MIRA INFORM REPORT
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Report Date : |
09.01.2007 |
IDENTIFICATION DETAILS
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Name : |
TSUTSUMI
JEWELRY CO LTD |
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Registered Office : |
4-24-26
Chuo Warabi City Saitama-Pref 335-0004, Japan |
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Date of Incorporation : |
1973 |
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Legal Form : |
Limited
Company |
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Line of Business : |
Manufacture,
wholesale and retail of jewelry. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 999.3 million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
TSUTSUMI JEWELRY CO LTD
REGD NAME
KK Tsutsumi
MAIN OFFICE
4-24-26 Chuo Warabi City Saitama-Pref 335-0004 JAPAN
Tel : 048-431-5111
Fax : 048-431-5524
URL : http://www.tsutsumi.co.jp/
E-Mail address : info@tsutsumi.co.jp
ACTIVITIES
Mfg, wholesale, retail of jewelry
STORE(S)
Tokyo (42), Saitama (41), Kanagawa (21), Chiba (17), others (Tot 137)
FACTORY(IES)
At the caption address (2), Gunma
CHIEF EXEC
SEIJI TSUTSUMI, PRES & CEO
Yen Amount : In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 27,194 M
PAYMENTS REGULAR CAPITAL Yen 13,098 M
TREND STEADY WORTH Yen 67,862 M
STARTED 1973 EMPLOYES 1,034
COMMENT
MFR, WHOLESALER AND RETAILER SPECIALIZING IN JEWELRY. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$250,000.00
MAX CREDIT LIMIT: YEN 999.3 MILLION, NORMAL 30 DAYS TERMS
Forecast (or estimated) figures for 31/03/2006 fiscal term
HIGHLIGHTS
The subject company was established by Seiji Tsutsumi as Tsutsumi Precious Metals & crafts Co Ltd, and renamed as captioned in 1988. This is a jewelry firm engaged in integrated system from design and production to marketing. Operates more than 100 directly-run stores centrally in the greater-Tokyo area extending down to Kyushu Island. With start-up of product management center in Mar 1997, escalating new products development efforts and reducing inventory risks. Known for quick response to market needs and immediately reflects them in designs & processing. 90% of the products are retailed at its own stores, with 10% wholesaled to department stores, chain stores, jewelry store, other.
The sales volume for Mar/2005 fiscal term amounted to Yen 27,194 million, a 1.1% up from Yen 26,891 million in the previous term. Sales rose contributed to the enlargement/refurbishment of some of retail stores. The recurring profit was posted at Yen 5,345 million and the net profit at Yen 2,909 million, respectively, compared with Yen 5,698 million recurring profit and Yen 3,040 million net profit, respectively, a year ago.
For the current term ending Mar 2006 the recurring profit is projected at Yen 3,590 million, while the operations will incur deficit at Yen 1,850 million net losses for the term, on a 2.9% rise in turnover, to Yen 27,990 million. The projected losses will be referred to depletion/investment costs on new store openings of some 10 new stores. Profit improvement will have to be postponed until the next term, according to the firm.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 999.3 million, on normal 30 days terms. The proposed amount is considered well within the firm’s financial capabilities.
REGISTRATION
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Date Registered |
Jun 1973 |
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Legal Status |
Limited Company (Kabushiki Kaisha) |
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Authorized |
40 million shares |
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Issued |
20,080,480 shares |
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Sum |
Yen 13,098 million |
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Major shareholders (%) |
Seiji Tsutsumi (48.4), Japan Trustee Services Bank T (9.1), Shizuko Tsutsumi (6.3), Master Trust Bank of Japan T (5.6), Tsutsumi Scholarship Found (4.9), Tokyo-Mitsubishi UFG Trust (1.4), Assets Custody Trust (1.2), Melon Bank Treaty Client Omnibus (1.1), Goldman Sachs International (0.9), State Street Bank & Trust (0.8); foreign owners (11.5) |
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No. of shareholders |
3,029 |
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Listed on the S/Exchange (s) of |
Tokyo |
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Managements |
Seiji Tsutsumi, pres & CEO; Keizo Fujieda, v pres; Yuki Isozaki, mgn dir; Toyohiro Okuyama, dir; Yutaka Ikei, dir; Takuji Tsuji, dir; Mitsuo Ohtomo, dir; Katsumi Shindo, dir; Hiroshi Shidatsu, dir; Katsumi Okano, dir |
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Nothing detrimental is known as to the commercial morality of executives. |
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Related companies |
Nil |
OPERATION
Activities
Wholesales and retails jewelry, operating a total 137 chain stores centrally in greater-Tokyo regions (Sales breakdown by divisions): rings (37%), necklaces & bracelets (40%), personal goods (17%), others (6%). (Retail 90%, wholesale 10%). Goods are also imported through trading houses.
