MIRA INFORM REPORT

 

 

Report Date :           

12.08.2011

 

IDENTIFICATION DETAILS

 

Name :

NET ONE SYSTEMS CO Ltd

 

 

Registered Office :

Sphere Tower Tennozu, 2-2-8 Higashi-Shinagawa Shinagawaku Tokyo 140-8621

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

February 1988

 

 

Com. Reg. No.:

(Tokyo-Shinagawaku) 007922

 

 

Legal Form :

Limited Company

 

 

Line of Business :

System solution provider; network construction & equipment sales

 

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 5,698.3 Million

Status :

Satisfactory

Payment Behaviour :

Usually Correct 

Litigation :

----

 

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 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

Company name

 

NET ONE SYSTEMS CO Ltd

 

 

REGD NAME

 

Net One Systems KK

 

 

MAIN OFFICE

 

Sphere Tower Tennozu, 2-2-8 Higashi-Shinagawa Shinagawaku Tokyo

                        140-8621 JAPAN

                        Tel: 03-5462-0800     Fax: 03-5462-0699-

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

System solution provider; network construction & equipment sales

 

 

BRANCHEs

 

Osaka, Sapporo, Sendai, Tsukuba, Nagoya, Toyoda, other (Tot 14)

 

 

OVERSEAS   

 

Net One Systems (USA) Inc

 

 

FACTORIES  

 

Shinagawa (Tokyo) (Quality Control Center & Technical Center)

 

 

CHIEF EXEC

 

TAKAYUKI YOSHINO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES       Yen 130,857 M

PAYMENTS      REGULAR         　CAPITAL        Yen 12,279 M

TREND STEADY           　WORTH         Yen 56,294 M

STARTED         1988                 　EMPLOYES   2,010

 

 

COMMENT

 

NETWORK SYSTEM SOLUTION PROVIDER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,698.3 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is the market leader in network business, with advanced network construction and equipment sales as mainline.  Specializes in offering network system solutions: Network integration, Network computing, service integration and media integration (See OPERATION).   Has leading firms in diverse industries, including NTT.  Products of Cisco Systems (USA) account for around 50% of total sales.  The company plans to reinforce network technology in response to growing demand for cloud services aimed at electricity savings and business continuation.  It will gradually apply technology to create virtual servers for multiple bases, starting from Linux compatible models for backup purpose.

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 130,857 million, a 5.2% up from Yen 124,370 million in the previous term.  Bookings accepted by market sector: EP Sector up 1.8%; SP Sector up 9.1%; AP Sector up 0.8%; Partner Sector up 4.9%.  (See OPERATION for category sectors).  The recurring profit was posted at Yen 5,764 million and the net profit at Yen 22,891 million, respectively, compared with Yen 5,069 million recurring profit and Yen 2,634 million net profit, respectively, a year ago. 

           

(Apr/Jun/2011 results): Sales Yen 32,803 million (up 27.4%), operating profit Yen 2,673 million (up from Yen 133 million), recurring profit Yen 2,752 million (up from Yen 167 million), net profit Yen 1,561 million (up from Yen 107 million losses).  (% & figures compared with the corresponding period a year ago).

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 10,200 million and the net profit at Yen 5,800 million, on a 7.8% rise in turnover, to Yen 141,000 million.  Communication-use fixed line projects will grow slowly but mobile-relate works will drive sales.  Network products for general industries and the public sector will also increase.  Post-Tohoku Earthquake restoration demand needs time to take hold. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,698.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:   Feb 1988

Regd No.:         (Tokyo-Shinagawaku) 007922

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       1.1 million shares

Issued:              551,900 shares

Sum:                   Yen 12,279 million

 

Major shareholders (%): Company’s Treasury Stock (18.3), CBNY-Orbis Funds (9.7), CBNY-Orbis SICAV (9.2), Japan Trustee Services T (2.1), Nomura Trust Inv. T (1.6), CBHK Orbis Global Equity Fund (1.5), MUFG (1.5), Meiji Yasuda Life Ins (1.3); foreign owners31.7)

 

No. of shareholders: 15,006

 

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

 

Managements: Osamu Sawada, ch; Takayuki Yoshino, pres; Shingo Saito, dir; Toru Arai, dir; Norihisa Katayama, dir; Tsuyoshi Suzuki, dir; Shun’ichi Suemitsu, dir; Hiroshi Otsuka, dir

 

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

 

Related companies: Net One Partners, Xseed Co, Business Assurance, other.

 

 

 

 

 

OPERATION

           

Activities: Network system solution provider: network consulting, network design & management, network facilities installation & construction, network equipment sales, network computing services, operation support services, training services, other:

 

(Sales by Category Sectors):

 

EP Sector (19%): Tokyo-Metrop Enterprise Sector;

SP Sector (46%): Telecom & Internet Service Provider Sector;

AP Sector (27%): Regional Area and Public Sector;

Partner Sector (8%): Net One Partners Co Ltd

           

Clients: [Telecommunications carriers] NTT East, NTT West, NTT DoCoMo, NTT Communications, KDDI, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

            Suppliers: [Network firms] Cisco Systems, Juniper Networks, ARRIS International, Brocade Stoke, other

 

Payment record: Regular

 

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

 

Bank References:

·         MUFG (Toranomon)

·         Mizuho Corporate Bank (Nihombashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

130,857

124,370

 

  Cost of Sales

100,366

94,668

 

      GROSS PROFIT

30,491

29,702

 

  Selling & Adm Costs

24,793

24,701

 

      OPERATING PROFIT

5,697

5,000

 

  Non-Operating P/L

67

69

 

      RECURRING PROFIT

5,764

5,069

　

      NET PROFIT

2,891

2,634

BALANCE SHEET

 

 

 

 

  Cash

　

12,256

9,419

 

  Receivables

 

35,519

36,092

 

  Inventory

 

8,329

8,987

 

  Securities, Marketable

7,999

5,999

 

  Other Current Assets

7,817

8,071

 

      TOTAL CURRENT ASSETS

71,920

68,568

 

  Property & Equipment

4,887

5,350

 

  Intangibles

 

1,968

2,226

 

  Investments, Other Fixed Assets

3,852

4,107

 

      TOTAL ASSETS

82,627

80,251

 

  Payables

 

12,300

15,176

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

13,283

10,015

 

      TOTAL CURRENT LIABS

25,583

25,191

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

749

618

 

      TOTAL LIABILITIES

26,332

25,809

 

      MINORITY INTERESTS

 

 

 

Common stock

12,279

12,279

 

Additional paid-in capital

19,453

19,453

 

Retained earnings

40,183

38,583

 

Evaluation p/l on investments/securities

(14)

(13)

 

Others

 

247

306

 

Treasury stock, at cost

(15,854)

(16,167)

 

      TOTAL S/HOLDERS` EQUITY

56,294

54,441

　

      TOTAL EQUITIES

82,627

80,251

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

8,129

-372

 

Cash Flows from Investment Activities

-1,887

-4,609

 

Cash Flows from Financing Activities

-1,407

-2,296

　

Cash, Bank Deposits at the Term End

　

20,256

15,419

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

56,294

54,441

 

 

Current Ratio (%)

281.12

272.19

 

 

Net Worth Ratio (%)

68.13

67.84

 

 

Recurring Profit Ratio (%)

4.40

4.08

 

 

Net Profit Ratio (%)

2.21

2.12

 

 

Return On Equity (%)

5.14

4.84

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.27

UK Pound

1

Rs.73.34

Euro

1

Rs.64.58

 

 

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.