MIRA INFORM REPORT

 

 

Report No. :

312396

Report Date :

26.03.2015

 

IDENTIFICATION DETAILS

 

Name :

ALLIED TELESIS HOLDINGS K.K.

 

 

Registered Office :

2nd TOC Bldg, 7-21-11 Nishi Gotanda Shinagawaku Tokyo 141-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014 (Consolidated)

 

 

Date of Incorporation :

April 1971

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Engaged in delivering IP/Ethernet Network Solutions to the Global Marketplace. 

·         Subject creates Innovative, Standards-Based IP Networks that Seamlessly Connect with Voice, Video and Data Services.

·         Subject also offers a wide range of Access, Aggregation and Backbone Solutions for Service Providers.

 

 

No of Employees :

2,022 (Consolidated)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 258.8 Million

 

 

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 – 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

 

ALLIED TELESIS HOLDINGS K.K.

 

 

REGD NAME 

 

ALLIED TELESIS HOLDINGS KK

 

 

MAIN OFFICE

 

2nd TOC Bldg, 7-21-11 Nishi Gotanda Shinagawaku Tokyo 141-0031 JAPAN

Tel: 03-5437-6000     Fax: information not available    

 

URL:                 http://www.at-global.com

E-Mail address:            info@allied-telesis.co.jp

 

 

ACTIVITIES

 

·         Engaged in delivering IP/Ethernet Network Solutions to the Global Marketplace. 

·         Subject creates Innovative, Standards-Based IP Networks that Seamlessly Connect with Voice, Video and Data Services.

·         Subject also offers a wide range of access, aggregation and backbone solutions for Service Providers.

 

 

BRANCHES

 

None

 

 

OVERSEAS

 

None

 

 

CHIEF EXEC

 

TAKAYOSHI OSHIMA, CH

 

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY    

 

FINANCES        SLOW                                       A/SALES          Yen 30,217 M

PAYMENTSSlow but Correct                     CAPITAL           Yen 9,977 M

TREND SLOW                                       WORTH            Yen 6,311 M

STARTED         1971                                         EMPLOYES      2,022 (consolidated)

 

 

COMMENT

 

 A HOLDING COMPANY IN HANDLING BUSINESS STRATEGY AND MANAGEMENT FOR THE ENTIRE GROUP.

 

FINANCIAL SITUATION COSIDERED SLOW AND CONCERNED FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 258.8 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

34,080

940

684

(%)

12,484

(Consolidated)

31/12/2012

28,288

1,103

729

-17.00

12,696

31/12/2013

29,924

762

95

5.78

10,896

31/12/2014

30,217

-367

-3,955

0.98

6,311

31/12/2015

33,600

-700

-1,600

11.20

4,711

            Forecast (or estimated) figures for 2015 term.

     *..Unit: Million Yen

 

 

HIGHLIGHTS

 

The subject company was founded in 1987 by Takayoshi Oshima who is the current CEO. It is a holding company engaged in the planning, development, manufacture and sales of network devices and solutions, handling business strategy and management for the entire group. Its commercial affiliates divide six business groups and provide solution, support as well as service for various fields such as business enterprises, medicine, local government, education and aerospace.

 

 

FINANCIAL INFORMATION

 

The sales volume for July /2014 fiscal term amounted to Yen 30,217 million, a 1% up from Yen 29,924 million in the previous term.  The recurring profit was posted at Yen -367 million and the net profit at Yen -3,955 million, respectively, compared with Yen 762 million recurring profit and Yen 95 million net profit, respectively, a year ago

 

Financial position has been deteriorated due to the following elements:

1.     Cost of supplies ands R&D from overseas surged by weak Yen.

2.     Asset in foreign currency revalued and recognized loss.

3.     Impairment loss recognized for fixed assets and software.

 

For the current term ending July 2015 the recurring profit is projected at Yen -700 million and the net profit at Yen -1,600 million, respectively, on a 11% rise in turnover, to Yen 33,600 million.  Final results are yet to be released.

