MIRA INFORM REPORT

Report No. :	317830
Report Date :	24.04.2015

IDENTIFICATION DETAILS

Name :	KYORITSU SEIYAKU CORPORATION
Registered Office :	GREENOAK KUDAN 2F, 1-11-5 Kudan-Kita Chiyodaku, Tokyo, 102-0073
Country :	Japan
Financials (as on) :	31.05.2015
Date of Incorporation :	May 1955
Com. Reg. No.:	0100-01-014420
Legal Form :	Not Available
Line of Business :	Subject is engaged in Import, Export, Wholesale, Manufacturer of veterinary prescription animal drugs: vaccine, vitamin, antibacterial agents, anthelmintic agents, animal feeds, pet foods, supplement.
No. of Employee :	432

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

	KYORITSU SEIYAKU CORPORATION
Japanese company name	KYORITSU SEIYAKU KK (Kabushiki kaisha/Seiyaku means Pharmaceuticals)
Registered Office
1. Street Number and District	GREENOAK KUDAN 2F, 1-11-5 Kudan-Kita Chiyodaku
2. City and Perefecture	Tokyo
3. ZIP Code	102-0073
4. Country	JAPAN
	*Registered at…1-5-10 Kudan-Minami Chiyodaku Tokyo
TEL	03-3263-2931
FAX	03-3230-2308
URL	www.kyoritsuseiyaku.co.jp/
Email Address	thru the URL
Activities (Services & Products) Import/Export/Wholesale/Mfg of veterinary prescription animal drugs: vaccine, vitamin, antibacterial agents, anthelmintic agents, animal feeds, pet foods, suppliment, other.
SUMMARY OF REPORT
Annual Sales (MM YEN)	36,455
Capital Amount (MM YEN)	55
Net Worth (MM YEN)	Unavailable
FINANCES	FAIR
TREND	STEADY
EMPLOYEES	432
OTHER INFORMATION FOLLOWS
Year Started	1955
Month and Year Registered	May. 1955
Regd No.	0100-01-014420
Major Shareholders
1	Takaaki Takai (73%)
2	Yuhei Okamoto (14%)
3	Other
Number of Shareholders	13
Authorized Shares	280,000
Issued Shares	100,000
Executives
PRESIDENT	TAKAAKI TAKAI
Chairman	Yuhei Yamamoto
Vice President	Seiichi Hirano
Mgn Director	Kazuhiro Fujita
Director	Makoto Hagiwara
Director	Hidedo Ariyoshi
Main Banks
1	Mizuho Bank (Kudan)
2	SMBC (Kanda)
Relations	Satisfactory
Clients
1	Aesop Yakuhin
2	Morikubo Yakuhin
3	Asuko
4	Sun Daiko
5	Other
Suppliers
1	Toray Ind
2	Idemitsu Kosan Corporation
3	Canine Japan
4	Pet Ag
5	Other
Branches
1	Sapporo
2	Sendai
3	Saitama
4	Osaka
5	Other (total 11)
Factories
1	Saitama
2	Hiroshima
3	Tsukuba (R&D center/factory)
4	Kanagawa (distribution center/ total 3)
Overseas
1	None
HIGHLIGHT and COMMENT The subject company is a leading trading house specializing in animal medicines, established by late Yukiko Takei's husband. This is a specialized trader, with mfg division, for import and wholesale of veterinary drugs, all for prescription by veterinary surgeons, such as vaccine, vitamins, etc. Also handles pulicide, antibacterial agents, anthelmintic agents, pet foods, suppliment foods, all for animals. Animal feeds are also handled. Nation's top-ranked wholesaler of animal drugs. Vaccines are produced by a subsidiary maker, starting in 1969. Have wide business tie-ups with about 20 overseas mfrs, such as Fort Dodge Animal Health, Master Foods (--USA), Inter-bet International, Abbot Laboratories, Animal Health Options, Addison Biological Laboratory, other. In May 2009, launched production of flea/hard tick exterminator, the nation's first of such agents, and distributed in the market. In Jun 2010, merged a subsidiary, Kawasaki Seiyaku KK, producer of pharmaceuticals for agricultural & aquatic animals, Kawasaki. Went into business tie-up with Idemitsu Kosan in the area of livestock. Domestic clients include pharmaceuticals mfrs, wholesalers, other.
FINANCIAL information Finance partially disclosed
	The sales volume for May/2014 fiscal term amounted to Yen 36,455 million, a 4% up from Yen 35,002 million in the previous term. The recurring profit was posted at Yen 3,674 million and the net profit at Yen 2,222 million, respectively, compared with Yen 4,858 million recurring profit and Yen 3,443 million net profit, respectively, a year ago. For the term that ending May 2015 the net profit at Yen 2,266 million is estimated based on a 2% rise in turnover, to Yen 37,184 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 216.9 million, on 30 days normal terms.

THE FINANCIALS
Note: Forecast (or estimated) figures for the 31/05/2015 fiscal term
Terms Ending:	31/05/2015	31/05/2014	31/05/2013	31/05/2012
Annual Sales	37,184	36,455	35,002	32,754
Recur. Profit		3,674	4,858	3,397
Net Profit	2,266	2,222	3,443	2,201
Total Assets				27,975
Net Worth				20,230
Capital, Paid-Up				55
Div.P.Share(¥)		0.00	0.00	1,000.00
<Analytical Data>	(%)	(%)	(%)	(%)
S.Growth Rate	2.00	4.15	6.86
Current Ratio		..	..	..
N.Worth Ratio		..	..	72.31
N.Profit/Sales	6.10	6.10	9.84	6.72

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.93.19
UK Pound	1	Rs.94.94
Euro	1	Rs.67.56

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	ASH

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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