|
Report Date : |
21.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
J TRADING CO LTD |
|
|
|
|
Registered Office : |
Ohmiya Bldg 3F, 5-13-9 Ueno Taitoku Tokyo 110-0005 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.08.2013 |
|
|
|
|
Date of Incorporation : |
October, 1987 |
|
|
|
|
Com. Reg. No.: |
0105-01-006033 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of business : |
Importer and wholesaler of polished, precut diamonds, finger rings, necklaces, earrings, bracelets & other jewelry products |
|
|
|
|
No. of Employees : |
09 |
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 |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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 |
J TRADING CO LTD
J Trading KK
Ohmiya Bldg 3F, 5-13-9 Ueno Taitoku Tokyo 110-0005 JAPAN
Tel: 03-3834-0933 Fax:
03-3834-0919
URL: www.jt-net.co.jp/
E-Mail address: info@jt-net.co.jp
Import, wholesale of polished diamonds, finger rings, other jewelry
Osaka, Fukuoka
YK Cast Art, KK J Plan (--subsidiaries)
TAKESHI IWATA, PRES Shin’ichi Uehara, dir
Harumi Ochiai, dir Hideo Tanahashi, dir
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 1,086 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 60 M
TREND UP WORTH Yen 268 M
STARTED 1987 EMPLOYES 9
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS AND OTHER JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established originally in 1981 by Hirokazu Iwata
in order to make most of in order to make most of his experience in the jewelry
business, on his account. Takeshi is the
founder’s son, who took the office of presidency in Mar 1991. This is a specialized trading house with mfg
division, owned & operated by the Iwata family, for import and wholesale of
polished & precut diamonds centrally, diamond imports accounting for 90% of
total sales. Also handles fingerings,
earrings, other jewelry products.
Diamonds are imported from Belgium, Israel, India, other. They are processed into jewelry products by a
subsidiary mfr, YK Cast Art. Design and
R&D works are handled by subsidiary, KK J Plan. The operations are totally handled by the
group firms. Known by sound management
and operation with stable & solid clientele networks. Clients are jewelry stores, jewelry
processors, others, nationwide.
The sales volume for Aug/2012 fiscal term amounted to Yen 1,086 million,
a 20% up from Yen 905 million in the previous term. Price hikes of the products contributed. The recurring profit was posted at Yen 10
million and the net profit at Yen 6 million, respectively, compared with Yen 2
million recurring profit and Yen 1 million net profit, respectively, a year
ago.
For the current term ending Aug 2013 he recurring profit is projected at
Yen 15 million and the net profit at Yen 10 million, respectively, on a 3% rise
in turnover, to Yen 1,120 million,
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements.
Date Registered: Oct
1987
Regd No.: 0105-01-006033
(Tokyo-Taitoku)
Legal Status: Limited Company (Kabushiki
Kaisha)
Authorized: 4,800 shares
Issued:
1,200 shares
Sum: Yen
60 million
Major shareholders
(%):
Takeshi Iwata (70)
No. of
shareholders: 7
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Imports and
wholesales polished, precut diamonds (90%), finger rings, necklaces, earrings,
bracelets, other jewelry products (--10%).
Diamonds are imported from Belgium, Israel, India, other.
Operations are all handled by the group firms: YK Cast Art (jewelry processing)
and KK J Plan (designing, planning, R&D)
Clients: [Jewelry stores,
jewelry processors] Kirin’ya, Elizabeth Jewelry, other.
No. of accounts: 500
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Imports from Lily Diamond, other from Belgium Israel, India,
etc.
Also supplied from Kashikey Co, Yama Co, Kinpodo, Cast Art (subsidiary),
other.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Asahi Shinkin Bank (H/O)
MUFG (Ueno)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/08/2013 |
31/08/2012 |
31/08/2011 |
31/08/2010 |
|
|
Annual Sales |
|
1,120 |
1,086 |
905 |
937 |
|
Recur. Profit |
|
15 |
10 |
2 |
7 |
|
Net Profit |
|
10 |
6 |
1 |
4 |
|
Total Assets |
|
|
831 |
650 |
600 |
|
Current Assets |
|
|
736 |
553 |
533 |
|
Current Liabs |
|
|
541 |
380 |
371 |
|
Net Worth |
|
|
268 |
161 |
151 |
|
Capital, Paid-Up |
|
|
60 |
60 |
60 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
3.13 |
20.00 |
-3.42 |
.. |
|
|
Current Ratio |
|
.. |
136.04 |
145.53 |
143.67 |
|
N.Worth Ratio |
.. |
32.25 |
24.77 |
25.17 |
|
|
R.Profit/Sales |
|
1.34 |
0.92 |
0.22 |
0.75 |
|
N.Profit/Sales |
0.89 |
0.55 |
0.11 |
0.43 |
|
|
Return On Equity |
.. |
2.24 |
0.62 |
2.65 |
|
Notes: Forecast (or estimated) figures for 31/08/2013 fiscal term.
DIAMOND INDUSTRY – INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has stopped
completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
UK Pound |
1 |
Rs.101.81 |
|
Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.