MIRA INFORM REPORT

 

 

Report No. :

349421

Report Date :

07.11.2015

 

IDENTIFICATION DETAILS

 

Name :

R-TECH UENO LTD

 

 

Registered Office :

NBF Hibiya Bldg 10F, 1-1-7 Uchisaiwaicho Chiyodaku Tokyo 100-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

September 1989

 

 

Com. Reg. No.:

0100-01-089756

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of Pharmaceuticals 

 

 

No. of Employees :

79

 

 

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 145.8 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

Company name

 

R-TECH UENO LTD

 

 

REGD NAME

 

R-Tech Ueno KK

 

 

MAIN OFFICE

 

NBF Hibiya Bldg 10F, 1-1-7 Uchisaiwaicho Chiyodaku Tokyo 100-0011 JAPAN

Tel: 03-3596-8011     Fax: 03-3596-8023-

 

URL:                 http://www.rtecueno.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of pharmaceuticals (ophthalmology)

 

 

BRANCHES   

 

Kobe

 

 

FACTORIES

 

Sanda (Hyogo)

 

 

CHIEF EXEC 

 

YUKIHIKO MASHIMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES       Yen 6,681 M

PAYMENTS      REGULAR         　CAPITAL        Yen 662 M

TREND STEADY           　WORTH         Yen 12,083 M

STARTED         1989                 　EMPLOYES   79

 

 

COMMENT    

 

MFG OF PHARMACEUTICALS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 145.8 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Unit: In Million Yen

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

 

HIGHLIGHTS

 

This is mfr/R&D supporter of pharmaceuticals in the specific fields of ophthalmology & dermatology.  “Amitiza” brand enjoys market expansion in US.  The world’s first retinitis pigmentosa curative is currently being re-examined due to reconsideration of target patients.  Has a close tie with a US drug development venture Sucampo Pharmaceuticals Inc, established by Dr Ueno and others.  Clients include major pharmaceutical makers, hospitals, university hospitals, other.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2015 fiscal term amounted to Yen 6,681 million, an 18.9% up from Yen 5,618 million in the previous term.  The recurring profit was posted at Yen 1,884 million and the net profit at Yen 1,377 million, respectively, compared with Yen 1,477 million recurring profit and Yen 1,062 million net profit, respectively, a year ago. 

 

            (Apr/Jun/2015 results): Sales Yen 1,768 million (up 54.2%), operating profit Yen 183 million (up 32.5%), recurring profit Yen 225 million (up 65.6%), net profit Yen 171 million (up 49.7%).  (% as compared with the corresponding period a year ago).

           

            For the current term ending Mar 2016 the recurring profit is projected at Yen 2,303 million and the net profit at Yen 1,612 million, respectively, on a 12.0% rise in turnover, to Yen 7,483 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 145.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　                   Sept 1989

Regd No.:                                 0100-01-089756 (Tokyo-Chiyodaku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                               192,000 million shares

Issued:                          98,444 shares

Sum:                             Yen 653 million

 

Major shareholders (%): S&R Technology Holdings LLC (32.9), Ryuji Ueno (16.5), Sachiko Kuno (10.3), ORIX Corp (9.1), Master Trust Bank of Japan T (1.2), SBI Securities (0.9), Toshiko Ueno (0.8), Japan Securities Finance (0.5), Morgan Stanley MUFG Securities (0.5), Takaya Ueno (0.4); foreign owners (34.6)

 

No. of shareholders: 6,465

 

Listed on the S/Exchange (s) of: JASDAQ

 

Managements: Yukihiko Mashima, pres; Tadashi Hayashi, mgn dir

 

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

 

 

OPERATION

           

Activities: Manufactures pharmaceuticals: “Rescula” eye drop (19%), “Amitiza” capsule (79%), Drug R&D Support (1%)

Exports (56%)

           

Clients: [Pharmaceutical mfrs, wholesalers] Santen Pharmaceutical Co, Astellas Pharma Inc, Takeda Pharmaceutical Co, other

No. of accounts: 600

Domestic areas of activities: Nationwide

 

Suppliers: [Mfr] Nissan Chemical Ind, Catalent Pharma Solutions LLC, other

 

Payment record: Regular

 

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

 

Bank References:

                        Mizuho Bank (Shimbashi)

                        MUFG (Osaka-Chuo)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

6,681

5,618

　

  Cost of Sales

2,286

2,026

　

      GROSS PROFIT

4,395

3,592

　

  Selling & Adm Costs

2,664

2,172

　

      OPERATING PROFIT

1,731

1,419

　

  Non-Operating P/L

153

58

　

      RECURRING PROFIT

1,884

1,477

　

      NET PROFIT

1,377

1,062

BALANCE SHEET

　

　

  Cash

　

7,762

6,615

　

  Receivables

824

415

　

  Inventory

1,542

1,318

　

  Securities, Marketable

　

　

　

  Other Current Assets

547

647

　

      TOTAL CURRENT ASSETS

10,675

8,995

　

  Property & Equipment

348

415

　

  Intangibles

62

87

　

  Investments, Other Fixed Assets

4,700

1,902

　

      TOTAL ASSETS

15,785

11,399

　

  Payables

360

189

　

  Short-Term Bank Loans

　

　

　

　

　

　

　

  Other Current Liabs

800

717

　

      TOTAL CURRENT LIABS

1,160

906

　

  Debentures

　

　

　

  Long-Term Bank Loans

1,049

647

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

1,493

654

　

      TOTAL LIABILITIES

3,702

2,207

　

      MINORITY INTERESTS

　

　

Common stock

662

659

　

Additional paid-in capital

601

598

　

Retained earnings

7,637

6,742

　

Evaluation p/l on investments/securities

3,108

1,142

　

Others

75

51

　

Treasury stock, at cost

　

　

　

      TOTAL S/HOLDERS` EQUITY

12,083

9,192

　

      TOTAL EQUITIES

15,785

11,399

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

1,138

1,428

　

Cash Flows from Investment Activities

-30

-107

　

Cash Flows from Financing Activities

-82

114

　

Cash, Bank Deposits at the Term End

　

4,362

3,215

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

12,083

9,192

　

Current Ratio (%)

920.26

992.83

　

Net Worth Ratio (%)

76.55

80.64

　

Recurring Profit Ratio (%)

28.20

26.29

　

Net Profit Ratio (%)

20.61

18.90

　

　

Return On Equity (%)

11.40

11.55

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.94

Euro

1

Rs.71.54

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.