MIRA INFORM REPORT

 

 

Report No. :

306183

Report Date :

31.01.2015

 

IDENTIFICATION DETAILS

 

Name :

PANASONIC CORPORATION

 

 

Registered Office :

1006 Kadoma Kadoma City Osaka-Pref 571-0050

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

December 1935

 

 

Com. Reg. No.:

1200-01-158218

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures of AVC (20%), AP (14%), Eco solutions (21%), AIS (32%), others (13%).

 

 

No. of Employee :

289,756

 

 

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 143,003.5 Million

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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 summary

 

PANASONIC CORPORATION

 

 

REGD NAME

 

Panasonic KK

 

 

MAIN OFFICE

 

1006 Kadoma Kadoma City Osaka-Pref 571-0050 JAPAN

Tel: 06-6908-1121    

Fax: 06-6901-7130     -

 

URL:                 http://www.panasonic.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of AV, other home electric appliances

BRANCHES:     Sapporo, Sendai, Tokyo, Osaka, Fukuoka, other (Tot 100)

OVERSEAS:     Worldwide

FACTORIES:    At the caption address, Kobe, Kusatsu, Hikone, Takatsuki, Niigata, other

 

CHIEF EXEC:   KAZUHIRO TSUGA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 7,736,541 M

PAYMENTSREGULAR   CAPITAL           Yen 258,740 M

TREND UP                    WORTH            Yen 1,586,438 M

STARTED         1935                 EMPLOYES      289,756

 

COMMENT:      MFR OF HOME ELECTRIC APPLIANCES  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 143,003.5 MILLION, 30 DAYS NORMAL TERMS

 

 

 

 

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

8,692,672

178,807

74,017

(%)

2,946,335

(Consolidated)

31/03/2012

7,846,216

-812,844

-772,172

-9.74

1,977,566

31/03/2013

7,303,045

-398,336

-754,250

-6.92

1,304,273

31/03/2014

7,736,541

206,225

120,442

5.94

1,586,438

31/03/2015

7,750,000

120,000

140,000

0.17

..

Unit: In Million Yen

Forecast figures for the 31/03/205 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest comprehensive mfr of AV and other home electric appliances.  Under its auspices, controls 2 core operating subsidiaries: Panasonic Electric Works, major housing materials & equipment maker, and Sanyo Electric excelling in field of energy.  Around 50% of consolidated sales generated by overseas business.  The company is targeting operating profit at Yen 350 billion and operating profit ratio at 50% in the March 2016 term under the new medium-term business plan.  Achievement of those targets depends on shift away from in-house products and profit emergence in the TV and semiconductor businesses.  It aims to expand sales of products for enterprise.  The company will buy a leading wiring device maker in Turkey, and will vigorously spend capital in growing fields. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 7,736,541 million, a 5.9% up from Yen 7,303,045 million in the previous term.  Sales of air-conditioners slumped in China.  But orders for housing-related products went better than projected.  Demand for car-mounted products was steady.  The operations came back to profitability to post Yen 206,225 million recurring profit and Yen 120,142 million net profit, respectively, compared with Yen 398,386 million recurring loss and Yen 754,250 million net losses, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 120,000 million and the net profit at Yen 140,000 million, on a 0.7% rise in turnover, to Yen 7,750,000 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 143,003.5 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:                       Dec 1935

Regd No:                                  1200-01-158218 (Osaka-Kadoma)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              4,950 million shares

Issued:                         2,453,053,497 shares

Sum:                            Yen 258,740 million

 

Major shareholders (%): Company’s Treasury Stock (5.7), Japan Trustee Services T

(4.7), Master Trust Bank of Japan T (4.4), State Street Bank & Trust (3.6), Nippon Life Ins

(2.9), Bank of New York Treaty Jasdec (2.3), Moxely & Co (2.3), Employees’ S/Holding

Assn (2.2), Sumitomo Life Ins (1.5), Matsushita Real Estate (1.1); foreign owners (30.1)