 

The financial situation is considered SLOW and concerned for ORDINARY business engagements.  Max credit limit is estimated at Yen 258.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:        April 1971

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  600 million shares

Issued:              109 million shares

Sum:                   Yen 9,977 million

Major shareholders (%): Takayoshi Oshima (30.8)  Oshima General Holdings No.1,Llc (8.7), Emoloyees’ S/Holding Assn(0.7), SMBC(0.7), Ikuyo Nosue(0.7), Japan Seturities Finance Corp.(0.6),

 

No. of shareholders: 11,017

 

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

 

Managements: Takayoshi Oshima, ch; Sachie Oshima, dir; Tomoyuki Sugihara, dir  Ash Padwal, dir; Masanari Nakayama, dir, Shinichi Kimura, rep/dir

 

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

 

Related companies: Allied Telesis Inc.(U.S.A), Allied Telesis international GmbH(Germany), Allied Telesis International B.V.(England), Allied Telesis Corp.(Japan), Corega Corp.(Japan),other

 

 

OPERATION

           

Activities:

Allied Telesis is a world class leader in delivering IP/Ethernet network solutions to the global marketplace.  It creates innovative, standards-based IP networks that seamlessly connect with voice, video and data services.

 

Enterprise customers can build complete end-to-end networking solutions through a single vendor, with core-to-edge technologies ranging from powerful 10 Gigabit Layer 3 switches right through to media converters.

 

It also offers a wide range of access, aggregation and backbone solutions for Service Providers. Our products range from industry leading media gateways which allow voice, video and data services to be delivered to the home and business, right through to high-end chassis-based platforms providing significant network infrastructure.

 

Clients: [Mfrs, wholesalers] Allied Telesis group companies

            No. of accounts: Unavailable

            Domestic areas of activities: Tokyo

 

Suppliers: [Mfrs, wholesalers] N/A

 

Payment record: Slow but Correct

 

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

 

Bank References:

Aozora Bank (Gotanda)

Resona Bank (Gotanda)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/12/2014

31/12/2013

INCOME STATEMENT

 

 

  Annual Sales

30,217

29,924

 

  Cost of Sales

11,554

11,037

 

      GROSS PROFIT

18,663

18,888

 

  Selling & Adm Costs

20,507

20,173

 

      OPERATING PROFIT

-1,844

-1,285

 

  Non-Operating P/L

1,477

2,047

 

      RECURRING PROFIT

-367

762

 

      NET PROFIT

-3,955

95

BALANCE SHEET

 

 

  Cash

 

3,868

4,418

 

  Receivables

7,863

8,688

 

  Inventory

4,025

3,655

 

  Securities, Marketable

 

 

 

  Other Current Assets

2,179

2,213

 

      TOTAL CURRENT ASSETS

17,936

18,974

 

  Property & Equipment

4,072

6,045

 

  Intangibles

167

1,129

 

  Investments, Other Fixed Assets

1,306

1,460

 

      TOTAL ASSETS

23,481

27,608

 

  Payables

2,213

2,401

 

  Short-Term Bank Loans

1,708

1,519

 

 

 

 

 

  Other Current Liabs

6,314

6,051

 

      TOTAL CURRENT LIABS

10,235

9,971

 

  Debentures

 

 

 

  Long-Term Bank Loans

5,515

5,144

 

  Reserve for Retirement Allw

747

771

 

  Other Debts

673

826

 

      TOTAL LIABILITIES

17,170

16,712

 

      MINORITY INTERESTS

 

 

Common stock

9,985

9,977

 

Additional paid-in capital

177

170

 

Retained earnings

(4,671)

658

 

Evaluation p/l on investments/securities

 

 

 

Others

820

91

 

Treasury stock, at cost

 

 

 

      TOTAL S/HOLDERS` EQUITY

6,311

10,896

 

      TOTAL EQUITIES

23,481

27,608

CONSOLIDATED CASH FLOWS

 

 

Terms ending:

31/12/2014

31/12/2013

 

Cash Flows from Operating Activities

 

-169

-101

 

Cash Flows from Investment Activities

-833

-2,586

 

Cash Flows from Financing Activities

73

1,541

 

Cash, Bank Deposits at the Term End

 

3,868

4,418

ANALYTICAL RATIOS            Terms ending:

31/12/2014

31/12/2013

 

Net Worth (S/Holders' Equity)

6,311

10,896

 

Current Ratio (%)

175.23

190.30

 

Net Worth Ratio (%)

26.88

39.47

 

Recurring Profit Ratio (%)

-1.22

2.55

 

Net Profit Ratio (%)

-13.09

0.32

 

 

Return On Equity (%)

-62.67

0.88

 

 

           

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.34

UK Pound

1

Rs.92.65

Euro

1

Rs.68.12

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.