MIRA INFORM
REPORT
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Report Date : |
19.10.2011 |
IDENTIFICATION DETAILS
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Name : |
TOKYO PEARL CO LTD |
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Registered Office : |
Tokyo Shinju Bldg, 6-16-3 Ginza Chuoku
Tokyo 104-0061 |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
February 1959 |
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Com. Reg. No.: |
(Tokyo-Chuoku) 061359 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import,
Export, Wholesale of pearls, diamonds |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Japan |
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
TOKYO PEARL CO LTD
REGD NAME
Tokyo Shinju KK
(Shinju means
MAIN OFFICE
Tel: 03-3543-6055 Fax: 03-3543-2127
URL: http://www.tokyopearl.com/
E-Mail
address: info@tokyopearl.com
ACTIVITIES
Import,
export, wholesale of pearls, diamonds
BRANCHES
OVERSEAS
TP
Diamond Co Ltd (
Tokyo Shinju International Ltd (
FACTORIES
Ise
(Mie-Pref); Hong Kong,
OFFICER(S)
Takezo
Koyama, ch
TOTA KOYAMA, PRES
Itaru Honjo, s/mgn dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES WEAK A/SALES Yen 4,672 M
PAYMENTS REGULAR CAPITAL Yen 100 M
TREND SLOW WORTH Yen
(-) 1,430 M
STARTED 1959 EMPLOYES 64
COMMENT
TRADING FIRM SPECIALIZING IN DIAMONDS
& PEARLS.
FINANCIAL
SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS
ENGAGEMENTS.
NEGATIVE NET WORTH.
HIGHLIGHTS
The subject company
was established by Takezo Koyama in order to make most of his ex-perience in
the subject line of business, as Tokyo Pearl Ltd. Originally started as a pearl trader, and in
1973, reorganized and renamed as captioned.
In 1980 started the pearl business.
In 2004, Takezo Koyama promoted to ch, when Tota Koyama, his son, took
the office of pres. This is a trading
firm, with mfg division, specializing in import, export and wholesale of
polished diamonds, pearls, jewelry products, other. Diamonds are imported from
FINANCIAL INFORMATION
Financials are only
partially disclosed.
The sales volume
for Mar/2010 fiscal term amounted to Yen 4,672 million, a 2% down from Yen
4,747 million in the previous term. This
is referred to continuing slumping consumer spending on luxurious goods. The operations came back to profitability to
post Yen 26 million net profits for the term, compared with Yen 1,460 million
net losses a year ago. The last term’s
losses are largely referred to the evaluation losses of inventories.
For the current
term ending Mar 2011 the net profit is projected at Yen 25 million, on an
almost similar turnover, at Yen 4,700 million.
Jewelry sales are hit by sluggish spending on high-priced products. Department store sales shrank 6% in June, 28th
straight month, and 1.4% in July, 29th straight month’s
decline.
The financial
situation is considered WEAK but should be good for MODERATE business
engagements.
REGISTRATION
Date Registered: Feb
1959
Regd No.: (Tokyo-Chuoku) 061359
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 800,000 shares
Issued: 200,000 shares
Sum: Yen 100 million
Major shareholders (%): Takezo Koyama (42), Koyama
Kosan*(20), Yoko Hasegawa (15), Company’s Treasury Stock (8), Toshimitsu
Kinoshita (6)
*
Holding company owned by the Koyama family.
No. of shareholders: 15
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports, exports and wholesales polished
diamonds, (60%), pearls & dia-mond/pearl jewelry (--40%).
Imports diamonds from
Pearls are imported from Tahiti,
Clients: [Jewelry processors, jewelry stores]
Kashikey, Belita, Nagahori, Mikimoto Pearls, Citizen Watch, Azumi, Tokyo Kiho,
Kyocera Corp, other.
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Imports diamonds from
Imports pearls from
Payment record: Regular
Location: Business area in
Bank References:
SMBC
(Ginzadori)
Norin
Chukin Bank (H/O)
Relations:
Satisfactory
FINANCES: (In Million Yen)
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Terms Ending: |
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31/03/2011 |
31/03/2010 |
31/03/2009 |
31/03/2008 |
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Annual
Sales |
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4,700 |
4,672 |
4,747 |
6,488 |
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Recur.
Profit |
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Net
Profit |
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25 |
26 |
-1,457 |
-10 |
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Total
Assets |
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7,833 |
N/A |
N/A |
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Net
Worth |
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-1,430 |
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Capital,
Paid-Up |
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100 |
100 |
100 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
0.59 |
-1.58 |
-26.83 |
-23.55 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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-18.26 |
.. |
.. |
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N.Profit/Sales |
0.53 |
0.56 |
-30.69 |
-0.15 |
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Notes: Financials are only partially disclosed.
Forecast
(or estimated) figures for the 31/03/2011 fiscal term.
DIAMOND INDUSTRY –
INDIA
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From time
immemorial, India is well known in the world as the birthplace for
diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond production
in India can be traced back to almost 8th Century B.C. India,
in fact, remained undisputed leader till 18th Century when Brazilian
fields were discovered in 1725 followed by emergence of S. Africa, Russia and
Australia.
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The
achievement of the Indian diamond industry was possible only due to combination
of the manufacturing skills of the Indian workforce and the untiring and
unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
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The area
of study of family owned diamond businesses derives its importance from the
huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
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Some of
the basic traits of family run business enterprises include spirit of
entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
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Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
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The
diamond jewellery industry in India today may be more than Rs 60000 mil and is
rated amongst the fastest growing in the world. Indi ranks third in the
world in domestic diamond consumption.
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Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company
transactions, financially assisted by banks. In the process, several public
sector banks lost several hundred million rupees. They mostly diverted borrowed
money for diamond business into real estate and capital markets.
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Excerpts
from Times of India dated 30th October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK
WITH 2K CR DEBT
This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.
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Most of
the money borrowed from the banks in the name of their diamond business has
been diverted in real estate and the share market. The banks are not in a
position to seize their properties because in many cases, these were purchased
in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.14 |
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1 |
Rs.77.58 |
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Euro |
1 |
Rs.67.58 |
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.