MIRA INFORM REPORT

 

 

Report No. :

338582

Report Date :

07.09.2015

 

IDENTIFICATION DETAILS

 

Name :

ELI LILLY JAPAN KK

 

 

Registered Office :

Sannomiya Plaza Bldg, 7-1-5 Isogamidori Chuoku Kobe 651-0086

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

November 1975

 

 

Com. Reg. No.:

1400-01-012176

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures pharmaceutical drugs for: central nerve system, endocrine system, metabolic, osteoporosis, oncology, animal drugs, other (--100%).

 

 

No. of Employees :

3,270

 

 

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 :

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 & address

 

ELI LILLY JAPAN KK

 

REGD NAME:   Nihon Eli Lilly KK

MAIN OFFICE:  Sannomiya Plaza Bldg, 7-1-5 Isogamidori Chuoku Kobe 651-0086 JAPAN

                                    Tel: 078-242-9000     Fax: 078-242-9502

 

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

E-mail:             (thru the URL)   

 

ACTIVITIES:     Mfg, processing of pharmaceutical drugs

BRANCHES:     Tokyo, Nagoya, Osaka, Sapporo, Niigata, Chiba, Kanazawa, other (Tot 22)

FACTORIES:    Kobe (Laboratory is attached)

 

OFFICER(S):     PATRIK JOHNSON, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 198,810 M

PAYMENTS      REGULAR                     CAPITAL           Yen 12,773 M

TREND             STEADY                       WORTH            Yen 38,174 M

STARTED         1975                             EMPLOYES      3,270

 

COMMENT:      MFR OF PHARMACEUTICAL DRUGS.  FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1965 as JV with Shionogi & Co Ltd, major pharmaceutical mfr, Osaka, and Eli Lilly USA, and subsequently in 1975 founded the independent entity as captioned.  Patrik Johnson took the pres office in Jan 2014.  This firm specializes in mfg pharmaceutical drugs for: central nerve, metabolic, oncology, osteoporosis, endocrine system, and animal drugs.  Clients include pharmaceutical makers, wholesalers, other, nationwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 198,810 million, a 4% up from Yen 192,009 million in the previous term.  The recurring profit was posted at Yen 18,034 million and the net profit at Yen 10,497 million, respectively, compared with Yen 17,178 million recurring profit and Yen 10,697 million net profit, respectively, a year ago.  .

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 18,700 million and the net profit at Yen 11,000 million, respectively, on a 3% rise in turnover, to Yen 205,700 million.  Business is seen expanding steadily.   

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                       Nov 1975

Regd No.;                     1400-01-012176 (Kobe-Chuoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  25,545,000 shares

Issued:                         25,545,000 shares

Sum:                            Yen 12,773 million

Major shareholders (%):           Eli Lilly USA (100)

           

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

 

 

OPERATION

 

Activities: Manufactures pharmaceutical drugs for: central nerve system, endocrine system, metabolic, osteoporosis, oncology, animal drugs, other (--100%).

 

Clients: [Mfrs, wholesalers] Suzuken Co, Alfresa Corp, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Supplied from Eli Lilly and Group firms.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Kobe)

MUFG (Kobe)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

Terms Ending:

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

 

205,700

198,810

192,009

175,740

Recur. Profit

 

18,700

18,034

17,178

13,742

Net Profit

 

11,000

10,497

10,697

6,616

Total Assets

 

 

103,066

97,134

83,976

Current Assets

 

 

88,756

82,214

71,526

Current Liabs

 

 

55,837

46,068

30,534

Net Worth

 

 

38,174

41,677

42,980

Capital, Paid-Up

 

 

12,773

12,773

12,773

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.47

3.54

9.26

10.23

    Current Ratio

 

..

158.96

178.46

234.25

    N.Worth Ratio

 

..

37.04

42.91

51.18

    R.Profit/Sales

 

9.09

9.07

8.95

7.82

    N.Profit/Sales

 

5.35

5.28

5.57

3.76

    Return On Equity

 

..

27.50

25.67

15.39

 

Notes: Forecast (or estimated) figures for the 31/12/2015 fiscal term. 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.40

UK Pound

1

Rs.101.19

Euro

1

Rs.73.89

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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.