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Report No. : |
309396 |
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Report Date : |
24.02.2015 |
IDENTIFICATION DETAILS
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Name : |
KOWA COMPANY LTD |
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Registered Office : |
3-6-29 Nishiki Nakaku Nagoya 460-8625 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
November 1939 |
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Com. Reg. No.: |
1800-01-035811 (Nagoya-Nakaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Pharmaceuticals, Medical Equipment; Import, export, wholesale of textiles, apparel, machinery, chemicals, other. |
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No. of Employee : |
5,819 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
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Source
: CIA |
KOWA COMPANY LTD
Kowa KK
3-6-29 Nishiki Nakaku
Nagoya 460-8625 JAPAN
Tel: 052-963-3033
E-Mail
address: info@kowa.co.jp
Mfg of
pharmaceuticals, medical equipment;
Import,
export, wholesale of textiles, apparel, machinery, chemicals, other
Tokyo,
Osaka, Sapporo, Sendai, Yokohama, Okayama, Fukuoka, etc. (Tot 23)
USA
(4), Chile, Europe (5), Asia/Pacific (3) (--affiliates)
Chofu,
Fuji, Gamagori, Nagoya, Hamamatsu, Mooka
YOSHIHIRO
MIWA, PRES Torao Yamamoto, v pres
Koichi
Shiraishi, s/mgn dir Koji
Yamashita, s/mgn dir
Tanio Nohara, mgn dir Toshio Inagi, mgn dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 189,681 M
PAYMENTSREGULAR CAPITAL Yen
3,840 M
TREND SLOW WORTH Yen 109,317 M
STARTED 1939 EMPLOYES 5,819
MFR OF PHARMACEUTICALS; IMPORT, EXPORT AND WHOLESALE OF
TEXTILES, MACHINERY, OTHERS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
The
subject company was established on the basis of mfg division separated from
Kowa Spinning Co, founded in 1912, Nagoya.
The subject has two major operations: Mfg Division: pharmaceuticals, medical equipment, electronic
devices, optical equipment, broadcasting devices; Trading Division: import, export, wholesale of textiles, apparel,
machinery, building materials, chemicals, consumer goods, other. This is a well-known mfr of digestive
medicines, cholesterol-lowering agents, hypertensive agents, etc. Also handles health-care foods. Group consists of about 70 firms centering in
4 core firms: Kowa Spinning Co Ltd, Kowa Co Ltd, Kowa Pharmaceutical Co Ltd,
and Kowa Shinyaku Co Ltd. In Oct 2006
acquired Nikken Chemical Co Ltd, mfr of pharmaceuticals, to make it a
consolidated subsidiary. In Jul 2007,
transferred R&D & mfg divisions from Kowa Pharmaceutical Co Ltd in
order to streamline group operations.
Kowa Pharmaceutical is now engaged in marketing and wholesaling
businesses. In Sept 2008 acquired
ProEthic Pharmaceutical Inc, USA, and renamed it as Kowa Pharmaceutical America
Inc to make it a consolidated subsidiary.
Overseas
affiliates (pharmaceuticals): Kowa Pharmaceutical Europe Co Ltd, Kowa
Research Europe Ltd (--UK); Kowa Research Institute Inc, Kowa Pharmaceutical
America Inc (--USA); Kowa Europe GmbH, La Esperanza Delaware Corp; Kowa Asia
Ltd; Easiatic Investment Ltd, other
The
sales volume for Mar/2014 fiscal term amounted to Yen 189,681 million, a 14%
down from Yen 220,321 million in the previous term. The recurring profit was posted at Yen 2,679
million and the net profit at Yen 1,401 million, respectively, compared with Yen
2,536 million recurring profit and Yen 1,550 million net profit, respectively,
a year ago. (The group consolidated
sales Yen 359,610 million, operating profit Yen 6,985 million, recurring profit
Yen 5,738 million, net profit Yen 1,679 million).
