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Report Date : |
09.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
UCHIHARA CO LTD |
|
|
|
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Registered Office : |
1-10-4 Namba-Naka Naniwaku Osaka |
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Country : |
Japan |
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Financials (as on) : |
31.07.2012 |
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Date of Incorporation : |
Jan 1961 |
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Com. Reg. No.: |
(Osaka-Izumisano) 005456 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale, retail of
polished diamonds, jewelry products |
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No. of Employees : |
101 |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
UCHIHARA CO LTD
KK Uchihara
7-2-7 Roppongi
Minatoku Tokyo 106-8518 JAPAN
Tel:
03-3478-0303 Fax: 03-3476-0093
*.. Registered and Osaka Office at:
1-10-4 Namba-Naka Naniwaku Osaka
E-Mail
address: (thru the URL
Import,
wholesale, retail of polished diamonds, jewelry products
Osaka,
Kishiwada, Izumisano, Yokohama, Kyoto, Nagoya, other (Tot 15)
Milan (Representative Office)
At the
caption address, Osaka (3)
ICHIRO
UCHIHARA, PRES Keisuke Uchihara,
ch
Sumio
Kawasaki, dir Motohiro
Katoh, dir
Hiroyuki
Takayama, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 4,637 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 90 M
TREND SLOW WORTH Yen 4,051 M
STARTED 1961 EMPLOYES 101
IMPORTER,
WHOLESALER & RETAILER SPECIALIZING IN DIAMONDS & JEWELRY PRODUCTS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established originally in 1920 by
Kaname Uchihara, on his account. Keisuke
is the 3rd generation master and Ichiro the 4th. This is a trading firm specializing in
importing and wholesaling polished, loose diamonds and other gemstones. Also handles fingerings, pendants, and other
jewelry. Import sources are India,
Israel, Belgium, Italy (mainly named jewelry brands), Russia, USA, etc. The firm has a well-established relationship
with India. In Feb 2002, the firm
received the 11th “Highest Importer Prize” from the Indian
Government as the top diamond importer (the first having been awarded in
1993).
The sales
volume for Jul/2012 fiscal term amounted to Yen 4,637 million, a 2% down from
Yen 4,712 million in the previous term. The
recurring profit was posted at Yen 146 million and the net profit at Yen 18
million, respectively, compared with Yen 73 million recurring profit and Yen 21
million net profit, respectively, a year earlier.
For
the current term ending Jul 2013 the recurring profit is projected at Yen 80
million and the net profit at Yen 20 million, respectively, on a 4% rise in
turnover, to Yen 4,800 million.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
Date Registered: Jan 1961
Regd No.: (Osaka-Izumisano) 005456
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
720,000 shares
Issued:
180,000 shares
Sum: Yen 90
million
Major shareholders (%): Takara Co (29), Kunita Co Ltd
(24.5), Keisuke Uchihara (14.9), Sumi Uchihara (14.4), Ichiro Uchihara (10)
No. of shareholders: 6
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports, wholesales and retails
polished diamonds, other precious stones (--90%), fingerings, pendants,
earrings, bracelets, necklaces, others (--10%).
Operates 3 direct-run stores.
(Import 60%; wholesale 90%,
retail 10%).
(Handling brands): Casare de Vecchi, Roberta, Argyle,
L’Exception SDC, Aletta, Serendity, Siglo, Nogizaka, Akane Teshigahara, other.
Clients: [Department stores, jewelry
processors, consumers] Takashimaya Department Store
(major client), Kunita Co (subsidiary), Hankyu Department Stores, Kintetsu
Department Store, other.
No. of
accounts: 200 (Direct clients of wholesale div)
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Imports from
India centrally, other from Israel, Belgium, Russia, Italy, USA, India, S Africa,
etc.
Domestic suppliers: Kunita Co,
Mitsuba Boeki Co, Kashikei Co, Kuwayama Corp, other.
Payment record: No
Complaints
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
Ikeda
Senshu Bank (Izumi-Sano)
MUFG
(Namba)
Relations:
Satisfactory
(In
Million Yen)
|
Terms Ending: |
31/07/2013 |
31/07/2012 |
31/07/2011 |
31/07/2010 |
|
|
Annual
Sales |
|
4,800 |
4,637 |
4,712 |
4,963 |
|
Recur.
Profit |
|
80 |
146 |
73 |
64 |
|
Net
Profit |
|
20 |
18 |
21 |
8 |
|
Total
Assets |
|
|
8,787 |
9,560 |
9,573 |
|
Current
Assets |
|
|
4,539 |
5,408 |
5,296 |
|
Current
Liabs |
|
|
1,459 |
1,718 |
1,957 |
|
Net
Worth |
|
|
4,051 |
3,997 |
3,992 |
|
Capital,
Paid-Up |
|
|
90 |
90 |
90 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
3.52 |
-1.59 |
-5.06 |
-8.23 |
|
|
Current Ratio |
|
.. |
311.10 |
314.78 |
270.62 |
|
N.Worth Ratio |
.. |
46.10 |
41.81 |
41.70 |
|
|
R.Profit/Sales |
|
1.67 |
3.15 |
1.55 |
1.29 |
|
N.Profit/Sales |
0.42 |
0.39 |
0.45 |
0.16 |
|
|
Return On Equity |
.. |
0.44 |
0.53 |
0.20 |
|
Notes:
Forecast (or estimated) figures for the 31/07/2013 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.54.16 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.99 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.