MIRA INFORM REPORT

 

 

Report Date :

20.11.2008

 

IDENTIFICATION DETAILS

 

Name :

SONY EMCS CORPORATION

 

 

Registered Office :

Gotemyama Technology Center, 5-1-12 Konan Minatoku Tokyo 141-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

December, 1972

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of PC hardware & software for exclusive supply to Sony Corp

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 30.5 Million

 

 

Status :

Small Company

 

 

Payment Behaviour :

Regular


Name

 

SONY EMCS CORPORATION (Nagano Tec)

 

 

REGD NAME 

 

Sony EMCS KK (Nagano Tec)

 

 

MAIN OFFICE

 

Gotemyama Technology Center, 5-1-12 Konan Minatoku Tokyo 141-0001 JAPAN

Tel: 03-5448-4411    

 

* The given address is its Nagano Plant/Technical Center (one of 10 Factories/Technical centers) at: 5432 Toyoshina Azumino City Nagano-Pref, as given

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of PC hardware & software for exclusive supply to Sony Corp

 

 

FACTORY(IES)   

 

Iwate, Chiba (2), Nagano (as given), Shizuoka, other

 

 

OFFICER(S)  

 

TOSHIAKI ITOH, PRES             

Ken’ichi Oyama, dir

Kiyotaka Shimazu, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 3,076 M

PAYMENTS      REGULAR         CAPITAL           Yen 6,741 M

TREND             STEADY           WORTH            Yen 107 M

STARTED         1972                 EMPLOYES      10,000

 

COMMENT    

 

MFR OF PC HARDWARE/SOFTWARE, WHOLLY OWNED BY SONY CORP. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

MAX CREDIT LIMIT

 

YEN 30.5 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established originally in 1961 as Sony Digital Products KK, subsequently renamed as captioned 1974 and became a wholly owned subsidiary of Sony Corp (See REGISTRTION).  The Nagano Tec is one of 10 mfg plants of PC hardware/software and peripherals for exclusive supply to the parent, Sony Corp.  Offers integrated services from designing, mfg, material procurement, customer services, repairs, maintenance, other.

 

 

FINANCIAL INFORMATION

 

Financials are consolidated by the parent, Sony Corp, consolidated financials of which is attached (See SUPPLEMENTS)

 

The sales volume for Mar/2008 fiscal term amounted to Yen 3,076 million, an 11 up% from Yen 2,771 million in the previous term.  This was thanks to sharp recovery in electronics segment, up 9%; digital cameras up 40% and LCD TV’s up 70%, recorded at the Sony group.  Sales were strong in USA, Europe, and emerging economies in particular.  The recurring profit was posted at Yen 3,011 million and the net profit at Yen 16 million, respectively, compared with Yen 2,712 million recurring profit and Yen 14 million net profit, respectively, a year ago.

 

For the current term ending Mar 2009 the recurring profit is projected at Yen 2,900 million and the net profit at Yen 15 million, respectively, on a 2.5% fall in turnover, to Yen 3,000 million.  The parent, Sony Corp, revised downward its previous forecast due to factors as: Yen’s appreciation; market for electronics such as LCD TV, digital camera & video camera will be lower due to deterioration in market environment brought on by slowing global economy & intensification of price competition, other.  The parent says that operating income decreased by approx Yen 130 billion at the Electronics & game segments as recorded at Sept./2008 half yearly results (foreign currency was assumed at Yen 105/US$, it is now approx Yen 96/US$).  The parent reported Apr/Sept/2008 results that net profit nose-dived more than 70% as computer demand sagged in sputtering global economy and strong Yen.  Subsequently Sony Corp revised its forecast for Mar/2009 fiscal term as follows (initial forecast in parenthesis): Sales 9,000 million (Yen 9,200 million), recurring profit Yen 210 million (Yen 460 million), net profit Yen 150 million (Yen 240 million).

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 30.5 million, on 30 days normal terms.

 

REGISTRATION

 

Date Registered:  Dec 1972

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　50 million shares

Issued:             　13,482,000 shares

Sum:                　Yen 6,741 million

 

           

Major shareholders (%)

 

Sony Corp*(100)

 

* Sony Corp, globally renowned mfr of consumer electronics & world’s largest in audio & video equipment, founded 1946, listed on Tokyo, Osaka, New York, London S/E’s, turnover Yen 8,871,414 million, operating profit Yen 374,482 million, recurring profit Yen 366,317 million, net profit Yen 369,435 million, total assets Yen 12,552,739 million, net worth Yen 3,465,089 million, employees 180,500, pres Howard Stringer

 

Consolidated Financials are as attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Manufactures PC hardware/software, electronics products, for exclusive supply to the parent, Sony Corp, offering designing, maintenance, repair, after-sales services, other (--100%)

 

(Mfg items at 10 factories):

Mobile phones, DVD recorders, home audio, magnetic recording equipment, optical pick up, VAIO Pc & peripherals, VTR drum for broadcasting, VTR cameras, video cameras, digital cameras, memory stick, and peripherals, digital still cameras, linear projection TV, front projector, monitors, module devices, LCD TVs, other.

