MIRA INFORM REPORT

 

 

Report Date :

30.07.2014

 

IDENTIFICATION DETAILS

 

Name :

SONY CORPORATION

 

 

Registered Office :

1-7-1 Konan Minatoku Tokyo 101-8980

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

May 1946

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

·         Engaged in manufacturer of Consumer Electronics, Audio & Video Equipment such as MP & C, IP & S, HE & S as well as devices

Engaged in developing Game Business, diversifying into Movies, Music, Finance such as Insurance.

 

 

No of Employees :

140,900

 

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 908,054.7 million

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

 

Company name

 

SONY CORPORATION

 

 

REGD NAME

 

Sony KK

 

 

MAIN OFFICE

 

1-7-1 Konan Minatoku Tokyo 101-8980 JAPAN

 

Tel: 03-03-6748-2111     Fax: 03-5443-2148

 

URL:                 http://www.sony.co.jp/; sony.net (Global network)

E-Mail address:            info@sony.co.jp

 

 

ACTIVITIES

 

·         Engaged in manufacturer of Consumer Electronics, Audio & Video Equipment such as MP & C, IP & S, HE & S as well as devices

Engaged in developing Game Business, diversifying into Movies, Music, Finance such as Insurance.

 

 

BRANCHES

 

Tokyo (2), Atsugi, Fujisawa, Tagashiro (Tot 8)

 

 

OVERSEAS

 

China (6), USA, UK, other, worldwide (Tot 75 including subsidiaries)

 

 

CHIEF EXEC

 

KAZUO HIRAI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 7,767,266 M

PAYMENTSREGULAR   CAPITAL           Yen 646,654 M

TREND STEADY           WORTH            Yen 2,783,141 M

STARTED         1946                 EMPLOYES      140,900

 

 

COMMENT

 

MFR OF CONSUMER ELECTRONICS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY NBUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 908,054.7 MILLION, 30 DAYS NORMAL TERMS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

7,177,589

196,725

201,809

(%)

2,926,186

(Consolidated)

31/03/2012

6,493,083

-65,663

-80,911

-9.54

2,481,658

 

31/03/2013

6,795,504

242,084

41,540

4.66

2,672,004

 

31/03/2014

7,767,266

25,741

-128,369

14.30

2,783,141

 

31/03/2015

7,800,000

140,000

130,000

0.42

..

                        Unit: In Million Yen

                        Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established by Futoshi Ibuka for wholesaling communication equipment.  Incorporated in 1946, gradually shifted the mainstay to consumer electronics.  Business originated in USA where the products were well known and marketed, and returned to Japan for its quality of goods.  (We call it products returning from abroad, like students returning from abroad speaking perfect English).  Manufactures home electronics, and audio video equipment.  Known for strong brandname.  Rapidly developing game business, diversifying into movies, music, finance such as insurance.  Enjoyed rapid growth of game business.  Formed business collaboration with OLYMPUS field of medical equipment.

           

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 7,767,266 million, a 14.3% up from Yen 6,795,504 million in the previous term.  The smartphone business became profitable, led by sales growth of focused Z series.  Sales of PS4 were off to a good start.  But deficit in the TV business remained, hit by stagnating sales in newly emerging countries.  Orders for digital cameras and devices fell below the target.  Net profits dropped, hit by fading-out of gain on asset sale, despite the positive impact of the higher euro, and yielded net losses for the term.  The recurring profit was posted at Yen 25,741 million, while net losses at Yen 128,369 million, respectively, compared with Yen 242,084 million recurring profit and Yen 41,540 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 140,000 million and the net profit at Yen 130,000 million, respectively, on a 0.4% rise in turnover, to Yen 7,800,000 million.  Orders in the main profit-earner financing business will remain at a high level.   Sales in the movie and music business are also likely to remain steady. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 908,054.7 million, on 30 days normal terms.

