|
Report Date : |
29.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
KUWAYAMA CORPORATION |
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|
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|
Registered Office : |
2-23-21 Higashi-Ueno Taitoku Tokyo
110-0015 |
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Country : |
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|
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
April 1970 |
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Com. Reg. No.: |
0105-01-004131 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha |
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Line of Business : |
Manufacturing of Precious
Metals & Jewelry. |
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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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 |
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) |
|
|||
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|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
|
INCOME STATEMENT |
|
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||
|
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Annual Sales |
|
32,847 |
29,222 |
|
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Cost of Sales |
24,575 |
23,004 |
|
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GROSS PROFIT |
8,271 |
6,218 |
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Selling & Adm Costs |
7,436 |
5,390 |
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OPERATING PROFIT |
835 |
827 |
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Non-Operating P/L |
6 |
-226 |
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RECURRING PROFIT |
841 |
601 |
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NET PROFIT |
698 |
573 |
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BALANCE SHEET |
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Cash |
|
3,143 |
2,707 |
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Receivables |
|
5,113 |
4,342 |
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Inventory |
|
7,418 |
7,443 |
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Securities, Marketable |
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|
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Other Current Assets |
753 |
522 |
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TOTAL CURRENT ASSETS |
16,427 |
15,014 |
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Property & Equipment |
6,984 |
6,643 |
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Intangibles |
|
783 |
845 |
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Investments, Other Fixed Assets |
2,909 |
3,799 |
|
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TOTAL ASSETS |
27,103 |
26,301 |
|
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Payables |
|
1,341 |
1,093 |
|
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Short-Term Bank Loans |
6,550 |
7,270 |
|
|
|
|
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|
|
|
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Other Current Liabs |
2,070 |
1,703 |
|
|
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TOTAL CURRENT LIABS |
9,961 |
10,066 |
|
|
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Debentures |
|
|
|
|
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Long-Term Bank Loans |
2,917 |
2,978 |
|
|
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Reserve for Retirement Allw |
493 |
467 |
|
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Other Debts |
|
285 |
222 |
|
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TOTAL LIABILITIES |
13,656 |
13,733 |
|
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MINORITY INTERESTS |
|
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Common
stock |
3,013 |
3,013 |
|
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Additional
paid-in capital |
2,944 |
2,944 |
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Retained
earnings |
7,083 |
6,576 |
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Evaluation
p/l on investments/securities |
534 |
391 |
|
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Others |
|
28 |
(152) |
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Treasury
stock, at cost |
(156) |
(205) |
|
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TOTAL S/HOLDERS` EQUITY |
13,446 |
12,567 |
|
|
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TOTAL EQUITIES |
27,103 |
26,301 |
|
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CONSOLIDATED CASH FLOWS |
|
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||
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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 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
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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
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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.
-
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.
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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.
-
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.61.35 |
|
|
1 |
Rs.98.93 |
|
Euro |
1 |
Rs.77.92 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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.