MIRA INFORM REPORT

 

 

Report Date :           

09.03.2012

 

IDENTIFICATION DETAILS

 

Name :

SOLAR FRONTIER KK

 

 

Registered Office :

Daiba Frontier Bldg, 2-3-2 Daiba Minatoku Tokyo 135-0091

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

August 1994

 

 

Legal Form :

Limited Company

 

 

Line Of Business :

Manufacture of Solar Cell, Cis Solar Modules

 

 

No. of Employee:

450

 

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 425.8 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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

SOLAR FRONTIER KK

 

 

REGD NAME

 

Solar Frontier KK

 

 

MAIN OFFICE

 

Daiba Frontier Bldg, 2-3-2 Daiba Minatoku Tokyo 135-0091 JAPAN

Tel: 03-5531-5855      Fax: 03-5531-5767

                                               

URL:                             http://www.solar-frontier.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of solar cell, CIS solar modules

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka

 

 

OVERSEAS   

 

Germany, USA, Saudi Arabia

 

 

FACTORIES  

 

Miyazaki (3)

 

 


OFFICERS

 

SHIGEAKI KAMEDA, PRES                  

Shigetsune Katoh, dir

Jun Arai, dir

                                               

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 11,537 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 35,120 M

TREND             STEADY                       WORTH            Yen 54,097 M

STARTED                     1994                             EMPLOYES      450

 

 

COMMENT

 

MFR OF SOLAR CELLS, OWNED BY SHOWA SHELL SEKIYU KK.

 

FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 425.8 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a solar cell division separated from Showa Shell Sekiyu KK, major oil distributor of Royal Dutch/Shell Group (See REGISTRATION).  Originally named as Showa Shell Solar KK and in Apr/2010 renamed as captioned.  This is a specialized mfr of CIS solar cell, CIS solar modules, systems.  Operates 3 plants in Miyazaki.  The Third Miyazaki Plant, which is the world’s largest CIS production facility (1t 900 MW) as single plant, started production in 2011.  Has three overseas subsidiaries: Germany, USA and Saudi Arabia.  The firm agreed with General Electric (GE) that it will supply GE with its proprietary CIS thin-film modules and will provide GE branded panels.  Further the firm decided to supply its CIS solar modules in projects in the Kingdom of Saudi Arabia and the Kingdom of Thailand.  With regard to R&D activities, the firm has signed an agreement to jointly develop thin film solar cell technology with IBM based on the elements copper, zing, tin, sulphur and selenium (CZTS) as next generation solar technology without using rate metals.  Goods are distributed domestically thru appointed dealership nationwide.

 


FINANCIAL INFORMATION

 

The sales volume for Dec/2010 fiscal term amounted to Yen 11,537 million, a 155% up from Yen 4,518 million in the previous term.  This is attributed to the wide expansion of solar cell systems nationwide, particularly from the ecological viewpoints.  The operations continue in the deficit to post Yen 8,780 million recurring loss and Yen 10,755 million net losses, respectively, compared with Yen 4,306 million recurring loss and Yen 3,531 million net losses, respectively, a year ago.  Posted Yen 2,434 million extraordinary losses coming from the preparation for a new plant in Miyazaki.

 

For the current term ending Dec 2011 the deficit operations are projected to continue to post Yen 9,000 million recurring loss and Yen 10,000 million net losses, respectively, on a 20% rise in turnover, to Yen 13,800 million.  The deficit operations are weighed down by the start-up cost of a new plant.  World-largest solar battery plant has started operation with annual output capacity of 1 gigawatt.  The appreciation of the Yen and the fall in market prices of solar cell may affect sales.

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 425.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Aug 1994

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         2,800 million shares

Issued:                702 million shares

Sum:                   Yen 35,120 million

 

Major shareholders (%): Showa Shell Sekiyu* (100)

 

*.. Major oil distributor of Royal Dutch/Shell Group, founded 1942, listed Tokyo S/E, capital Yen 34,197 million, sales Yen 2,346,081 million, operating profit Yen 36,701 million, recurring profit Yen 42,148 million, net profit Yen 15,946 million, total assets Yen 1,193,149 million, net worth Yen 263,006 million, employees 5,696, pres Jun Arai

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

           

Activities: Manufactures CIS solar cells, CIS solar modules, systems, other (--100%).

