MIRA INFORM REPORT

 

 

Report No. :

351971

Report Date :

25.11.2015

 

IDENTIFICATION DETAILS

 

Name :

PANASONIC SYSTEM NETWORKS CO LTD

 

 

Registered Office :

4-1-62, Minoshima Hakata Ku Fukuoka 812-8531

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

October 1968

 

 

Com. Reg. No.:

0100-01-129215

 

 

Legal Form :

Limited Company

 

 

Line of Business :

System solutions company: surveillance & security cameras, settlement & authentication terminals, PBX systems, IP-related equipment, business phones, document equipment, wireless-related systems, social infrastructure systems, system integration, construction & maintenance services, other (--100%)

 

 

No. of Employee :

9,300

 

 

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 18,940.1 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

J1

 

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 first-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 summery

 

PANASONIC SYSTEM NETWORKS CO LTD

REGD NAME:   Panasonic System Networks KK

MAIN OFFICE:  8-21-1 Ginza Chuoku Tokyo 104-0061 JAPAN

                                    Tel: 03-3546-5100     

REGISTERED

OFFICE:           4-1-62, Minoshima Hakata Ku Fukuoka 812-8531

 

                        *.. The is the company’s Registered Address (Registered in Mar 2013)

 

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

E-Mail address: (thru the URL)

 

ACTIVITIES:     System solution, security cameras, other

BRANCHES:     Kanagawa, Fukuoka (as given), Saga (60 locations including group firms)

OVERSEAS:     USA, Germany, UK, China, Singapore, Malaysia, Vietnam (--subsidiaries)

FACTORIES:    (--group firms)

 

OFFICERS:       TATSUO KATAKURA, PRES     

                        Tokiwa Matsumoto, v pres

                        Motoo Kume, dir

                       

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY:      FINANCES        FAIR                 A/SALES          Yen 438,257 M

                        PAYMENTS      REGULAR         CAPITAL           Yen 350 M

                        TREND             STEADY           WORTH            Yen 120,200 M

                        STARTED         1968                 EMPLOYES      9,300

 

 

COMMENT    

 

SYSTEM SOLUTIONS COMPANY, OWNED BY PANASONIC CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR

ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: ESTIMATED AT YEN 18,940.1 MILLION, ON 30 DAYS NORMAL TERMS.

 

 

HIGHLIGHTS

           

This is a system solution company, wholly owned by Panasonic Corp (See REGISTRATION).  It provides system solutions, security systems, security cameras, PBX systems, IP –related equipment, other (See OPERATION).  In 2013 merged three group firms.  Clients include municipal governments, public offices, corporations, other.

FINANCIAL INFORMATION

           

The sales volume for Mar/2015 fiscal term amounted to Yen 438,257 million, a 2% down from Yen 446,453 million in the previous term.  The recurring profit was posted at Yen 1,985 million and the net losses at Yen 2,903 million, respectively, compared with Yen 6,054 million recurring profit and Yen 10,120 million net profit, respectively, a year ago.  The net losses for this term is referred to extraordinary losses and adjustment costs by the merger of group firms.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 6,000 million and the net profit at Yen 11,000 million, respectively, on a 3% rise in turnover, to Yen 451,400 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 18,940.1 million, on 30 days normal terms.

 

 

REGISTRATION

    

Date Registered:                       Oct 1968

Regd No.:                                 0100-01-129215 (Fukuoka-Hakataku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              550,000 shares

Issued:                         137,601 shares

Sum:                            Yen 350 million

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

 

*.. Leading consumer electronics mfr, Tokyo, founded 1935, listed Tokyo, Nagoya S/E’s,             capital Yen 258,740 million, sales Yen 7,715,037 million, operating profit Yen 381,913            million, recurring profit Yen 182,456 million, net profit Yen 179,485 million, total assets Yen            6,037,585 million, net worth Yen 229,172 million, employees 49,418, pres Kozo Takahashi

 

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

 

 

OPERATION

           

Activities: System solutions company: surveillance & security cameras, settlement & authentication terminals, PBX systems, IP-related equipment, business phones, document equipment, wireless-related systems, social infrastructure systems, system integration, construction & maintenance services, other (--100%)

 

Clients: [Mfrs, wholesalers] Panasonic Corp & Group firms, Panasonic Mobile Communications, Toshiba Corp, NEC Corp, NEC Networks & System Integration, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Panasonic Corp, Oki Electric Ind, SCSK, Rubycon Corp, Kobayashi Create, Sun Telephone Co, Atryz Yodogawa Co, Altech Corp, other

 

Payment record: Regular

 

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

 

 

Bank References

 

            SMBC (Shimbashi)

            Resona Bank (Shiba)

            Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2016

31/03/2015

31/03/2014

31/03/2013

Annual Sales

 

451,400

438,257

446,453

248,651

Recur. Profit

 

6,000

1,985

6,054

5,557

Net Profit

 

11,000

-2,903

10,120

17,960

Total Assets

 

 

229,932

260,018

246,602

Current Assets

 

 

196,295

233,831

211,430

Current Liabs

 

 

93,058

97,831

89,761

Net Worth

 

 

120,200

145,223

128,342

Capital, Paid-Up

 

 

350

350

350

Div.Ttl in Million (¥)

 

 

0.00

707

333

<Analytical Data>

 

(%)

(%)

(%)

(%)

    S.Growth Rate

 

3.00

-1.84

79.55

-4.91

    Current Ratio

 

..

210.94

239.02

235.55

    N.Worth Ratio

 

..

52.28

55.85

52.04

    R.Profit/Sales

 

1.33

0.45

1.36

2.23

    N.Profit/Sales

 

2.44

-0.66

2.27

7.22

    Return On Equity

 

..

-2.42

6.97

13.99

 

Notes: Forecast (or estimated) figures for the 31/03/2016 fiscal term.

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.38

UK Pound

1

Rs.100.45

Euro

1

Rs.70.55

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TRU

 

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.