For the
current term ending Mar 2015 the recurring profit is projected at Yen 2,700
million and the net profit at Yen 1,500 million, respectively, on a 5% rise in
turnover, to Yen 200,000 million.
Business is seen steadily expanding.
.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
Date Registered: Nov 1939
Regd No.: 1800-01-035811
(Nagoya-Nakaku)
Legal Status: Limited Company (Kabushiki
Kaisha)
Authorized: 96.3 million shares
Issued:
37,770,000
shares
Sum: Yen
3,840 million
Major
shareholders (%): Company’s Treasury Stock (18.8),
Kowa Spinning (18.7), MUFG (3.9), Mizuho Bank (3.6), Meito Sangyo (3.0), other
No. of shareholders: 1,122
Nothing
detrimental is known as to the commercial morality of executives.
Activities: This
is a trading house with mfg division:
(Sales Breakdown by divisions):
Manufacturing Division (39%): Ethical
products (analgesic drugs, anti-allergic drugs, cardiovascular drugs,
dermatological drugs, ophthalmologic drugs; OTC products (dermatological
products, gastrointestinal products, respiratory products, topical analgesic
products, tonic, quasi-drugs, health foods & drinks; Sporting optics
(binoculars, dig scoping, eye pieces, lenses); Medical equipment (automatic
perimeters, binocular loops, digital imaging, digital imaging, fundus camera,
anterior segment of the eye, tonometers/perimeters); Audio Video (PXID flash
memory, hotkey audio player, professional video & broadcasting equipment);
fishing gears, others;
Wholesaling Division (45%): Imports,
exports and wholesales textiles, textile materials, apparel, machinery,
building materials, chemicals, consumer goods;
Other
Divisions (16%): Real estate business, hotel operation, insurance brokerage,
printing, others.
Overseas sales ratio (36%).
Clients:
[Pharmaceutical mfrs, wholesalers] Takisada Osaka, Mediceo Paltac Holdings,
Kowa Shinyaku, Kurabo Ind, Suzuken Co, Alfresa Corp, Kowa Pharmaceutical, Toho
Pharmaceutical, Adani Global Pte, Gudami International, other.
Exports to Europe, USA, Korea, India, Australia, China,
other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Kowa Spinning, Mitsubishi Rayon, Sanrio Co, Nissan Chemical
Ind, Teika Pharmaceutical, SQM Japan, Yutaka Sangyo, Gudami International,
Nissan Chemical Ind, other.
Payment
record: Regular
Location:
Business area in Nagoya. Office premises
at the caption address are owned and maintained satisfactorily.
Bank
References:
MUFG
(Nagoya)
Mizuho Bank
(Nagoya)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
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Annual
Sales |
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200,000 |
189,681 |
220,321 |
292,332 |
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Recur.
Profit |
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2,700 |
2,679 |
2,536 |
9,616 |
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Net
Profit |
|
1,500 |
1,401 |
1,550 |
11,721 |
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Total
Assets |
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297,567 |
283,859 |
259,443 |
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Current
Assets |
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|
103,962 |
104,321 |
102,975 |
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Current
Liabs |
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109,550 |
115,556 |
111,766 |
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Net
Worth |
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|
109,317 |
109,779 |
104,328 |
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Capital,
Paid-Up |
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|
3,840 |
3,840 |
3,840 |
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Div.P.Share(¥) |
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|
18.00 |
18.00 |
18.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.44 |
-13.91 |
-24.63 |
9.79 |
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Current Ratio |
|
.. |
94.90 |
90.28 |
92.13 |
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N.Worth Ratio |
|
.. |
36.74 |
38.67 |
40.21 |
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R.Profit/Sales |
|
1.35 |
1.41 |
1.15 |
3.29 |
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N.Profit/Sales |
|
0.75 |
0.74 |
0.70 |
4.01 |
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Return On Equity |
|
.. |
1.28 |
1.41 |
11.23 |
Notes: Forecast figures for the
31/03/2015 fiscal term
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.18 |
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|
1 |
Rs.95.71 |
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Euro |
1 |
Rs.70.76 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.