MIRA
INFORM REPORT
|
Report Date : |
23.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
JAPAN RADIO CO LTD |
|
|
|
|
Registered Office : |
5-1-1 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
Oct 1949 |
|
|
|
|
Com. Reg. No.: |
0124-01-012867 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of radio communications equipment |
|
|
|
|
No. of Employees : |
3,294 |
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 3,275.5 Million |
|
Status : |
Satisfactory |
|
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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
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. 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
JAPAN RADIO CO LTD
REGD NAME
Nihon Musen KK
MAIN OFFICE
5-1-1 Shimo-Renjaku Mitaka City Tokyo-Metrop 181-8510 JAPAN
Tel: 0422-45-9111
Fax: 0422-45-9110
E-Mail address: info@jrc.co.jp
ACTIVITIES
Mfg of radio communications equipment
BRANCHES
Sapporo, Sendai, Aomori, Fukushima, Saitama, Nagoya,
Kanazawa, Osaka, Kobe, Kochi, Hiroshima, Fukuoka, Okinawa, other (Tot 48)
OVERSEAS
Hong Kong, China, Brazil, Philippines, Greece, Indonesia,
Taiwan, Singapore, Vietnam, Germany, USA (--subsidiaries)
FACTORIES
Mitaka
CHIEF EXEC
TAKAYOSHI TSUCHIDA, PRES & CEO
Yen
Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 113,306 M
PAYMENTS SLOW BUT
CORRECT CAPITAL Yen 14,704 M
TREND UP WORTH Yen 49,842 M
STARTED 1949 EMPLOYES 3,294
COMMENT
MFR SPECIALIZING IN RADIO COMMUNICATION EQUIPMENT.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 3,275.5 MILLION, 30 DAYS NORMAL TERMS
Unit:
In Million Yen
Forecast (or estimated) figures for 31/03/2015 fiscal term
HIGHLIGHTS
This is a time-honored and leading maker of radio
communications equipment for fishing vessels and defense industry. Also makes mobile phones. Enjoys leading share thanks to wireless part
of NTT’s digital communications base station devices. Has about 30% share of ship satellite
communications devices worldwide. Diversifying
into electronic equipment ranging from fish & depth sounders to Fax machines
and traffic measuring devices. Stressing
development of overseas and personal demand.
Nisshinbo Holding’s consolidated subsidiary.
FINANCIAL INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen
113,306 million, a 3.8% up from Yen 109,157 million in the previous term. Sales of communication equipment slumped, but
orders for disaster prevention systems increased more than anticipated. The recurring profit was posted at Yen 7,772
million and the net profit at Yen 2,310 million, respectively, compared with
Yen 4,302 million recurring profit and Yen 9,245 million net profit,
respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 19,072 million (up 21.9%),
operating loss Yen 1,538 million (previously Yen 1,237 million loss), recurring
loss Yen 1,620 million (previously Yen 489 million loss), net losses Yen 1,782
million (previously Yen 5,068 million loss).
(% & figures as compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is
projected at Yen 8,000 million and net profit at Yen 11,500 million,
respectively, on a 10.3% rise in turnover, to Yen 125,000 million. Sales of disaster prevention systems will
remain at a high level. Operating
profits will grow, thanks to staff cuts.
The financial situation is considered maintained FAIR and
good for ORDINARY business engagements.
Max credit limit is estimated at Yen 3,275.5 million, on 30 days normal
terms.
REGISTRATION
Date
Registered: Oct 1949
Regd
No.: 0124-01-012867 (Tokyo-Mitaka)
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 216 million shares
Issued: 137,976,690
shares
Sum: Yen
14,704 million
Major shareholders (%): Nisshinbo Holdings (64.2), Master
Trust Bank of Japan T (3.8), Japan Trustee Services T (3.0), Customers’
S/Holding Assn (2.8), Employees’ S/Holding Assn (1.6), Japan Trustee Services
T4 (0.6), Japan Trustee Services T9 (0.5), Trust & Custody Services, Ann.
T. (0.3), Nomura Nominees Omni. Margin CPB (0.3), Japan Trustee Services T3
(0.3); foreign owners (3.9)
No. of
shareholders: 6,286
Listed
on the S/Exchange (s) of: Tokyo
Managements:
Yoshihito Onda, ch; Takayoshi Tsuchida, pres; Shuichi Gotoh, mgn dir; Atsunori Sasaki,
mgn dir; Yasuhiko Hara, dir; Tatsuro Masamura, dir; Noriaki Yokoi, dir; Kenji
Ara, dir; Noboru Matsuda, dir; Shizuka Uzawa, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related
companies: JRC Tokki, JRC Engineering, Japan Radio Glass Co, other
OPERATION
Activities: Manufactures radio telecommunications equipment
& devices:
(Sales breakdown by divisions): Marine equipment (21%),
Communications equipment (14%), Solutions & Specialty machines (63%),
others (2%).
