MIRA INFORM REPORT

 

 

Report Date :

01.04.2014

 

IDENTIFICATION DETAILS

 

Name :

TOKYO PEARL CO LTD

 

 

Registered Office :

Tokyo Shinju Bldg, 6-16-3 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

February 1959

 

 

Com. Reg. No.:

0100-01-061359

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of pearls, diamonds

 

 

No. of Employees :

70

 

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 :

Slow but correct

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 30, 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 2013 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 225% 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

 

TOKYO PEARL CO LTD

 

REGD NAME:   Tokyo Shinju KK (Shinju means Pearl)

MAIN OFFICE:  Tokyo Shinju Bldg, 6-16-3 Ginza Chuoku Tokyo 104-0061 JAPAN

                        Tel: 03-3543-6055     Fax: 03-3543-2127

 

URL:                 http://www.tokyopearl.com/

E-Mail address: info@tokyopearl.com

 

 

ACTIVITIES

 

Import, export, wholesale of pearls, diamonds

 

 

BRANCHES

 

Osaka, Kofu

 

 

STORES  

 

At the caption address

 

 

OVERSEAS   

 

Antwerp, Tel Aviv (-- rep offices)

TP Diamond Co Ltd (Thailand); Tokyo Shinju Singapore Pte Ltd;

Tokyo Shinju International Ltd (Taiwan) (--subsidiaries)

 

 

FACTORIES  

 

Ise (Mie-Pref); Hong Kong, Taiwan, Thailand

 


 

OFFICER(S)

 

Takezo Koyama, ch                   TOTA KOYAMA, PRES

Itaru Honjo, s/mgn dir                Chozo Higashi, dir        

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 4,685 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 100 M

TREND             UP                                WORTH            Yen 2,269 M

STARTED         1959                             EMPLOYES      70

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN DIAMONDS & PEARLS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Takezo Koyama in order to make most of his experience in the subject line of business, as Tokyo Pearl Ltd.  Originally started as a pearl trader, and in 1973, reorganized and renamed as captioned.  In 1980 started the pearl business.  In 2004, Takezo Koyama promoted to ch, when Tota Koyama, his son, took the office of pres.  This is a trading firm specializing in import, export and wholesale of polished diamonds, pearls, jewelry products, other.  Goods are also retailed at its own store at the caption address.  Diamonds are imported from Belgium, Israel, Russia, Thailand, India, USA, other.  Pearls are exported.  Also imports black Tahiti pearls and South Sea pearls from Tahiti, Surabaya, Australia, other.  Clients are jewelers, jewelry processors, other.  Accepted debt relief of Yen 410 million for 2012 & 2011 terms. 

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 4,685 million, a 2% up from Yen 4,595 million in the previous term.  No debt relief for the term and the operations resulted in profit bases.  The recurring profit was posted at Yen 73 million and the net profit at Yen 74 million, respectively, compared with Yen 75 million recurring profit and Yen 1,852 million net profit, respectively, a year ago.  The last term included the said relief. 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 150 million and the net profit at yen 75 million, respectively, on a 4% rise in turnover, to Yen 4,850 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered: Feb 1959

Regd No.:       0100-01-061359 (Tokyo-Chuoku)

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:      800,000 shares

Issued:             200,000 shares

Sum:                 Yen 100 million

Major shareholders (%): Tota Koyama (35.6), Koyama Kosan (20), Yoko Hasegawa (15), Company’s Treasury Stock (8), Toshimitsu Kinoshita (6)

No. of shareholders: 15

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Imports, exports and wholesales polished diamonds, (60%), pearls (South Sea pearls, black Tahiti pearl), diamond/pearl jewelry (--40%).

 

Imports diamonds from Belgium, Israel, Russia, Thailand, USA, India, Hong Kong, other.

Pearls are imported from Tahiti, Surabaya, Australia, etc.  Pearls are also exported.

 

Clients: [Jewelry processors, jewelry stores] Kashikey, Belita, Nagahori, Mikimoto Pearls,

Citizen Jewelry, Watch, Azumi, Tokyo Kiho, Kyocera Corp, Primo Japan, FDC Products, Shin-Ei Shokai, other.

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Imports diamonds from Belgium, Israel, Russia, Thailand,

USA, India, Hong Kong, other.

Imports pearls from Tahiti, Australia, Surabaya, other.

 

Payment record: Slow but correct

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (Ginza)

Mizuho Bank (Ginzadori)

Relations: Satisfactory

 

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

4,850

4,685

4,595

4,551

Recur. Profit

 

150

73

75

 

Net Profit

 

75

74

1,852

1,771

Total Assets

 

 

5,980

6,108

        N/A

Current Assets

 

 

3,129

3,249

 

Current Liabs

 

 

3,560

3,773

 

Net Worth

 

 

2,269

2,193

341

Capital, Paid-Up

 

 

100

100

100

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.52

1.96

0.97

-2.59

    Current Ratio

..

87.89

86.11

..

    N.Worth Ratio

..

37.94

35.90

..

    R.Profit/Sales

3.09

1.56

1.63

..

    N.Profit/Sales

1.55

1.58

40.30

38.91

    Return On Equity

..

3.26

84.45

519.35

 

Notes: Financials are only partially disclosed for the 31/03/2011 fiscal term. 

Forecast (or estimated) figures for the 31/03/2014 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.60.10

UK Pound

1

Rs.99.85

Euro

1

Rs.82.58

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.