MIRA INFORM REPORT

 

 

 

 

Report No. :

300045.3

Report Date :

17.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SYNCLAYER INC

 

 

Registered Office :

2-21-18 Chiyoda Nakaku Nagoya 460-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

May 1962

 

 

Com. Reg. No.:

1800-01-033524 (Nagoya-Kitaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Builder of CATV startups & mfg of systems, equipment, peripherals

 

 

No. of Employee :

226

 

 

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

 

Status :

Satisfactory 

 

 

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 & address:

 

SYNCLAYER INC

 

REGD NAME:   Synclayer KK

 

MAIN OFFICE:  2-21-18 Chiyoda Nakaku Nagoya 460-0012 JAPAN

                        Tel: 050-2000-8885     Fax: 052-238-5655

 

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

E-Mail address:            planning@synclayer.co.jp; ir@syncalyer.co.jp

 

 

ACTIVITIES: 

 

Builder of CATV startups & mfg of systems, equipment, peripherals

 

 

BRANCHES:  

 

Tokyo, Sendai, Osaka, Kani, Tsu (Mie), Toyama, Hikone, Hiroshima, Fukuoka

 

 

OVERSEAS:  

 

China (2), Hong Kong, USA

 

 

FACTORIES: 

 

Kani (Gifu-Pref) (Plant & Engineering Center)

 

 

CHIEF EXEC:

           

MASAHIRO YAMAGUCHI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY:   

 

FINANCES        FAIR                             A/SALES          Yen 8,434 M

PAYMENTSSLOW BUT CORRECT         CAPITAL           Yen 411 M

TREND UP                                WORTH            Yen 1,921 M

STARTED         1962                             EMPLOYES      226

 

 

COMMENT:   

 

CABLE TV OPERATION CONSULTANT & SYSTEM SETUP. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Notes: Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS:

 

The subject company was established by Masaki Yamaguchi, now ch, as Aichi Electronics Co Ltd, for mfg of TV equipment (Wall Outlet Unit).  Renamed as captioned in Jul 2002.  This is the first in Japan to introduce CATV Internet service.  Originally started as TV equipment mfr and extended service operations.  Business ranges from service startup consulting for cable TV operators, present mainline, to system setup, management and maintenance.  Based in Nagoya, but expanded operations nationwide from central Japan.  In Jul 1981, supplied coaxial cable information system (CCIS), the first business application of CCIS in Japan.  In Jun 1995, introduced the first cable Internet products in Japan from LAN city Corporation, USA & started supply its high-speed data LCP cable modems (10Mbps).  In Nov 2001, supplied the first whole packaged CATV networks in Japan, with the first VolP system (5,500 subs) over CATV networks.  In Feb 2003, listed JASDAQ Stock Market.  Expanding to sales and support for optics-related equipment, etc.  

 

 

FINANCIAL INFORMATION:

 

The sales volume for Mar/2012 fiscal term amounted to Yen 8,301 million, a 29.8% steep down from Yen 8,970 million in the previous term.  The operations came back to profitability to post Yen 8,434 million recurring profit and Yen 47 million net profit, respectively, compared with Yen 209 million recurring loss and Yen 147 million net losses, respectively, a year ago

 

(Apr/Sept/2014results): Sales Yen 3,425 million (up 7.2%), operating loss Yen 436 million (previously Yen 168 million loss), recurring loss Yen 439 million (previously Yen 357 million loss), net loss Yen 289 million (previously Yen 237 million loss).  (% & figures compared with the corresponding period a year ago).

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 210 million and the net profit at Yen140 million, respectively, on a 0.2% rise in turnover, to Yen 8,450 million. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business             engagements. 

 

 

REGISTRATION:

 

Date Registered:                                   May 1962

Regd No.:                                             1800-01-033524 (Nagoya-Kitaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              11,735,120 shares

Issued:                                     74,033,780 shares

Sum:                                        Yen 411 million

           

Major shareholders (%): Masahiro Yamaguchi (25.6), Company’s Treasury Stock (9.7), Employees’ S/Holding Assn (6.5), Shihoko Kawamoto (6.1), Yoshitaka Yamaguchi (2.7), Aiko Yamaguchi (2.0), MUFG (1.7), Juroku Bank (1.4), Osamu Yamaguchi (1.1), Mitsui Securities (1.1)

           

No. of shareholders: 898

 

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

 

Managements:  Masahiro Yamaguchi, pres & CEO; Shigeyuki Aoyama, mgn dir; Satoshi Kunie, dir; Yukio Takeuchi, dir; Yoshitaka Yamaguchi, dir; Yoshiteru Watanabe, dir. 

