|
Report Date : |
10.06.2014 |
IDENTIFICATION DETAILS
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Name : |
TSUTSUMI JEWELRY CO LTD |
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Registered Office : |
4-24-26 Chuo Warabi City Saitama-Pref 335-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
June, 1973 |
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Com. Reg. No.: |
0300-01-021115 (Saitama-Warabi) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing, retail, wholesale of jewelry |
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No. of Employees : |
1,182 |
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 |
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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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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 |
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
Mfg, retail, wholesale of jewelry
183 (Tokyo Area-own managed stores)
At the caption address (2), Gunma
SATOSHI TAGAI, PRES
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 27,549 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
13,098 M
TREND UP WORTH Yen 78,327 M
STARTED 1973 EMPLOYES 1,182
MFR, RETAILER & WHOLESALER SPECIALIZING IN JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
26,296 |
2,952 |
1,617 |
(%) |
73,869 |
|
(Consolidated) |
31/03/2012 |
30,960 |
3,909 |
1,979 |
17.74 |
75,331 |
|
31/03/2013 |
26,298 |
3,627 |
2,187 |
-15.06 |
77,096 |
|
|
31/03/2014 |
27,549 |
3,736 |
229 |
4.76 |
78,327 |
|
|
31/03/2015 |
24,000 |
3,000 |
1,850 |
-12.88 |
.. |
*.. Unit: Million Yen
Forecast (or
estimated) figures for 31/03/2015 fiscal term
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. The firm aims to attract customers with
broadened after-services, including repairs and cleaning. It will increase the pace of product development
leveraging the integrated manufacturing and sales structure.
The sales volume for Mar/2014 fiscal term amounted to Yen 27,549
million, a 4.8% up from Yen 26,298 million in the previous term. Opened eight new stores and closures at
four. Coin sales grew. Operating profits recovered, backed by closure
of unprofitable stores. The recurring
profit was posted at Yen 3,736 million and the net profit at Yen 2,297 million,
compared with Yen 3,627 million recurring profit and Yen 2,187 million net
profit a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 3,000 million and the net profit at Yen 1,850 million, on a 12.9% fall
in turnover, to Yen 24,000 million. 2.7%
rise in turnover, to Yen 27,000 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
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 (5.9), Tsutsumi Scholarship Found (4.9), ,
CBNYDFA Int’l Cap Value P (3.9), Japan Trustee Services T (2.5), 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 (26.3)
No. of shareholders: 2,278
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.
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: Slow but correct
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: (Consolidated in million yen) |
||||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
27,549 |
26,298 |
|
|
Cost of Sales |
13,434 |
12,206 |
||
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GROSS PROFIT |
14,115 |
14,091 |
||
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Selling & Adm Costs |
10,496 |
10,603 |
||
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OPERATING PROFIT |
3,618 |
3,487 |
||
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Non-Operating P/L |
118 |
140 |
||
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RECURRING PROFIT |
3,736 |
3,627 |
||
|
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NET PROFIT |
229 |
2,187 |
|
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BALANCE
SHEET |
||||
|
Cash |
|
41,580 |
39,894 |
|
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Receivables |
1,787 |
1,615 |
||
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Inventory |
18,828 |
19,121 |
||
|
Securities, Marketable |
|
|
||
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Other Current Assets |
448 |
514 |
||
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TOTAL CURRENT ASSETS |
62,643 |
61,144 |
||
|
Property & Equipment |
12,594 |
12,767 |
||
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Intangibles |
773 |
564 |
||
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Investments, Other Fixed Assets |
5,090 |
5,156 |
||
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TOTAL ASSETS |
81,100 |
79,631 |
||
|
Payables |
370 |
219 |
||
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Short-Term Bank Loans |
145 |
63 |
||
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|
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||
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Other Current Liabs |
2,051 |
2,041 |
||
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TOTAL CURRENT LIABS |
2,566 |
2,323 |
||
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Debentures |
|
|
||
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Long-Term Bank Loans |
|
|
||
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Reserve for Retirement Allw |
|
|
||
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Other Debts |
|
207 |
211 |
|
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TOTAL LIABILITIES |
2,773 |
2,534 |
||
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MINORITY INTERESTS |
||||
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Common stock |
13,098 |
13,098 |
||
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Additional paid-in capital |
15,707 |
15,707 |
||
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Retained earnings |
49,317 |
48,123 |
||
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Evaluation p/l on
investments/securities |
221 |
183 |
||
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Others |
1 |
1 |
||
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Treasury stock, at cost |
(17) |
(16) |
||
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TOTAL S/HOLDERS` EQUITY |
78,327 |
77,096 |
||
|
|
TOTAL EQUITIES |
81,100 |
79,631 |
|
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CONSOLIDATED
CASH FLOWS |
||||
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Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash Flows from Operating Activities |
|
2,941 |
2,112 |
|
|
Cash Flows from Investment
Activities |
-150 |
-2 |
||
|
Cash Flows from Financing Activities |
-1,104 |
-522 |
||
|
|
Cash, Bank Deposits at the Term End |
|
41,580 |
39,894 |
|
ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net Worth (S/Holders' Equity) |
78,327 |
77,096 |
||
|
Current Ratio (%) |
2441.27 |
2632.11 |
||
|
Net Worth Ratio (%) |
96.58 |
96.82 |
||
|
Recurring Profit Ratio (%) |
13.56 |
13.79 |
||
|
Net Profit Ratio (%) |
0.83 |
8.32 |
||
|
Return On Equity (%) |
0.29 |
2.84 |
||
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.
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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.
-
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.
-
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.59.06 |
|
|
1 |
Rs.99.35 |
|
Euro |
1 |
Rs.80.62 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
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|
Report Prepared
by : |
NNA |
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.