MIRA INFORM REPORT
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Report Date : |
09.05.2013 |
IDENTIFICATION DETAILS
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Name : |
TSUTSUMI JEWELRY CO LTD |
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Registered Office : |
4-24-26 Chuo Warabi City Saitama-Pref
335-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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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 : |
Manufacturing, retail, wholesale of jewelry |
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No. of Employees : |
1194 |
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 : |
Regular |
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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 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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 |
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 183)
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 30,960 M
PAYMENTSREGULAR CAPITAL Yen
13,098 M
TREND UP WORTH Yen 75,331 M
STARTED 1973 EMPLOYES 1,194
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
31/03/2013 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. The company aims to attract customers and increase new product sales, including through a metal ore trade in campaign. It will step up mid-career recruitment to support the expansion of business scope, and will also focus on online sales.
FINANCIAL INFORMATION
The sales volume for Mar/2012 fiscal term amounted to Yen 30,960 million, a 17.7% up from Yen 26,296 million in the previous term. 7 new stores were opened, 9 stores were renewed and closed 3 stores. The recurring profit was posted at Yen 3,909 million and the net profit at Yen 1,979 million, compared with Yen 2,952 million recurring profit and Yen 1,617 million net profit a year ago.
(Apr/Dec/2012 results): Sales Yen 19,290 million (down 19.9%), operating profit Yen 2,661 million (down 7.0%), recurring profit Yen 2,774 million (down 6.0%), net profit Yen 1,645 million (up 2.0%). (% compared with the corresponding period a year ago).
For the term that ended Mar 2013 the recurring profit was
projected at Yen 4,000 million and the net profit at Yen 2,240 million,
respectively, on a 16.0% fall in turnover, to Yen 26,000 million. New store openings were planned at eight,
compared with seven in the preceding term, and closures at five, from
three. Coin sales plunged, but jewelry
sales grew. Final results are yet to be
released.
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: 2,483
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 183 jewelry chain stores centrally in greater-Tokyo regions:
(Sales breakdown by divisions): Rings (33%), necklaces & bracelets (29%), personal goods (13%), others (25%).
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: Regular
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: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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30,960 |
26,296 |
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Cost of Sales |
16,572 |
12,374 |
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GROSS PROFIT |
14,388 |
13,462 |
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Selling & Adm Costs |
10,595 |
10,631 |
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OPERATING PROFIT |
3,793 |
2,831 |
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Non-Operating P/L |
116 |
121 |
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RECURRING PROFIT |
3,909 |
2,952 |
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NET PROFIT |
1,979 |
1,617 |
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BALANCE SHEET |
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Cash |
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38,306 |
35,747 |
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Receivables |
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1,555 |
1,068 |
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Inventory |
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19,067 |
19,654 |
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Securities, Marketable |
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Other Current Assets |
546 |
40,592 |
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TOTAL CURRENT ASSETS |
59,474 |
97,061 |
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Property & Equipment |
12,845 |
13,050 |
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Intangibles |
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577 |
596 |
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Investments, Other Fixed Assets |
5,288 |
(34,609) |
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TOTAL ASSETS |
78,184 |
76,098 |
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Payables |
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215 |
220 |
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Short-Term Bank Loans |
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Other Current Liabs |
2,438 |
1,831 |
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TOTAL CURRENT LIABS |
2,653 |
2,051 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
155 |
143 |
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Other Debts |
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44 |
35 |
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TOTAL LIABILITIES |
2,852 |
2,229 |
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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 |
46,458 |
45,000 |
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Evaluation
p/l on investments/securities |
83 |
78 |
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Others |
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1 |
2 |
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Treasury
stock, at cost |
(16) |
(16) |
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TOTAL S/HOLDERS` EQUITY |
75,331 |
73,869 |
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TOTAL EQUITIES |
78,184 |
76,098 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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3,199 |
1,863 |
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Cash
Flows from Investment Activities |
-118 |
0 |
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Cash
Flows from Financing Activities |
-521 |
-522 |
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Cash,
Bank Deposits at the Term End |
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38,306 |
35,747 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
75,331 |
73,869 |
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Current
Ratio (%) |
2241.76 |
4732.37 |
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Net
Worth Ratio (%) |
96.35 |
97.07 |
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Recurring
Profit Ratio (%) |
12.63 |
11.23 |
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Net
Profit Ratio (%) |
6.39 |
6.15 |
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Return
On Equity (%) |
2.63 |
2.19 |
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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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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 –
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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.
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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.54.16 |
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UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.99 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
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.