MIRA INFORM REPORT

Report Date :

19.09.2014

IDENTIFICATION DETAILS

Name :	RIKEN VITAMIN CO LTD
Registered Office :	TDC Bldg, 2-9-18 Misakicho Chiyodaku Tokyo 101-8370
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	August 1949
Com. Reg. No.:	(Tokyo-Chiyodaku) 008815
Legal Form :	Limited Company
Line of Business :	Manufacture of vitamins, nutritional supplements, foodstuffs
No. of Employees :	3,121

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 3,313.0. Million
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 – 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 and address

RIKEN VITAMIN CO LTD

REGD NAME: Riken Vitamin KK

MAIN OFFICE: TDC Bldg, 2-9-18 Misakicho Chiyodaku Tokyo 101-8370 JAPAN

Tel: 03-5275-5130 Fax: 03-3237-2770

URL: http://www.rike-vita.co.jp/

E-Mail address: info@rike-vita.co.jp

ACTIVITIES

Mfg of vitamins, nutritional supplements, foodstuffs

BRANCHES

Tokyo, Osaka, Sapporo, Sendai, Gunma, Nagoya, Hiroshima, Fukuoka, other

OVERSEAS

China (5), Taiwan, Malaysia, Singapore, India, USA (2), Germany

FACTORIES

Tokyo (Itabashiku), Osaka, Chiba, Kyoto, Soka (Saitama)

CHIEF EXEC

YOSHIYASU SAKAI, PRES

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 85,419 M

PAYMENTS REGULAR CAPITAL Yen 2,537 M

TREND UP WORTH Yen 67,253 M

STARTED 1949 EMPLOYES 3,121

COMMENT

MFR SPECIALIZING IN VITAMINS & NUTRITIOUS SUPPLEMENTS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 3,313.0. MILLION, 30 DAYS NORMAL TERMS

Notes: Unit (In million Yen)

Forecast (or estimated) figures for 31/03/2015 fiscal term

HIGHLIGHTS

The subject company was established on the basis of a division separated from Riken Eiyo Yakuhin to become independent, with natural vitamin A as mainline. Gradually diversified into food additives, seasonings & processed foods. Strong in fast foods and features seaweed-based products, both for consumers and commercial use. Has capital/business alliance with Kikkoman Corp since June 2008. Venturing into India. In Sept 2009, the firm withdrew from production/marketing of raw Wakame seaweed, also terminated production & marketing of electronics precision parts due to stagnant orders. Production/marketing subsidiary became chemical product mfg plant from spring 2010.

FINANCIAL INFORMATION

The sales volume for Mar/2014 fiscal term amounted to Yen 85,419 million, a 10.1% up from Yen 77,568 million in the previous term. New products contributed to dressing sales. Both home and commercial-use seaweed sales grew. Overseas sales of food improving agents continued to grow. The recurring profit was posted at Yen 5,294 million and the net profit at Yen 3,590 million, respectively, compared with Yen 3,741 million recurring profit and Yen 2,406 million net profit, respectively, a year ago.

(Apr/Jun/2014 results): Sales Yen 20,052 million (down 0.5 %%), operating profit Yen 1,123 million (down 13.9%), recurring profit Yen 1,174 million (down 1.75%), net profit Yen 833 million (down 17.8%). (% compared with the corresponding period a year ago).

For the current term ending Mar 2015 the recurring profit is projected at Yen 6,00 million and the net profit at Yen 4,000 million, respectively, on a 5.4% rise in turnover, to Yen 90,000 million. Growth in overseas business will carry on picking up speed.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,313.0 million, on 30 days normal terms.

REGISTRATION

Date Registered: Aug 1949

Regd No.: (Tokyo-Chiyodaku) 008815

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 90 million shares

Issued: 23,652,550 shares

Sum: Yen 2,537 million

Major shareholders (%): Kikkoman Corp (32.1), Takeda Pharmaceutical (8.7), Company’s Treasury Stock (6.5), Customers’ S/Holding Assn (4.3), Company’s Treasury Stock

(5.6), Mizuho Bank (4.6), Takanoshin Nagamochi (2.9), Mitsubishi UFJ Trust Bank (2.5),

MTBJ (Miyoshi Oil & Fat (2.2), MUFG (2.23), Itochu Corp (1.6); foreign owners (0.8)

No. of shareholders: 6,420

Listed on the S/Exchange (s) of: Tokyo (Second Section)

Managements: Yoshiyasu Sakai, pres; Takashi Yamashita, v pres; Shinpei Itoh, s/mgn dir; Hiroshi Osawa, mgn dir; Kazumi Nakayama, mgn dir; Kazuhiko Yamamoto, mgn dir; Hiroshi Zoku dir; Kiyoo Hirotani, dir; Takahisa Nakano, dir; Kazuyuki Sashida, dir

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

Related companies: Riken Food, Kenseido, Eiken Shoji, Shinwa Food, other

OPERATION

Activities: Manufactures foodstuffs (67%): consumer & commercial foods, processed food ingredients, seasonings, food additives, flavoring agents; nutritional supplements (8%); vitamins, plastic additives, others (7%), others (18%)

Overseas Sales Ratio (24%)

Clients: [Wholesalers, food processors] Ryoshoku Ltd, Itochu Shokuhin, Japan Access, Kato Sangyo, Mitsubishi Foods, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Riken Food, Dainippon Pharmaceutical, Arden Co, other

Payment record: Regular

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

Bank References:

Mizuho Bank (Tokyo)

MUFG (Jinbocho)

Relations: Satisfactory

FINANCES

(In Million Yen)

FINANCES: (Consolidated in million yen)
		Terms Ending:	31/03/2014	31/03/2013
INCOME STATEMENT
	Annual Sales		85,419	77,568
	Cost of Sales		60,501	54,932
	GROSS PROFIT		24,918	22,635
	Selling & Adm Costs		19,890	19,035
	OPERATING PROFIT		5,027	3,600
	Non-Operating P/L		267	141
	RECURRING PROFIT		5,294	3,741
	NET PROFIT		3,590	2,406
BALANCE SHEET
	Cash		15,212	12,869
	Receivables		21,544	21,292
	Inventory		17,943	16,502
	Securities, Marketable		1,117	1,009
	Other Current Assets		1,997	2,168
	TOTAL CURRENT ASSETS		57,813	53,840
	Property & Equipment		28,531	24,997
	Intangibles		1,034	840
	Investments, Other Fixed Assets		14,967	14,580
	TOTAL ASSETS		102,345	94,257
	Payables		9,263	10,355
	Short-Term Bank Loans		11,113	10,305
	Other Current Liabs		8,423	7,413
	TOTAL CURRENT LIABS		28,799	28,073
	Debentures
	Long-Term Bank Loans		1,010	148
	Reserve for Retirement Allw		906	1,936
	Other Debts		4,376	3,371
	TOTAL LIABILITIES		35,091	33,528
	MINORITY INTERESTS
	Common stock		2,537	2,537
	Additional paid-in capital		2,466	2,466
	Retained earnings		56,656	53,906
	Evaluation p/l on investments/securities		5,757	4,807
	Others		3,583	757
	Treasury stock, at cost		(3,746)	(3,745)
	TOTAL S/HOLDERS` EQUITY		67,253	60,728
	TOTAL EQUITIES		102,345	94,257

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.05
UK Pound	1	Rs.99.55
Euro	1	Rs.78.57

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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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.