MIRA INFORM REPORT
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Report Date : |
26.09.2012 |
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) : |
31.03.2011 |
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Date of Incorporation : |
June
1973 |
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Com. Reg. No.: |
0300-01-021115
(Saitama-Warabi) |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer, retail, wholesale of jewelry |
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No. of Employees
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1,213 |
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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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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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 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
Company name
TSUTSUMI
JEWELRY CO LTD
REGD NAME
KK Tsutsumi
MAIN OFFICE
4-24-26 Chuo
Warabi City Saitama-Pref 335-0004 JAPAN
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)
Tokyo
(41), Saitama (29), Kanagawa (20), Chiba (19), others (Tot 179)
FACTORIES
At the
caption address (2), Gunma
CHIEF EXEC
SATOSHI
TAGAI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 26,296 M
PAYMENTSNo Complaints CAPITAL Yen 13,098
M
TREND SLOW WORTH Yen 73,869 M
STARTED 1973 EMPLOYES 1,213
COMMENT
MFR, RETAILER & WHOLESALER SPECIALIZING IN JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
*.. Unit: Million Yen
Forecast (or estimated) figures for
31/03/2012 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. A major retailer of jewelry & precious metals, operating a total 179 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. In Dec 2000, founded Tsutsumi Scholarship Foundation. The company plans to open its first store in Tokushima offering limited products and daily discount sales, and focus also on online sales. It should actively recruit contract staff with the aim of expanding the store network. It plans to open 6 outlets in the Mar 2012 term.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal term amounted to Yen 26,296 million, a 2.0% up from Yen 25,789 million in the previous term. Consumer spending came back to normal, despite concerned fears for unemployment and less earnings. 5 new stores opened, 12 stores refurbished & enlarged, while 5 stores closed. By items, Rings up 3.5% to Yen 9,257 million, Necklace & Bracelets down 2.2% to Yen 8,900 million; and Personal goods up 1.1% to Yen 4,089 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).
(Apr/Dec/2011 results): Sales Yen 24,081 million (up 19.3%), operating profit Yen 2,861 million (up 23.7%), recurring profit Yen 2,952 million (up 22.5%), net profit Yen 1,612 million (up 20.5%). (% compared with the corresponding period a year ago).
For the current term ending Mar 2012
the recurring profit is projected at Yen 3,500 million and the net profit at
Yen 1,800 million, respectively, on a 14.8% rise in turnover, to Yen 30,200
million. Store openings will be six and
closures zero, compared with 5 each in the preceding term. Consumer numbers and per-customer spending at
existing stores are surpassing the previous term. Coin sales are higher than expected as a
result of the ore market upsurge. As consumer spending recovers from
the slump following the earthquake last March, one trend is clear: More Japanese are
opening up their wallets for leisure and luxury spending, while skimping on
daily household expenses.
The financial situation is considered
maintained FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Jun 1973
Regd No.: 0300-01-021115 (Saitama-Warabi)
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), State Street Bank & Trust
(3.9), CBNYDFA Int’l Cap Value P (3.9), Japan Trustee Services T (2.5), State
Street Bank & Trust 505044 (1.7), State Street Bank & Trust 505103
(1.4), JP Morgan Chase Bank 385166 (1.3), CBNYDFA Int’l Corp Value P (1.3);
foreign owners (25.7)
No. of shareholders:
2,608
Listed on the S/Exchange (s) of: Tokyo
Managements: Seiji Tsutsumi, ch; Satoshi Tagai, pres;
Keizo Fujieda, v pres; Katsumi Shindo, dir; Katsumi Okano, dir; Takashi Tsuji,
dir; Mitsuo Ohtomo; dir; 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 179 jewelry chain stores centrally in greater-Tokyo regions:
(Sales breakdown by divisions): Rings (35%), necklaces & bracelets (34%), personal goods (16%), others (15%).
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, etc. Imports from: USA, Belgium, Israel, India & Thailand.
Payment record: No
Complaints
Location: Business area in Warabi City, Saitama-Pref. Office premises at the caption address are
owned and maintained satisfactorily.
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: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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26,296 |
25,789 |
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Cost of Sales |
12,834 |
12,405 |
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GROSS PROFIT |
13,462 |
13,384 |
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Selling & Adm Costs |
10,631 |
10,905 |
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OPERATING PROFIT |
2,831 |
2,479 |
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Non-Operating P/L |
121 |
179 |
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RECURRING PROFIT |
2,952 |
2,658 |
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NET PROFIT |
1,617 |
1,448 |
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BALANCE SHEET |
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Cash |
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35,747 |
34,407 |
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Receivables |
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1,068 |
1,425 |
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Inventory |
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19,654 |
19,044 |
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Securities, Marketable |
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Other Current Assets |
592 |
559 |
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TOTAL CURRENT ASSETS |
57,061 |
55,435 |
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Property & Equipment |
13,050 |
13,216 |
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Intangibles |
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596 |
607 |
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Investments, Other Fixed Assets |
5,391 |
5,703 |
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TOTAL ASSETS |
76,098 |
74,961 |
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Payables |
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220 |
151 |
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Short-Term Bank Loans |
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Other Current Liabs |
1,831 |
1,825 |
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TOTAL CURRENT LIABS |
2,051 |
1,976 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
143 |
132 |
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Other Debts |
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35 |
35 |
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TOTAL LIABILITIES |
2,229 |
2,143 |
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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 |
45,000 |
43,904 |
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Evaluation
p/l on investments/securities |
78 |
123 |
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Others |
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2 |
1 |
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Treasury
stock, at cost |
(16) |
(15) |
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TOTAL S/HOLDERS` EQUITY |
73,869 |
72,818 |
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TOTAL EQUITIES |
76,098 |
74,961 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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1,863 |
2,124 |
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Cash
Flows from Investment Activities |
0 |
-415 |
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Cash
Flows from Financing Activities |
-522 |
-522 |
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Cash,
Bank Deposits at the Term End |
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35,747 |
34,407 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
73,869 |
72,818 |
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Current
Ratio (%) |
2782.11 |
2805.41 |
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Net
Worth Ratio (%) |
97.07 |
97.14 |
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Recurring
Profit Ratio (%) |
11.23 |
10.31 |
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Net
Profit Ratio (%) |
6.15 |
5.61 |
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Return
On Equity (%) |
2.19 |
1.99 |
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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.53.53 |
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UK Pound |
1 |
Rs.86.82 |
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Euro |
1 |
Rs.69.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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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.