MIRA INFORM REPORT

 

 

Report No. :

350814

Report Date :

27.11.2015

 

IDENTIFICATION DETAILS

 

Name :

NAGAHORI CORPORATION

 

 

Registered Office :

Tenjin Bldg, 1-15-3 Ueno Taitoku Tokyo 110-8546

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015 (Consolidated)

 

 

Date of Incorporation :

June 1962

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures, processes, imports and partially retails diamonds, pearls, other gemstones, jewelry products (--98%), health care industry (2%).

Diamonds and other gemstones are imported.

 

 

No. of Employee :

824

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

Company name and address

 

NAGAHORI CORPORATION

 

REGD NAME:               KK Nagahori

MAIN OFFICE:              Tenjin Bldg, 1-15-3 Ueno Taitoku Tokyo 110-8546 JAPAN

                                                Tel: 03-3836-4711     Fax: 03-3837-1389

 

URL:                             http://www.nagahori.co.jp/

E-Mail address:                        info@nagahori.co.jp

 

 

ACTIVITIES

 

Mfg, wholesale of diamond jewelry & fashion jewels

 

 

BRANCHES

 

Osaka, Fukuoka, Chiba, Saitama (--branch stores)

 

 

STORE

 

Ginza

 

 

OVERSEAS

 

Milan, Antwerp, and Mumbai

            SANOCO Co Ltd (Hong Kong) (subsidiary)

 

 

FACTORIES

 

Mobara (Chiba)

 

 

CHIEF EXEC

 

KEITA NAGAHORI, PRES & CEO

 

Yen Amount:    In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 20,238 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 5,323 M

TREND STEADY                       WORTH            Yen 14,382 M

STARTED         1962                             EMPLOYES      824

 

 

COMMENT

 

MFR & WHOLESALER SPECIALIZING DIAMOND JEWELRY & FASHION JEWELS. 

 

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 M Nagahori originally as Nagahori Pearls KK for wholesaling pearls and pearl jewelry.  In Oct 1982 renamed as captioned.  This is a leading mfr and wholesaler of jewelry centered on diamonds and fashion jewels.  Also handles pearls and other precious stones.  Has strength in sales to department stores.  In 1973, approved as official member by Antwerp Diamond Exchange and started diamonds trading, which now are its main revenue sources.  Operates JV in Israel for diamond trading.   It has started exports and sales through the Hong Kong subsidiary.             

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 20,238 million, a 7.5% down from Yen 21,876 million in the previous term.  Consumer spending was sluggish for jewelry and other big-ticket items, which are not for daily necessities.  The firm posted recurring loss at Yen 13 million and the net profit at Yen 34 million, respectively, compared with Yen 706 million recurring profit and Yen 501 million net profit, respectively, a year ago.

           

(Apr/Jun/2015 results): Sales Yen 5,174 million (up 17.2%), operating loss Yen 78 million (previously Yen 212 million loss), recurring loss Yen 72 million (previously Yen 201 million loss), net loss Yen 62 million (previously Yen 131 million loss).  (% and figures as compared with the same period a year ago). 

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 350 million and the net profit at Yen 165 million, respectively, on a 2.8% rise in turnover, to Yen 20,800 million. 

 

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

 

 

REGISTRATION

 

Date Registered:                       Jun 1962

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  40 million shares

Issued:                         16,773,376 shares

Sum:                            Yen 5,323 million

           

Major shareholders (%): Company’s Treasury Stock (8.5), MF Nagahori Co (7.0), Resona Bank (4.5), Dai-ichi Life Ins (4.1), Nagahori Create (4.1), Morihiro Nagahori (4.1), Joyo Bank (3.1), Keita Nagahori (3.1), MUFG (2.4), Fujiyo Nagahori (2.2); foreign owners (1.2)

 

No. of shareholders: 3,076

 

Listed on the S/Exchange (s) of: Tokyo (Second Section)

 

Managements: Morihiro Nagahori, ch; Keita Nagahori, pres; Kaoru Tabata, mgn dir; Ryoji Takada, dir; Fumihiko Shirakawa, dir; Toshiaki Chikanishi, dir; Naoki Togashi, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Soma KK, KK Jewelry, Sanaco Co (Hong Kong), Brodia KK, Royal Asscher Japan (Total 6 domestic; 2 overseas)

 

 

OPERATION

 

Activities: Manufactures, processes, imports and partially retails diamonds, pearls, other gemstones, jewelry products (--98%), health care industry (2%).

Diamonds and other gemstones are imported.

 

(Handling brands): Dal Lago, Sonia Rykiel, Yuki Torii, Hana-Kaido, arut, Pinky & Dianne, Private Label, Annie-j, anan, Lolita Lempicka, Disney, La Germa, Aqua-Style, Y’Sacos, WISP, other.

 

Clients: [Department stores, chain stores, jewelry stores] Takashimaya, Sogo & Seibu Co Ltd, Vendome Yamada Corp, other.

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Rosy Blue Mfg, Eurostar Diamond Trading, Ishifuku Metal Ind, Dimexon, other.

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

Resona Bank (Ueno)

Mizuho Bank (Marunouchi-Chuo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

　

20,238

21,876

  Cost of Sales

13,684

14,712

      GROSS PROFIT

6,554

7,163

  Selling & Adm Costs

6,587

6,425

      OPERATING PROFIT

-33

738

  Non-Operating P/L

20

-32

      RECURRING PROFIT

-13

706

　

      NET PROFIT

34

501

BALANCE SHEET

  Cash

　

1,449

1,429

  Receivables

2,360

3,081

  Inventory

12,922

11,115

  Securities, Marketable

　

　

  Other Current Assets

462

452

      TOTAL CURRENT ASSETS

17,193

16,077

  Property & Equipment

5,704

5,562

  Intangibles

96

129

  Investments, Other Fixed Assets

2,139

2,105

      TOTAL ASSETS

25,132

23,873

  Payables

1,539

1,564

  Short-Term Bank Loans

7,126

5,455

　

　

　

  Other Current Liabs

730

978

      TOTAL CURRENT LIABS

9,395

7,997

  Debentures

　

　

  Long-Term Bank Loans

364

523

  Reserve for Retirement Allw

523

476

  Other Debts

　

468

472

      TOTAL LIABILITIES

10,750

9,468

      MINORITY INTERESTS

Common stock

5,323

5,323

Additional paid-in capital

6,275

6,275

Retained earnings

3,944

4,063

Evaluation p/l on investments/securities

131

46

Others

(810)

(822)

Treasury stock, at cost

(481)

(481)

      TOTAL S/HOLDERS` EQUITY

14,382

14,404

　

      TOTAL EQUITIES

25,132

23,873

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

　

-606

-9

Cash Flows from Investment Activities

97

-793

Cash Flows from Financing Activities

524

242

　

Cash, Bank Deposits at the Term End

　

1,384

1,364

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

14,382

14,404

Current Ratio (%)

183.00

201.04

Net Worth Ratio (%)

57.23

60.34

Recurring Profit Ratio (%)

-0.06

3.23

Net Profit Ratio (%)

0.17

2.29

Return On Equity (%)

0.24

3.48

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.55

UK Pound

1

Rs.100.65

Euro

1

Rs.70.70

YEN

1

Rs.0.54

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.