MIRA
INFORM REPORT
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Report Date : |
27.10.2008 |
IDENTIFICATION DETAILS
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Name : |
TSUTSUMI JEWELRY CO LTD |
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Registered Office : |
4-24-26 |
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Country : |
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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 |
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Litigation : |
- |
name & address
TSUTSUMI JEWELRY
CO LTD
REGD NAME: KK Tsutsumi
MAIN OFFICE: 4-24-26
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)
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
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),
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 (
No. of
shareholders: 3,365
Listed
on the S/Exchange (s) of:
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
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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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.77 |
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1 |
Rs.79.78 |
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Euro |
1 |
Rs.63.36 |
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%)