MIRA INFORM REPORT

Report Date :

06.09.2014

IDENTIFICATION DETAILS

Name :	SUMMIT PHARMACEUTICALS INTERNATIONAL CORPORATION
Registered Office :	Harumi Triton Square Office Tower Z Bldg 23F, 1-8-12 Harumi Chuoku Tokyo 104-0053
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	November 1949
Com. Reg. No.:	0100-01-103866
Legal Form :	Limited Company
Line of Business :	Import, export, wholesale of pharmaceuticals, chemicals, food additives.
No. of Employees	119

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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. 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

SUMMIT PHARMACEUTICALS INTERNATIONAL CORPORATION

REGD NAME: Sumisho Pharma International KK

MAIN OFFICE: Harumi Triton Square Office Tower Z Bldg 23F, 1-8-12 Harumi Chuoku Tokyo

104-0053 JAPAN

Tel: 03-3536-8611 Fax: 03-3536-8619

URL: http://www.summitpharma.co.jp

E-Mail address: info@summitpharma.co.jp

ACTIVITIES

Import, export, wholesale of pharmaceuticals, chemicals, food additives, other

BRANCHES

Osaka, Yokohama, Kawasaki

OVERSEAS

Europe, China; also 115 overseas offices in 68 countries of the parent utilized

FACTORIES

Kawasaki (API Laboratory)

OFFICERS

YOSHIKI TERAWAKI, PRES Heizo Suzuki, dir

Shun’ya Kitamura, dir Michinobu Yugen, dir

Ken’ichi Nakamura, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 16,318 M

PAYMENTSNO COMPLAINTS CAPITAL Yen 480 M

TREND STEADY WORTH Yen 4,837 M

STARTED 1949 EMPLOYES 119

COMMENT

TRADING FIRM SPECIALIZING IN PHARMACEUTICALS, OTHER, OWNED BY SUMITOMO CORPORATION.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established by Sumitomo Corp (See REGISTRATION) as Summit Medi-Chem Corp, and in Oct 2006 merged with Summit Pharmaceuticals International Corporation and started anew. This is a trading firm for import, export and wholesale of pharmaceuticals, food additives, agro chemicals, cosmetics, bio chemicals, other (See OPERATION). Sole import agent of ATTC of USA. Clients include major pharmaceutical mfrs.

FINANCIAL INFORMATION

The sales volume for Mar/2014 fiscal term amounted to Yen 16,318 million, a 2% down from Yen 16,595 million in the previous term. The recurring profit was posted at Yen 869 million and the net profit at Yen 2,465 million, respectively, compared with Yen 1,622 million recurring profit and Yen 201 million net profit, respectively, a year ago. Profits include extraordinary profits of Yen 3,095 million on sale of securities held.

For the current term ending Mar 2015 the recurring profit is projected at Yen 900 million and the net profit at Yen 500 million, respectively, on a 5% rise in turnover, to Yen 19,100 million. The weaker Yen will raise import/export earnings in Yen terms.

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

REGISTRATION

Date Registered: Nov 1949

Regd No.: 0100-01-103866 (Tokyo-Chuoku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 5.6 million shares

Issued: 1.4 million shares

Sum: Yen 480 million

Major shareholders (%): Sumitomo Corp* (100)

*.. One of leading general trading houses, Tokyo, founded 1919, listed Tokyo S/E, capital Yen 219,279 million, turnover Yen 8,146,184 million, operating profit Yen 171,750 million, recurring profit Yen 304246 million, net profit Yen 223,064 million, total assets Yen 8,668,738 million, net worth Yen 2,404,670 million, employees 74,638, pres Kuniharu Nakamura

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

OPERATION

Activities: Imports, exports and wholesales: pharmaceuticals (raw materials, intermediates, finished products), animal drugs, foods & food additives (synthetic dyestuffs, pigments), quasi-medicines, cosmetics, chemicals, biochemical, agro-chemicals, medical instruments, others (--100%)

Clients: [Mfrs, wholesalers] Sawai Pharmaceutical, Daiichi Sankyo Co, Kyorin Holdings Inc, Nippon Kayaku Co, Astellas Pharma Tech Co, Kyoritsu Seiyaku Corp, Daiichi Sankyo Propharma, Teikoku Seiyaku Co, Takeda Pharmaceutical, Nabelin Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sumitomo Corp Korea, Summit Pharmaceuticals Europe Ltd, Asahi Kasei Chemicals, Orion Corp, Orion Pharma, Perkinermer Health Science, ATTC, Sumitomo Seika Chemicals, Sumitomo Bakelite Co, Koei Chemical Co, Kawaken Fine Chemicals, Sumitomo Corp China, other

Payment record: No complaints

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

Bank References:

SMBC (Tokyo)

MUFG (Jinbocho)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/03/2015	31/03/2014	31/03/2013	31/03/2012
Annual Sales		17,100	16,318	16,595	16,051
Recur. Profit		900	869	1,622
Net Profit		500	2,465	201	458
Total Assets			9,301	7,984	6,711
Current Assets			8,628	7,359
Current Liabs			4,380	4,817
Net Worth			4,837	3,065	2,950
Capital, Paid-Up			480	480	480
Div Ttl in Million(¥)			715.4	609	503
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		4.79	-1.67	3.39	2.46
Current Ratio		..	196.99	152.77	..
N.Worth Ratio		..	52.01	38.39	43.96
R.Profit/Sales		5.26	5.33	9.77	..
N.Profit/Sales		2.92	15.11	1.21	2.85
Return On Equity		..	50.96	6.56	15.53

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 :	SUM
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.