MIRA
INFORM REPORT
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Report Date : |
20.06.2008 |
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 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
June 1973 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer, Wholesale, Retail of Jewelry |
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 |
name & address
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 (41), Saitama (29), Kanagawa (20), Chiba (19), others
(52) (Tot 171)
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 31,706 M
PAYMENTS REGULAR CAPITAL Yen 13,098 M
TREND STEADY WORTH Yen 70,460 M
STARTED 1973 EMPLOYES 1,175
COMMENT
MFR,
WHOLESALER AND RETAILER SPECIALIZING IN JEWELRY.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was
established by Seiji Tsutsumi originally as Tsutsumi Precious Metals &
crafts Co Ltd, and renamed as captioned in 1988. This is an integrated jewelry company with a fully combined production
& distribution system: from gem purchasing to jewelry mfg, wholesaling
& retailing. Operates a total 171
outlets, more than 100 directly-run stores centrally in the greater-Tokyo
region, 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.
FINANCIAL INFORMATION
The sales volume for Mar/2008
fiscal term amounted to Yen 31,706 million, a 4.2% up from Yen 30,441 million
in the previous term. Materials price
hikes were to some extent passed onto clients, stressing on higher quality
goods. By items, Rings up 1.4% to Yen
11,080 million, Necklace & Bracelets down 3.0% to Yen 11,715 million,
Personal goods down 6.3% to Yen 4,638 million.
The operating profit was posted at Yen 5,251 million (down 10.9%),
recurring profit at Yen 5,477 million (down 8.8%) and the net profit at Yen
2,306 million (down 31.9%). (% compared
with the corresponding period a year ago).
Profits deteriorated due to the hike in materials & fuel oils. Newly opened 14 stores and refurbished 9
stores, closing down 7 stores.
For the current term ending Mar
20096 the recurring profit is projected at Yen 5,000 million and the net profit
at Yen 2,840 million, respectively, on a 5.4% fall in turnover, to Yen 30,000
million. Existing stores continuing
about 5% down in sales. Plans to open
12 new stores and close 4 stores. Newly
set computerized product management system at all stores will weigh heavily on
profits due to heavy investment & depreciation costs.
The financial situation is
considered maintained FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Jun 1973
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 40 million shares
Issued: 20,080,480 shares
Sum: Yen 13,098 million
Major shareholders (%)
Seiji Tsutsumi (48.4), Shizuko
Tsutsumi (6.3), Japan Trustee
Services
Bank T (5.9), Tsutsumi Scholarship Found (4.9), Master Trust Bank of Japan T (3.7), State Street Bank & Trust (1.6),
Goldman Sachs Int’l (1.2), Chase (London) SL
Omnibus Acct (1.0); foreign owners (16.2)
No. of
shareholders: 3,365
Listed
on the S/Exchange (s) of: Tokyo
Managements
Seiji
Tsutsumi, pres & CEO; Keizo Fujieda, v pres; Katsumi Shindo, dir; Katsumi
Okano, dir; Takuji Tsuji, dir; Mitsuo Ohtomo; Hiroshi Shidatsu, dir;
Atsuhide Mizutani, dir
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
Wholesales and retails jewelry, operating a total 171 chain stores centrally in
greater-Tokyo regions:
(Sales breakdown by divisions): Rings
(35%), necklaces & bracelets (37%), personal goods (15%), others (13%).
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)
MUFG (Warabi)
Relations: Satisfactory
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME
STATEMENT |
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Annual Sales |
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31,706 |
30,441 |
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Cost of Sales |
15,533 |
14,182 |
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GROSS PROFIT |
16,173 |
16,258 |
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Selling & Adm Costs |
10,921 |
10,365 |
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OPERATING PROFIT |
9,251 |
5,893 |
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Non-Operating P/L |
-3,774 |
116 |
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RECURRING PROFIT |
5,477 |
6,009 |
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NET PROFIT |
2,306 |
3,385 |
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BALANCE
SHEET |
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Cash |
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31,130 |
30,415 |
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Receivables |
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1,558 |
1,836 |
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Inventory |
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17,675 |
16,663 |
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Securities, Marketable |
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Other Current Assets |
3,222 |
3,420 |
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TOTAL CURRENT ASSETS |
53,585 |
52,334 |
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Property & Equipment |
13,477 |
13,657 |
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Intangibles |
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537 |
537 |
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Investments, Other Fixed Assets |
5,921 |
6,102 |
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TOTAL ASSETS |
73,520 |
72,630 |
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Payables |
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254 |
1,108 |
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Short-Term Bank Loans |
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Other Current Liabs |
2,658 |
2,886 |
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TOTAL CURRENT LIABS |
2,912 |
3,994 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
112 |
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Other Debts |
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35 |
35 |
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TOTAL LIABILITIES |
3,059 |
4,029 |
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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 |
41,659 |
39,874 |
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Evaluation p/l on
investments/securities |
9 |
(67) |
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Others |
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0 |
0 |
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Treasury stock, at cost |
(13) |
(11) |
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TOTAL S/HOLDERS` EQUITY |
70,460 |
68,601 |
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TOTAL EQUITIES |
73,520 |
72,630 |
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CONSOLIDATED
CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash Flows from Operating Activities |
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1,744 |
4,014 |
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Cash Flows from Investment
Activities |
-506 |
-701 |
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Cash Flows from Financing Activities |
-523 |
-523 |
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Cash, Bank Deposits at the Term End |
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31,130 |
30,415 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2008 |
31/03/2007 |
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Net Worth (S/Holders' Equity) |
70,460 |
68,601 |
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Current Ratio (%) |
1840.14 |
1310.32 |
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Net Worth Ratio (%) |
95.84 |
94.45 |
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Recurring Profit Ratio (%) |
17.27 |
19.74 |
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Net Profit Ratio (%) |
7.27 |
11.12 |
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Return On Equity (%) |
3.27 |
4.93 |
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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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)