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Report Date : |
31.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
HITACHI LG DATA STORAGE INC |
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Registered Office : |
MSC Center Bldg 4F, 3-22-23 Kaigan Minatoku Tokyo 108-0022 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
November 2000 |
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Com. Reg. No.: |
0104-01-043020 (Tokyo-Minatoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of optical disc drive, hard disc drive, other |
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No. of Employees : |
140 |
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 |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
HITACHI LG DATA
STORAGE INC
REGD NAME: KK
Hitachi LG Data Storage
MAIN OFFICE: MSC
Center Bldg 4F, 3-22-23 Kaigan Minatoku Tokyo 108-0022 JAPAN
Tel:
03-5427-8600 Fax: 03-5427-8700
E-Mail address: (thru the URL)
Mfg of optical
disc drive, hard disc drive, other
Nil
Korea, China (2),
Taiwan, Malaysia, Singapore, USA (3)
Korea
CHEOL IN CHOI,
PRES
Yoshihiro Shiba,
ch
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 57,333 M
PAYMENTS SLOW
BUT CORRECT CAPITAL Yen 1,790 M
TREND SLOW WORTH Yen
(-) 1,654 M
STARTED 2000 EMPLOYES 140
MFR OF OPTICAL DISC DRIVES, OTHER.
FINANCIAL SITUATION CONSIDERED FAIR (ON THE
BACK OF FINANCIAL STRENGTH OF THE BOTH PARENTS) AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was
established as a JV between Hitachi Ltd (See REGISTRATION) and LG Electronics Inc, Korea, for mfg optical disc
drives, other. The firm closed agreement
with Microsoft Corp to participate Microsoft’s “Windows Rally” technology
licensing program.
The sales volume for
Dec/2012 fiscal term amounted to Yen 57,333 million, a 13% down from Yen 65,573
million in the previous term. Demand
declined. The operations plunged into
the red to post Yen 1,866 million recurring loss and Yen 3,370 million net
losses, respectively, compared with Yen 465 million recurring profit and Yen
637 million net losses, respectively, a year ago. The firm wrote off Yen 1,221 million
extraordinary losses for the term.
For the current term
ending Dec 2013 the recurring profit is projected at Yen 1,000 million and the
net profit at Yen 200 million, respectively, on a 3% rise in turnover, to Yen
59,000 million.
The financial
situation is considered FAIR (on the back of financial strength of the both
parents) and good for ORDINARY business engagements.
Date Registered: Nov
2000
Regd No.:
0104-01-043020 (Tokyo-Minatoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 35,800 shares
Issued: 35,800 shares
Sum: Yen 1,790 million
Major
shareholders (%): Hitachi Ltd* (51), LG Electronics Inc (Korea) (49)
No. of shareholders: 2
*.. Hitachi Ltd, largest comprehensive mfr
of electrical machinery, Tokyo, founded 1920, capital Yen 458,790 million,
listed Tokyo S/E, sales Yen 9,041,071 million, operating profit Yen 422,028
million, recurring profit Yen 344,537 million, net profit Yen 175,326 million,
total assets Yen 9,809,230 million, net worth Yen 2,082,560 million, employees
326,240, pres Hiroaki Nakanishi
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Manufactures
optical disc drive, hard disc drive, other (--100%)
Clients: PC makers,
wholesalers, other
No. of accounts:
200
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Hitachi Ltd, LG Electronics Inc (Korea), other
Payment record: Slow but correct
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Bank
(Hamamatsucho)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/12/2013 |
31/12/2012 |
31/12/2011 |
31/12/2010 |
|
|
Annual
Sales |
|
59,000 |
57,333 |
65,573 |
103,374 |
|
Recur.
Profit |
|
1,000 |
-1,866 |
465 |
1,213 |
|
Net
Profit |
|
200 |
-3,370 |
-637 |
159 |
|
Total
Assets |
|
|
13,802 |
14,210 |
20,006 |
|
Current
Assets |
|
|
11,447 |
10,643 |
16,182 |
|
Current
Liabs |
|
|
15,206 |
12,289 |
16,581 |
|
Net
Worth |
|
|
-1,654 |
1,716 |
2,354 |
|
Capital,
Paid-Up |
|
|
1,500 |
1,500 |
1,500 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
2.91 |
-12.57 |
-36.57 |
-2.10 |
|
|
Current Ratio |
|
.. |
75.28 |
86.61 |
97.59 |
|
N.Worth Ratio |
.. |
-11.98 |
12.08 |
11.77 |
|
|
R.Profit/Sales |
|
1.69 |
-3.25 |
0.71 |
1.17 |
|
N.Profit/Sales |
0.34 |
-5.88 |
-0.97 |
0.15 |
|
|
Return On Equity |
.. |
.. |
-37.12 |
6.75 |
|
Notes: Forecast
(or estimated) figures for the 31/12/2013 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.57 |
|
|
1 |
Rs.103.34 |
|
Euro |
1 |
Rs.88.16 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.