MIRA INFORM REPORT

 

 

Report No. :

331856

Report Date :

10.07.2015

 

IDENTIFICATION DETAILS

 

Name :

SONY MOBILE COMMUNICATIONS INC

 

 

Registered Office :

SW Bldg, 1-8-15 Konan Minatoku Tokyo 108-0075

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Oct., 2001

 

 

Com. Reg. No.:

0104-01-045660 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Export, Wholesale of Mobile Phones, Mobile Pc Terminals, Other.

 

 

No. of Employees :

250 (About)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

Yen 7,342.1 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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company Name and Address

 

SONY MOBILE COMMUNICATIONS INC

 

REGD NAME:               Sony Mobile Communications KK

 

MAIN OFFICE:              SW Bldg, 1-8-15 Konan Minatoku Tokyo 108-0075 JAPAN

                                                Tel: 03—5782-5411     

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Export, wholesale of mobile phones, mobile PC terminals, other

 

 

BRANCHES

 

Nil

 

 

OVERSEAS

 

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

 

 

FACTORIES

 

Group firms

 

 

OFFICERS

 

KUNIMASA SUZUKI, PRES       Yoshihisa Ishida, ch

Naoto Ishibashi, dir                   Kazuhiko Takeda, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

           

FINANCES        FAIR                 A/SALES          Yen 317,403 M

PAYMENTSREGULAR   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 7,342.1 MILLION, ON 30 DAYS  NORMAL TERMS.

 

 

HIGHLIGHTS

           

The subject company was established jointly by Sony Corp and Ericsson (Sweden), and in Feb 2012 became a 100% subsidiary of Sony Corp (See REGISTRATION). A trading company for export and wholesale of mobile phones, mobile PC terminals, mobile communication equipment, other.  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 term that ended Mar 2015 the recurring profit was projected at Yen 10,700 million and the net profit at Yen 6,450 million, respectively, on a 5% rise in turnover, to Yen 333,200 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 7,342.1 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:       Oct 2001

Regd No.:                 0104-01-045660 (Tokyo-Minatoku)

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 707,038 million, sales Yen 8,215,880 million, operating profit Yen 68,548 million, recurring profit Yen 39,729 million, net loss Yen 125,980 million, total assets Yen 15,834,331 million, net worth Yen 2,317,007 million, employees 131,700,      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, Y Mobile 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: Regular

 

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

 

333,200

317,403

244,055

38,436

Recur. Profit

 

10,700

10,195

8,595

2,828

Net Profit

 

6,450

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

 

4.98

30.05

58.74

-20.44

    Current Ratio

 

..

138.06

116.71

105.83

    N.Worth Ratio

 

..

28.30

16.24

10.25

    R.Profit/Sales

 

3.21

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.63.51

UK Pound

1

Rs.97.85

Euro

1

Rs.70.50

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.