MIRA INFORM REPORT

Report Date :

19.01.2007

IDENTIFICATION DETAILS

Name :	RECKON GEMS JAPAN CO LTD
Registered Office :	3-17-17 Aonuma Kofu Yamanashi-Pref 400-0867Japan
Date of Incorporation :	April 1993
Legal Form :	Limited Company
Line of Business :	Import, wholesale of diamonds, jewelry products

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

Maximum Credit Limit :	YEN 15.9 MILLION
Status :	Fair
Payment Behaviour :	Regular
Litigation :	Clear

NAME

RECKON GEMS JAPAN CO LTD

REGD NAME

Reckon Gems Japan KK

MAIN OFFICE

3-17-17 Aonuma Kofu Yamanashi-Pref 400-0867JAPAN

Tel : 055-227-8891

Fax : 055-227-8890

URL : N/A

E-Mail address : reckon@kis-new.ne.jp

ACTIVITIES

Import, wholesale of diamonds, jewelry products

BRANCHES

Nil

FACTORY(IES)

(Subcontracted)

OFFICER(S)

CHANDRA G JAJU, PRES

Yen Amount

In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 860 M

PAYMENTS REGULAR CAPITAL Yen 30 M

TREND STEADY WORTH Yen 102 M

STARTED 1993 EMPLOYES 8

COMMENT

IMPORTER AND WHOLESALER SPECIALIZING IN JEWELRY, OWNED BY JAJU GEMS, INDIA. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 15.9 MILLION, NORMAL 30 DAYS TERMS

HIGHLIGHTS

The subject company was established as a Branch Office by Jaju Gems, Jaipur, India, for marketing its jewelry products in Japan. C G Jaju is a younger brother of M S Jaju, pres at the Indian Headquarters. The firm specializes in import and wholesale of polished diamonds, other gem stones, fingerings, earrings, necklaces, pendants and other jewelry products. Goods are wholly supplied and imported from the Indian parent and group firms. Clients are local jewelry processors, jewelry stores, etc. Stones are partially processed at local subcontracted factories on demand.

The sales volume for Mar/2005 fiscal term amounted to Yen 860 million, a 7.5% up from Yen 800 million in the previous term. The clientele networks have been expanding thanks to the good reputation on quality and goods. The net profit was posted at Yen 14 million, a 22% down from Yen 18 million a year ago. This is referred to the rise in import costs and operations.

For the term just ended Mar/2006 the net profit is believed posted at Yen 15 million, on a 5% rise in turnover, to Yen 900 million. Business continues on the uptrend. The sales growth should have been partly helped by the weaker Yen against foreign currencies, uplifting sales in Yen terms.

The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 15.9 million, on normal 30 days terms.

REGISTRATION

Date Registered : Apr 1993

Legal Status : Limited Company (Kabushiki Kaisha)

Authorized : 600 shares

Issued : 600 shares

Sum : Yen 30 million

Major shareholders (%) : Chandra G Jaju (100)

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

OPERATION

Activities: Imports and wholesales polished diamonds, other gem stones (including colored stones), fingerings, earrings, pierced rings, necklaces, bracelets, pendants, other jewelry products (--100%). Goods are imported wholly from India.

Clients: [Jewelry processors, jewelry stores] Saegusa Corp, Koshin Jewelry, other

No. of accounts: 300

Domestic areas of activities: Centered in Kofu, extending into Tokyo area.

Suppliers: [Mfrs, polishing companies] Imports wholly from Jaju Gems, India and group processing firms.

Payment record: Regular

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

Bank References

Mizuho Bank (Kofu)

Resona Bank (Kofu)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/03/2006	31/03/2005	31/03/2004
Annual Sales		900	860	800
Recur. Profit		..	..	..
Net Profit		15	14	18
Total Assets			N/A	N/A
Net Worth			102	88
Capital, Paid-Up			30	30
Div.P.Share(¥)			0.00	0.00
<Analytical Data>		(%)	(%)	(%)
S.Growth Rate		4.65	7.50	6.67
Current Ratio			..	..
N.Worth Ratio			..	..
N.Profit/Sales		1.67	1.63	2.25

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/03/2006 fiscal term.

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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