819, pres Shigetaro Asano

           

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

 

 

OPERATION

 

Activities: Manufactures confectionery & health care/foods, pharmaceuticals (antibiotics, central nervous system drugs, agricultural chemicals, veterinary drugs, other) other (--100%)

 

Clients: [Mfrs, wholesalers] Marubeni Corp, Paltac, Alfresa, Tanpei Nakata, Medival Holdings, Matsuo Seika, Itochu Corp, other            

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers [Mfrs, wholesalers] Otsuka Chemical, Proctor & Gamble Far East Inc, Fuji Oil, Meiji Seika Singapore, Mitsui & Co, Cargill Japan, Mizuho Factor, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Kyobashi)

MUFG (Kyobashi)

Relations: Satisfactory

 

 


FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

118,500

113,228

111,200

306,076

Recur. Profit

 

7,400

7,347

8,740

10,553

Net Profit

 

4,900

4,882

4,683

4,459

Total Assets

 

 

134,824

122,018

307,754

Current Assets

 

 

79,818

69,733

135,828

Current Liabs

 

 

36,900

35,221

104,382

Net Worth

 

 

79,338

75,488

135,077

Capital, Paid-Up

 

 

28,363

28,363

28,363

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.66

1.82

-63.67

1.02

    Current Ratio

 

..

216.31

197.99

130.13

    N.Worth Ratio

..

58.85

61.87

43.89

    R.Profit/Sales

 

6.24

6.49

7.86

3.45

    N.Profit/Sales

4.14

4.31

4.21

1.46

    Return On Equity

..

6.15

6.20

3.30

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.87

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.