 

No. of shareholders: 471,337

 

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

 

Managements: Shusaku Nagase, ch; Masayuki Matsushita, v ch; Kazuhiro Tsuga, pres; Yoshihiko Yamada, v pres; Ikusaburo Kashima, s/mgn dir; Yoshiiku Miyata, s/mgn dir; Kazunori Takami, s/mgn dir; Hideaki Kawai, s/mgn dir; Yoshiyuki Miyabe, s/mgn dir; Takashi Toyama, mgn dir

 

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

 

Related companies: Sanyo Electric, Panasonic Electric Works, other.

 

 

OPERATION

           

Activities: Manufactures AVC (20%), AP (14%), Eco solutions (21%), AIS (32%), others (13%).

 

Overseas Sales Ratio (48%)

 

(Mfg Items):

Digital AV: projector, digital cameras, cameras, dual camera, ventilator, air purifier, portable power supply, telephones, network cameras

Car AV & Navigation System

Home Appliances & Batteries

Beauty & Healthcare: hair dryer, hair iron, facial ionic steamer, eyelash curler, epilator, compact toothbrush, oxygen concentrator, massage chairs, hygiene toilet seat, blood pressure meter, other

           

Clients: [Mfrs, wholesalers] Sekisui House, Kansai Kikai Hambai, Hitachi Hi-Technologies, Panasonic Consumer Marketing, Toyota Motor, Panasonic North America, Panasonic Europe, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Hitachi Hi-Technologies, Sanyo Electric, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Osaka H/O)

Resona Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

7,736,541

7,303,045

  Cost of Sales

5,638,869

5,419,888

      GROSS PROFIT

2,097,672

1,883,157

  Selling & Adm Costs

1,792,558

1,722,221

      OPERATING PROFIT

305,114

160,936

  Non-Operating P/L

-98,889

-237,400

      RECURRING PROFIT

206,225

-398,336

 

      NET PROFIT

120,442

-754,250

BALANCE SHEET

  Cash

 

592,467

496,283

  Receivables

958,451

905,973

  Inventory

750,681

786,845

  Securities, Marketable

 

 

  Other Current Assets

352,393

304,982

      TOTAL CURRENT ASSETS

2,653,992

2,494,083

  Property & Equipment

1,425,449

1,675,428

  Intangibles

 

 

  Investments, Other Fixed Assets

1,133,553

1,228,301

      TOTAL ASSETS

5,212,994

5,397,812

  Payables

736,652

739,581

  Short-Term Bank Loans

84,738

480,304

 

 

 

  Other Current Liabs

1,616,469

1,379,274

      TOTAL CURRENT LIABS

2,437,859

2,599,159

  Debentures

 

 

  Long-Term Bank Loans

557,374

663,091

  Reserve for Retirement Allw

 

 

  Other Debts

 

631,323

831,289

      TOTAL LIABILITIES

3,626,556

4,093,539

      MINORITY INTERESTS

Common stock

258,740

258,740

Additional paid-in capital

1,109,501

1,110,686

Retained earnings

878,742

769,863

Evaluation p/l on investments/securities

 

 

Others

(413,413)

(587,988)

Treasury stock, at cost

(247,132)

(247,028)

      TOTAL S/HOLDERS` EQUITY

1,586,438

1,304,273

 

      TOTAL EQUITIES

5,212,994

5,397,812

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

581,950

338,750

Cash Flows from Investment Activities

12,128

16,406

Cash Flows from Financing Activities

-532,315

-491,058

 

Cash, Bank Deposits at the Term End

 

592,467

496,283

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

1,586,438

1,304,273

Current Ratio (%)

108.87

95.96

Net Worth Ratio (%)

30.43

24.16

Recurring Profit Ratio (%)

2.67

-5.45

Net Profit Ratio (%)

1.56

-10.33

Return On Equity (%)

7.59

-57.83

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.93.13

Euro

1

Rs.70.03

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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.