MIRA INFORM REPORT

 

 

Report Date :

28.08.2013

 

IDENTIFICATION DETAILS

 

Name :

SHARP CORPORATION

 

 

Registered Office :

22-22 Nagaikecho Abenoku Osaka 545-8522

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1935

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of consumer electronics, electronic components

 

 

No. of Employees :

50,647

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

Company Name

 

SHARP CORPORATION

 

 

REGD NAME

 

Sharp KK

 

 

MAIN OFFICE

 

22-22 Nagaikecho Abenoku Osaka 545-8522 JAPAN

Tel: 06-6621-1221    

Fax: 06-6628-1653

 

URL:                 http://www.sharp.cco.jp/E-

Mail address:     (thru the URL)

 

 

ACTIVITIES

 

Mfg of consumer electronics, electronic components

 

 

BRANCHES

 

Tokyo, Osaka, Mie, Nara, Hiroshima, other　 (Tot 24)

 

 

FACTORIE)

 

Tochigi, Mie, Kameyama, Tenri, Nara, Katsuragi, Yao, Sakai, Fukuyama,  Mihara, Hiroshima

 

 

OVERSEAS

 

Sales Offices: 30 in 25 countries; Factories: 23 in 14 countries

 

 

CHIEF EXEC 

 

KOZO TAKAHASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 2,478,586 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 212,337 M

TREND             SLOW                          WORTH            Yen 134,837 M

STARTED         1935                             EMPLOYES      50,647

 

 

COMMENT    

 

MFR OF CONSUMER ELECTRONICS. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

This is the major producer of consumer electronics and leading maker of LCD TVs in global scale.  Ranked top in photovoltaic power generation panels.  Products include home appliances, information equipment and electronic devices.  New Sakai Plant started operation in Oct 2009 ahead of schedule, to prepare for sales expansion of LCD panels in China. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 2,478,586 million, a 1% up from Yen 2,455,850 million and operating loss of Yen 55,400 million.  The operations continued in the red to post Yen 206,488 million recurring loss and Yen 545,347 million net losses, respectively, compared with Yen 65,437 million recurring loss and Yen 376,076 million net losses, respectively, a year ago.

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 40,000 million and the net profit at Yen 5,000 million, on a 9% rise in turnover, to Yen 2,700,000 million.  Sales in the LED business will recover, thanks to the growth of sales to large customers.  Orders for electronic will also bottom out.  Home appliances will enjoy solid demand.  Operating profit will emerge, helped by workforce reduction and decrease in depreciation  Net profit will also surface, due to drop in extraordinary loss related to structural reform..

 

The financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

           

Date Registered:　May 1935

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         2,500 million shares

Issued:                1,188,481,887 shares

Sum:                   Yen 212,337 million

           

Major shareholders (%): Nippon Life Ins (4.7), Meiji Yasuda Life Ins (3.8), Mizuho Bank (3.5), MUFG (3.5), Samsung Electronics Japan (3.0), Mitsui Sumitomo Ins (2.6), Qualcomm Inc (2.5), Employees’ S/Holding Assn (2.1), Japan Trustee Services T (1.9), Sompo Japan Ins (1.8); foreign owners (15.3)

           

No. of shareholders: 148,749

 

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

 

Managements: Kozo Takahashi, pres; Shigemitsu Mizushima, v pres; Tetsuo Onikshi, s/mgn dir; Norikazu Katashi, s/mgn dir; Satoshi Fujimoto, mgn dir; Hitohiro Hashimoto, mgn dir; Toshihiko Fujimoto, mgn dir; Yumiko Ito, dir; Makoto Kato, dir

 

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

 

Related companies: Sharp Electronics Marketing, other (major subsidiaries 12)

           

 

OPERATION

           

Activities: Manufactures consumer electronics (54%), electronics components, other (46%).

