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Report Date : |
16.04.2014 |
IDENTIFICATION DETAILS
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Name : |
GUMP’S INTERNATIONAL LTD |
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Registered Office : |
Tobu Annex 6F, 1-15-2 Nishiikebukuro Toshimaku Tokyo
171-0021 |
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Country : |
Japan |
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Financials (as on) : |
28.02.2013 |
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Date of Incorporation : |
October 1991 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, wholesale, retail of jewelry, handbags, gift items |
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No. of Employees |
40 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy
|
Source
: CIA |
GUMP’S INTERNATIONAL
LTD
REGD NAME: KK Gump’s International
MAIN OFFICE: Tobu Annex 6F, 1-15-2 Nishiikebukuro Toshimaku Tokyo 171-0021 JAPAN
Tel: 03-5951-1250 Fax: 03-5951-1252
E-Mail address: info@gumps.co.jp
Import, wholesale, retail of jewelry, handbags, gift items
Tokyo (3), Funabashi, Utsunomiya (--in-shops in Tobu Dept Store)
YOSHIHIKO SHIMADA, PRES Koichi Nezu, ch
Keiichi Yano, dir Atsushi Shigeta, dir
Takeyuki Kobayashi, dir Yoshihiko Shimada, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 497 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 10 M
TREND STEADY WORTH Yen 268 M
STARTED 1991 EMPLOYES 40
IMPORTER OF GUMP’S BRAND PRODUCTS, WHOLLY OWNED BY TOBU DEPARTMENT STORE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
The subject company was established as a marketing office in Japan and later was merged into Tobu Department Store Co Ltd, department operator at the caption address (See REGISTRATION). Koichi Nezu, ch at the firm, is concurrently ch at the parent. This is a trading firm specializing in import, wholesale and retail of jewelry, handbags, and gift items of “Gump’s” brand. Operates 6 in-shops in Tobu Department Stores. The firm decreased the capital in Jul/2005 to Yen 10 million from the previous Yen 1,170 million to wipe off accumulated losses.
The sales volume for Feb/2013 fiscal term amounted to Yen 497 million, a 2% up from Yen 487 million in the previous term. The operations continued in the deficit to post Yen 15 million net losses for the term, compared with Yen 14 million net loss in the previous term.
For the term that ended Feb/2014 the operations were projected to come back to profitability to post Yen 5 million net profit on a 3% rise in turnover, to Yen 510 million. Final results are yet to be released.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements.
Date Registered: Oct 1991
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 800 shares
Issued: 200 shares
Sum: Yen 10 million
Major shareholders (%): Tobu Department Store Co Ltd*(100)
* Department store operator, at the caption address, founded 1946, capital Yen 50 million, turnover Yen 150,549 million, recurring profit Yen 534 million, net profit Yen 246,580 million, total assets Yen 51,850 million, employees 1578, pres Atsushi Shigeta
Nothing detrimental is known as to the commercial morality of executives.
Activities: Imports, wholesales and retails “Gump’s” brand jewelry (bracelets, pendants, diamond rings), handbags, photo albums, tableware, lamps, tea cups, Christmas items, other gift ware (--100%)
Goods are imported from USA, Italy, France, etc.
Operates 5 in-shops in Tobu Department Store.
Clients: [Department stores, hotels] Tobu Department Store, Iwataya Mitsukoshi, Yokohama New Grand Hotel, Hotel Okura Tokyo, Izutsuya, Isetan Mitsukoshi Holdings, other.
No. of accounts: 300
Domestic areas of activities: Centered in greater-Tokyo
Suppliers: [Mfrs, wholesalers] Imports from USA, France, Italy, Hong Kong, other.
Supplied from Morabito Japan, domestic makers, venders, other
Payment record: Slow but correct
Location: Business area in Tokyo. Office premises at the caption address are owned by the owner, Tobu Department Store Co Ltd, and maintained satisfactorily.
Bank References:
Mizuho Bank (Ikebukuro-Nishiguchi)
Relations: Satisfactory
(In Million Yen)
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Terms Ending: |
28/02/2014 |
28/02/2013 |
29/02/2012 |
28/02/2011 |
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Annual
Sales |
|
510 |
497 |
487 |
466 |
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Recur.
Profit |
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Net
Profit |
|
5 |
-15 |
-14 |
1 |
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Total
Assets |
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11,625 |
15,594 |
N/A |
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Current
Assets |
|
|
296 |
311 |
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Current
Liabs |
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|
35 |
39 |
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Net
Worth |
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|
268 |
283 |
297 |
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Capital,
Paid-Up |
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|
10 |
10 |
10 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
2.62 |
2.05 |
4.51 |
-1.27 |
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Current Ratio |
|
.. |
845.71 |
797.44 |
.. |
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N.Worth Ratio |
.. |
2.31 |
1.81 |
.. |
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R.Profit/Sales |
|
.. |
.. |
.. |
.. |
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N.Profit/Sales |
0.98 |
-3.02 |
-2.87 |
0.21 |
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Return On Equity |
.. |
-5.60 |
-4.95 |
0.34 |
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Notes: Forecast (or estimated) figures for the 28/02/2014 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 –
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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.60.26 |
|
|
1 |
Rs.101.71 |
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Euro |
1 |
Rs.83.27 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
-- |
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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.