MIRA INFORM
REPORT
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Report Date : |
28.02.2011 |
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) : |
31.03.2010 |
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Date of Incorporation : |
June 1973 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer, retail, wholesale of jewelry |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 1,004.2 Million |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
---- |
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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
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,
retail, wholesale of jewelry
STORE(S)
FACTORIES
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 25,789 M
PAYMENTS REGULAR CAPITAL Yen 13,098 M
TREND SLOW WORTH Yen
72,818 M
STARTED 1973 EMPLOYES 1,236
COMMENT
MFR, RETAILER & WHOLESALER SPECIALIZING IN JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT
LIMIT: YEN 1,004.2 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated)
figures for 31/03/2011 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, retailing & wholesaling. Major retailer of jewelry & precious
metals, operating a total 175 outlets, more than 100 directly-run stores
centrally in the greater-Tokyo region.
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. 95% of the products are retailed at its own
stores, with 5% wholesaled to department stores, chain stores, jewelry stores,
other. Integrating wallpaper production
firms under 2 firms aimed at efficient structure. The firm is aggressive in the workforce
expansion, hiring 59 new college graduates in Apr 2011, unchanged from the last
term. It plans to open 10 outlets in the
Mar 2012 term.
FINANCIAL INFORMATION
The sales volume for Mar/2010 fiscal term amounted to Yen 25,789
million, a 6.7% down from Yen 27,637 million in the previous term. Amid economic downturn consumer spending
sluggish and down pressed, particularly for luxurious goods. Department store sales fell 10% in Dec 2009,
reported Japan Department Stores Assn.
Sales of art, jewelry and other big-ticket items nosedived 18.5%. By items, Rings down 8.3% to Yen 8,947
million, Necklace & Bracelets down 6.4% to Yen 9,101 million, and Personal
goods down 5.3% to Yen 4,033 million.
The operating profit was posted at Yen 2,479 million (down 26.3%),
recurring profit at Yen 2,658 million (down 26.7%) and the net profit at Yen
1,448 million (down 21.3%). (% compared
with same period a year ago). Opened 10
new stores, while refurbishing 3 stores and closing 9 stores during the term.
For the current term ending Mar 2011 the recurring profit is projected
at Yen 2,700 million and the net profit at Yen 1,500 million, respectively, on
a 0.8% rise in turnover, to Yen 26,000 million.
The firm has opened 5 new outlets and closed five. Unit sales prices began to recover, but the
recovery in the prices at existing outlets will slow. Effect of rises in gold and platinum prices
on profit is marginal.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 1,004.2 million, on 30 days normal terms.
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), Tsutsumi Scholarship Found
(4.9), Japan Trustee Services Bank T (4.2), Fidelity Small Cap Value F (3.9),
State Street Bank & Trust (1.8), State Street Bank & Trust 505044
(1.5), Chase London SL Omnibus Acct (1.4), Master Trust Bank of Japan T (1.3),
CBNYDFA Int’l Cap Value P (1.2); foreign owners (23.0),reet Bank & Trust (1.6), Goldman Sachs Int'
costsspectively, on a 5.4% fall in turnover, to Yen 30,000 million. 6.3% to
No. of
shareholders: 2,976
Listed on the
S/Exchange (s) of:
Managements: Seiji Tsutsumi,
pres & CEO; Keizo Fujieda, v pres; Katsumi Shindo, dir; Katsumi Okano, dir;
Satoshi Tagai, dir, Takashi Tsuji, dir; Mitsuo Ohtomo; Koji Shidatsu, dir;
Atsuhide Mizutani, dir
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Retails &
wholesales jewelry, operating a total 176 chain stores centrally in greater-Tokyo regions:
(Sales breakdown
by divisions): Rings (35%), necklaces & bracelets (35%), personal goods (16%), others (14%).
Retail (95%); wholesale (5%).
Goods are 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, Sumitomo Materials, Sojitz Corp, other.
Payment record: Regular
Location: Business area in
Bank References:
SMBC (Akabane)
MUFG (Warabi)
Relations: Satisfactory
FINANCES (In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2010 |
31/03/2009 |
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INCOME STATEMENT |
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Annual Sales |
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25,789 |
27,637 |
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Cost of Sales |
12,405 |
13,281 |
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GROSS PROFIT |
13,384 |
14,356 |
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Selling & Adm Costs |
10,905 |
10,993 |
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OPERATING PROFIT |
2,479 |
3,362 |
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Non-Operating P/L |
179 |
-1,735 |
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RECURRING PROFIT |
2,658 |
3,627 |
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NET PROFIT |
1,448 |
1,840 |
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BALANCE SHEET |
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Cash |
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34,407 |
33,222 |
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Receivables |
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1,425 |
1,324 |
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Inventory |
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19,044 |
19,342 |
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Securities, Marketable |
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Other Current Assets |
559 |
524 |
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TOTAL CURRENT ASSETS |
55,435 |
54,412 |
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Property & Equipment |
13,216 |
13,295 |
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Intangibles |
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607 |
532 |
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Investments, Other Fixed Assets |
5,703 |
5,705 |
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TOTAL ASSETS |
74,961 |
73,944 |
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Payables |
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151 |
207 |
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Short-Term Bank Loans |
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Other Current Liabs |
1,825 |
1,813 |
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TOTAL CURRENT LIABS |
1,976 |
2,020 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
132 |
122 |
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Other Debts |
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35 |
37 |
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TOTAL LIABILITIES |
2,143 |
2,179 |
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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 |
43,904 |
42,978 |
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Evaluation
p/l on investments/securities |
123 |
(4) |
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Others |
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1 |
0 |
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Treasury
stock, at cost |
(15) |
(14) |
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TOTAL S/HOLDERS` EQUITY |
72,818 |
71,765 |
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TOTAL EQUITIES |
74,961 |
73,944 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2010 |
31/03/2009 |
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Cash
Flows from Operating Activities |
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2,124 |
2,936 |
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Cash
Flows from Investment Activities |
-416 |
-321 |
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Cash
Flows from Financing Activities |
-522 |
-523 |
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Cash,
Bank Deposits at the Term End |
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34,407 |
33,222 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2010 |
31/03/2009 |
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Net
Worth (S/Holders' Equity) |
72,818 |
71,765 |
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Current
Ratio (%) |
2805.41 |
2693.66 |
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Net
Worth Ratio (%) |
97.14 |
97.05 |
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Recurring
Profit Ratio (%) |
10.31 |
13.12 |
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Net Profit
Ratio (%) |
5.61 |
6.66 |
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Return
On Equity (%) |
1.99 |
2.56 |
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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.45.37 |
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1 |
Rs.73.25 |
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Euro |
1 |
Rs.62.68 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.