 

REGISTRATION

 

Date Registered:     May 1946

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      3,600 million shares

Issued:             1,044,707,767 shares

Sum:                 Yen 626,907 million

 

Major shareholders (%): Moxley & Co (9.0), Bank of New York Mellon SANV10 (4.5), aster Trust Bank T (4.2), Japan Trustee Services T (3.9), State Street Bank & Trust (1.7),  Japan Trustee Services T6 (1.0), Japan Trustee \services T5 (1.0), State \street Bank West Treaty (1.0), Japan Trustee Services T3 (1.0), Japan Trustee Services T2 (1.0); foreign owners (42.2) .

           

No. of shareholders: 640,585

 

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

 

Managements:  Kazuo Hirai, pres; Koji Suzuki, s/mgn dir; Shigeru Kumekawa, dir; Koeku Mamekasu, dir; Akihiro Sakaguchi, dir; Akihiro ishibashi, dir; Yuji Sato, dir

 

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

 

Related companies: Sony Financial HLD, Sony America, other (consolidated subsidiaries – domestic 23, overseas 75)

 

 

OPERATION

 

Activities: Manufactures consumer electronics, audio & video equipment: MP & C (21%), games (10%), IP & S (9%), HE & S (15%), devices (8%), movie & music (17%), finance & others (20%)

 

Overseas Sales Ratio (72%):

 

Clients: [Mfrs, wholesalers] Sony Electronics Inc, Sony Marketing, Sony UK Ltd, Sony Electronics Singapore, Toshiba Devise Corp, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sony EMCS, Sony Semiconductor Kyushu, Sony Energy    Device, Sony Chemical & Information Device, Sony EMCS Sdn Bhd, Sony Electronics,

other..

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Gotanda)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

　

7,767,266

6,795,504

 

  Cost of Sales

6,004,877

5,104,427

 

      GROSS PROFIT

1,762,389

1,691,077

 

  Selling & Adm Costs

1,728,520

1,457,626

 

      OPERATING PROFIT

26,495

226,503

 

  Non-Operating P/L

-754

15,581

 

      RECURRING PROFIT

25,741

242,084

　

      NET PROFIT

-128,369

41,540

BALANCE SHEET

 

 

 

 

  Cash

　

1,046,466

826,361

 

  Receivables

 

946,553

844,117

 

  Inventory

 

733,943

710,054

 

  Securities, Marketable

832,566

697,597

 

  Other Current Assets

(2,354,642)

568,404

 

      TOTAL CURRENT ASSETS

1,204,886

3,646,533

 

  Property & Equipment

750,010

861,550

 

  Intangibles

 

675,663

694,621

 

  Investments, Other Fixed Assets

12,703,161

9,008,329

 

      TOTAL ASSETS

15,333,720

14,211,033

 

  Payables

 

1,175,413

1,097,253

 

  Short-Term Bank Loans

111,836

87,894

 

　

 

　

　

 

  Other Current Liabs

3,496,365

3,129,942

 

      TOTAL CURRENT LIABS

4,783,614

4,315,089

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

916,648

938,428

 

  Reserve for Retirement Allw

284,963

311,469

 

  Other Debts

　

6,561,239

5,971,046

 

      TOTAL LIABILITIES

12,546,464

11,536,032

 

      MINORITY INTERESTS

 

 

 

Common stock

646,654

630,923

 

Additional paid-in capital

1,127,090

1,110,531

 

Retained earnings

940,262

1,094,775

 

Evaluation p/l on investments/securities

(451,585)

(639,495)

 

Others

 

525,004

479,742

 

Treasury stock, at cost

(4,284)

(4,472)

 

      TOTAL S/HOLDERS` EQUITY

2,783,141

2,672,004

　

      TOTAL EQUITIES

1,533,720

14,211,033

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

　

664,116

478,165

 

Cash Flows from Investment Activities

-710,502

-705,280

 

Cash Flows from Financing Activities

207,877

88,528

　

Cash, Bank Deposits at the Term End

　

1,046,466

826,361

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

2,783,141

2,672,004

 

 

Current Ratio (%)

25.19

84.51

 

 

Net Worth Ratio (%)

181.46

18.80

 

 

Recurring Profit Ratio (%)

0.33

3.56

 

 

Net Profit Ratio (%)

-1.65

0.61

 

 

Return On Equity (%)

-4.61

1.55

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

 

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.