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Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
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Name : |
FUKUWA JEWELLERY CO LTD |
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Registered Office : |
1-16-12 Higashi-Shinsaibashi Chuoku Osaka 542-0083 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
May 1951 |
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Com. Reg. No.: |
1200-01-088357 (Osaka-Chuoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale of polished diamonds |
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No. of Employees : |
10 |
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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 but correct |
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Litigation : |
Clear |
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) |
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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 |
JAPAN - ECONOMIC OVERVIEW
In the years following World War
II, government-industry cooperation, a strong work ethic, mastery of high
technology, and a comparatively small defense allocation (1% of GDP) helped
Japan develop a technologically advanced economy. Two notable characteristics
of the post-war economy were the close interlocking structures of
manufacturers, suppliers, and distributors, known as keiretsu, and the
guarantee of lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A tiny agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. Usually self-sufficient in rice, Japan imports about 60% of its
food on a caloric basis. Japan maintains one of the world's largest fishing
fleets and accounts for nearly 15% of the global catch. For three decades,
overall real economic growth had been spectacular - a 10% average in the 1960s,
a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed
markedly in the 1990s, averaging just 1.7%, largely because of the after
effects of inefficient investment and an asset price bubble in the late 1980s that
required a protracted period of time for firms to reduce excess debt, capital,
and labor. Measured on a purchasing power parity (PPP) basis that adjusts for
price differences, Japan in 2011 stood as the fourth-largest economy in the
world after second-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2011. A sharp downturn in business investment
and global demand for Japan's exports in late 2008 pushed Japan further into
recession. Government stimulus spending helped the economy recover in late 2009
and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude
earthquake in March disrupted manufacturing. Electricity supplies remain tight
because Japan has temporarily shut down almost all of its nuclear power plants
after the Fukushima Daiichi nuclear reactors were crippled by the earthquake
and resulting tsunami. Estimates of the direct costs of the damage - rebuilding
homes, factories, and infrastructure - range from $235 billion to $310 billion,
and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has
proposed opening the agricultural and services sectors to greater foreign
competition and boosting exports through membership in the US-led Trans-Pacific
Partnership trade talks and by pursuing free-trade agreements with the EU and
others, but debate continues on restructuring the economy and reining in
Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation,
reliance on exports to drive growth, and an aging and shrinking population are
other major long-term challenges for the economy.
Source
: CIA
FUKUWA JEWELLERY CO LTD
REGD NAME: KK
Fukuwa Hoseki (Hoseki means gemstones)
MAIN OFFICE: 1-16-12
Higashi-Shinsaibashi Chuoku Osaka 542-0083 JAPAN
Tel:
06-6271-8573 Fax: 06-6245-6131
E-Mail address: dia@lehaim.co.jp
Import, wholesale
of polished diamonds
Tokyo; showroom at
the caption address
(subcontracted)
KAZUHIKO FUKUDA,
PRES
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 624 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 25 M
TREND SLOW WORTH Yen 305 M
STARTED 1951 EMPLOYES 10
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
The subject company was established by Shin’ichi
Fukuda in order to make most of his experience in the jewelry business. Kazuhiko is his son, who took the pres office
in Apr 1984. The firm is owned and
operated by the Fukuda family and specializes in importing precut, polished
diamonds centrally, other gem stones, and jewelry products. Diamonds are processed into fingerings,
pendants, bracelets, necklaces, other jewelry products by subcontracted
processors. Sales are primarily based on
made-to-order basis with clients selecting the ones from various combinations
of gem stones and frames. Special
strength is with engagement rings, marriage rings, marriage anniversary rings,
etc. Goods are imported directly from
Belgium, Israel, India, other, with regular purchase trips organized. Operates a gallery, at the caption address,
and online shop by the name of “LEHAIM”.
Financials are only partially disclosed as
is the case with a family-based company.
The sales volume for Mar/2012 fiscal term
amounted to Yen 624 million, a 1% down from Yen 632 million in the previous
term. The net profit was posted at Yen 8
million, compared with Yen 6 million a year ago.
For the current term ending Mar 2013 the net
profit is projected at Yen 10 million, on a 3% rise in turnover, to Yen 640
million.
The financial situation is considered FAIR
and goof for ORDINARY business engagements.
Max credit limit is estimated at Yen 11.1 million, on 30 days normal
terms.
Date Registered:
May 1951
Regd No.:
1200-01-088357 (Osaka-Chuoku)
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized: 200,000 shares
Issued: 51,000 shares
Sum: Yen 25.5 million
Major shareholders (%): Kazuhiko Fukuda
(40) & families (--60)
No. of shareholders: 8
Nothing detrimental
is known as to the commercial morality of executives.
Activities: Imports and
wholesales polished diamonds, other gem stones, fingerings, pendants, necklaces,
bracelets, earrings, other diamond-bedded jewelry products
(--99%); office building for let (1%).
Goods are basically made-to-order to
customers’ choice, selecting from various combinations of diamonds and frames
into rings, other.
Clients: Jewelry processors, wholesalers, jewelry
stores, other
No. of accounts:
500
Domestic areas of
activities: Centered in greater-Osaka
Suppliers: [Mfrs, wholesalers] Imports from Oriental
Diamond, other from Israel, India,
Belgium, Thailand, other.
Payment record: Slow but correct
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Shoko Chukin Bank
(Semba)
SMBC (Namba)
Relations:
Satisfactory
(In Million Yen)
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31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
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Annual
Sales |
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640 |
624 |
632 |
694 |
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Recur.
Profit |
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Net
Profit |
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10 |
8 |
-6 |
-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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305 |
297 |
303 |
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Capital,
Paid-Up |
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25 |
25 |
25 |
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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 |
2.56 |
-1.27 |
-8.93 |
-16.08 |
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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 |
1.56 |
1.28 |
-0.95 |
-0.14 |
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Notes: Financials
only partially disclosed.
Forecast (or
estimated) figures for 31/03/2013 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.55.52 |
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1 |
Rs.88.85 |
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Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.