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Report Date : |
20.01.2014 |
IDENTIFICATION DETAILS
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Name : |
SUGANUMA TRADING CO LTD |
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Registered Office : |
1-17-1 Aonuma Kofu Yamanashi-Pref 400-0867 |
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Country : |
Japan |
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Financials (as on) : |
31.08.2011 |
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Date of Incorporation : |
February, 1984 |
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Legal Form : |
Private Limited Company (Yugen Gaisha) |
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Line of Business : |
Import, wholesale of diamonds, other precious stones,
jewelry |
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No. of Employees : |
3 |
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 – 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 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 |
SUGANUMA
TRADING CO LTD
REGD NAME: YK Suganuma Boeki
MAIN OFFICE: 1-17-1 Aonuma Kofu Yamanashi-Pref 400-0867
JAPAN
Tel:
055-237-1888
Fax: 055-233-7300
URL: N/A
Import, wholesale of diamonds, other precious stones,
jewelry
Nil
(subcontracted)
KIYOZUMI SUGANUMA, PRES
Shuji Tsuchiya, dir
In million Yen, unless otherwise stated
FINANCES R/WEAK A/SALES Yen 210 M
PAYMENTS SLOW
BUT CORRECT CAPITAL Yen 5 M
TREND SLOW WORTH Yen 100 M
STARTED 1984 EMPLOYES 3
IMPORTER SPECIALIZING IN DIAMONDS & JEWELRY.
FINANCIAL SITUATION CONSIDERED RATHER WEAK AND DOUBTFUL FOR
CREDIT ENGAGEMENTS
The subject company was established by Kiyozumi Suganuma in
order to make most of his experience in the subject line of business. This is a family-based trading firm for
import and wholesale of polished diamonds, and other precious stones. Goods are imported from India centrally. Stones are partially subcontracted mfg into
jewelry products at local jewelry processors.
Clients are jewelry processors, makers, jewelry stores centering in
Kofu-Pref, extending into greater-Tokyo region.
Financials are only partially disclosed as is the case with
family-based companies.
The sales volume for Aug/2011 fiscal term amounted to Yen
210 million, a 16% drop from Yen 250 million in the previous term. Consumer spending was sluggish and down
pressed. Sales of art, jewelry and other
big-ticket items nosedived. The net
profit was posted at Yen 2 million, compared with Yen 3 million a year ago.
For the current term ending Aug 2012 the net profit is
projected at Yen 3 million, on a 5% rise in turnover, to Yen 220 million. Demand continues languish for clothing, jewelry
and other big-ticket items. Consumers
are restraint in purchasing products that are not of immediate
necessities.
The financial situation is considered RATHER WEAK but should
be good for MODERATE business engagements.
Date Registered:
Feb
1984
Legal
Status: Private Limited Company (Yugen
Gaisha)
Regd
Capital: Yen 5 million
Major
shareholders (%): Kiyozumi Suganuma (80), Eiko Suganuma (20)
No. of
shareholders 2
Nothing detrimental is known as to the commercial morality
of executives.
Activities:
Imports and wholesales polished, precut diamonds and other gem stones, jewelry
products (--100%).
Goods are imported centrally from India.
Partially processes them into jewelry products on
consignment to local jewelry processors.
Clients:
[Jewelry processors, jewelry stores] Gosho Jewel, Meijido Co, Takano Kikinzoku,
Higuchi Inc,
Watanabe Seigyokudo, other.
No. of
accounts: 200
Domestic
areas of activities: Centered in Kofu-Pref, extending into greater-Tokyo area.
Suppliers: [Mfrs, wholesalers] Imports
from India centrally, other from Israel, Belgium
Payment
record: Slow but correct
Location:
Business area in Kofu City, Yamanashi-Pref.
Office premises at the caption address are owned and maintained satisfactorily.
Bank
References:
Kofu
Shinkin Bank (Minami)
Resona
Bank (Kofu)
Relations:
Satisfactory
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31/08/2012 |
31/08/2011 |
31/08/2010 |
31/08/2009 |
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Annual Sales |
|
220 |
210 |
250 |
310 |
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Recur. Profit |
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Net Profit |
|
3 |
2 |
3 |
4 |
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Total Assets |
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N/A |
N/A |
N/A |
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Net Worth |
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|
100 |
98 |
95 |
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Capital, Paid-Up |
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|
5 |
5 |
5 |
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Div.P.Share(¥) |
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|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
4.76 |
-16.00 |
-19.35 |
-6.06 |
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Current Ratio |
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|
.. |
.. |
.. |
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N.Worth Ratio |
|
.. |
.. |
.. |
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N.Profit/Sales |
1.36 |
0.95 |
1.20 |
1.29 |
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Notes: Financials are only partially disclosed.
Forecast (or estimated) figures for the 31/08/2012 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.61.35 |
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|
1 |
Rs.100.21 |
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Euro |
1 |
Rs.83.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
|
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 |
---- |
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.