MIRA INFORM REPORT
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Report No. : |
322366 |
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Report Date : |
16.05.2015 |
IDENTIFICATION DETAILS
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Name : |
NET ONE SYSTEMS CO LTD |
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Registered Office : |
Sphere Tower Tennozu, 2-2-8 Higashi-Shinagawa Shinagawaku Tokyo 140-8621 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
February 1988 |
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Com. Reg. No.: |
007922 |
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Legal Form : |
Limited Company |
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Line of Business : |
Network system solution provider: network consulting, network design
& management, network facilities installation & construction, network
equipment sales, network computing services, operation support services,
training services, other: |
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No. of Employees : |
2,386 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% 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 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. 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.
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Source
: CIA |
Company
Name
NET ONE SYSTEMS CO
LTD
REGD
NAME
Net One Systems KK
MAIN
OFFICE
Sphere Tower Tennozu, 2-2-8 Higashi-Shinagawa Shinagawaku Tokyo 140-8621
JAPAN
Tel: 03-5462-0800 Fax:
03-5462-0699-
URL: http://www.netone.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: System solution provider; network
construction & equipment sales
BRANCHES: Osaka, Sapporo, Sendai, Tsukuba, Nagoya,
Toyoda, other (Tot 13)
OVERSEAS: Net One Systems (USA) Inc
FACTORIES: Shinagawa (Tokyo) (Quality Control Center
& Technical Center)
CHIEF EXEC: TAKAYUKI YOSHINO, PRES
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 143,173 M
PAYMENTS REGULAR CAPITAL Yen 12,279 M
TREND STEADY WORTH Yen
57,113 M
STARTED 1988 EMPLOYES 2,386
COMMENT: NETWORK SYSTEM SOLUTION PROVIDER FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million
Yen
Forecast figures
for the 31/03/2016 fiscal term.
HIGHLIGHTS
This is the market leader in network business, with advanced network
construction and equipment sales as mainline.
Specializes in offering network system solutions: Network integration,
Network computing, service integration and media integration (See OPERATION). Has leading firms in diverse industries,
including NTT. Products of Cisco Systems
(USA) account for around 50% of entire sales.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen 142,173
million, a 0.5% up from Yen 142,427 million in the previous term. The recurring profit was posted at Yen 4,249
million and the net profit at Yen 2,457 million, respectively, compared with Yen
3,537 million recurring profit and Yen 983 million net profit, respectively, a
year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 5,400 million and the net profit at Yen 3,300 million, on a 0.6% rise in
turnover, to Yen 144,000 million.
Construction of virtual offices for public institutions and general
firms will drive earnings growth.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Feb 1988
Regd No.: (Tokyo-Shinagawaku)
007922
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 1.1
million shares
Issued:
551,900 shares
Sum: Yen
12,279 million
Major shareholders
(%):
Japan Trustee Services T (7.7), State Street Bank West Treaty (7.5), Goldman
Sachs International (3.0), Northern Trust (AVFC) Re NV101 (2.6), Master Trust
Bank of Japan T (2.4), MUFG (1.9), Company’s Treasury Stock (1.7), Meiji Yasuda
Life Ins (1.6), Employees’ S/Holding Assn (1.6), CBNY Orbis SICAV (1.5);
foreign owners (28.0)
No. of
shareholders: 25,919
Listed on the
S/Exchange (s) of: Tokyo
Managements: Takayuki
Yoshino, pres; Toru Arai, mgn dir; Shun’ichi Suemitsu, mgn dir; Tsuyoshi Suzuki, mgn dir; Shingo Saito, dir; Norihisa
Katayama, dir; Yoshiharu Horiuchi, dir; Kunio Kawakami, dir; Masasuke Naito,
dir; Mitsuo Imai, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Net One
Partners, Xseed Co, Business Assurance, other.
OPERATION
Activities: Network system
solution provider: network consulting, network design & management, network
facilities installation & construction, network equipment sales, network computing
services, operation support services, training services, other:
(Sales by Category
Sectors):
EP Sector (24%): Tokyo-Metrop
Enterprise Sector;
SP Sector (38%): Telecom &
Internet Service Provider Sector;
AP Sector (24%): Regional Area and
Public Sector;
Partner Sector
(13%): Net One Partners Co Ltd
Others (1%)
Clients:
[Telecommunications carriers] NTT East, NTT West, NTT DoCoMo, NTT
Communications, KDDI, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Network firms]
Cisco Systems, Fujitsu Ltd, Juniper Networks, ARRIS International, Brocade
Stoke, Tokyo Electron Device, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (Toranomon)
Mizuho Bank (Kanda)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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143,173 |
142,427 |
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Cost of Sales |
110,810 |
110,728 |
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GROSS PROFIT |
32,363 |
31,699 |
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Selling & Adm Costs |
28,157 |
28,556 |
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OPERATING PROFIT |
4,205 |
3,142 |
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Non-Operating P/L |
44 |
395 |
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RECURRING PROFIT |
4,249 |
3,537 |
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NET PROFIT |
2,457 |
983 |
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BALANCE SHEET |
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Cash |
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19,374 |
18,184 |
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Receivables |
41,996 |
37,226 |
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Inventory |
17,448 |
11,736 |
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Securities, Marketable |
1,999 |
2,999 |
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Other Current Assets |
11,681 |
8,435 |
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TOTAL CURRENT ASSETS |
92,498 |
78,580 |
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Property & Equipment |
5,386 |
5,775 |
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Intangibles |
1,627 |
1,860 |
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Investments, Other Fixed Assets |
4,112 |
4,409 |
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TOTAL ASSETS |
103,623 |
90,624 |
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Payables |
20,491 |
16,067 |
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Short-Term Bank Loans |
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Other Current Liabs |
22,149 |
15,470 |
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TOTAL CURRENT LIABS |
42,640 |
31,537 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
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Other Debts |
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3,870 |
1,824 |
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TOTAL LIABILITIES |
46,510 |
33,361 |
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MINORITY INTERESTS |
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Common stock |
12,279 |
12,279 |
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Additional paid-in capital |
19,453 |
19,453 |
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Retained earnings |
26,317 |
28,926 |
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Evaluation p/l on
investments/securities |
(4) |
(5) |
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Others |
220 |
128 |
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Treasury stock, at cost |
(1,152) |
(3,518) |
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TOTAL S/HOLDERS` EQUITY |
57,113 |
57,263 |
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TOTAL EQUITIES |
103,623 |
90,624 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash Flows from Operating Activities |
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5,291 |
1,016 |
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Cash Flows from Investment
Activities |
-1,610 |
-3,823 |
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Cash Flows from Financing Activities |
-3,490 |
-5,589 |
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Cash, Bank Deposits at the Term End |
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21,374 |
21,183 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net Worth (S/Holders' Equity) |
57,113 |
57,263 |
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Current Ratio (%) |
216.93 |
249.17 |
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Net Worth Ratio (%) |
55.12 |
63.19 |
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Recurring Profit Ratio (%) |
2.97 |
2.48 |
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Net Profit Ratio (%) |
1.72 |
0.69 |
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Return On Equity (%) |
4.30 |
1.72 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.57 |
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|
1 |
Rs.100.30 |
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Euro |
1 |
Rs.72.37 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.