MIRA INFORM REPORT

 

 

Report Date :

12.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SONY SUPPLY CHAIN SOLUTIONS INC.

 

 

Registered Office :

Nihon Seimei Gotanda Bldg., 1-31-1, Nishi-gotanda,  Shinagawa-ku, Tokyo 141-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

13.02.1962

 

 

Com. Reg. No.:

0107-01-024774

 

 

Legal Form :

Private Company

 

 

Line of Business :

Subject is engaged in electronic products & components.

 

 

No. of Employees :

348

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – 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 name

 

SONY SUPPLY CHAIN SOLUTIONS INC.

 

 

Company summary

 

Country:                        Japan

Company name:            SONY SUPPLY CHAIN SOLUTIONS INC.

Name in local language: SONY SUPPLY CHAIN SOLUTION K.K.

                                    (ソニーサプライチェーンソリューション株式会社)

Office address:              Nihon Seimei Gotanda Bldg., 1-31-1, Nishi-gotanda,

                                    Shinagawa-ku, Tokyo 141-0031

Office tel:                                  03-5740-8500

Website:                                   www.sonyscs.co.jp/

Business type:              Service

Industry:                                    Electronic Products & Components

Established:                  February 13, 1962

Capital:                                     Jp. 1,550,000,000 yen

Employees:                   348

Corporate formation:       Private

Corporation No.:             0107-01-024774 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid up capital                           Jp. 1,550,000,000 yen

Number of authorized shares       12,400,000 shares

Number of outstanding shares     3,100,000 shares

Number of shareholder                1

 

Sony Corporation holds 100%.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                          Product/Service Description

-------------------------------------------------------------------------------

Service                          Worldwide procurement of parts and materials

Service                          Logistics service

Service                             Repair work of parts

 

 

COMPANY MANAGEMENT

 

President                      Mr. Seiichi Kawasaki

Nationality:                    Japan

 

Director                        Mr. Kazuaki Takanose

Nationality:                    Japan

           

Director                                     Mr. Motohiko Isetani

Nationality:                    Japan

 

Director                                     Mr. Mitsuya Kishida

Nationality:                    Japan

 

Director                                     Mr. Yuzo Sato

Nationality:                    Japan

 

Director                            Mr. Shigeru Kato

Nationality                        Japan

 

Auditor                          Mr. Kojiro Gunji

Nationality:                    Japan

 

Auditor                         Mr. Hirotoshi Korenaga

Nationality:                    Japan

 

Auditor                                      Mr. Osamu Shibata

Nationality:                    Japan

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

 

Key Personnel

 

Mr. Seiichi Kawasaki

Representative director and president since April 2012

Born on February 19, 1955 in Fukuoka Pref.

Education: Graduated from Kyushu University

Registered home address: 3-36-8-208, Yoyogi, Shibuya-ku, Tokyo

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |       Net Income    

-------------------------------------------------------------------------------------

2009

51,595,000,000

loss 1,291,000,000

2010

35,127,645,432

584,118,158

2011

57,146,005,952

16,609,863

2012

45,424,917,746

loss 6,256,336,571

2013

38,211,959,436

loss 1,375,487,846

2014

35,736,000,000

loss 1,805,000,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

March 31st

 

 

*Financials*

==========

Balance Sheet

Unit: millions of JP yen

　

03/31/2012

03/31/2013

03/31/2014

Current assets                                       

68,171

48,884

46,745

    Cash & deposits                                   

119

135

91

    Accounts receivable                       

32,765

21,811

21,787

    Inventories                                          

18,082

14,128

8,029

    Short-term deposits receivable      

11,915

9,620

-

    Others                                                  

5,290

3,190

16,806

Fixed assets                                            

5,623

5,289

3,609

    Tangible fixed assets                        

4,253

3,971

2,681

    Intangible fixed assets                         

776

738

485

    Investment & others                         

594

580

444

Total Assets                                         

72,794

54,174

50,354

　

　

 

 

