MIRA INFORM REPORT

 

 

Report Date :

03.10.2007

 

IDENTIFICATION DETAILS

 

Name :

HIROSE CO LTD

 

 

Registered Office :

OK Bldg 6F, 5-5-10 Sotokanda Chiyodaku Tokyo 101-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

May 1974

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, wholesale of gemstones, jewelry products

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Regular

 

name

 

HIROSE CO LTD

 

 

REGD NAME

 

KK Hirose Shokai

 

 

MAIN OFFICE

 

OK Bldg 6F, 5-5-10 Sotokanda Chiyodaku Tokyo 101-0023 JAPAN

Tel        : 03-3834-3858

Fax       : 03-3834-3860

URL      : N/A

 

*.. Moved to the caption address from the former at: Matsuda Bldg 3F, 6-7-7 Sotokanda Chiyodaku Tokyo, as given

 

 

ACTIVITIES

 

Import, wholesale of gemstones, jewelry products

 

 

BRANCHES

 

Nil

 

 

FACTORY(IES)

 

(subcontracted)

 

 

OFFICERS

 

TSUNEO HIROSE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK           A/SALES          Yen 300 M

PAYMENTS      REGULAR         CAPITAL           Yen 28 M

TREND             SLOW              WORTH            Yen 15 M*

STARTED         1974                 EMPLOYES      5

                                                *.. Negative net worth vs Paid-in Capital Yen 28 million.

 

 

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN GEM STONES AND JEWELRY PRODUCTS. 

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR CREDIT ENGAGEMENTS FOR: US$5,000 / STRICTLY ON SECURED TERMS ONLY.

 

MAX CREDIT LIMIT: YEN 2 MILLION FOR 30 DAYS, SECURED TERMS STRICTLY RECOMMENDED.

 

 

HIGHLIGHTS

           

The subject company was established by Tsuneo Hirose in order to make most of his experience in the subject line of business.  Specializes in importing and wholesaling gem stones (artificial), jewelry products, etc.  Goods are imported from Hong Kong, Australia, Thailand, other.  The firm had been consecutively in the red for two terms, reporting Yen 196 million net losses for the 31/12/2003 fiscal term and Yen 37 million net losses for the 31/12/2004 fiscal term.  The liabilities are reported exceeding its pain-up capital.  For the last two terms profits are reported remained at a minimum amount post-taxes.

 

           

FINANCIAL INFORMATION

 

Financials are only partially disclosed.

 

The sales volume for Dec/2006 fiscal term amounted to Yen 300 million, a similar amount in the previous term.  We reported on the last report that sales for the 31/12/2005 fiscal term as Yen 350 million, which are now corrected to Yen 300 million.  The operations are estimated to have come back to profitability after two consecutive deficits but still limited to a minimum amount post-taxes.

 

For the current term ending Dec 2007 the net profit is projected at Yen 5 million, on a 5% rise in turnover, to Yen 320 million.  Weaker Yen will help uplift sales in Yen terms.  Consumer spending is seen recovering slowly. 

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  We strictly recommend on fully secured terms.  Note the liabilities exceeding the pain-in capital, as estimated.

 

 

REGISTRATION

 

Date Registered:            May 1974

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    160,000 shares

Issued:                          56,000 shares

Sum:                            Yen 28 million

Major shareholders (%): Tsuneo Hirose (87), Hiroko Hirose (8)

No. of shareholders:       5

 

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

 

 

OPERATION

 

Activities: Imports and wholesales gem stones (including artificial stones), jewelry & precious metal products, fine arts, clothing accessories, others (--100%).

 

Goods are imported from Hong Kong, Australia, Thailand, etc.

 

Clients: [Jewelry processors, jewelry stores] Tokyo Kiho, Meijido, Takeyama, Jewelry Miura, Ever Sangyo, Gem Claire, Chino Jewelry, other.

 

No. of accounts: 150

 

Domestic areas of activities: Centered in greater-Tokyo

           

Suppliers: [Mfrs, wholesalers] Imports from Hong Kong, Thailand, Australia, etc.

 

Payment record: Regular

 

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

 

 

Bank References

 

Asahi Shinkin Bank (Ueno)

Seibu Shinkin Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/12/2007

31/12/2006

31/12/2005

31/12/2004

Annual Sales

　

320

300

300

312

Recur. Profit

　

　

　

　

　

Net Profit

　

5

5

0

-37

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

20

15

15

Capital, Paid-Up

　

　

28

28

28

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

6.67

0.00

-3.85

-19.17

       Current Ratio

 

 

..

..

..

       N.Worth Ratio

 

..

..

..

       N.Profit/Sales

1.56

1.67

0.00

-11.86

 

Notes: Financials are not disclosed only except the above partial figures.

The figures for the 31/12/2005 fiscal term are corrected.

Forecast (or estimated) figures for 31/12/2007 fiscal term.

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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