MIRA INFORM REPORT

 

 

Report Date :

05.02.2013

 

IDENTIFICATION DETAILS

 

Name :

MELCO ADVANCED DEVICE CORPORATION

 

 

Registered Office :

970 Takakicho Higashiharabaru Isahaya Nagasaki-Pref 859-0133

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

February, 2005

 

 

Com. Reg. No.:

3100-01-008587

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of semiconductor devices

 

 

No. of Employees :

134

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues 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

 

MELCO ADVANCED DEVICE CORPORATION

 

 

REGD NAME 

 

Melco Advanced Device KK

 

 

MAIN OFFICE

 

970 Takakicho Higashiharabaru Isahaya Nagasaki-Pref 859-0133 JAPAN

Tel: 0957-32-5677     

 

URL:                 http://www.mitsubishi.com (Of the parent, Mitsubishi Electric Corp)

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of semiconductor devices

 

 

BRANCHES   

 

Nil

 

 

FACTORIEs  

 

At the caption address

 

 

OFFICERS

 

AKIHIRO SHIMA, PRES             Tetsuo Shiba, mgn dir

Yoshitomi Yoshimoto, dir          Hisashi Hiraki, dir          

           

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 5,294 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 50 M

TREND             SLOW                           WORTH            Yen 645 M

STARTED         2005                             EMPLOYES      134

 

 

COMMENT    

 

MFR OF SEMICONDUCTOR DEVICES, OWNED BY MITSUBISHI ELECTRIC CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

           

HIGHLIGHTS

           

The subject company was established on the basis of a division separated from Mitsubishi Electric Corp (See REGISTRATION).  This is a specialized mfr of semiconductor devices.  Materials are supplied from the parent, and products are all shipped to the parent, Mitsubishi Electric Corp.

 

 

FINANCIAL INFORMATION

           

Financials are consolidated by the parent and only partially disclosed.

 

The sales volume for Mar/2012 fiscal term amounted to Yen 5,294 million, a 7% down from Yen 5,686 million in the previous term.  Semiconductor business saw a decrease in orders compared with previous fiscal year due to a decline in demand mainly for industrial-use power modules, as well as high-frequency optical transmission devices.  The operations plunged into the red to post Yen 152 million net losses, compared with Yen 12 million net profit a year ago.

 

For the current term ending Mar 2013 the net profit is projected at Yen 15 million, on a similar turnover, at Yen 5,900 million.  Demand of power semiconductors is receding, and that for LCD products is edging down. 

 

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

 

 

REGISTRATION

 

Date Registered:                       Feb 2005

Regd No.:                                             3100-01-008587 (Nagasaki-Isahaya)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              20,000 shares

Issued:                                     5,000 shares

Sum:                                        Yen 50 million

Major shareholders (%):           Mitsubishi Electric Corp* (99), Melfis Co (1)

No. of shareholders:                 2

 

*.. Comprehensive electrical machinery mfr ranked 3rd, Tokyo, founded 1921, listed Tokyo S/E, capital Yen 175,820 million, sales Yen 1,639,468 million, operating profit Yen 225,444 million, recurring profit Yen 224,080 million, net profit Yen 112,063 million, total assets Yen 3,354,575 million, net worth Yen 1,126,975 million, employees 117,314, pres Ken’ichiro Yamanishi

 

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

 

 

OPERATION

           

Activities: Manufactures semiconductor devices (100%)

 

Clients: [Mfrs, wholesalers] Mitsubishi Electric Corp and group firms 

            No. of accounts: 1

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Electric Corp and group firms

 

Payment record: Slow but Correct

 

Location: Business area in Isahaya, Nagasaki-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Shinwa Bank (Nagasaki)

MUFG (Nagasaki)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

 

 

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

5,300

5,294

5,686

6,069

Recur. Profit

 

 

 

 

 

Net Profit

 

15

-152

12

83

Total Assets

 

 

2,285

N/A

2,283

Net Worth

 

 

645

797

785

Capital, Paid-Up

 

 

50

50

50

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

0.11

-6.89

-6.31

3.62

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

28.23

..

34.38

    N.Profit/Sales

0.28

-2.87

0.21

1.37

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/03/2013 fiscal term.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.97

UK Pound

1

Rs.83.17

Euro

1

Rs.72.20

 

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%)

 

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