Current liabilities                                  

40,213

30,073

28,293

    Accounts payable                           

31,519

24,107

27,458

    Outstanding accounts                      

1,611

880

-

    Outstanding expenses                      

2,985

2,461

-

    Short-term loans                                     

1,804

48

-

    Others                                                   

2,294

2,577

835

Fixed liabilities                                        

3,441

2,935

2,702

    Retirement benefit                              

2,952

2,391

2,139

    Others                                                        

489

544

564

Total Liabilities                                     

43,654

33,009

30,995

Shareholders' equity                            

30,140

21,164

19,359

    Paid up capital                                      

1,550

1,550

1,550

    Retained earnings                             

28,590

19,614

17,809

Total Net Assets                                   

30,140

21,164

19,359

Total Liabilities & Net Assets              

73,794

54,174

50,354

 

 

 

 

 

Income Statement

 

 

 

Unit: millions of Jp yen

 

 

 

                                                              

03/31/2012

03/31/2013

03/31/2014

Sales                                                        

45,425

38,211

35,736

Cost of goods sold                               

34,641

31,229

28,865

Gross profit(loss)                                  

10,784

6,982

6,871

Selling, general & admin. expenses      

9,513

7,714

6,680

Operating profit(loss)                             

1,271

-732

191

Non operating income                               

70

303

100

Non operating expenses                          

160

149

210

Ordinary                                                    

1,181

-578

81

Special profit                                                    

316

0

0

Special loss                                                

253

838

2,364

Pretax profit(loss)                                       

1,244

-1,417

-2,283

Provision for taxes                                     

7,500

-42

-478

Net profit(loss)                                            

-6,256

-1,375

-1,805

 

 

Bank Details

 

Bank Name:      Sumitomo Mitsui Banking Corp.

Branch:             Gotanda

 

Bank Name:      Mizuho Bank, Ltd.

Branch:             Head office

 

Bank Name:      Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch:             Kawasaki

 

Bank Name:      Mizuho Bank, Ltd.

Branch:             Marunouchi-chuo

 

 

Credit Opinion

 

The subject is functioning a logistic service for Sony Corporation group companies.

Business of the subject is being managed under the strategy and control of its parent company, Sony Corporation.

The performance, however, has been unfavorable for recent three years.

Eleven domestic and five overseas facilities were shut down in 2013 and 2014.

The amount of retained earnings halved from a year earlier.

 

The parent carries JPY 967,066 million of retained earnings and JPY 1,063,145 million of interest-bearing borrowings as of June 30, 2014.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Operation*

==============

Comprehensive supply chain management business:

1. Worldwide procurement service of materials

2. Logistic service of materials

3. Logistic service of products

4. Worldwide logistic service

5. Information system service

6. Repair work of parts

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

Note: The quoted address is for Motomiya facility, one of its business bases.

 

 

*Business facilities*

================

Domestic............30 locations

Overseas..............7 locations

 

 

*Company History*

================

Date                             Development

----------------------------------------------------

February 13, 1962                      Incorporated under the name of Sony Warehouse Corp.

1988                             Changed the company name to Sony Logistics Corp.

2003                             Re-formation under the strategy of Sony Corporation, and changed

                                    the company name to the current Sony Supply Chain Solutions,

                                    Inc.

 

 

February 2009               Sony EMCS assigned its part of business to the subject.

February 2010               Sony EMCS assigned some other parts of business to the subject.

February 2011               Relocated the head office to the current address from the following

                                    location: 3-3-1, Heiwajima, Ota-ku, Tokyo

 

 

 

TRADE REFERENCES

 

*Suppliers*

=========

Sony Corp.

Sony Corp. group companies

Nippon Express Co., Ltd.

Meitetsu Transport Co., Ltd.

Seino Transportation Co., Ltd.

 

 

 

 

*Clients*

=======

Sony Corp.

Sony Corp. group companies

Sony Marketing, Inc.

Sony EMCS Corp.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.21

UK Pound

1

Rs.97.80

Euro

1

Rs.77.48

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.