IRA INFORM REPORT
|
Report Date : |
19.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
TSUTSUMI JEWELRY CO LTD |
|
|
|
|
Registered Office : |
4-24-26 Chuo Warabi City Saitama-Pref 335-0004 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
June, 1973 |
|
|
|
|
Com. Reg. No.: |
0300-01-021115 (Saitama-Warabi) |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
LINE OF BUSINESS : |
MANUFACTURER,
RETAIL, WHOLESALE OF JEWELRY |
|
|
|
|
No. of Employees : |
1,186 |
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 – 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 |
company
Name and Address
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)
182 (Tokyo
Area-own managed stores)
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 26,298 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
13,098 M
TREND SLOW WORTH Yen
77,096 M
STARTED 1973 EMPLOYES 1,186
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 31/03/2014
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 182
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 firm created a Facebook
page, aiming to attract customers, and will step up mid-career recruits to
broaden business scope. It will
introduce limited-season products, and reinforce mail-order sales.
FINANCIAL
INFORMATION
The sales volume
for Mar/2013 fiscal term amounted to Yen 26,298 million, a 15.1% down from Yen
30,960 million in the previous term.
Opened eight new stores and closures at four. Coin sales plunged, but jewelry sales
grew. Operating profits were down due to
store opening costs. The recurring
profit was posted at Yen 3,627 million and the net profit at Yen 2,187 million,
compared with Yen 3,909 million recurring profit and Yen 1,979 million net
profit a year ago.
(Apr/Sept/2013
results): Sales Yen 13,474 million (up 11.2%), operating profit Yen 1,277
million (down 14.3%), recurring profit Yen 1,335 million (down 14.9%), net profit
Yen 786 million (down 16.6%) (% compared
with the corresponding period a year ago).
For the current term ending Mar 2014 the recurring
profit is projected at Yen 3,800 million and the net profit at Yen 2,250
million, on a 2.7% rise in turnover, to Yen 27,000 million. Store openings, closures and refurbishments
are planned at around eight, four and around 15, compared with eight, two and
15 in the preceding term. Per-customer
spending at existing stores will rise, thanks to popular high-price products. Customer numbers will also surpass the
preceding term. Coin sales will fare
well, backed by the rising gold market.
Closures of unprofitable stores in the preceding term will contribute to
earnings.
The financial situation is considered 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), State Street Bank &
Trust (6.0), Tsutsumi Scholarship Found (4.9), , CBNYDFA Int’l Cap Value P
(3.9), Japan Trustee Services T (2.3), State Street Bank & Trust 505044
(1.4), State Street Bank & Trust 505103 (1.4), JP Morgan Chase Bank 385166
(1.3), CBNYDFA Int’l Corp Value P (1.3); foreign owners (26.2)
No. of shareholders: 2,365
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; 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 (37%), necklaces & bracelets (34%), personal goods (15%), others (14%).
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)
|
FINANCES: (Consolidated
in million yen) |
||||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
||
|
INCOME STATEMENT |
||||||
|
Annual Sales |
|
26,298 |
30,960 |
|||
|
Cost of Sales |
12,207 |
16,572 |
||||
|
GROSS PROFIT |
14,091 |
14,388 |
||||
|
Selling & Adm Costs |
10,603 |
10,595 |
||||
|
OPERATING PROFIT |
3,487 |
3,792 |
||||
|
Non-Operating P/L |
140 |
117 |
||||
|
RECURRING PROFIT |
3,627 |
3,909 |
||||
|
|
NET PROFIT |
2,187 |
1,979 |
|||
|
BALANCE SHEET |
||||||
|
Cash |
|
39,894 |
98,306 |
|||
|
Receivables |
1,616 |
1,555 |
||||
|
Inventory |
19,121 |
19,067 |
||||
|
Securities, Marketable |
|
|
||||
|
Other Current Assets |
513 |
(59,454) |
||||
|
TOTAL CURRENT ASSETS |
61,144 |
59,474 |
||||
|
Property & Equipment |
12,767 |
12,845 |
||||
|
Intangibles |
564 |
577 |
||||
|
Investments, Other Fixed Assets |
5,156 |
5,288 |
||||
|
TOTAL ASSETS |
79,631 |
78,184 |
||||
|
Payables |
219 |
216 |
||||
|
Short-Term Bank Loans |
|
|
||||
|
|
|
|
||||
|
Other Current Liabs |
2,104 |
2,437 |
||||
|
TOTAL CURRENT LIABS |
2,323 |
2,653 |
||||
|
Debentures |
|
|
||||
|
Long-Term Bank Loans |
|
|
||||
|
Reserve for Retirement Allw |
166 |
155 |
||||
|
Other Debts |
|
45 |
44 |
|||
|
TOTAL LIABILITIES |
2,534 |
2,852 |
||||
|
MINORITY INTERESTS |
||||||
|
Common
stock |
600 |
600 |
||||
|
Additional
paid-in capital |
45,010 |
43,510 |
||||
|
Retained
earnings |
48,123 |
48,458 |
||||
|
Evaluation
p/l on investments/securities |
183 |
83 |
||||
|
Others |
(16,804) |
(17,304) |
||||
|
Treasury
stock, at cost |
(16) |
(16) |
||||
|
TOTAL S/HOLDERS` EQUITY |
77,096 |
75,331 |
||||
|
|
TOTAL EQUITIES |
79,631 |
78,184 |
|||
|
CONSOLIDATED CASH FLOWS |
||||||
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
Cash
Flows from Operating Activities |
|
2,112 |
2,199 |
|||
|
Cash
Flows from Investment Activities |
-2 |
-118 |
||||
|
Cash
Flows from Financing Activities |
-522 |
-521 |
||||
|
|
Cash,
Bank Deposits at the Term End |
|
39,894 |
39,306 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||||
|
Net
Worth (S/Holders' Equity) |
77,096 |
75,331 |
||||
|
Current
Ratio (%) |
2632.11 |
2241.76 |
||||
|
Net
Worth Ratio (%) |
96.82 |
96.35 |
||||
|
Recurring
Profit Ratio (%) |
13.79 |
12.63 |
||||
|
Net
Profit Ratio (%) |
8.32 |
6.39 |
||||
|
Return
On Equity (%) |
2.84 |
2.63 |
||||
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.62.63 |
|
|
1 |
Rs.101.06 |
|
Euro |
1 |
Rs.84.56 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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.