MIRA INFORM REPORT

 

 

Report Date :

23.02.2011

 

IDENTIFICATION DETAILS

 

Name :

HITACHI MAXELL LTD

 

 

Registered Office :

1-1-88 Ushitora Ibaraki City Osaka-Pref 567-0877

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

September  1960

 

 

Com. Reg. No.:

(Osaka-Ibaraki) 001761

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of video tapes, DVD, batteries, floppy disks

 

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 7,070.7 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

----

 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

company name

 

HITACHI MAXELL LTD

 

 

REGD NAME 

 

Hitachi Maxell KK

 

 

MAIN OFFICE

 

1-1-88 Ushitora Ibaraki City Osaka-Pref 567-0877 JAPAN

Tel: 072-623-8103

 

*.. The given address is one of its Kyoto Factories

URL:                 www.maxell.co.jp  

E-mail:             (thru the URL)   

 

 

ACTIVITIES

 

Mfg of video tapes, DVD, batteries, floppy disks, other

 

 

BRANCHES   

 

Tokyo, Nagoya, Osaka, Fukuoka

 

 

OVERSEAS   

 

USA (3), Europe (5), Asia (9 of which 4 in China)

 

 

FACTORIES

 

Kyoto (2), Osaka, Hyogo, Toyama

 

OVERSEAS   

 

China, Mexico, Malaysia (--subsidiary makers)

 

 

OFFICER(S)  

 

YOSHITO TSUNODA, PRES      Yoshihiro Senzai, s/mgn dir

Akira Matsumoto, s/mgn dir        Yoshiharu Katsuta, mgn dir

Masami Nakayama, mgn dir       Kenji Sumiya, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 139,841 M

PAYMENTS      REGULAR         CAPITAL           Yen 12,203 M

TREND             SLOW              WORTH            Yen 157,104 M

STARTED                     1960                 EMPLOYES      1,850

 

 

COMMENT    

 

MFR OF MAGNETIC TAPES, OTHER, WHOLLY OWNED BY HITACHI LTD. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 7,070.7 MILLION, 30 DAYS NORMAL TERMS

 

                                    Forecast (or estimated) figures for the 31/03/2011 fiscal term

 

 

HIGHLIGHTS

           

This is a major mfr of magnetic tapes for computers as a mainline.  Originally started with production of dry cell batteries, which is how Maxell got its name.  The Maxell brand name was created by shortening the phrase, “maximum capacity dry cell”.  Known for strong brand name video tapes and DVDs.  In 2010 became a wholly owned subsidiary of Hitachi Ltd and simultaneously delisted from Tokyo & Osaka S/E’s.  MO disks and lithium-ion secondary batteries are growing rapidly.  Products are both imported and exported.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar 2010 fiscal term amounted to Yen 139,841 million, a 19% down from Yen 172,652 million in the previous term.  Sales volume of optical disks fell substantially, hit by shrinking markets.  Unit prices of main profit-earner computer tapes plunged in the first half.  Exports were hurt by the strong Yen reducing earnings & profits in Yen terms.  By Divisions, Information Media down 29.7% to Yen 52,884 million; Batteries down 17.4% to Yen 10,990 million; Materials, Devices & Electronic Equipment down 3.9% to Yen 45,969 million.  The recurring profit was posted at Yen 432 million and the net losses at Yen 7,327 million, respectively, compared with Yen 1,524 million recurring loss and Yen 24,106 million net losses, respectively, a year ago.  Wrote off extraordinary losses of Yen 5,640 million coming from asset impairment.  .

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 500 million and the net profit at Yen 500 million, respectively, on a 4% rise in turnover, to Yen 145,000 million.  Sales of mainstay information media are growing steadily.  Operating profit will emerge due in part to peak-out of higher materials prices.  Net profit also surfacing, but special loss on impaired assets continues in much reduced amount. 

