MIRA INFORM REPORT

 

 

Report Date :

31.03.2012

 

IDENTIFICATION DETAILS

 

Name :

ROLAND CORPORATION

 

 

Registered Office :

2036-1 Nakagawa Hosoecho Kitaku Hamamatsu Shizuoka-Pref 431-1304

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

April 1972

 

 

Com. Reg. No.:

0804-01-010218 (Hamamatsu-Kitaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of musical instruments, operation of music classes

 

 

No. of Employees :

3,178

 

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 3,165.6 Million

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 30, 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 and address

 

ROLAND CORPORATION

REGD NAME:    KK Roland

MAIN OFFICE:  2036-1 Nakagawa Hosoecho Kitaku Hamamatsu Shizuoka-Pref 431-1304

JAPAN

Tel: 053-523-0230     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of musical instruments, operation of music classes

 

BRANCHES   

 

Sapporo, Tokyo, Nagoya, Osaka, Fukuoka

 

OVERSEAS   

 

Rotterdam, USA, UK, Germany, other (--subsidiaries)

 

MUSIC SCHOOLS

 

Tokyo, Sapporo, Nagoya, Osaka, Hiroshima, Fukuoka

 

 

CHIEF EXEC 

 

HIDEKAZU TANAKA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　         A/SALES          Yen 78,270 M

PAYMENTS      NO COMPLAINTS          　CAPITAL        Yen 9,274 M

TREND             SLOW                          　WORTH         Yen 64,129 M

STARTED                     1972                 　         EMPLOYES      3,178

 

 

COMMENT

 

MFR OF MUSCIAL INSTRUMENTS, OPERATING MUSIC SCHOOLS 

FINANCIAL SITUATION COSIDERED AND GOOD FOR BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 3,165.6 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is a leading mfr of electronic keyboard musical instruments.  Known as a maker of digital synthesizers and electronic musical instruments, such as electronic drums.  Also involved in production of business-use printers through a subsidiary Roland DG.  The company plans to launch the “VR-3” compact, lightweight mixer aiming at meeting demand for online live streamlining.  Managers accounted for most of the 13 voluntary retirements at the end of Dec 2011, resulting in annual coast savings of Yen 100 million.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2011 fiscal term amounted to Yen 78,270 million, a 4.3% up from Yen 75,034 million in the previous term.  Sales of electronic pianos were favorable.  Exports to Asian countries rose.  The recurring profit was posted at Yen 909 million but the net loss at Yen 694 million, respectively, compared with Yen 541 million recurring loss and Yen 2,090 million net losses, respectively, a year ago. 

 

            (Apr/Dec/2011 results): Sales Yen 55,369 million (down 4.6%), operating profit Yen 510 million (down 71.7%), recurring loss Yen 38 million (previously Yen 572 million loss), net profit Yen 268 million (previously Yen 828 million loss).  (% compared with the corresponding period a year ago). 

           

            For the current term ending Mar 2012 the recurring profit is projected at Yen 700 million and the net profit at Yen 200 million, on a 1.2% fall in turnover, to Yen 77,300 million.  In electronic musical instruments, high-price products are in slump and pose a burden.  But payroll cuts, subsidiary integration and other streamlining measures are making a greater than anticipated contribution.  Net profit will emerge on the strength of a lower extraordinary loss on securities sale.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,165.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　Apr 1972

Regd No.:         0804-01-010218 (Hamamatsu-Kitaku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       60 million shares

Issued:                25,572,404 shares

Sum:                   Yen 9,274 million

 

Major shareholders (%): Roland Foundation (9.1), Company’s Treasury Stock (6.9), Ikutaro Kakehashi (5.8), Taiyo Fund LP (4.5), Northern Trust (AVEC) American (4.3), Employees’ S/Holding Assn (3.2), Master Trust Bank of Japan T (2.7), Japan Trustee Services T (2.5), Resona Bank (2.1), Credit Suisse Sec Euro PBS Int NT (1.7); foreign owners (22.8)

 

No. of shareholders: 5,318

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

 

Managements: Hedekazu Tanaka, pres; Ichiro Nishizawa, s/mgn dir; Kimitaka Kondo, mgn dir; Kazuya Yanase, dir; Yoshihiro Ikegami, dir; Hiroshi Kinoshita, dir; Jun’ichi Miki, dir; Sumio Yukawa, dir

 

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

 

Related companies: Roland DG, Roland US, other.