 

 

Clients

 

[Mfr] Shipped exclusively to the parent, Sony Corp

No. of accounts: 1

Domestic areas of activities: Nationwide

 

 

Suppliers

 

[Mfr] Supplied exclusively from the parent, Sony Corp.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned by the parent, Sony Corp, and maintained satisfactorily.

 

Bank References

 

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES: (In Million Yen)

 

       Terms Ending:

31/03/2009

31/03/2008

31/03/2007

31/03/2006

Annual Sales

　

3,000

3,076

2,771

2,431

Recur. Profit

　

2,900

3,011

2,712

　

Net Profit

　

15

16

14

5

Total Assets

　

　

858

808

　

Current Assets

　

　

727

680

　

Current Liabs

　

　

722

686

　

Net Worth

　

　

107

90

　

Capital, Paid-Up

　

　

6,741

6,741

6,741

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

-2.47

11.01

13.99

3.45

       Current Ratio

 

..

100.69

99.13

..

       N.Worth Ratio

..

12.47

11.14

..

       R.Profit/Sales

 

96.67

97.89

97.87

..

       N.Profit/Sales

0.50

0.52

0.51

0.21

      Return On Equity

..

14.95

15.55

..

 

Notes: Forecast (or estimated) figures for the 31/03/2009 fiscal term. 


SUPPLEMNTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, SONY CORP

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2008

31/03/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

8,871,414

8,295,695

 

  Cost of Sales

6,290,022

5,889,601

 

      GROSS PROFIT

2,581,392

2,406,094

 

  Selling & Adm Costs

1,537,335

1,606,008

 

      OPERATING PROFIT

374,482

71,750

 

  Non-Operating P/L

91,835

30,287

 

      RECURRING PROFIT

466,317

102,037

　

      NET PROFIT

369,435

126,328

BALANCE SHEET

 

 

 

 

  Cash

　

1,086,431

799,899

 

  Receivables

 

1,183,620

1,490,452

 

  Inventory

 

1,021,595

940,875

 

  Securities, Marketable

427,709

493,315

 

  Other Current Assets

1,290,308

822,182

 

      TOTAL CURRENT ASSETS

5,009,663

4,546,723

 

  Property & Equipment

1,243,349

1,421,531

 

  Intangibles

 

263,490

233,255

 

  Investments, Other Fixed Assets

6,036,237

5,514,853

 

      TOTAL ASSETS

12,552,739

11,716,362

 

  Payables

 

920,920

1,179,694

 

  Short-Term Bank Loans

63,224

52,291

 

　

 

　

　

 

  Other Current Liabs

3,039,223

2,319,367

 

      TOTAL CURRENT LIABS

4,023,367

3,551,352

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

729,059

1,001,005

 

  Reserve for Retirement Allw

231,237

173,474

 

  Other Debts

　

3,827,138

3,580,857

 

      TOTAL LIABILITIES

8,810,801

8,306,688

 

      MINORITY INTERESTS

276,849

38,970

 

Common stock

630,576

626,907

 

Additional paid-in capital

1,151,447

1,143,423

 

Retained earnings

2,059,361

1,719,506

 

Evaluation p/l on investments/securities

70,929

86,096

 

Others

 

(442,456)

(201,589)

 

Treasury stock, at cost

(4,768)

(3,639)

 

      TOTAL S/HOLDERS` EQUITY

3,465,089

3,370,704

　

      TOTAL EQUITIES

12,552,739

11,716,362

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2008

31/03/2007

 

Cash Flows from Operating Activities

　

757,684

561,028

 

Cash Flows from Investment Activities

-910,442

-715,430

 

Cash Flows from Financing Activities

505,518

247,903

　

Cash, Bank Deposits at the Term End

　

1,086,431

799,899

ANALYTICAL RATIOS            Terms ending:

31/03/2008

31/03/2007

 

 

Net Worth (S/Holders' Equity)

3,465,089

3,370,704

 

 

Current Ratio (%)

124.51

128.03

 

 

Net Worth Ratio (%)

27.60

28.77

 

 

Recurring Profit Ratio (%)

5.26

1.23

 

 

Net Profit Ratio (%)

4.16

1.52

 

 

Return On Equity (%)

10.66

3.75

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.03

UK Pound

1

Rs.74.42

Euro

1

Rs.62.71

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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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