MIRA INFORM REPORT

 

 

Report Date :

17.01.2011

 

IDENTIFICATION DETAILS

 

Name :

TOKYO KIHO CO LTD

 

 

Registered Office :

Aurum Bldg 4F, 1-26-2 Higashiueno Taitoku Tokyo 110-0015

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

January 1960

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Import, wholesale of jewelry, precious metals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 181.7 Million

Status :

Satisfactory

Payment Behaviour :

Regular

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

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

COMPANY NAME

 

TOKYO KIHO CO LTD

 

 

REGD NAME 

 

Tokyo Kiho KK

 

 

MAIN OFFICE

 

Aurum Bldg 4F, 1-26-2 Higashiueno Taitoku Tokyo 110-0015 JAPAN

Tel: 03-3834-6261     Fax: 03-3831-2987

URL:                 http://www.tokyokiho.com/

E-Mail address:            info@tokyokiho.com

 

 

ACTIVITIES

 

Import, wholesale of jewelry, precious metals

 

 

BRANCHES   

 

Osaka

 

 

CHIEF EXEC 

 

CHIAKI NAKAGAWA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 7,051 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 636 M

TREND             SLOW                          WORTH            Yen 2,836 M

STARTED                     1960                             EMPLOYES      84

 

COMMENt    

 

WHOLESALER SPECIALIZING IN JEWELRY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 181.7 MILLION, 30 DAYS NORMAL TERMS.

                       

                        Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

           

The subject company was established by Kisaburo Masaki as a wholesaler of jewelry and accessories, owned & managed by the Masaki family, and succeeded by the present executives.  This is a comprehensive wholesaler of jewelry and precious stones & metals.  Strong in dealing a full range of items including ingots, diamonds and colored stones.  Particularly strong in diamond jewelry.  Known for original brand and sales at exhibition.  Goods are also imported from Europe, USA, S/E Asian countries.  Goods are retailed through a subsidiary jewelry store, JMC KK, too.    Holds large-scale sales promotion campaigns regularly nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2010 fiscal term amounted to Yen 7,051 million, an 11.2% down from Yen 7,942 million in the previous term.  This is referred to sluggish consumer spending for jewelry and luxurious goods.  Jewelry prices declined substantially.  As a result, the operations plunged into the red to register Yen 698 million recurring loss and Yen 841 million net losses, respectively, compared with Yen 34 million recurring profit and Yen 42 million net profit, respectively, a year ago.

 

(Apr/Sept/2010 results): Sales Yen 3,441 million (down 9.1%), operating profit Yen 122 million (down 2.4%), recurring profit Yen 72 million (down 10%), net profit Yen 41 million (down 41.4%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2011 the operations are expected to come back to profitability to post Yen 140 million recurring profit and Yen 120 million net profits, on a 5% fall in turnover, to Yen 6,700 million.  Consumer spending continues sluggish particularly for luxury items.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 181.7 million, on 30 days normal terms.

 

 

 

REGISTRATION

 

Date Registered:  Jan 1960

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         13,110,000 shares

Issued:                4,478,560 shares

Sum:                   Yen 636 million

 

Major shareholders (%): Kisaburo Masaki (16.8), Customers’ S/Holding Assn (5.0),

Employees’ S/Holding Assn (3.8), Chiaki Nakagawa (3.8), Seiwa Shoji (3.6), Sagami Co (3.4), Fujie Masaki (3.1), Kazuhiro Sakata (3.0), Furuya Co (2.7), Nagahori Co (2.3)

           

No. of shareholders: 253

 

Listed on the S/Exchange (s) of: JASDAQ

 

Managements: Chiaki Nakagawa, pres; Yoshio Somemi, dir; Hideki Ishizuka, dir; Midori Masaki, dir; Mitsuya Takahata, dir; Yuji Higasa, dir

 

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

 

Related companies: No consolidated subsidiaries

 

 

OPERATION

           

Activities: Wholesales jewelry & precious metals; diamonds, pearls, sapphire, ruby, emerald, fingerings, necklaces, bracelets, pierced earrings, other jewelry accessories.

 

(Sales breakdown by items): designer brands jewelry (21%); Diamonds (40%), fashion jewelry & accessories (13%); colored stone jewelry (12%); pearl, other (14%);

 

Import jewelry (2.0%); Royal Hour-glass, others (--6.2%).

 

Designer brands: Sayoko, Lucciola, Asplandi, Kohoryu, other (--all Japanese designers).

 

Clients: [Jewelry stores, department stores, chain stores, mail order houses] Sagami Co, Mitsukoshi, Gem Select, Brother Sales, Makino Tokeiten, JMC (subsidiary), Nissen (mail order house), Tokyo Masuiwaya, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, jewelry processors, wholesalers] Kinki Hoshoku, Urakei Pearl, Mizuno Handy Harman, Meijido, NNK, Kondo Jewelry, Taiho Kikinzoku, other.

 

Payment record: Regular

 

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

 

Bank References:

·         SMBC (Ueno)

·         MUFG (Ueno)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

7,051

7,942

 

  Cost of Sales

6,270

6,030

 

      GROSS PROFIT

781

1,912

 

  Selling & Adm Costs

1,442

1,856

 

      OPERATING PROFIT

-661

56

 

  Non-Operating P/L

-37

-22

 

      RECURRING PROFIT

-698

34

　

      NET PROFIT

-841

42

BALANCE SHEET

 

 

 

 

  Cash

　

710

504

 

  Receivables

 

1,271

1,198

 

  Inventory

 

2,893

4,212

 

  Securities, Marketable

　

　

 

  Other Current Assets

881

1,026

 

      TOTAL CURRENT ASSETS

5,755

6,940

 

  Property & Equipment

401

410

 

  Intangibles

 

14

25

 

  Investments, Other Fixed Assets

1,986

2,103

 

      TOTAL ASSETS

8,156

9,478

 

  Payables

 

319

313

 

  Short-Term Bank Loans

2,865

3,333

 

　

 

　

　

 

  Other Current Liabs

455

433

 

      TOTAL CURRENT LIABS

3,639

4,079

 

  Debentures

 

210

10

 

  Long-Term Bank Loans

1,278

1,282

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

192

385

 

      TOTAL LIABILITIES

5,319

5,756

 

      MINORITY INTERESTS

 

 

 

Common stock

636

636

 

Additional paid-in capital

504

504

 

Retained earnings

1,730

1,616

 

Evaluation p/l on investments/securities

(7)

(7)

 

Others

 

0

999

 

Treasury stock, at cost

(27)

(27)

 

      TOTAL S/HOLDERS` EQUITY

2,836

3,721

　

      TOTAL EQUITIES

8,156

9,478

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

465

577

 

Cash Flows from Investment Activities

26

69

 

Cash Flows from Financing Activities

-281

-520

　

Cash, Bank Deposits at the Term End

　

641

430

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

2,836

3,721

 

 

Current Ratio (%)

158.15

170.14

 

 

Net Worth Ratio (%)

34.77

39.26

 

 

Recurring Profit Ratio (%)

-9.90

0.43

 

 

Net Profit Ratio (%)

-11.93

0.53

 

 

Return On Equity (%)

-29.65

1.13

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.30

UK Pound

1

Rs.71.73

Euro

1

Rs.60.40

 

 

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

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.