MIRA INFORM REPORT

 

 

Report Date :

02.09.2013

 

IDENTIFICATION DETAILS

 

Name :

PRESTIGE INTERNATIONAL INC

 

 

Registered Office :

Hanzomon First Bldg 2F, 1-4 Kojimachi Chiyodaku Tokyo 102-0083

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

October 1986

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is a business process outsourcing (BPO) company competitive in field of call centers

 

 

No. of Employees :

1,768

 

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 1,162.8 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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

 

Company name

 

PRESTIGE INTERNATIONAL INC

 

 

REGD NAME

 

Prestige International KK

 

 

MAIN OFFICE

 

Hanzomon First Bldg 2F, 1-4 Kojimachi Chiyodaku Tokyo 102-0083 JAPAN

Tel: 03-5213-0220     Fax: 03-5213-0221     -

 

URL:                             http://www.prestigein.com

E-Mail address:             (thru the URL)

 

 

ACTIVITIES

 

Business process outsourcing service (BPO)

 

 

BRANCHES   

 

Akita, Osaka

 

OVERSEAS   

 

USA, Brazil, Singapore, Philippines, Indonesia, Malaysia, Taiwan, India, Thailand, China, UK, Hong Kong, Australia

 

 

CHIEF EXEC 

 

SHIN’ICHI TAMAGAMI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 24,225 M

PAYMENTSRegular               CAPITAL           Yen 986 M

TREND UP                                WORTH            Yen 11,256 M

STARTED         1986                             EMPLOYES      1,768

 

 

COMMENT

 

BUSINESS PROCESS OUTSOURCING SERVICE (BPO) PROVIDER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,162.8 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a business process outsourcing (BPO) company competitive in field of call centers. Main clients include nonlife insurance and credit card firms and foreign-affiliated automakers.  Advancing into real estate area.  Eager to build BPO centers responding to customer demand.  The company is actively expanding capacity of BPO centers to meet surging demand for call centers by opening 11 in Yamagata in Feb 2013 and one in Toyama in Feb 2015.  It is building up overseas business sites for insurance and guarantee services for healthcare programs, etc, mainly in S/E Asia.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 24,225 million, a 3.6% up from Yen 23,385 million in the previous term.  High-profit automobile-related subsidiary shifted to equity method accounting in the second half, giving a major impact.  The recurring profit was posted at Yen 2,158 million and the net profit at Yen 1,409 million, respectively, compared with Yen 2,651 million recurring profit and Yen 1,543 million net profit, respectively, a year ago. 

 

(Apr/Jun/2013 results): Sales Yen 5,007 million (down 15.5%), operating profit Yen 609 million (up 12.7%), recurring profit Yen 499 million (down 12.3%), net profit Yen 550 million (up 62.3%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 2,650 million and the net profit at Yen 1,980 million, on a 7.9% fall in turnover, to Yen 22,300 million.  In mainline automobile-related business, sales will fall off due to a shift of some businesses to equity method accounting, but other existing businesses will grow steadily.  Profitability of brisk insurance and guarantee services will go up sharply on strong performance of healthcare program, etc, almost coping with automobile-related business.  Profits will rebound offsetting call center opening costs. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,162.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

      Date Registered:　   Oct 1986

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:                     52,376,000 shares

Issued:                15,010,200 shares

Sum:                   Yen 986 million

 

Major shareholders (%): Tamagami International (26.4), Nambu Enterprise (8.9), State Street Bank & Trust 505224 (7.3), Bank of New York Treaty Jasdec (5.4), Japan Trustee Services T (5.0), Yasuyuki Nanbu (3.0), BBH-Fidelity PTRSF Intrinsic OF (2.9), BBHF Fidelity LPSF (Principal ASSP) (2.6), Master Trust Bank of Japan T (2.5), Shinichi Tamagami (2.3); foreign owners (33.2)

 

No. of shareholders: 1,874

 

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

 

Managements: Shin’ichi Tamagami, pres; Katsuya Yakubo, mgn dir; Mikio Hashimoto, dir; Hiroshi Sekine, dir; Tateki Nakamura, dir; Hiroshi Akai, dir

 

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

 

Related companies: Prestige Int’l USA, other.

 

 

OPERATION

           

Activities: Business process outsourcing (BPO) services; roadside assistance for auto industry, casualty insurance industry (car accidents, repairs, other ) (38%), insurance (Japanese speaking desk service, claim handling service, health care program, rent-guarantee service, extended warranty services, at-home care insurance operation service, small amount, short-time insurance fiduciary obligation) (32%), CRM (domestic & global contact center outsourcing, accident response & support, brochure mailing service) (12%), card (foreign currency based credit card, issuing & call center management) (7%),  property assistance (property assistance, parking services) (8%), others (IT-related services, temporary works/staffing) (3%)

Overseas Sales Ratio (11%)

           

Clients: [Mfrs, insurance companies, wholesalers] Nipponkoa Ins, Sony Assurance Inc, Sompo Japan, Fuji Fire & Marine Ins, Nipponkoa Hotline, Tokio Marine & Nichido Fire Ins, Mitsui Fudosan, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

           

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Ohtemachi)

MUFG (Shinjuku-Nishi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

24,225

23,385

 

  Cost of Sales

19,653

18,816

 

      GROSS PROFIT

4,572

4,568

 

  Selling & Adm Costs

2,191

1,947

 

      OPERATING PROFIT

2,380

2,621

 

  Non-Operating P/L

-222

30

 

      RECURRING PROFIT

2,158

2,651

　

      NET PROFIT

1,409

1,543

BALANCE SHEET

 

 

 

 

  Cash

　

5,616

5,153

 

  Receivables

 

2,471

2,284

 

  Inventory

 

12

14

 

  Securities, Marketable

172

343

 

  Other Current Assets

2,883

2,883

 

      TOTAL CURRENT ASSETS

11,154

10,677

 

  Property & Equipment

2,043

2,165

 

  Intangibles

 

576

557

 

  Investments, Other Fixed Assets

2,081

1,316

 

      TOTAL ASSETS

15,854

14,715

 

  Payables

 

1,272

1,315

 

  Short-Term Bank Loans

100

200

 

　

 

　

　

 

  Other Current Liabs

2,725

3,884

 

      TOTAL CURRENT LIABS

4,097

5,399

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

4

25

 

  Reserve for Retirement Allw

74

64

 

  Other Debts

　

422

158

 

      TOTAL LIABILITIES

4,597

5,646

 

      MINORITY INTERESTS

 

 

 

Common stock

986

986

 

Additional paid-in capital

548

547

 

Retained earnings

9,217

8,031

 

Evaluation p/l on investments/securities

456

22

 

Others

 

121

(380)

 

Treasury stock, at cost

(72)

(137)

 

      TOTAL S/HOLDERS` EQUITY

11,256

9,069

　

      TOTAL EQUITIES

15,854

14,715

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

1,351

2,528

 

Cash Flows from Investment Activities

-876

-1,512

 

Cash Flows from Financing Activities

-305

-439

　

Cash, Bank Deposits at the Term End

　

5,517

5,148

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

11,256

9,069

 

 

Current Ratio (%)

272.25

197.76

 

 

Net Worth Ratio (%)

71.00

61.63

 

 

Recurring Profit Ratio (%)

8.91

11.34

 

 

Net Profit Ratio (%)

5.82

6.60

 

 

Return On Equity (%)

12.52

17.01

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.57

UK Pound

1

Rs.103.34

Euro

1

Rs.88.16

 

INFORMATION DETAILS

 

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.