 

Clients: [Mfrs, wholesalers] Solar Frontier America, Solar Frontier Europe, other.

Domestically distributed through appointed dealerships nationwide

           


No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: Mfrs, wholesalers, other

 

Payment record: Regular

 

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

 

Bank References:

·         Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/12/2011

31/12/2010

31/12/2009

31/12/2008

Annual Sales

 

13,800

11,537

4,518

4,017

Recur. Profit

 

-9,000

-8,780

-4,306

 

Net Profit

 

-10,000

-10,755

-3,531

-532

Total Assets

 

 

102,262

42,625

 

Current Assets

 

 

9,134

7,411

 

Current Liabs

 

 

47,145

12,645

 

Net Worth

 

 

54,097

29,853

 

Capital, Paid-Up

 

 

35,120

35,120

 

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

19.62

155.36

12.47

85.29

    Current Ratio

 

..

19.37

58.61

..

    N.Worth Ratio

..

52.90

70.04

..

    R.Profit/Sales

 

-65.22

-76.10

-95.31

..

    N.Profit/Sales

-72.46

-93.22

-78.15

-13.24

    Return On Equity

..

-19.88

-11.82

..

 

Notes: Forecast (or estimated) figures for the 31/12/2011 fiscal term.

 


 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, SHOWA SHELL SEKIYU KK

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/12/2010

31/12/2009

INCOME STATEMENT

 

 

 

  Annual Sales

 

2,346,081

2,022,520

 

  Cost of Sales

2,183,535

1,956,623

 

      GROSS PROFIT

162,545

65,896

 

  Selling & Adm Costs

125,844

123,038

 

      OPERATING PROFIT

36,701

-57,142

 

  Non-Operating P/L

5,447

687

 

      RECURRING PROFIT

42,148

-56,455

 

      NET PROFIT

15,956

-57,619

BALANCE SHEET

 

 

 

 

  Cash

 

20,943

22,235

 

  Receivables

 

291,104

287,749

 

  Inventory

 

236,390

240,849

 

  Securities, Marketable

 

 

 

  Other Current Assets

54,538

47,729

 

      TOTAL CURRENT ASSETS

602,975

598,562

 

  Property & Equipment

473,719

432,336

 

  Intangibles

 

12,836

11,355

 

  Investments, Other Fixed Assets

103,619

130,486

 

      TOTAL ASSETS

1,193,149

1,172,739

 

  Payables

 

273,531

263,382

 

  Short-Term Bank Loans

40,381

101,580

 

 

 

 

 

 

  Other Current Liabs

354,605

356,422

 

      TOTAL CURRENT LIABS

668,517

721,384

 

  Debentures

 

35,000

15,200

 

  Long-Term Bank Loans

110,470

62,292

 

  Reserve for Retirement Allw

72,426

68,926

 

  Other Debts

 

43,730

47,213

 

      TOTAL LIABILITIES

930,143

915,015

 

      MINORITY INTERESTS

 

 

 

Common stock

34,197

34,197

 

Additional paid-in capital

22,113

22,113

 

Retained earnings

182,959

177,408

 

Evaluation p/l on investments/securities

1,117

1,979

 

Others

 

12,803

22,207

 

Treasury stock, at cost

(183)

(181)

 

      TOTAL S/HOLDERS` EQUITY

253,006

257,723

 

      TOTAL EQUITIES

1,183,149

1,172,739

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2010

31/12/2009

 

Cash Flows from Operating Activities

 

89,836

-7,395

 

Cash Flows from Investment Activities

-82,510

-47,761

 

Cash Flows from Financing Activities

-8,671

4,371

 

Cash, Bank Deposits at the Term End

 

19,746

21,030

ANALYTICAL RATIOS            Terms ending:

31/12/2010

31/12/2009

 

 

Net Worth (S/Holders' Equity)

253,006

257,723

 

 

Current Ratio (%)

90.20

82.97

 

 

Net Worth Ratio (%)

21.38

21.98

 

 

Recurring Profit Ratio (%)

1.80

-2.79

 

 

Net Profit Ratio (%)

0.68

-2.85

 

 

Return On Equity (%)

6.31

-22.36

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.57

UK Pound

1

Rs.79.57

Euro

1

Rs.66.49

 

 

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.