MIRA INFORM REPORT

 

 

Report No. :

347717

Report Date :

31.10.2015

 

IDENTIFICATION DETAILS

 

Name :

QUALICAPS CO LTD

 

 

Registered Office :

321-5 Ikezawacho Yamatokoriyama Nara City 639-1032

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

April, 1965

 

 

Com. Reg. No.:

(Nara-Yamatokoriyama) 005846

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Capsules, Capsule Filling & Sealing Equipment.

 

 

No. of Employees :

332

 

 

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 – 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 and address

 

QUALICAPS CO LTD

 

REGD NAME:               Qualicaps KK

 

MAIN OFFICE:              321-5 Ikezawacho Yamatokoriyama Nara City 639-1032 JAPAN

                                                Tel: 0473-56-0651     Fax: 0743-56-6666

                       

URL:                             http://www.qualicaps.co.jp   

E-Mail address:                        contact@qualicaps.co.jp

 

 

ACTIVITIES

 

Mfg of capsules, capsule filling & sealing equipment

 

 

BRANCHES

 

Nil

 

 

FACTORY

 

At the caption address

 

 

OVERSEAS     

 

Qualicaps Inc (USA); Qualicaps Europe SA (Spain), Rumania, Canada (--subsidiaries)

 

 

OFFICERS

 

YOJI DATE, PRES                                Shigeru Tsuyuki, ch

Shiro Afmada, dir (phonetic only)           Seiichi Kiso, dir

Akihiro Watanabe, dir                

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 11,275 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 2,880 M

TREND STEADY                       WORTH                        Yen 10,949 M

STARTED         1965                             EMPLOYES                  332

 

 

COMMENT

 

MFR OF GELATIN CAPSULES, CAPSULE FILLING MACHINED, OWNED BY MITSUBISHI CHEMICAL HOLDINGS CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established originally as JV between Eli Lilly (USA) and Shionogi & Co Ltd, major  antibiotics mfr, Osaka, for advancing into mfg gelatin capsules and capsule filling machines for the pharmaceutical & dietary supplement industries.  In Dec 2005, Singe’s stocks were bought by Carlyle Group’s private equity firm, USA by MBO and its name was deleted from the corporate title and became independent as Qualicaps Co Ltd.  In Mar 2013 the stockholder was changed from the Carlyle Group to Mitsubishi Chemical Holdings Corp (See REGISTRATION). The firm specializes in mfg hard gelatin capsules, HPMC capsules, capsule filling & sealing equipment. Two overseas subsidiaries in USA and Spain are also engaged in mfg of these capsules. They are imported, too.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 11,275 million, a 46% up from Yen 1,925 million (for irregular 3 months due to change in accounting term) in the previous term.  Growth rates are adjusted on a 12-month basis.  The recurring profit was posted at 3,680 million and the net profit at Yen 2,213 million, respectively, compared with Yen 1,891 million recurring profit and Yen 1,758 million net profit, respectively, for 3 months a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 3,750 million and the net profit at Yen 2,300 million, respectively, on a 3% rise in turnover, to Yen 11,600 million.    

 

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

 

 

REGISTRATION

 

            Date Registered:  Apr 1965

            Regd No.:             (Nara-Yamatokoriyama) 005846

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:         401,425 shares

            Issued:                401,425 shares

            Sum:                   Yen 2,880.87 million

Major shareholders (%): Life Science Institute Inc* (100)

 

*.. Holding company of 4 firms under Mitsubishi Chemical Holdings Corp**, Tokyo, founded 2014, capital Yen 30,000 million, sales Yen 129,000 million, employees 4,429, pres Seiichi Kiso

 

**.. Major comprehensive chemical mfr, Tokyo, founded 2005, listed Tokyo S/E, capital Yen 50,000 million, sales Yen 3,656,278 million, operating profit Yen 165,581 million, recurring profit Yen 163,059 million, net profit Yen 60,859 million, total assets Yen 3,308,491 million, net worth Yen 1,015,211 million, employees 68,730, pres Hitoshi Ochi

           

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

 

 

OPERATION

 

Activities: Manufactures hard gelatin capsules, HPMC capsules, capsule filling & sealing equipment, and  pharmaceutical-related equipment & supplies (--100%).

 

Clients: [Pharmaceutical mfrs, dietary supplement mfrs] Eisai Co, Shionogi & Co, Tanabe Seiyaku, Takeda Pharmaceutical, Dainippon Sumitomo Pharma, Chugai Pharmaceutical, Ono Pharmaceutical, Astellas Pharma, Sato Yakuhin Kogyo, FNCL, DHC, Astra Zeneca, JGC Corp, Sawai Pharmaceutical, other.  

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nitta Gelatin, Shin-Etsu Chemical Ind, Rousselot Japan,    Hilltop, Nippon Electro- Sensory Devices Co, other.

 

Payment record: No Complaints

 

Location: Business area in Yamatokoriyama City, Nara-Pref. Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

            MUFG (Nara)

            SMBC (Osaka)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/12/2013

Annual Sales

 

11,600

11,275

1,925

9,628

Recur. Profit

 

3,750

3,680

1,891

2,778

Net Profit

 

2,300

2,213

1,758

2,110

Total Assets

 

 

23,497

25,648

24,027

Current Assets

 

 

7,661

10,208

7,686

Current Liabs

 

 

11,607

13,766

13,800

Net Worth

 

 

10,949

10,874

9,200

Capital, Paid-Up

 

 

2,880

2,880

2,880

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

2.88

46.44

-20.02

1.78

    Current Ratio

 

..

66.00

74.15

55.70

    N.Worth Ratio

 

..

46.60

42.40

38.29

    R.Profit/Sales

 

32.33

32.64

98.23

28.85

    N.Profit/Sales

 

19.83

19.63

91.32

21.92

    Return On Equity

 

..

20.21

16.17

22.93

 

Notes:

The 31/0/2014 fiscal term is for irregular 3 months due to change in accounting term to Apr/Mar from the previous Jan/Dec term. The growth rates are adjusted on a regular 12-month basis Forecast (or estimated) for the 31/03/2016 fiscal term.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.22

UK Pound

1

Rs.99.93

Euro

1

Rs.71.67

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.