|
Report Date : |
06.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
KUWAYAMA
CORPORATION |
|
|
|
|
Registered Office : |
2-23-21
Higashi-Ueno Taitoku Tokyo 110-0015 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
April
1970 |
|
|
|
|
Com. Reg. No.: |
0105-01-004131 |
|
|
|
|
Legal Form : |
Limited
Company (Kabushiki Kaisha |
|
|
|
|
Line of Business : |
Manufacturing
of precious metals & jewelry |
|
|
|
|
No. of Employees : |
1,254 |
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 : |
No complaints |
|
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 |
KUWAYAMA CORPORATION
REGD NAME: KK
Kuwayama
MAIN OFFICE: 2-23-21
Higashi-Ueno Taitoku Tokyo 110-0015 JAPAN
Tel: 03-3835-7231
Fax: 03-3839-6024 -
URL: http://www.kuwayama.co.jp
E-Mail
address: (thru the URL)
Mfg of
precious metals & jewelry
Kofu,
Osaka, Fukuoka
Hong
Kong, Belgium, Thailand, China, Indonesia, USA (--affiliated)
Toyama;
China
TAKAHIRO
KUWAYAMA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 32,847 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 3,013 M
TREND UP WORTH Yen 113,446 M
STARTED 1970 EMPLOYES 1,254
MFR OF PRECIOUS METALS & JEWELRY
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2010 |
23,713 |
752 |
600 |
(%) |
11,699 |
|
(Consolidated) |
31/03/2011 |
25,062 |
670 |
602 |
5.69 |
12,026 |
|
31/03/2012 |
29,222 |
601 |
573 |
16.60 |
12,567 |
|
|
31/03/2013 |
32,847 |
841 |
698 |
12.41 |
13,446 |
|
|
31/03/2014 |
35,000 |
1,150 |
650 |
6.55 |
.. |
Unit: In Million Yen
Forecast figures for the 31/03/2014
fiscal term.
The subject company was established by Yukihiro Kuwayama as
Kuwayama Metal Chain Co Ltd, and after merging five subsidiaries, renamed as
captioned in Aug 2000. This is a major
mfr and wholesaler of precious metals and jewelry, with gold and platinum necklaces
as mainline. Also produces in China and
Thailand. Enjoys overwhelming domestic
share in sales at chain stores.
The sales volume for Mar/2013 fiscal term amounted to Yen 32,847
million, a 12.4% up from Yen 29,222 million in the previous term. Bridal-related products were in much more
demand. Markets in China were expanded. The recurring profit was posted at Yen 841
million and the net profit at Yen 698 million, respectively, compared with Yen
601 million recurring profit and Yen 573 million net profit, respectively, a
year ago.
(Apr/Dec/2013 results): Sales Yen 26,144 million (up 14.1%),
operating profit Yen 1,195 million (up 48.3%), recurring profit Yen 1,133
million (up 537%), net profit Yen 728 million (up 22.3%). (% compared with the corresponding period a
year ago).
For the current term ending Mar 2014 the recurring profit is
projected at Yen 1,150 million and the net profit at Yen 650 million, on a 6.6%
rise in turnover, to Yen 35,000 million.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
Date Registered: Apr
1970
Regd No.: 0105-01-004131 (Tokyo-Taitoku)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 22,329,200 shares
Issued:
10,381,546 shares
Sum: Yen 3,013
million
Major shareholders (%): Sanyo Corp (25.0), Yukihiko
Kuwayama (18.7), Tsutsumi Jewelry (5.9), Takahiro Kuwayama (5.5), Mikiko Kuwayama
(4.1), Nobuo Aihara (3.5), MUFG (3.4), Hokuriku Bank (2.6), Company’s Treasury
Stock (2.6), Employees’ S/Holding Assn (2.4)
No. of shareholders: 1,182
Listed on the S/Exchange (s) of:
JASDAQ
Managements: Yukihiro Kuwayama, ch; Nobuo Aihara,
v ch; Takahiro Kuwayama, pres; Yumio
Kobayashi, mgn dir; Hitoshi Saeki, dir; Noriko Harasaki, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Kuwayama Europe, Christy Gem NJ, other.
