MIRA INFORM REPORT

 

 

Report Date :

21.01.2011

 

IDENTIFICATION DETAILS

 

Name :

VICTOR COMPANY OF JAPAN LIMITED

 

 

Registered Office :

3-12 Moriyacho Kanagawaku Yokohama 221-0022

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

September 1927

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of VCRs, home audio equipment, TVs

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 2,430.0 Million

Status :

Moderate

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

 

VICTOR COMPANY OF JAPAN LIMITED

 

 

REGD NAME 

 

Nihon Victor KK

 

 

MAIN OFFICE

 

3-12 Moriyacho Kanagawaku Yokohama 221-0022 JAPAN　

Tel: 045-450-1580     Fax: 045-450-1589

URL:                 http://www.jvc.victor.co.p/

E-mail:             (thru the URL)   

 

 

ACTIVITIES  

 

Mfg of VCRs, home audio equipment, TVs

 

 

BRANCHES   

 

Gunma

 

 

FACTORIES  

 

At the caption address, Gunma, other (Tot 6)

 

 

OFFICER(S)  

 

YUTA ITOH, PRES                    Hiroshi Odaka, rep dir

Takayoshi Sakamoto, mgn dir     Manabu Saitoh, dir

Motomi Adachi, dir                     Nobuo Ochiai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    R/WEAK           A/SALES          Yen 155,812 M

PAYMENTS      REGULAR         CAPITAL           Yen 51,615 M

TREND             SLOW              WORTH            Yen 31,192 M

STARTED                     1927                 EMPLOYES      3,029

 

 

COMMENT    

 

MFR OF VCR, HOME AUDIO EQUIPMENT, TVS, WHOLLY OWNED BY JVC KENWOOD HOLDINGS INC 

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS AND GOOD FOR CREDIT ENGAGEMENTS: US$1,750,000 / O/A 60 DAYS

 

MAX CREDIT LIMIT: YEN 2,430.0 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established in 1927.  This is the original developer of home-use VHSA-format VCR.  Branched out into information-related equipment, car audio equipment and TV-game machines.  Originally a Matsushita Electronics group (now Panasonic) but separated as burdened with huge deficit in display business and chose partnership with Kenwood Corp.  And In Oct 2008 formed a joint holding company with Kenwood Corp, JVC Kenwood Holdings Inc (See REGISTRATION)..

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 155,812 million, a 32% down from Yen 230,235 million in the previous term.  The global economy continued to be stagnant.  Sales declined.  This reflects the curtailment of the display segment in Europe and slow recovery in sales in the camcorder segment of the Home & Mobile Electronics business.  The operations continued in the red to register Yen 12,025 million recurring loss and Yen 36,392 million net losses, respectively, compared with Yen 8,467 million recurring loss and Yen 23,535 million net losses, respectively, a year ago. 

 

For the current term ending Mar 2011 the operations are expected to come back to profitability to post Yen 400 million recurring profit and Yen 400 million net profits, respectively, on a 3% rise in turnover, to Yen 160,000 million.  Deficit in TVs and videos will decrease, thanks to consigned production. 

           

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 2,430.0 million, on 30 days normal terms.  The proposed amount for 60 days terms is considered within the firm’s financial capacities. 


REGISTRATION

 

Date Registered:          Sept 1927

Legal Status:   　         Limited Company (Kabushiki Kaisha)

Authorized:      　         800 million shares

Issued:                         361,598,443 shares

Sum:                　         Yen 51,615,588,000.-

Major shareholders (%): JVC Kenwood Holdings* (100)

 

*.. JVC Kenwood Holdings, a holding company formed with Kenwood Corp in 2008, listed Tokyo S/E, capital Yen 10,000 million, sales Yen 398,663 million, operating loss Yen 6,453 million, recurring loss Yen 14,752 million, net loss Yen 27,795 million, employees 18,472, pres Haruo Kawahara

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Manufactures AV equipment, video tape recorder, stereo sets, computer-related consumer & professional equipment, magnetic tapes, discs, other (--100%)

 

Clients: [Mfrs, wholesalers] JVC Americas Corp, JVC Europe Ltd, JVC Deutschland GmbH, JVC Professional Europe Ltd, JVC Espan ASA, other         

No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers [Mfrs, wholesalers] JVC Mfg Malaysia, J&K Car Electronics, J&K Business Solution, Global Factoring, JVC Mfg Co Ltd, other

 

Payment record: Regular

 

Location: Business area in Yokohama.  Office premises at the caption address are owned by the parent and maintained satisfactorily.

