MIRA INFORM REPORT

 

 

Report Date :

06.09.2014

 

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) :

31.03.2014

 

 

Date of Incorporation :

February 1950

 

 

Com. Reg. No.:

0100-01-051288

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures vaccines for human use (33%), reagents* (40%), overseas sales (27%).

 

 

No of Employees :

626

 

 

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

 

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

 

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 (Tot 8)

OVERSEAS:     UK, USA

FACTORIES:     Niigata (2)

 

OFFICERS:       TETSURO MAEDA, PRES         Akira Fujiwara, s/mgn dir           

                        Yoshitaka Kubota, mgn dir          Chikai Sato, mgn dir      

                        Akira Obata, dir                         Sakashi Sekine, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 23,676 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 1,000 M

TREND SLOW                          WORTH            Yen 24,180 M  

STARTED         1950                             EMPLOYES      626

 

COMMENT:       MFG OF PHARMACEUTICALS, VACCINES, REAGENTS, OTHER. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        MAX CREDIT LIMIT: ESTIMATED AT YEN 1,057.6 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, and laboratories, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 23,676 million, a 6% down from Yen 25,094 million in the previous term.  The recurring profit was posted at Yen 6,533 million and the net profit at Yen 4,170 million, respectively, compared with Yen 8,127 million recurring profit and Yen 5,145 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 6,600 million and the net profit at Yen 4,200 million, respectively, on a 3% rise in turnover, to Yen 24,350 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,057.6 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 36,998 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 (33%), reagents* (40%), overseas sales (27%).

 

*.. immunological, clinical chemical, bacteriological & virological diagnostic reagents & food/environment testing 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, AZ 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:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

　

24,350

23,676

25,094

21,517

Recur. Profit

　

6,600

6,533

8,127

4,128

Net Profit

　

4,200

4,170

5,145

2,387

Total Assets

　

　

32,476

30,268

24,563

Current Assets

　

　

23,483

21,067

15,120

Current Liabs

　

　

7,616

7,966

6,290

Net Worth

　

　

24,180

21,743

17,831

Capital, Paid-Up

　

　

1,000

1,000

1,000

Div.Ttl in Million (¥)

　

　

0.00

645

605

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

2.85

-5.65

16.62

14.15

    Current Ratio

　

..

308.34

264.46

240.38

    N.Worth Ratio

　

..

74.45

71.83

72.59

    R.Profit/Sales

　

27.10

27.59

32.39

19.18

    N.Profit/Sales

　

17.25

17.61

20.50

11.09

    Return On Equity

　

..

17.25

23.66

13.39

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.44

UK Pound

1

Rs.98.64

Euro

1

Rs.78.20

 

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%)

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.