Activities: Manufactures and wholesales precious
metals & jewelry products: gold necklaces (21%), platinum necklaces (9%),
gold bracelets (2%), platinum necklaces (2%), rings (17%), others (49%)
Clients: [Wholesalers, chain stores] Christy
Gem, FDC Products, Japan Gold, Brilliance International Japan, Sojitz Jewelry,
Vandome Yamada, other
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Christy Gems, FDC
Products, Sojitz Jewelry, K Otsuki Pearl Co, Tanaka Kikinzoku Kogyo Co, Toyota
Tsusho Corp, Sumitomo Metal Mining, Atelier JSP, Sanpou Co, other
Payment record: No
complaints
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References: MUFG
(Ueno)
Mizuho Bank
(Tokyo-Chuo)
Relations:
Satisfactory
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
32,847 |
29,222 |
|
|
Cost of Sales |
24,575 |
23,004 |
||
|
GROSS PROFIT |
8,271 |
6,218 |
||
|
Selling & Adm Costs |
7,436 |
5,390 |
||
|
OPERATING PROFIT |
835 |
827 |
||
|
Non-Operating P/L |
6 |
-226 |
||
|
RECURRING PROFIT |
841 |
601 |
||
|
|
NET PROFIT |
698 |
573 |
|
|
BALANCE SHEET |
||||
|
Cash |
|
3,143 |
2,707 |
|
|
Receivables |
5,113 |
4,342 |
||
|
Inventory |
7,418 |
7,443 |
||
|
Securities, Marketable |
|
|
||
|
Other Current Assets |
753 |
522 |
||
|
TOTAL CURRENT ASSETS |
16,427 |
15,014 |
||
|
Property & Equipment |
6,984 |
6,643 |
||
|
Intangibles |
783 |
845 |
||
|
Investments, Other Fixed Assets |
2,909 |
3,799 |
||
|
TOTAL ASSETS |
27,103 |
26,301 |
||
|
Payables |
1,341 |
1,093 |
||
|
Short-Term Bank Loans |
6,550 |
7,270 |
||
|
|
|
|
||
|
Other Current Liabs |
2,070 |
1,703 |
||
|
TOTAL CURRENT LIABS |
9,961 |
10,066 |
||
|
Debentures |
|
|
||
|
Long-Term Bank Loans |
2,917 |
2,978 |
||
|
Reserve for Retirement Allw |
493 |
467 |
||
|
Other Debts |
|
285 |
222 |
|
|
TOTAL LIABILITIES |
13,656 |
13,733 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
3,013 |
3,013 |
||
|
Additional
paid-in capital |
2,944 |
2,944 |
||
|
Retained
earnings |
7,083 |
6,576 |
||
|
Evaluation
p/l on investments/securities |
534 |
391 |
||
|
Others |
28 |
(152) |
||
|
Treasury
stock, at cost |
(156) |
(205) |
||
|
TOTAL S/HOLDERS` EQUITY |
13,446 |
12,567 |
||
|
|
TOTAL EQUITIES |
27,103 |
26,301 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
Cash
Flows from Operating Activities |
|
598 |
1,517 |
|
|
Cash
Flows from Investment Activities |
502 |
-1,298 |
||
|
Cash
Flows from Financing Activities |
-805 |
-507 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
2,543 |
2,107 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
Net
Worth (S/Holders' Equity) |
13,446 |
12,567 |
||
|
Current
Ratio (%) |
164.91 |
149.16 |
||
|
Net
Worth Ratio (%) |
49.61 |
47.78 |
||
|
Recurring
Profit Ratio (%) |
2.56 |
2.06 |
||
|
Net
Profit Ratio (%) |
2.13 |
1.96 |
||
|
Return
On Equity (%) |
5.19 |
4.56 |
||
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.61.86 |
|
|
1 |
Rs.103.06 |
|
Euro |
1 |
Rs.84.92 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.