MIRA INFORM REPORT

 

 

Report No. :

308333

Report Date :

14.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SONY MOBILE COMMUNICATIONS INC

 

 

Registered Office :

SW Bldg, 1-8-1 Konan Minatoku Tokyo 108-0075

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015 (Estimated)

 

 

Date of Incorporation :

October 2001

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engaged as Exporter and wholesaler of Audio 6 Video Equipment including Mobile Phones, Smartphones, Mobile PC Terminals, Mobile Communication Equipment & Application Service Provider.

 

 

No of Employees :

250

 

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 7,381.8 million

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 MOBILE COMMUNICATIONS INC

 

 

REGD NAME 

 

Sony Mobile Communications KK

 

 

MAIN OFFICE

 

SW Bldg, 1-8-1 Konan Minatoku Tokyo 108-0075 JAPAN

 

Tel: 03—5782-5411     

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Engaged as Exporter and wholesaler of Audio 6 Video Equipment including Mobile Phones, Smartphones, Mobile PC Terminals, Mobile Communication Equipment & Application Service Provider.

 

 

BRANCHES

 

Nil

 

 

OVERSEAS

 

Worldwide (utilizing Sony Corp’s overseas subsidiaries/agents)

 

 

FACTORIES

 

Group firms

 


OFFICERS

 

HIROKI TOTOKI, PRES              Izumi Kawanishi, dir

Kazuo Hirai, dir                          Ken’ichiro Yoshida, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 317,403 M

PAYMENTSNo Complaints    CAPITAL           Yen 3,000 M

TREND UP                                WORTH            Yen 18,134 M   

STARTED         2001                             EMPLOYES      250 (about)

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN MOBILE PHONES, OWNED BY SONy CORP.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT Yen 7,381.8 million, ON 30 DAYS  NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a trading division separated from Sony Corp (See REGISTRATION).   A trading company for export and wholesale of Audio 6 Video Equipment including Mobile Phones, Smartphones, Mobile PC Terminals, mobile communication equipment & Application Service Provider. Goods are sold online to domestic and overseas markets (utilizing Sony Corp’s overseas offices).  Clients include telecommunications firms, phone companies, other, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2014 fiscal term amounted to Yen 317,403 million, a 30% up from Yen 244,055 million in the previous term.  Sales of mobile phones, smartphones, others were robust, particularly for exports.  The recurring profit was posted at Yen 10,195 million and the net profit at Yen 6,345 million, respectively, compared with Yen 8,593 million recurring profit and Yen 5,476 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 11,000 million and the net profit at Yen 6,500 million, respectively, on a 6% rise in turnover, to Yen 345,000 million.  Business is seen expanding steadily.

 

The financial situation is considered FAIR and good for ORDINARY business  engagements. Max credit limit is estimated at Yen 7,381.8 million, on 30 days normal terms

 

 

REGISTRATION

 

Date Registered:   Oct 2001

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         240,000 shares

Issued:                60,000 shares

Sum:                   Yen 3,000 million

 

Major shareholders (%): Sony Corp* (100)

 

*.. Globally renowned mfr of audio & video equipment, Tokyo, founded 1946, listed Tokyo & New York S/E’s, capital Yen 646,663 million, sales Yen 7,767,266 million, operating profit Yen 26,495 million, recurring profit Yen 25,741 million, net loss Yen 128,369 million, total assets Yen 15,166,121 million, net worth Yen 2,260,999 million, employees 140,900, pres Kazuo Hirai. Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

           

Activities: Exports and wholesales audio 6 video equipment: mobile phones, smartphones, mobile PC terminals, application service provider, other (--100%)

 

Clients: [Mfrs, wholesalers] NTT DoCoMo Inc, KDDI, Okinawa Cellular Phone, Ymobile Corp, other  

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sony EMCS, Sony Mobile Communications AB, other Sony Group firms

 

Payment record: No Complaints 

 

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

 

Bank References:

SMBC (H/O)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

335,000

317,403

244,055

38,436

Recur. Profit

 

11,000

10,195

8,595

2,828

Net Profit

 

6,500

6,345

5,476

1,049

Total Assets

 

 

64,080

72,594

61,583

Current Assets

 

 

58,884

67,678

56,153

Current Liabs

 

 

42,652

57,988

53,062

Net Worth

 

 

18,134

11,789

6,313

Capital, Paid-Up

 

 

3,000

3,000

3,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

5.54

30.05

58.70

-20.00

    Current Ratio

 

..

138.06

116.71

105.83

    N.Worth Ratio

 

..

28.30

16.24

10.25

    R.Profit/Sales

 

3.28

3.21

3.52

7.36

    N.Profit/Sales

 

1.94

2.00

2.24

2.73

    Return On Equity

 

..

34.99

46.45

16.62

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.95.78

Euro

1

Rs.71.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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