           

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

 

Related companies: Cable System Construction Co Ltd, Aichi Electronics (Zhong Shan) Ltd (China), Aichi Electronics (Hong Kong) Ltd, Synclayer Latin America Ltd, Okuta Electrical International Co-

           

 

OPERATION:

           

Activities: CATV equipment mfr, startup service consulting from CATV operators, system                        setup, management & maintenance:

 

(Sales breakdown by divisions):

 

Total Integration Div (70%): System integration for entire CATV network, including system design, engineering, equipment procurement, network management, etc; turn-key project construction for entire cable plant from headend to customer premises, primary telephone System, FTTH (Fiber to the Home), HFC (hybrid fiber coaxial) works;

 

Systems Integration Div (30%): CATV Internet solutions, representing the products of     ARRIS International, including sales & support for CMTS and cable modems; cable-networking for convention halls, offices, MDU, and campus LAN applications.

           

Clients: [CATV operators, electronics mfrs] Community Network Center, Eco City Komagatake, CTY, TV Komatsu, Ceatec Japan, NEC Magnus Communications, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] ARRIS Japan, Star Cat Cable Network, Lecip Corp, Aichi

Electronics, Cable System Kensetsu, Mitsubishi Electric, Toko Create Ltd, Cable System Construction, other.

 

Payment record: Slow But Correct

 

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

 

Bank References:

MUFG (Yanagibashi)

Jyuroku Bank (Nagoya)

Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

8,434

7,135

　

  Cost of Sales

6,594

5,269

　

      GROSS PROFIT

1,839

1,865

　

  Selling & Adm Costs

1,725

2,041

　

      OPERATING PROFIT

114

-175

　

  Non-Operating P/L

19

-34

　

      RECURRING PROFIT

133

-209

　

      NET PROFIT

47

-147

BALANCE SHEET

　

　

  Cash

　

958

682

　

  Receivables

827

1,102

　

  Inventory

682

839

　

  Securities, Marketable

　

　

　

  Other Current Assets

2,044

2,205

　

      TOTAL CURRENT ASSETS

4,511

4,828

　

  Property & Equipment

1,996

1,988

　

  Intangibles

72

78

　

  Investments, Other Fixed Assets

1,122

1,245

　

      TOTAL ASSETS

7,701

8,139

　

  Payables

835

1,327

　

  Short-Term Bank Loans

1,050

1,850

　

　

　

　

　

  Other Current Liabs

1,512

588

　

      TOTAL CURRENT LIABS

3,397

3,765

　

  Debentures

60

150

　

  Long-Term Bank Loans

921

1,080

　

  Reserve for Retirement Allw

1,401

1,291

　

  Other Debts

　

0

2

　

      TOTAL LIABILITIES

5,779

6,288

　

      MINORITY INTERESTS

　

　

Common stock

411

411

　

Additional paid-in capital

390

390

　

Retained earnings

1,115

1,101

　

Evaluation p/l on investments/securities

12

11

　

Others

100

45

　

Treasury stock, at cost

(107)

(107)

　

      TOTAL S/HOLDERS` EQUITY

1,921

1,851

　

      TOTAL EQUITIES

7,701

8,139

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

334

-590

　

Cash Flows from Investment Activities

-84

-92

　

Cash Flows from Financing Activities

3

478

　

Cash, Bank Deposits at the Term End

　

958

678

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

1,921

1,851

　

Current Ratio (%)

132.79

128.23

　

Net Worth Ratio (%)

24.94

22.74

　

Recurring Profit Ratio (%)

1.58

-2.93

　

Net Profit Ratio (%)

0.56

-2.06

　

　

Return On Equity (%)

2.45

-7.94

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.00

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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.