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Report No. : |
309795 |
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Report Date : |
27.02.2015 |
IDENTIFICATION DETAILS
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Name : |
J TRADING CO LTD |
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Registered Office : |
Ohmiya Bldg 3F, 5-13-9 Ueno Taitoku Tokyo 110-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.08.2013 |
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Date of Incorporation : |
October 1987 |
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Com. Reg. No.: |
0105-01-006033 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale of polished
diamonds, fingerings, other jewelry |
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No. of Employees : |
13 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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. 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 |
J TRADING CO LTD
REGD NAME: J
Trading KK
MAIN OFFICE: Ohmiya
Bldg 3F, 5-13-9 Ueno Taitoku Tokyo 110-0005 JAPAN
Tel: 03-3834-0933
Fax: 03-3834-0919
E-Mail
address: info@jt-net.co.jp
Import,
wholesale of polished diamonds, fingerings, other jewelry
Osaka,
Fukuoka
YK Cast
Art, KK J Plan (--subsidiaries)
TAKESHI
IWATA, PRES Shin’ichi
Uehara, dir
Harumi
Ochiai, dir Hideo
Tanahashi, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 1,293 M
PAYMENTS slow but correct CAPITAL Yen
60 M
TREND UP WORTH Yen 171 M
STARTED 1987 EMPLOYES 13
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS AND OTHER
JEWELRY.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established originally in 1981 by
Hirokazu Iwata in order to make most of in order to make most of his experience
in the jewelry business, on his account.
Takeshi is the founder’s son, who took the pres office in Mar 1991. This is a trading firm with mfg division,
owned & operated by the Iwata family, for import and wholesale of polished
& precut diamonds centrally, diamond imports accounting for 90% of total
sales. Also handles fingerings,
earrings, other jewelry products.
Diamonds are imported from Belgium, Israel, India, other. They are processed into jewelry products by a
subsidiary mfr, YK Cast Art. Design and
R&D works are handled by subsidiary, KK J Plan. The operations are totally handled by the
group firms. Known by sound management
and operation with stable & solid clientele networks. Goods are also sold online. Clients are jewelry stores, jewelry
processors, others, nationwide.
The sales volume for Aug/2013 fiscal term amounted to Yen
1,293 million, a 19% up from Yen 1,086 million in the previous term. Large volume orders received from one of the
clients. Price hikes of the products
contributed. The recurring profit was
posted at Yen 5 million and the net profit at Yen 2 million, respectively,
compared with Yen 10 million recurring profit and Yen 6 million net profit,
respectively, a year ago.
For the term that ended Aug 2024 the recurring profit was
projected at Yen 20 million and the net profit at Yen 15 million, respectively,
on a 4% rise in turnover, to Yen 1,350 million.
Final results are yet to be released.
The financial situation is
considered maintained FAIR and good for ORDINARY business engagements.
Date Registered: Oct
1987
Regd No.: 0105-01-006033
(Tokyo-Taitoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
48,000 shares
Issued:
12,000 shares
Sum: Yen 60 million
Major shareholders (%): Takeshi
Iwata (20), other
No. of shareholders: 7
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports, wholesales and retails
(online) polished, precut diamonds (90%), fingerings, necklaces, earrings, bracelets,
other jewelry products (--10%).
Diamonds
are imported from Belgium, Israel, India, other.
Operations
are all handled by the group firms: YK Cast Art (jewelry processing) and
KK J
Plan (designing, planning, R&D)
Clients:
[Jewelry stores, jewelry processors] Kashikey Co, Yama Co, Try Inc, other.
No. of
accounts: 500
Domestic
areas of activities: Centered in greater-Tokyo
Suppliers:
[Mfrs, wholesalers] Imports from Lily Diamond, other from Belgium Israel,
India,
etc.
Also
supplied from Kashikey Co, Yama Co, Kinpodo, Cast Art (subsidiary), other.
Payment record: slow
but correct
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Asahi Shinkin Bank (H/O)
Tokyo Tomin Bank (Okachimachi)
Relations: Satisfactory
(In
Million Yen)
|
Terms Ending: |
31/08/2014 |
31/08/2013 |
31/08/2012 |
31/08/2011 |
|
|
Annual
Sales |
|
1,350 |
1,293 |
1,086 |
905 |
|
Recur.
Profit |
|
20 |
5 |
10 |
2 |
|
Net
Profit |
|
15 |
2 |
6 |
1 |
|
Total
Assets |
|
|
911 |
831 |
650 |
|
Current
Assets |
|
|
819 |
736 |
553 |
|
Current
Liabs |
|
|
623 |
541 |
380 |
|
Net
Worth |
|
|
171 |
168 |
161 |
|
Capital,
Paid-Up |
|
|
60 |
60 |
60 |
|
Div.P.Share(Ą) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
4.41 |
19.06 |
20.00 |
-3.42 |
|
Current Ratio |
|
.. |
131.46 |
136.04 |
145.53 |
|
N.Worth Ratio |
|
.. |
18.77 |
20.22 |
24.77 |
|
R.Profit/Sales |
|
1.48 |
0.39 |
0.92 |
0.22 |
|
N.Profit/Sales |
|
1.11 |
0.15 |
0.55 |
0.11 |
|
Return On Equity |
|
.. |
1.17 |
3.57 |
0.62 |
Notes:
Forecast (or estimated) figures for 31/08/2014 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 –
-
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.61.94 |
|
|
1 |
Rs.96.24 |
|
Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
|
Report Prepared
by : |
ANK |
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.