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Report Date : |
17.07.2012 |
IDENTIFICATION DETAILS
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Name : |
ITO JEWELRY INC |
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Registered Office : |
1-21-9 |
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Country : |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
April 1979 |
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Legal Form : |
Limited Company |
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LINE OF BUSINESS : |
IMPORTS,
WHOLESALE AND RETAILS (ONLINE) DIAMONDS, DIAMOND JEWELRY (PENDANT, BROACH, RINGS,
BRACELET, OTHER) |
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No. of Employees : |
5 |
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 : |
Slow |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 |
ITO JEWELRY INC
REGD NAME: KK
Ito Hoshoku
MAIN OFFICE: 1-21-9
Tel:
048-266-1801 Fax: 048-269-6410
URL: N/A
Import, wholesale,
retail of diamond, diamond jewelry, other
Nil
(subcontracted)
SOICHI ITO, PRES
Yen Amount: In million Yen, unless otherwise stated
FINANCES R/WEAK A/SALES Yen 330 M
PAYMENTS SLOW CAPITAL Yen 10 M
TREND SLOW WORTH Yen 32 M
STARTED 1979 EMPLOYES 5
TRADING FIRM SPECIALIZING IN JEWELRY.
FINANCIAL SITUATION CONSIDERED RATHER WEAK
BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
The subject company was established
originally in 1976 by Soichi Ito for wholesaling jewelry products, on his
account, and was incorporated in 1979.
This is a trading firm, wholly owned and operated by the Ito family,
operating from Ito’s home address, for import, wholesale and retail of
diamonds, ruby, diamond jewelry, other jewelry products. Diamonds are partially subcontracted mfg into
jewelry products with local jewelry processors.
Goods are retailed online.
Financials are only partially
disclosed as is the case with family-based companies.
The sales volume for Jun/2011 fiscal term amounted to Yen 330 million, a
3% down from Yen 340 million in the previous term. Consumer spending was sluggish for arts,
jewelry and other big-ticket items, that are not for immediate needs. The net profit was posted at Yen 1 million,
similarly in the previous period.
For the term that ended Jun 2012 the
net profit was projected at Yen 1 million, on a 2% rise in turnover, to Yen 335
million. Final results are yet to be
released.
The financial situation is considered RATHER
WEAK but should be good for MODERATE business engagements.
Date Registered: Apr
1979
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 80,000 shares
Issued: 20,000 shares
Sum: Yen 10 million
Major shareholders (%): Soichi Ito and
families (--100)
No. of shareholders: 3
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports,
wholesale and retails (online) diamonds, diamond jewelry (pendant, broach,
rings, bracelet, other), others (--100%).
Diamonds are partially subcontracted mfg to
local jewelry processors into products.
Clients: [Retailers,
wholesalers, consumers] Linos Corp, Gold House Japan, other
No. of accounts:
200
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] DLF Limited, Palla Jewelry Craft Co, other
Payment record: Slow
Location: Business area in
Kawaguchi City, Saitama-Pref. Office
premises at the caption address are owned by S Ito as his private home
residence and maintained satisfactorily.
Bank References:
Saitama Resona
Bank (Warabi-Higashi)
Musashino Bank
(Warabi)
Relations:
Satisfactory
(In Million Yen)
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30/06/2012 |
30/06/2011 |
30/06/2010 |
30/06/2009 |
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Annual
Sales |
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335 |
330 |
340 |
340 |
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Recur.
Profit |
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Net
Profit |
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1 |
1 |
1 |
1 |
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Total
Assets |
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N/A |
N/A |
N/A |
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Net
Worth |
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32 |
31 |
30 |
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Capital,
Paid-Up |
|
|
10 |
10 |
10 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
1.52 |
-2.94 |
0.00 |
-2.86 |
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Current Ratio |
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|
.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
0.30 |
0.30 |
0.29 |
0.29 |
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Notes: Financials
are only partially disclosed.
Forecast (or
estimated) figures for the 30/06/2012 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.92 |
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|
1 |
Rs.85.47 |
|
Euro |
1 |
Rs.67.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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 |
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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 |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.