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 7,070.7 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Sept 1960

Regd No.:             (Osaka-Ibaraki) 001761

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　284,800,000 shares

Issued:             　99,532,133 shares

Sum:                　Yen 12,203 million

Major shareholders (%): Hitachi Ltd* (100)

 

*.. Largest comprehensive mfr of electrical machinery, Tokyo, founded 1920, listed Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s, capital Yen 408,814 million, sales Yen 8,968,546 million, operating profit Yen 202,159 million, recurring profit Yen 63,580 million, net loss Yen 106,961 million, total assets Yen 9,318,463 million, net worth Yen 1,415,077 million, employees 352,524, pres Takashi Kawamura

           

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

 

OPERATION

 

Activities: Manufactures recording media and energy products:

 

(Sales Breakdown by Divisions):

 

Information Media (43%): computer tapes, broadcasting video tapes, Blu-ray discs, DVDs, CDs, audio tapes, video tapes, super disks;

 

Batteries (29%): lithium-ion rechargeable batteries, silver oxide batteries, lithium primary batteries, alkaline dry batteries;

 

Material-Device-Electronic Appliances (28%): optical components, functional materials, adhesive tapes, RFID system, small electronic appliances, electroforming/precision components, metal/plastic molded products;

 

Overseas Sales Ratio (59%): 17 sales offices in USA, UK, Germany, France, Italy, Netherlands, Sweden, Hong Kong, China, Taiwan, Singapore.

 

Clients: [Mfrs, wholesalers] Hitachi Hi-Technologies, Nintendo Co, Hitachi Living Supply, Hitachi Ltd, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Dowa Electronics, Teijin DuPont Films Japan, Asahi Kasei E-Materials Corp, other.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Osaka)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

139,841

172,652

 

  Cost of Sales

108,017

131,893

 

      GROSS PROFIT

31,824

40,759

 

  Selling & Adm Costs

31,767

43,095

 

      OPERATING PROFIT

57

-2,336

 

  Non-Operating P/L

375

812

 

      RECURRING PROFIT

432

-1,524

　

      NET PROFIT

-7,327

-24,146

BALANCE SHEET

 

 

 

 

  Cash

　

5,192

9,117

 

  Receivables

 

27,907

27,805

 

  Inventory

 

16,897

18,737

 

  Securities, Marketable

1,000

991

 

  Other Current Assets

47,932

49,313

 

      TOTAL CURRENT ASSETS

98,928

105,963

 

  Property & Equipment

74,381

84,897

 

  Intangibles

 

1,421

1,682

 

  Investments, Other Fixed Assets

25,273

24,281

 

      TOTAL ASSETS

200,003

216,823

 

  Payables

 

15,423

10,698

 

  Short-Term Bank Loans

735

2,206

 

　

 

　

　

 

  Other Current Liabs

13,730

26,386

 

      TOTAL CURRENT LIABS

29,888

39,290

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

7,770

8,189

 

  Other Debts

　

5,241

5,137

 

      TOTAL LIABILITIES

42,899

52,616

 

      MINORITY INTERESTS

 

 

 

Common stock

12,203

12,203

 

Additional paid-in capital

22,325

22,325

 

Retained earnings

134,148

143,397

 

Evaluation p/l on investments/securities

1,404

(784)

 

Others

 

(8,033)

(17,996)

 

Treasury stock, at cost

(4,943)

(4,938)

 

      TOTAL S/HOLDERS` EQUITY

157,104

154,207

　

      TOTAL EQUITIES

200,003

206,823

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

12,176

4,105

 

Cash Flows from Investment Activities

-4,001

1,664

 

Cash Flows from Financing Activities

-13,429

-592

　

Cash, Bank Deposits at the Term End

　

45,363

51,068

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

157,104

154,207

 

 

Current Ratio (%)

331.00

269.69

 

 

Net Worth Ratio (%)

78.55

74.56

 

 

Recurring Profit Ratio (%)

0.31

-0.88

 

 

Net Profit Ratio (%)

-5.24

-13.99

 

 

Return On Equity (%)

-4.66

-15.66

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.20

UK Pound

1

Rs.73.07

Euro

1

Rs.61.41

 

 

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

 

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.