MIRA INFORM REPORT

 

 

Report No. :

324096

Report Date :

22.05.2015

 

IDENTIFICATION DETAILS

 

Name :

KAWASUMI LABORATORIES INC

 

 

Registered Office :

Shinagawa Intercity Towers B 9F, 2-15-2 Konan Minatoku Tokyo 108-6109

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

June 1957

 

 

Com. Reg. No.:

3200-01-009417

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of medical equipment: blood bags, artificial kidney, other

 

 

No of Employees :

2,782

 

 

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 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. 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

 

KAWASUMI LABORATORIES INC

 

 

REGD NAME 

 

Kawasumi Kagaku Kogyo KK

 

 

MAIN OFFICE

 

Shinagawa Intercity Towers B 9F, 2-15-2 Konan Minatoku Tokyo 108-6109 JAPAN

Tel: 03-5769-2600     Fax: 03-5769-2715     -

 

*.. Registered at: 1077 Yayoi-Oda Saeki Oita-Pref

 

URL:                 http://www.kawasumi.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of medical equipment: blood bags, artificial kidney, other

 

 

BRANCHES

 

Sapporo, Sendai, Nagoya, Osaka, Fukuoka, other (Tot 11)

 

 

OVERSEAS   

 

USA, Germany, Thailand

 

 

FACTORIES  

 

Oita (3); Thailand

 

 

CHIEF EXEC

 

YOSHIO SAKAYA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　                     A/SALES          Yen 28,408 M

PAYMENTSNO COMPLAINTS    　         CAPITAL           Yen 6,642 M

TREND UP                    　                     WORTH            Yen 38,889 M

STARTED         1957                 　                     EMPLOYES      2,782

 

 

COMMENT    

 

MFR OF DISPOSABLE MEDICAL EQUIPMENT 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is a medium-scale disposable medical equipment mfr, particularly strong in blood bags, some of the adopted by Japanese Red Cross Society.  Artificial kidney using hollow polysulphone strings known for superior filtering function.  Artificial kidneys are exported mostly to Germany.  Operates JV in Thailand.  The company plans to give priority in management resources to the areas of endovascular treatments, blood purification treatments and surgery.  It is also considering OEM production on consignment to manufacturers in emerging markets with the aim of reducing costs.

 

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2015 fiscal term amounted to Yen 28,408 million, a 2.8% up from Yen 27,625 million in the previous term.  The recurring profit was posted at Yen 1,835 million and the net profit at Yen 975 million, respectively, compared with Yen 552 million recurring profit and Yen 606 million net profit, respectively, a year ago. 

 

            For the current term ending Mar 2016 the recurring profit is projected at Yen 1,800 million and the net profit at Yen 1,150 million, on a 2.1% rise in turnover, to Yen 29,000 million.  Sales of blood circuits will recover on the domestic market.  Sales of blood bags will also expand on overseas markets.

 

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

 

 

REGISTRATION

           

Date Registered:　                   Jun 1957

Regd No.:                                 3200-01-009417 (Oita-Saeki)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              50 million shares

Issued:                         22,948,003 shares

Sum:                            Yen 6,642 million

 

Major shareholders (%): Kuraray Co (9.8), Asahi Kasei Medical (8.7), Terumo Corp (5.2), Nippon Life Ins (3.2), JTSB (Mitsui Chemicals) (3.1), SMBC (3.1), Moriroku Holdings (2.6), Iyo Bank (2.1), Oita Bank (2.1), Olympus Corp (2.1); foreign owners (17.9)

 

No. of shareholders: 2,768

 

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

 

Managements: Yurihiro Kawano, ch Yoshio Sakaya, pres; Kenji Yamakawa, s/mgn dir; Shuji Suwa, mgn dir; Takashi Iseki, mgn dir; Noriaki Shirahama, mgn dir; Takeshi Saino, mgn dir; Shigeru Toda, mgn dir; Hideo Ohi, dir

 

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

 

Related companies: Kawasumi Laboratories Thailand, Kawasumi Laboratories America, other.

 

 

OPERATION

           

Activities: Manufactures disposable medical equipment: Blood & blood vessel-related (47%), In-vitro circulation-related (53%).

Overseas Sales Ratio (23%).

 

(Major Products): artificial organs, extracorporeal blood tubing lines, blood/solution administration sets, various disposable medical devices & other applications, blood bags, blood anti-coagulant solutions, intravenous solutions, and other pharmaceuticals.

 

Clients: [Hospitals, mfrs, wholesalers] Japanese Red Cross Society, Asahi Kasei Medical, Haemonetics Corp,

TI, Medi-Systems Solutions Co, A Nextage Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Kawasumi Laboratories Thailand, Asahi Kasei Medical,     Nippon Express, Sanyo Electronic Ind, Kawasumi Platech Inc, Pall Corp, other

 

Payment record: No Complaints

 

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

 

Bank References:

                        SMBC (Omori)

                        MUFG (Omori)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

28,408

27,625

　

  Cost of Sales

18,878

18,617

　

      GROSS PROFIT

9,529

9,008

　

  Selling & Adm Costs

8,123

8,402

　

      OPERATING PROFIT

1,406

606

　

  Non-Operating P/L

429

-54

　

      RECURRING PROFIT

1,835

552

　

      NET PROFIT

975

606

BALANCE SHEET

　

　

  Cash

　

13,895

9,733

　

  Receivables

7,296

7,171

　

  Inventory

6,003

5,540

　

  Securities, Marketable

　

　

　

  Other Current Assets

647

2,675

　

      TOTAL CURRENT ASSETS

27,841

25,119

　

  Property & Equipment

12,983

13,310

　

  Intangibles

173

216

　

  Investments, Other Fixed Assets

4,248

3,826

　

      TOTAL ASSETS

45,245

42,471

　

  Payables

2,242

2,016

　

  Short-Term Bank Loans

　

　

　

　

　

　

　

  Other Current Liabs

1,980

2,441

　

      TOTAL CURRENT LIABS

4,222

4,457

　

  Debentures

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

1,666

1,987

　

  Other Debts

　

468

497

　

      TOTAL LIABILITIES

6,356

6,941

　

      MINORITY INTERESTS

　

　

Common stock

6,642

6,642

　

Additional paid-in capital

6,462

6,462

　

Retained earnings

23,620

22,709

　

Evaluation p/l on investments/securities

939

209

　

Others

1,282

(436)

　

Treasury stock, at cost

(56)

(56)

　

      TOTAL S/HOLDERS` EQUITY

38,889

35,530

　

      TOTAL EQUITIES

45,245

42,471

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

5,059

4,572

　

Cash Flows from Investment Activities

-844

-3,785

　

Cash Flows from Financing Activities

-365

-365

　

Cash, Bank Deposits at the Term End

　

13,630

9,605

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

38,889

35,530

　

Current Ratio (%)

659.43

563.59

　

Net Worth Ratio (%)

85.95

83.66

　

Recurring Profit Ratio (%)

6.46

2.00

　

Net Profit Ratio (%)

3.43

2.19

　

　

Return On Equity (%)

2.51

1.71

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.70

UK Pound

1

Rs. 98.91

Euro

1

Rs. 70.66

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.