Overseas Sales Ratio (59%)

 

(Mfg items):

Consumer Electronics: Audio-visual & Communication Equipment (LCD color TVs, color TVs, DVD recorders, DVD players, Blu-ray Disc recorders, Blu-ray Disc players, mobile communications handsets, mobile phones, PHS terminals); Health & Environment Equipment (refrigerators, superheated steam ovens, microwave oven, air conditioners, washing machines, vacuum cleaners, air purifiers, dehumidifiers, humidifiers, electric heaters, small cooking appliances, Plasmacluster ion generators, LED lights, solar-powered LED lights); Information Equipment (personal computers, electronic dictionaries, calculators, facsimiles, telephones, POS systems, handy data terminals electronic cash register, LCD color monitors, information displays, FA equipment)

Electronics Components: LCDs (TFT LCD modules, Duty LCD modules, System LCD modules); Solar Cells (Crystalline solar cells, thin-film solar cells); Other Electronic Devices (CCD/CMOS images, LSIs for LCDs, microprocessors, flash memory combination memory, analog ICs, components for satellite broadcasting terrestrial digital tuners, RF modules, network components, laser diodes, LEDs, optical pickups, optical sensors, regulators, switching power supplies).

           

Clients: [Mfrs, wholesalers] Sharp Electronics Marketing, NTT DoComo, other.

Goods are exported.

            No. of accounts: 2,000 – 3,000

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sakai Display Products, Asahi Glass, Sharp Finance, other

 

Payment record: Slow but Correct

 

Location: Business area in Osaka.  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:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,478,586

2,455,850

 

  Cost of Sales

2,218,003

2,043,842

 

      GROSS PROFIT

260,583

412,008

 

  Selling & Adm Costs

406,849

449,560

 

      OPERATING PROFIT

-146,266

-37,552

 

  Non-Operating P/L

-60,222

-27,895

 

      RECURRING PROFIT

-206,488

-65,437

　

      NET PROFIT

-545,347

-376,076

BALANCE SHEET

 

 

 

 

  Cash

　

191,941

195,325

 

  Receivables

 

424,223

375,411

 

  Inventory

 

310,709

527,483

 

  Securities, Marketable

　

　

 

  Other Current Assets

294,962

322,906

 

      TOTAL CURRENT ASSETS

1,221,835

1,421,125

 

  Property & Equipment

563,699

872,442

 

  Intangibles

 

59,211

76,041

 

  Investments, Other Fixed Assets

243,018

(755,473)

 

      TOTAL ASSETS

2,087,763

1,614,135

 

  Payables

 

293,047

334,095

 

  Short-Term Bank Loans

674,941

212,321

 

　

 

　

　

 

  Other Current Liabs

699,545

844,664

 

      TOTAL CURRENT LIABS

1,667,533

1,391,080

 

  Debentures

 

160,000

194,996

 

  Long-Term Bank Loans

73,087

112,952

 

  Reserve for Retirement Allw

6,501

6,000

 

  Other Debts

　

45,805

263,987

 

      TOTAL LIABILITIES

1,952,926

1,969,015

 

      MINORITY INTERESTS

 

 

 

Common stock

212,337

204,676

 

Additional paid-in capital

276,179

268,528

 

Retained earnings

(290,912)

259,937

 

Evaluation p/l on investments/securities

6,062

5,610

 

Others

 

(54,957)

(90,704)

 

Treasury stock, at cost

(13,872)

(2,927)

 

      TOTAL S/HOLDERS` EQUITY

134,837

645,120

　

      TOTAL EQUITIES

2,087,763

2,614,135

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

-81,075

-143,302

 

Cash Flows from Investment Activities

7,110

-159,557

 

Cash Flows from Financing Activities

51,637

256,381

　

Cash, Bank Deposits at the Term End

　

51,637

256,381

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

134,837

645,120

 

 

Current Ratio (%)

73.27

102.16

 

 

Net Worth Ratio (%)

6.46

24.68

 

 

Recurring Profit Ratio (%)

-8.33

-2.66

 

 

Net Profit Ratio (%)

-22.00

-15.31

 

 

Return On Equity (%)

-404.45

-58.30

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.66

UK Pound

1

Rs.102.19

Euro

1

Rs.87.74

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.