Clients
Consumers, department stores, jewelry stores, chain stores, supermarkets, other
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Marubeni Corp, Tomen Corp, Sojitz Corp, Kinsho Corp, other.
Payment record: Regular
Location
Business area in Warabi City, Saitama-Pref. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Akabane)
Bank of Tokyo-Mitsubishi UFJ (Warabi)
Relations: Satisfactory
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FINANCES (Non-consolidated in million yen) |
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Terms Ending: |
31/03/2005 |
31/03/2004 |
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INCOME
STATEMENT |
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Annual Sales |
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27,194 |
26,891 |
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Cost of Sales |
12,629 |
12,527 |
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GROSS PROFIT |
14,565 |
14,364 |
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Selling & Adm Costs |
9,297 |
8,690 |
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OPERATING PROFIT |
5,267 |
5,674 |
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Non-Operating P/L |
78 |
24 |
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RECURRING PROFIT |
5,345 |
5,698 |
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NET PROFIT |
2,909 |
3,040 |
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BALANCE
SHEET |
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Cash |
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28,499 |
27,621 |
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Receivables |
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2,011 |
1,974 |
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Inventory |
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16,830 |
15,542 |
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Securities, Marketable |
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Other Current Assets |
482 |
376 |
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TOTAL CURRENT ASSETS |
47,822 |
45,513 |
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Property & Equipment |
18,020 |
18,044 |
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Intangibles |
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876 |
912 |
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Investments, Other Fixed Assets |
4,751 |
4,804 |
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TOTAL ASSETS |
71,469 |
69,273 |
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Payables |
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1,041 |
1,301 |
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Short-Term Bank Loans |
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Other Current Liabs |
2,529 |
2,445 |
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TOTAL CURRENT LIABS |
3,570 |
3,746 |
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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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35 |
39 |
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TOTAL LIABILITIES |
3,605 |
3,785 |
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MINORITY INTERESTS |
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Common
stock |
13,098 |
13,098 |
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Additional
paid-in capital |
15,707 |
15,707 |
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Retained
earnings |
39,054 |
36,676 |
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Evaluation
p/l on investments/securities |
10 |
11 |
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Others |
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1 |
1 |
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Treasury
stock, at cost |
(8) |
(5) |
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TOTAL S/HOLDERS` EQUITY |
67,862 |
65,488 |
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TOTAL EQUITIES |
71,469 |
69,273 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2005 |
31/03/2004 |
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Cash
Flows from Operating Activities |
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1,642 |
2,540 |
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Cash
Flows from Investment Activities |
859 |
-1,306 |
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Cash
Flows from Financing Activities |
-524 |
-523 |
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Cash,
Bank Deposits at the Term End |
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28,499 |
26,521 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2005 |
31/03/2004 |
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Net
Worth (S/Holders' Equity) |
67,862 |
65,488 |
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Current
Ratio (%) |
1339.55 |
1214.98 |
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Net
Worth Ratio (%) |
94.95 |
94.54 |
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Recurring
Profit Ratio (%) |
19.66 |
21.19 |
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Net
Profit Ratio (%) |
10.70 |
11.30 |
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Return
On Equity (%) |
4.29 |
4.64 |
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RATING EXPLANATIONS
RATING
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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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
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 |