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Report Date : |
29.05.2013 |
IDENTIFICATION DETAILS
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Name : |
J TRADING CO LTD |
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Registered Office : |
Ohmiya Bldg 3F, 5-13-9 Ueno Taitoku Tokyo 110-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.08.2012 |
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Date of Incorporation : |
October, 1987 |
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Com. Reg. No.: |
0105-01-006033 |
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Legal Form : |
Limited Company |
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Line of business : |
Import, wholesale of polished diamonds, finger rings, other jewelry |
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No. of Employees : |
9 |
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 : |
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 |
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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 |
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
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)
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Terms Ending: |
31/08/2013 |
31/08/2012 |
31/08/2011 |
31/08/2010 |
|
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Annual Sales |
|
1,120 |
1,086 |
905 |
937 |
|
Recur. Profit |
|
15 |
10 |
2 |
7 |
|
Net Profit |
|
10 |
6 |
1 |
4 |
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Total Assets |
|
|
831 |
650 |
600 |
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Current Assets |
|
|
736 |
553 |
533 |
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Current Liabs |
|
|
541 |
380 |
371 |
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Net Worth |
|
|
268 |
161 |
151 |
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Capital, Paid-Up |
|
|
60 |
60 |
60 |
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Div.P.Share(Ą) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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|
S.Growth Rate |
3.13 |
20.00 |
-3.42 |
.. |
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Current Ratio |
|
.. |
136.04 |
145.53 |
143.67 |
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N.Worth Ratio |
.. |
32.25 |
24.77 |
25.17 |
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R.Profit/Sales |
|
1.34 |
0.92 |
0.22 |
0.75 |
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N.Profit/Sales |
0.89 |
0.55 |
0.11 |
0.43 |
|
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Return On Equity |
.. |
2.24 |
0.62 |
2.65 |
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Notes: Forecast (or estimated) figures for 31/08/2013 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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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 –
-
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.
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.74 |
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UK Pound |
1 |
Rs.84.17 |
|
Euro |
1 |
Rs.72.02 |
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 |
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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 |
---- |
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.