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Report Date : |
01.04.2014 |
IDENTIFICATION DETAILS
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Name : |
TOKYO PEARL CO LTD |
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Registered Office : |
Tokyo Shinju Bldg, 6-16-3 Ginza Chuoku Tokyo 104-0061 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
February 1959 |
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Com. Reg. No.: |
0100-01-061359 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of pearls, diamonds |
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No. of Employees : |
70 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 : |
Slow but correct |
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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 – 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 |
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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 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 |
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
Import, export, wholesale of pearls, diamonds
Osaka, Kofu
At the caption address
Antwerp, Tel Aviv (-- rep offices)
TP Diamond Co Ltd (Thailand); Tokyo Shinju Singapore Pte Ltd;
Tokyo Shinju International Ltd (Taiwan) (--subsidiaries)
Ise (Mie-Pref); Hong Kong, Taiwan, Thailand
Takezo Koyama, ch TOTA KOYAMA, PRES
Itaru Honjo, s/mgn dir Chozo Higashi, dir
Yen Amount: In million Yen, unless otherwise stated
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
TRADING FIRM SPECIALIZING IN DIAMONDS & PEARLS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
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.
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.
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.
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
(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 |
|
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Net
Profit |
|
75 |
74 |
1,852 |
1,771 |
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Total
Assets |
|
|
5,980 |
6,108 |
N/A |
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Current
Assets |
|
|
3,129 |
3,249 |
|
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Current
Liabs |
|
|
3,560 |
3,773 |
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Net
Worth |
|
|
2,269 |
2,193 |
341 |
|
Capital,
Paid-Up |
|
|
100 |
100 |
100 |
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Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical
Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
3.52 |
1.96 |
0.97 |
-2.59 |
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Current Ratio |
.. |
87.89 |
86.11 |
.. |
|
|
N.Worth Ratio |
.. |
37.94 |
35.90 |
.. |
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R.Profit/Sales |
3.09 |
1.56 |
1.63 |
.. |
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N.Profit/Sales |
1.55 |
1.58 |
40.30 |
38.91 |
|
|
Return On Equity |
.. |
3.26 |
84.45 |
519.35 |
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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
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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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
|
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 |
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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 |
|
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.