Overseas Sales Ratio (17%)
(Mfg Items):
Marine: marine electronics, navigation, fishing, other
Land: WIPAS (wireless IP access), ground penetrating radar
(GPR), GPS receiver, AW filter, measuring equipment for digital mobile
communication, amateur radar, other
Solution: Marine (marine GPS), VTS (solutions); Land (system
electronics, broadcast electronics, simulator, other)
Clients: [Communications carriers, government agencies,
electric mfrs] Ministry of Land, Infrastructure & Transport, Self Defense
Agency, NTT DoCoMo, Mitsubishi Electric, Harris Corporation, JRCS, Clarion Co,
Central Nippon Expressway Co, Uzushio Electric, Naikai Zosen Corp, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] NEC, Ueda Japan Radio, Nagano
Japan Radio, JRC Engineering, Fujitsu Electronics, Ryosan Co, Japan Radio
Institute, Sonic, other.
Payment record: Slow But Correct
Location: Business area in Mitaka City, Tokyo-Metrop. Office premises at the caption address are owned
and maintained satisfactorily.
Bank
References:
Mizuho Bank (Uchisaiwaicho)
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 |
|
113,306 |
109,157 |
|
|
Cost of Sales |
89,755 |
89,419 |
|
|
|
GROSS PROFIT |
23,551 |
19,737 |
|
|
|
Selling & Adm Costs |
16,269 |
15,818 |
|
|
|
OPERATING PROFIT |
7,281 |
3,919 |
|
|
|
Non-Operating P/L |
491 |
383 |
|
|
|
RECURRING PROFIT |
7,772 |
4,302 |
|
|
|
NET PROFIT |
2,310 |
9,245 |
|
|
BALANCE
SHEET |
|
|
|
|
|
|
Cash |
|
3,985 |
3,312 |
|
|
Receivables |
|
55,464 |
51,536 |
|
|
Inventory |
|
30,264 |
23,124 |
|
|
Securities, Marketable |
9 |
101 |
|
|
|
Other Current Assets |
1,998 |
8,272 |
|
|
|
TOTAL CURRENT ASSETS |
91,720 |
86,345 |
|
|
|
Property & Equipment |
9,859 |
8,302 |
|
|
|
Intangibles |
|
2,577 |
742 |
|
|
Investments, Other Fixed Assets |
9,658 |
10,152 |
|
|
|
TOTAL ASSETS |
113,814 |
105,541 |
|
|
|
Payables |
|
28,373 |
25,057 |
|
|
Short-Term Bank Loans |
2,400 |
1,650 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
(17,824) |
12,923 |
|
|
|
TOTAL CURRENT LIABS |
12,949 |
39,630 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
3,000 |
35 |
|
|
|
Reserve for Retirement Allw |
15,420 |
12,716 |
|
|
|
Other Debts |
|
32,602 |
2,231 |
|
|
TOTAL LIABILITIES |
63,971 |
54,612 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common stock |
14,704 |
14,704 |
|
|
|
Additional paid-in capital |
16,504 |
16,504 |
|
|
|
Retained earnings |
21,270 |
18,959 |
|
|
|
Evaluation p/l on
investments/securities |
1,076 |
520 |
|
|
|
Others |
|
(3,639) |
312 |
|
|
Treasury stock, at cost |
(73) |
(71) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
49,842 |
50,928 |
|
|
|
TOTAL EQUITIES |
113,814 |
105,541 |
|
|
CONSOLIDATED
CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash Flows from Operating Activities |
|
-1,645 |
3,025 |
|
|
Cash Flows from Investment
Activities |
600 |
-1,547 |
|
|
|
Cash Flows from Financing Activities |
1,390 |
-1,774 |
|
|
|
Cash, Bank Deposits at the Term End |
|
3,465 |
2,983 |
|
ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net Worth (S/Holders' Equity) |
49,842 |
50,928 |
|
|
|
Current Ratio (%) |
708.32 |
217.88 |
|
|
|
Net Worth Ratio (%) |
43.79 |
48.25 |
|
|
|
Recurring Profit Ratio (%) |
6.86 |
3.94 |
|
|
|
Net Profit Ratio (%) |
2.04 |
8.47 |
|
|
|
Return On Equity (%) |
4.63 |
18.15 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.79 |
|
|
1 |
Rs.99.30 |
|
Euro |
1 |
Rs.78.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SHG |
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.