 

 

OPERATION

           

Activities: Manufactures electronic musical instruments 59%), computer peripheral equipment (41%)

Overseas Sales Ratio (81.7%): US 27.1%, Europe 36.3%, Asia, other (18.3%)

 

(Mfg Items): digital piano, electronic organ, v piano, synthesizers, electronic cembalo  & classic organ, stage keyboard, v accordion, drum/percussion instruments, computer music recorder, guitars, amplifiers, headphone, video campus, software, other

           

Clients: [Mfrs, wholesalers] Roland Corp US, Roland Central Europe NV, Roland EL Musikinstrumenie GmbH, Roland UK Ltd, Roland Scandinavia A/S, Roland Brasil, Roland Systems Group EMEA, Roland Corporation Australia Pte Ltd, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Roland Taiwan Electronic Music Corp, Roland Electronics Ltd, Roland SG, Moonpo Development Ltd, PT AST Indonesia, Great Tone Ltd, Roland Europe Spa, other

 

Payment record: No Complaints

 

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

 

Bank References:

Resona Bank (Hamamatsu)

MUFG (Shizuoka)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

78,270

75,034

 

  Cost of Sales

46,868

46,467

 

      GROSS PROFIT

31,401

28,566

 

  Selling & Adm Costs

29,131

29,379

 

      OPERATING PROFIT

2,270

-813

 

  Non-Operating P/L

-1,361

-272

 

      RECURRING PROFIT

909

-541

　

      NET PROFIT

-694

-2,090

BALANCE SHEET

 

 

 

 

  Cash

　

19,586

20,467

 

  Receivables

 

9,502

10,013

 

  Inventory

 

19,953

18,710

 

  Securities, Marketable

　

　

 

  Other Current Assets

4,818

5,152

 

      TOTAL CURRENT ASSETS

53,859

54,342

 

  Property & Equipment

19,011

17,995

 

  Intangibles

 

1,250

1,642

 

  Investments, Other Fixed Assets

5,001

7,696

 

      TOTAL ASSETS

79,121

81,675

 

  Payables

 

3,972

3,507

 

  Short-Term Bank Loans

770

422

 

　

 

　

　

 

  Other Current Liabs

7,496

6,587

 

      TOTAL CURRENT LIABS

12,238

10,516

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

264

257

 

  Reserve for Retirement Allw

329

160

 

  Other Debts

　

2,160

2,465

 

      TOTAL LIABILITIES

14,991

13,398

 

      MINORITY INTERESTS

 

 

 

Common stock

9,274

9,274

 

Additional paid-in capital

10,801

10,801

 

Retained earnings

36,207

37,360

 

Evaluation p/l on investments/securities

(40)

162

 

Others

 

9,654

12,447

 

Treasury stock, at cost

(1,767)

(1,767)

 

      TOTAL S/HOLDERS` EQUITY

64,129

68,277

　

      TOTAL EQUITIES

79,121

81,675

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

2,662

8,555

 

Cash Flows from Investment Activities

-1,744

-311

 

Cash Flows from Financing Activities

-678

-11,088

　

Cash, Bank Deposits at the Term End

　

19,047

20,401

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

64,129

68,277

 

 

Current Ratio (%)

440.10

516.76

 

 

Net Worth Ratio (%)

81.05

83.60

 

 

Recurring Profit Ratio (%)

1.16

-0.72

 

 

Net Profit Ratio (%)

-0.89

-2.79

 

 

Return On Equity (%)

-1.08

-3.06

 

           

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.15

UK Pound

1

Rs.81.80

Euro

1

Rs.68.34

 

 

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.