 

Bank References:

·         Mizuho Corporate Bank (H/O)

·         SMBC (H/O)

 

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2011

31/03/2010

31/03/2009

31/03/2008

Annual Sales

　

160,000

155,812

230,235

330,743

Recur. Profit

　

0

-12

-8

-4,776

Net Profit

　

0

-36

-23

-50,453

Total Assets

　

　

153,398

195,052

240,887

Current Assets

　

　

49,065

64,152

112,732

Current Liabs

　

　

97,291

106,181

106,873

Net Worth

　

　

31,192

66,913

90,817

Capital, Paid-Up

　

　

51,615

51,615

51,615

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

2.69

-32.32

-30.39

-10.51

    Current Ratio

 

..

50.43

60.42

105.48

    N.Worth Ratio

..

20.33

34.31

37.70

    R.Profit/Sales

 

0.00

-0.01

0.00

-1.44

    N.Profit/Sales

0.00

-0.02

-0.01

-15.25

    Return On Equity

..

..

-0.03

-55.55

 

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

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, JVC KENWOOD HOLDINGS INC

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

398,663

311,299

 

  Cost of Sales

290,073

224,711

 

      GROSS PROFIT

108,589

86,587

 

  Selling & Adm Costs

115,042

88,125

 

      OPERATING PROFIT

-6,453

1,537

 

  Non-Operating P/L

-8,299

-8,223

 

      RECURRING PROFIT

-14,752

-9,760

　

      NET PROFIT

-27,795

-30,734

BALANCE SHEET

 

 

 

 

  Cash

　

43,502

32,417

 

  Receivables

 

62,720

73,221

 

  Inventory

 

44,760

67,570

 

  Securities, Marketable

　

　

 

  Other Current Assets

12,076

32,496

 

      TOTAL CURRENT ASSETS

163,058

205,704

 

  Property & Equipment

79,975

100,448

 

  Intangibles

 

17,647

20,095

 

  Investments, Other Fixed Assets

14,071

17,830

 

      TOTAL ASSETS

274,751

344,077

 

  Payables

 

31,371

30,391

 

  Short-Term Bank Loans

85,286

92,540

 

　

 

　

　

 

  Other Current Liabs

59,356

95,525

 

      TOTAL CURRENT LIABS

176,013

218,456

 

  Debentures

 

20,000

20,000

 

  Long-Term Bank Loans

3,020

　

 

  Reserve for Retirement Allw

16,273

17,691

 

  Other Debts

　

12,626

13,491

 

      TOTAL LIABILITIES

227,932

269,638

 

      MINORITY INTERESTS

 

 

 

Common stock

10,000

10,000

 

Additional paid-in capital

111,143

111,143

 

Retained earnings

(38,301)

(10,764)

 

Evaluation p/l on investments/securities

256

(401)

 

Others

 

(16,018)

(15,278)

 

Treasury stock, at cost

(20,261)

(20,261)

 

      TOTAL S/HOLDERS` EQUITY

46,819

74,439

　

      TOTAL EQUITIES

274,751

344,077

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

21,453

10,424

 

Cash Flows from Investment Activities

-3,158

-11,288

 

Cash Flows from Financing Activities

-27,120

9,265

　

Cash, Bank Deposits at the Term End

　

43,408

52,393

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

46,819

74,439

 

 

Current Ratio (%)

92.64

94.16

 

 

Net Worth Ratio (%)

17.04

21.63

 

 

Recurring Profit Ratio (%)

-3.70

-3.14

 

 

Net Profit Ratio (%)

-6.97

-9.87

 

 

Return On Equity (%)

-59.37

-41.29

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.58

UK Pound

1

Rs.72.73

Euro

1

Rs.61.45

 

 

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.