MIRA
INFORM REPORT
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Report No. : |
301900 |
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Report Date : |
28.01.2015 |
IDENTIFICATION DETAILS
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Name : |
TOWA PHARMACEUTICAL CO LTD |
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Registered Office : |
2-11 |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April, 1957 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Generic Drugs |
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No. of Employees : |
1,693 |
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
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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 |
Company Name and address
TOWA PHARMACEUTICAL CO LTD
REGD NAME: Towa
Yakuhin KK
MAIN OFFICE: 2-11
Tel:
06-6900-9100 Fax:
06-6908-2138 -
URL: http://www.towayakuhin.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of
generic drugs
BRANCHES
Tokyo,
Sendai, Sapporo, Aomori, Gunma, Niigata, Nagano, other (Tot 60)
FACTORIES
Kadoma
(Osaka), Okayama, Yamagata (2)
CHIEF EXEC
ITSURO
YOSHIDA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 61,351 M
PAYMENTS REGULAR CAPITAL Yen 4,717 M
TREND UP WORTH Yen
60,147 M
STARTED 1957 EMPLOYES 1,693
COMMENT
MFR OF ETHICAL DRUGS
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is
the leading mfr of generic drugs. Noted
for direct marketing expertise, and has strong customer base among circulatory
system-related doctors, mainly practitioners, but sales expanding to dispensing
pharmacies and hospitals. Stressing
direct sales. Mfg plant of bulk drug
substance will be invested total of Yen 6 billion and production will commence
Mar 2015.
FINANCIAL INFORMATION
The
sales volume for Mar/2014 fiscal term amounted to Yen 61,351 million, an 11% up
from Yen 55,241 million in the previous term.
Sales of antihypertensive drugs did well. The recurring profit was posted at Yen 8,834
million and the net profit at Yen 5,992 million, respectively, compared with Yen
9,544 million recurring profit and Yen 6,201 million net profit, respectively,
a year ago.
(Apr/Sept/2014
results): Sales Yen 33,468 million (up 17.2%), operating profit Yen 4,183
million (up 34.1%), recurring profit Yen 5,550 million (up 76.7%), net profit
Yen 4,068 million (up 101.4%). (% as
compared with the corresponding period a year ago).
For
the current term ending Mar 2015 the recurring profit is projected at Yen 7,800
million and the net profit at Yen 5,300 million, respectively, on a 17.4% rise
in turnover, to Yen 72,000 million.
Sales of antihypertensive drugs, etc, will continue growing, supported
by the government’s policy of promoting generic drugs.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Apr
1957
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 49 million shares
Issued:
17,172,000 shares
Sum: Yen 4,717 million
Major
shareholders (%): Yoshida Jimusho (27.3), Yoshida Kosan (11.6), Goldman Sachs
(Regular) Acct (3.5), Itsuro Yoshida (2.8), Company’s Kyoeikai Assn (2.4),
State Street Bank & Trust 505044 (2.4), Pictet & Cie (Europe) (2.1),
Japan Trustee Services T (1.9), Yoshida Estate (1.7), Employees’ S/Holding Assn
(1.5); foreign owners (22.5)
No. of
shareholders: 4,061
Listed on the S/Exchange (s) of: Tokyo
Managements:
Itsuro Yoshida, pres; Takashi Osawa, s/mgn dir; Takeshi Harima, mgn dir;
Takeshi Noguchi, mgn dir; Shun Inokuma, mgn dir; Masayoshi Fujimoto, dir; Keiji
Yabushita, dir; Yoshiaki Nishikawa, dir; Sadayuki Morino, dir; Shigeru Maeyama,
dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies: J-DOLPH Pharmaceutical Co, Daiichi
Kasei Co, other.
OPERATION
Activities: Manufactures ethical drugs:
circulatory & respiratory agents (42%), nervous & allergic agents
(14%), digestive agents (18%), others (26%)
Clients: [Mfrs, wholesalers] Hospitals,
clinics, drug stores (--56.1%), Keiyo Towa
Pharmaceutical, Yamato Medical,
other
No. of
accounts: 500
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Nipro, Kainos, Miwa, Sanyo Chemical Lab, other
Payment record:
Regular
Location: Business area in Osaka. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG
(Kadoma)
Mizuho
Bank (Moriguchi)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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61,351 |
55,241 |
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Cost of Sales |
31,121 |
27,500 |
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GROSS PROFIT |
30,230 |
27,741 |
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Selling & Adm Costs |
22,523 |
20,018 |
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OPERATING PROFIT |
7,706 |
7,723 |
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Non-Operating P/L |
1,128 |
1,821 |
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RECURRING PROFIT |
8,834 |
9,544 |
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NET PROFIT |
5,992 |
6,201 |
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BALANCE SHEET |
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Cash |
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6,038 |
3,485 |
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Receivables |
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19,505 |
17,247 |
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Inventory |
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22,673 |
45,670 |
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Securities, Marketable |
4,637 |
3,000 |
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Other Current Assets |
3,941 |
(52,353) |
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TOTAL CURRENT ASSETS |
56,794 |
17,049 |
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Property & Equipment |
42,587 |
37,997 |
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Intangibles |
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906 |
768 |
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Investments, Other Fixed Assets |
3,031 |
33,891 |
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TOTAL ASSETS |
103,318 |
89,705 |
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Payables |
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9,775 |
7,482 |
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Short-Term Bank Loans |
1,400 |
400 |
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Other Current Liabs |
13,582 |
11,637 |
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TOTAL CURRENT LIABS |
24,757 |
19,519 |
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Debentures |
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Long-Term Bank Loans |
16,620 |
12,908 |
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Reserve for Retirement Allw |
13 |
29 |
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Other Debts |
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1,780 |
1,639 |
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TOTAL LIABILITIES |
43,170 |
34,095 |
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MINORITY INTERESTS |
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Common
stock |
4,717 |
4,717 |
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Additional
paid-in capital |
7,870 |
7,870 |
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Retained
earnings |
48,049 |
43,536 |
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Evaluation
p/l on investments/securities |
131 |
124 |
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Others |
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19 |
1 |
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Treasury
stock, at cost |
(639) |
(638) |
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TOTAL S/HOLDERS` EQUITY |
60,147 |
55,610 |
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TOTAL EQUITIES |
103,318 |
89,705 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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8,144 |
8,645 |
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Cash
Flows from Investment Activities |
-11,300 |
-11,298 |
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Cash Flows
from Financing Activities |
3,529 |
2,793 |
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Cash,
Bank Deposits at the Term End |
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4,675 |
2,985 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
60,147 |
55,610 |
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Current
Ratio (%) |
229.41 |
87.35 |
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Net
Worth Ratio (%) |
58.22 |
61.99 |
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Recurring
Profit Ratio (%) |
14.40 |
17.28 |
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Net
Profit Ratio (%) |
9.77 |
11.23 |
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Return
On Equity (%) |
9.96 |
11.15 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.46 |
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1 |
Rs.92.77 |
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Euro |
1 |
Rs.69.03 |
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.