MIRA INFORM REPORT

 

 

Report No. :

325189

Report Date :

01.06.2015

 

IDENTIFICATION DETAILS

 

Name :

KUWAYAMA CORPORATION

 

 

Registered Office :

2-23-21 Higashi-Ueno Taitoku Tokyo 110-0015

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

April 1970

 

 

Com. Reg. No.:

0105-01-004131

 

 

Legal Form :

Limited Company

 

 

LINE OF BUSINESS :

Manufactures and wholesales precious metals & jewelry products: gold necklaces (21%), platinum necklaces (9%), gold bracelets (2%), platinum necklaces (2%), rings (17%), others (49%)

 

 

No. of Employees :

1,289

 

 

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 – 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

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

Company summary

 

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)

 

ACTIVITIES:     Mfg of precious metals & jewelry

BRANCHES:     Kofu, Osaka, Fukuoka

OVERSEAS:     Hong Kong, Belgium, Thailand, China, Indonesia, USA (--affiliated)

FACTORIES:    Toyama; China

 

CHIEF EXEC:   TAKAHIRO KUWAYAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　     A/SALES          Yen 35,818 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 3,013 M

TREND UP                    　     WORTH            Yen 14,410 M

STARTED         1970                 　     EMPLOYES      1,289

 

COMMENT:      MFR OF PRECIOUS METALS & JEWELRY  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                     Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

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.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 35,818 million, a 9.0% up from Yen 32,847 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 1,294 million and the net profit at Yen 800 million, respectively, compared with Yen 841 million recurring profit and Yen 698 million net profit, respectively, a year ago. 

 

(Apr/Sept/2014 results): Sales Yen 16,363 million (down 3.6%), operating profit Yen 702 million (up 16.5%), recurring profit Yen 730 million (up 31.4%), net profit Yen 493 million (up 44.0%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 1,350 million and the net profit at Yen 825 million, on a 5.5% rise in turnover, to Yen 37,800 million. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

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: 1,200

 

Listed on the S/Exchange (s) of: JASDAQ

 

Managements: Yukihiro Kuwayama, ch; Nobuo Aihara, v ch; Takahiro Kuwayama, pres;   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.

 

 

OPERATION

           

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

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

35,818

32,847

　

  Cost of Sales

26,041

24,575

　

      GROSS PROFIT

9,777

8,271

　

  Selling & Adm Costs

8,314

7,436

　

      OPERATING PROFIT

1,462

835

　

  Non-Operating P/L

-168

6

　

      RECURRING PROFIT

1,294

841

　

      NET PROFIT

800

698

BALANCE SHEET

　

　

  Cash

　

2,904

3,143

　

  Receivables

4,615

5,113

　

  Inventory

7,424

7,418

　

  Securities, Marketable

　

　

　

  Other Current Assets

1,401

753

　

      TOTAL CURRENT ASSETS

16,344

16,427

　

  Property & Equipment

7,337

6,984

　

  Intangibles

737

783

　

  Investments, Other Fixed Assets

3,205

2,909

　

      TOTAL ASSETS

27,623

27,103

　

  Payables

1,030

1,341

　

  Short-Term Bank Loans

8,200

6,550

　

　

　

　

　

  Other Current Liabs

1,666

2,070

　

      TOTAL CURRENT LIABS

10,896

9,961

　

  Debentures

　

　

　

  Long-Term Bank Loans

1,042

2,917

　

  Reserve for Retirement Allw

504

493

　

  Other Debts

　

771

285

　

      TOTAL LIABILITIES

13,213

13,656

　

      MINORITY INTERESTS

　

　

Common stock

3,013

3,013

　

Additional paid-in capital

2,944

2,944

　

Retained earnings

7,702

7,083

　

Evaluation p/l on investments/securities

547

534

　

Others

360

28

　

Treasury stock, at cost

(156)

(156)

　

      TOTAL S/HOLDERS` EQUITY

14,410

13,446

　

      TOTAL EQUITIES

27,623

27,103

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

1,056

598

　

Cash Flows from Investment Activities

-765

502

　

Cash Flows from Financing Activities

-721

-805

　

Cash, Bank Deposits at the Term End

　

2,304

2,543

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

14,410

13,446

　

Current Ratio (%)

150.00

164.91

　

Net Worth Ratio (%)

52.17

49.61

　

Recurring Profit Ratio (%)

3.61

2.56

　

Net Profit Ratio (%)

2.23

2.13

　

　

Return On Equity (%)

5.55

5.19

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.78

UK Pound

1

Rs.97.80

Euro

1

Rs.69.91

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.