MIRA INFORM REPORT
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Report No. : |
335725 |
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Report Date : |
08.08.2015 |
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) : |
31.03.2015 |
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Date of Incorporation : |
June 1973 |
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Com. Reg. No.: |
0300-01-021115 |
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Legal Form : |
Limited Company |
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Line of Business : |
Retails & wholesales jewelry, operating
a total 187 jewelry chain stores centrally in greater-Tokyo regions: |
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No. of Employees : |
1,259 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 an
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. Scarce in many
natural resources, Japan has long been dependent on imported raw materials.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become even more
dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008.
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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) 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 2014 stood as the fourth-largest economy in the
world after first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
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Source
: CIA |
Company
Name
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
ACTIVITIES: Mfg,
retail, wholesale of jewelry
STORE(S): 187
(Tokyo Area-own managed stores)
FACTORIES: At
the caption address (2), Gunma
CHIEF EXEC: SATOSHI
TAGAI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 22,148 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 13,098 M
TREND SLOW WORTH Yen 79,263 M
STARTED 1973 EMPLOYES 1,259
COMMENT: MFR, RETAILER & WHOLESALER
SPECIALIZING IN JEWELRY. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: in Million Yen
Forecast (or estimated) figures for 31/03/2016
fiscal term
HIGHLIGHTS
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.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen 22,148 million, a 19.6% down from Yen 27,549 million in the previous term. Sales of existing stores fell sharply below the preceding term as a result of the reactionary downturn after the demand upsurge prior to the consumption tax hike. The recurring profit was posted at Yen 2,237 million and the net profit at Yen 1,188 million, compared with Yen 3,736 million recurring profit and Yen 2,297 million net profit a year ago.
For the current term ending Mar 2016 the recurring profit is projected at Yen 2,300 million and the net profit at Yen 1,250 million, on a 3.8% rise in turnover, to Yen 23,000 million. Sales of existing stores will make a recovery.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
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), State Street Bank & Trust (7.0), Shizuko
Tsutsumi (6.3), 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 (26.0)
No. of shareholders: 4,090
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.
OPERATION
Activities: Retails &
wholesales jewelry, operating a total 187 jewelry chain stores centrally in
greater-Tokyo regions:
(Sales breakdown
by divisions): Rings (37%), necklaces & bracelets (35%), personal goods (15%), others (13%).
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: No Complaints
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
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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22,148 |
27,549 |
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Cost of Sales |
10,092 |
13,434 |
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GROSS PROFIT |
12,056 |
14,115 |
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Selling & Adm Costs |
9,945 |
10,496 |
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OPERATING PROFIT |
2,110 |
3,618 |
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Non-Operating P/L |
127 |
-882 |
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RECURRING PROFIT |
2,237 |
2,736 |
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NET PROFIT |
1,188 |
2,297 |
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BALANCE SHEET |
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Cash |
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42,136 |
41,580 |
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Receivables |
1,059 |
1,787 |
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Inventory |
19,068 |
18,828 |
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Securities, Marketable |
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Other Current Assets |
349 |
448 |
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TOTAL CURRENT ASSETS |
62,612 |
62,643 |
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Property & Equipment |
12,379 |
12,594 |
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Intangibles |
940 |
773 |
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Investments, Other Fixed Assets |
5,491 |
5,090 |
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TOTAL ASSETS |
81,422 |
81,100 |
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Payables |
192 |
370 |
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Short-Term Bank Loans |
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Other Current Liabs |
1,726 |
2,196 |
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TOTAL CURRENT LIABS |
1,918 |
2,566 |
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Debentures |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
172 |
162 |
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Other Debts |
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68 |
45 |
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TOTAL LIABILITIES |
2,158 |
2,773 |
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MINORITY INTERESTS |
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Capital, Paid-Up |
13,098 |
13,098 |
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Surplus |
66,165 |
65,229 |
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SHAREHOLDERS' EQUITY |
79,263 |
78,327 |
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TOTAL EQUITIES |
81,422 |
81,100 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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1,663 |
2,941 |
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Cash
Flows from Investment Activities |
-506 |
-150 |
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Cash
Flows from Financing Activities |
-602 |
-1,104 |
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Cash,
Bank Deposits at the Term End |
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42,135 |
41,580 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
79,263 |
78,327 |
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Current
Ratio (%) |
3264.44 |
2441.27 |
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Net
Worth Ratio (%) |
97.35 |
96.58 |
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Recurring
Profit Ratio (%) |
10.10 |
9.93 |
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Net
Profit Ratio (%) |
5.36 |
8.34 |
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Return
On Equity (%) |
1.50 |
2.93 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.81 |
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1 |
Rs.98.93 |
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Euro |
1 |
Rs.69.66 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
TPT |
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.