MIRA INFORM REPORT
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Report No. : |
332825 |
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Report Date : |
18.07.2015 |
IDENTIFICATION DETAILS
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Name : |
RENESAS ELECTRONICS CORPORATION |
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Registered Office : |
Nippon Bldg, 2-6-2 Ohtemachi Chiyodaku Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
November 2002 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is manufactures of microcomputer, discrete semiconductors,
SoC (System on Chip) |
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No. of Employee : |
21,083 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 14,613.1 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.
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Source
: CIA |
Company
name
RENESAS
ELECTRONICS CORPORATION
REGD
NAME
Renesas
Electronics KK
Address
Nippon Bldg, 2-6-2
Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN
Tel:
03-5201-5111 Fax: 03-3270-5003 -
URL
http://www.renesas.com
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
micro-computer, other
BRANCHES
Gunma,
Osaka, Itami, Hitachi, other (Tot 12)
OVERSEAS
USA, UK, Germany, China, Hong Kong, Taiwan, Singapore, Malaysia, India,Korea, Brazil, Vietnam, other
FACTORIES
Gunma,
Ibaraki, other (Tot 4); China, Singapore and Malaysia (3)
CHIEF
EXEC
TETSUYA
TSURUMARU, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 791,074 M
PAYMENTS REGULAR CAPITAL Yen 228,255 M
TREND SLOW WORTH Yen 311,909 M
STARTED 2002 EMPLOYES 21,083
COMMENT
MFR OF SEMICONDUCTORS OTHER
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 14,613.1
MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2016 fiscal term.
HIGHLIGHTS
This is the top-ranked micro-computers mfr, with system LSIs
for installation in LCDs, automobiles, mobile phones, DVDs, digital cameras as
mainline. Corporate name changed from
NEC Electronics following business combination with Renesas Technology on Apr
1, 2010. Has strengths in microcomputers
for automotive use, with 40% global share.
Now the firm is under restructuring through releasing of unprofitable
businesses by closedown of plants as well as downsizing.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen
791,074 million, a 5.0% down from Yen 833,011 million in the previous term. The recurring profit was posted at Yen 105,335
million and the net profit at Yen 82,365 million, respectively, compared with
Yen 58,625 million recurring profit and Yen 5,291 million net losses,
respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is
projected at Yen 108,000 million and the net profit at Yen 84,000 million,
respectively, on a 5% fall in turnover, to Yen 750,000 million. .
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 14,612.1 million, on 30
days normal terms.
REGISTRATION
Date Registered: Nov
2002
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 3,400 million shares
Issued: 1,667,124,490 shares
Sum: Yen 228,255 million
Major shareholders (%): Innovation Network Corp
(69.1), JTSB (NEC) (8.1), Hitachi Ltd (7.6), Mitsubishi Electric (6.2), Toyota
Motor (2.4), Nissan Motor (1.5), NEC Corp (0.7), Keihin Corp (0.5), Denso Corp
(0.5), Canon Inc (0.2); foreign owners (0.4)
No. of shareholders: 16,410
Listed on the S/Exchange (s) of:
Tokyo
Managements: Hisao Sakuta, ch; Tetsuya Tsurumaru,
pres; Hidetoshi Shibata, dir; Yasuho Asakura, dir; Tetsuro Toyoda, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Renesas Semiconductor Kyushu & Yamaguchi, Renesas Electron- ics Sales, other.
OPERATION
Activities: Manufactures: microcomputer (42%),
discrete semiconductors (13%), SoC (System on Chip) (20%), others (5%)
Overseas Sales Ratio (54%)
Clients:
[Mfrs, wholesalers] Renesas Electronics Hong Kong, Renesas Electronics America,
Renesas Electronics Singapore, other
No. of
accounts: 800
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Renesas Semiconductor Mfg, Renesas Semiconductor Package
& Test Solutions, other
Payment record:
Regular
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
Mizuho Bank (H/O)
MUFG (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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791,074 |
833,011 |
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Cost of Sales |
472,303 |
523,262 |
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GROSS PROFIT |
318,771 |
309,749 |
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Selling & Adm Costs |
214,344 |
242,114 |
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OPERATING PROFIT |
104,427 |
67,635 |
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Non-Operating P/L |
908 |
-9,020 |
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RECURRING PROFIT |
105,335 |
58,625 |
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NET PROFIT |
82,365 |
-5,291 |
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BALANCE SHEET |
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Cash |
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344,000 |
267,302 |
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Receivables |
91,471 |
82,531 |
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Inventory |
111,421 |
126,055 |
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Securities, Marketable |
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Other Current Assets |
24,171 |
28,019 |
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TOTAL CURRENT ASSETS |
571,063 |
503,907 |
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Property & Equipment |
181,815 |
204,254 |
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Intangibles |
28,252 |
34,877 |
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Investments, Other Fixed Assets |
58,957 |
42,964 |
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TOTAL ASSETS |
840,087 |
786,002 |
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Payables |
76,364 |
86,382 |
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Short-Term Bank Loans |
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2,000 |
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Other Current Liabs |
109,694 |
112,634 |
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TOTAL CURRENT LIABS |
186,058 |
201,016 |
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Debentures |
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Long-Term Bank Loans |
246,505 |
256,625 |
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Reserve for Retirement Allw |
50,489 |
57,874 |
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Other Debts |
|
45,126 |
43,173 |
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TOTAL LIABILITIES |
528,178 |
558,688 |
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MINORITY INTERESTS |
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Common
stock |
228,255 |
228,255 |
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Additional
paid-in capital |
525,413 |
525,413 |
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Retained
earnings |
(475,815) |
(533,106) |
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Evaluation
p/l on investments/securities |
716 |
572 |
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Others |
33,351 |
6,191 |
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Treasury
stock, at cost |
(11) |
(11) |
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TOTAL S/HOLDERS` EQUITY |
311,909 |
227,314 |
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TOTAL EQUITIES |
840,087 |
786,002 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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116,746 |
93,722 |
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Cash
Flows from Investment Activities |
-26,603 |
-19,241 |
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Cash Flows
from Financing Activities |
-23,762 |
107,007 |
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Cash,
Bank Deposits at the Term End |
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343,722 |
265,897 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
311,909 |
227,314 |
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Current
Ratio (%) |
306.93 |
250.68 |
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Net
Worth Ratio (%) |
37.13 |
28.92 |
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Recurring
Profit Ratio (%) |
13.32 |
7.04 |
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Net
Profit Ratio (%) |
10.41 |
-0.64 |
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Return
On Equity (%) |
26.41 |
-2.33 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.49 |
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|
1 |
Rs.99.43 |
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Euro |
1 |
Rs.69.14 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRS |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.