MIRA INFORM REPORT

 

 

Report Date :

03.03.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

MEGACHIPS CORPORATION

 

 

Registered Office :

4-1-6 Miyahara Yodogawaku Osaka 532-0003 JAPAN

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

April, 1990

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Fabless Mfr of System Lsis & Electronic Devices & System Products:

 

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 2,436.1

 

 

Status :

Satisfactory

 

 

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 – 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

MEGACHIPS CORPORATION

 

 

REGD NAME 

 

KK Megachips

 

 

MAIN OFFICE

 

4-1-6 Miyahara Yodogawaku Osaka 532-0003 JAPAN

Tel: 06-6399-2884     Fax: 06-6399-2886-

 

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

E-Mail address:            info@megachips.co.jp

 

 

ACTIVITIES  

 

Mfg (fabless) of customer specific system LSIs

 

 

BRANCHES

 

Tokyo; Taiwan

 

 

FACTORIES  

 

(subcontracted)

 

 

CHIEF EXEC 

 

YUKIHIRO UKAI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

           

FINANCES                    FAIR                 　A/SALES       Yen 38,495 M

PAYMENTS      REGULAR         　CAPITAL        Yen 4,840 M

TREND             SLOW              　WORTH         Yen 24,439 M

STARTED                     1990                 　EMPLOYES   270

 

 

COMMENT    

 

FABLESS MFR OF SYSTEM LSIS & ELECTRONIC DEVICES 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR CREDIT ENGA

GEMENTS: US$125,000 / O/A 60 DAYS.

                       

MAX CREDIT LIMIT: YEN 2,436.1 MILLION, 30 DAYS NORMAL TERMS

 

Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

 

This is a fabless mfr of customer specific system LSIs as main business.  Also makes communications/image processing-related electronics equipment.  Production is entrusted to other makers.  Sales to Nintendo account for over 80% of total sales.  In Apr 2007, merged two subsidiary companies: Megachips System Solutions Inc and Megachips LSL Solution Inc, in order to streamline operations.  The company is stepping up to put on track digital camera-use image processing LSIs, with volume production planned after the end of 2011.  The full-scale marketing of LSIs for pachinko (pinball) machines is delayed because of the sluggish market conditions. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 38,495 million, a 27.1% down from Yen 52,771 million in the previous term.  Global economic downturn affected the sales.  Demand remained sluggish across the entire market, including electronic components such as semiconductors & consumer electronics equipment.  In the LSI business, demand for the main products, LSIs for storing game software declined.  The recurring profit was posted at Yen 3,101 million and the net profit at Yen 2,140 million, respectively, compared with Yen 4,892 million recurring profit and Yen 2,672 million net profit, respectively, a year ago.

 

(Apr/Dec/2010 results): Sales Yen 25,298 million (down 21.3%), operating profit Yen 2,324 million (down 21.6%), recurring profit Yen 2,584 million (down 15.1%), net profit Yen 1,944 million (down 7.1%).  (% compared with the corresponding period a year ago).　. 

           

For the current term ending Mar 2011 the recurring profit is projected at Yen 3,100 million and the net profit at Yen 2,157 million, on a 9.1% fall in turnover, to Yen 35,000 million.  Sales of LSIs are affected by the sluggish showings of software-storing LSIs for game consoles.  In sales of systems, profits margin will improve, led by video surveillance equipment in the second half.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 2,436.1 million, on 30 days normal terms.  The proposed amount for 60 day terms is considered well within the firm’s financial capacities.

 

 

REGISTRATION

           

Date Registered           :Apr 1990

Regd No.                      : (Osaka-Yodogawaku) 058771

Legal Status                : Limited Company (Kabushiki Kaisha)

Authorized                   :106 million shares

Issued                          : 24,353,900 shares

Sum                             : Yen 4,840 million

 

Major shareholders (%): Master Trust Bank of Japan T (8.2), Japan Trustee Services T (7.4), Shindo Corp (5.0), Shindo & Associates (5.0), Shegeki Matsuoka (4.9), Masahiro Shindo (4.0), Ritsuko Shindo (3.0), MUFG (2.2), Japan Trustee Services T9 (2.0), Mika Aoki (2.0); foreign owners (10.4)

 

No. of shareholders: 21,339

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Yukihiro Ukai, pres; Yoshimasa Hayashi, v pres; Shigeki Matsuoka, v pres; Masayuki Fujii, dir; Tetsuo Furuichi, dir; Hiroyuki Mizuno, dir; Kunihiro Yamada, dir

 

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

 

Related companies: Shun In Investment.

 

 

OPERATION

           

Activities: Fabless mfr of system LSIs & electronic devices & system products:

LSIs (94%), Systems (6%).

 

(Handling Items): image reporting & transmitting systems, remote multiple point teleconference systems, image delivery system in the field of security and monitoring for industrial use based on digital processing technology and communications technology, other.

           

Clients: [Mfrs, wholesalers] Nintendo (Top-ranked mfr of home-use game machines and game software) (85%), other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Macronix International Co, other

 

Payment record: Regular

 

 

Location

 

Business area in Osaka.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

MUFG (Esaka)

Resona Bank (Esaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

38,495

52,771

 

  Cost of Sales

31,833

43,671

 

      GROSS PROFIT

6,662

9,099

 

  Selling & Adm Costs

3,627

4,286

 

      OPERATING PROFIT

3,034

4,812

 

  Non-Operating P/L

67

80

 

      RECURRING PROFIT

3,101

4,892

　

      NET PROFIT

2,140

2,672

BALANCE SHEET

 

 

 

 

  Cash

　

6,585

14,565

 

  Receivables

 

11,875

10,700

 

  Inventory

 

945

1,557

 

  Securities, Marketable

　

　

 

  Other Current Assets

598

641

 

      TOTAL CURRENT ASSETS

20,003

27,463

 

  Property & Equipment

140

188

 

  Intangibles

 

75

108

 

  Investments, Other Fixed Assets

6,394

5,356

 

      TOTAL ASSETS

26,612

33,115

 

  Payables

 

1,435

2,551

 

  Short-Term Bank Loans

　

5,000

 

　

 

　

　

 

  Other Current Liabs

699

4,954

 

      TOTAL CURRENT LIABS

2,134

12,505

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

38

46

 

      TOTAL LIABILITIES

2,172

12,551

 

      MINORITY INTERESTS

 

 

 

Common stock

4,840

4,840

 

Additional paid-in capital

6,181

6,181

 

Retained earnings

11,380

10,550

 

Evaluation p/l on investments/securities

2,451

95

 

Others

 

(322)

(442)

 

Treasury stock, at cost

(91)

(660)

 

      TOTAL S/HOLDERS` EQUITY

24,439

20,564

　

      TOTAL EQUITIES

26,612

33,115

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

-431

10,959

 

Cash Flows from Investment Activities

358

-1,082

 

Cash Flows from Financing Activities

-7,701

-2,064

　

Cash, Bank Deposits at the Term End

　

6,485

14,265

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

24,439

20,564

 

 

Current Ratio (%)

937.35

219.62

 

 

Net Worth Ratio (%)

91.83

62.10

 

 

Recurring Profit Ratio (%)

8.06

9.27

 

 

Net Profit Ratio (%)

5.56

5.06

 

 

Return On Equity (%)

8.76

12.99

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.12

UK Pound

1

Rs.73.43

Euro

1

Rs.62.32

 

 

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 Company

----

 

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.