MIRA INFORM REPORT

Report Date :

19.04.2011

IDENTIFICATION DETAILS

Name :	TOKYO PEARL CO LTD

Registered Office :	Tokyo Shinju Bldg, 6-16-3 Ginza Chuoku Tokyo 104-0061

Country :	Japan

Financials (as on) :	31.03.2010

Date of Incorporation :	February 1959

Com. Reg. No.:	(Tokyo-Chuoku) 061359

Legal Form :	Limited Company

Line of Business :	Import, Export, Wholesale of pearls, diamonds

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Regular
Litigation :	---

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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

TOKYO PEARL CO LTD

REGD NAME

Tokyo Shinju KK (Shinju means Pearl)

MAIN OFFICE

Tokyo Shinju Bldg, 6-16-3 Ginza Chuoku Tokyo 104-0061 JAPAN

Tel: 03-3543-6055 Fax: 03-3543-2127

URL: http://www.tokyopearl.com/

E-Mail address: info@tokyopearl.com

ACTIVITIES

Import, export, wholesale of pearls, diamonds

BRANCHES

Osaka, Kofu

OVERSEAS

Antwerp, Tel Aviv (-- rep offices)

TP Diamond Co Ltd (Thailand); Tokyo Shinju Singapore Pte Ltd;

Tokyo Shinju International Ltd (Taiwan) (--subsidiaries)

FACTORIES

Ise (Mie-Pref); Hong Kong, Taiwan

OFFICER(S)

Takezo Koyama, ch

TOTA KOYAMA, PRES

Itaru Honjo, s/mgn dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES WEAK A/SALES Yen 4,672 M

PAYMENTS REGULAR CAPITAL Yen 100 M

TREND SLOW WORTH Yen (-) 1,430 M

STARTED 1959 EMPLOYES 64

COMMENT

TRADING FIRM SPECIALIZING IN DIAMONDS & PEARLS.

FINANCIAL SITUATION CONSIDERED WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS

ENGAGEMENTS.

NEGATIVE NET WORTH.

HIGHLIGHTS

The subject company was established by Takezo Koyama in order to make most of his ex-perience in the subject line of business, as Tokyo Pearl Ltd. Originally started as a pearl trader, and in 1973, reorganized and renamed as captioned. In 1980 started the pearl business. In 2004, Takezo Koyama promoted to ch, when Tota Koyama, his son, took the office of pres. This is a trading firm, with mfg division, specializing in import, export and wholesale of polished diamonds, pearls, jewelry products, other. Diamonds are imported from Belgium, Israel, Russia, Thailand, India, USA, other. Pearls are exported. Also imports black Tahiti pearls and South Sea pearls from Tahiti, Surabaya, Australia, other. Clients are jewelers, jewelry processors, other.

FINANCIAL INFORMATION

Financials are only partially disclosed.

The sales volume for Mar/2010 fiscal term amounted to Yen 4,672 million, a 2% down from Yen 4,747 million in the previous term. This is referred to continuing slumping consumer spending on luxurious goods. The operations came back to profitability to post Yen 26 million net profits for the term, compared with Yen 1,460 million net losses a year ago. The last term’s losses are largely referred to the evaluation losses of inventories.

For the current term ending Mar 2011 the net profit is projected at Yen 25 million, on an almost similar turnover, at Yen 4,700 million. Jewelry sales are hit by sluggish spending on high-priced products. Department store sales shrank 6% in June, 28^th straight month, and 1.4% in July, 29^th straight month’s decline.

The financial situation is considered WEAK but should be good for MODERATE business engagements.

REGISTRATION

Date Registered: Feb 1959

Regd No.: (Tokyo-Chuoku) 061359

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 800,000 shares

Issued: 200,000 shares

Sum: Yen 100 million

Major shareholders (%): Takezo Koyama (42), Koyama Kosan*(20), Yoko Hasegawa (15), Company’s Treasury Stock (8), Toshimitsu Kinoshita (6)

* Holding company owned by the Koyama family.

No. of shareholders: 15

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

OPERATION

Activities: Imports, exports and wholesales polished diamonds, (60%), pearls & dia-mond/pearl jewelry (--40%).

Imports diamonds from Belgium, Israel, Russia, Thailand, USA, India, Hong Kong, other.

Pearls are imported from Tahiti, Surabaya, Australia, etc. Pearls are also exported.

Clients: [Jewelry processors, jewelry stores] Kashikey, Belita, Nagahori, Mikimoto Pearls, Citizen Watch, Azumi, Tokyo Kiho, Kyocera Corp, other.

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Imports diamonds from Belgium, Israel, Russia, Thailand, USA, India, Hong Kong, other.

Imports pearls from Tahiti, Australia, Surabaya, other.

Payment record: Regular

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

Bank References:

SMBC (Ginzadori)

Norin Chukin Bank (H/O)

Relations: Satisfactory

FINANCES: (In Million Yen)

Terms Ending:	31/03/2011	31/03/2010	31/03/2009	31/03/2008
Annual Sales	4,700	4,672	4,747	6,488
Recur. Profit
Net Profit	25	26	-1,457	-10
Total Assets		7,833	N/A	N/A
Net Worth		-1,430
Capital, Paid-Up		100	100	100
Div.P.Share(¥)		0.00	0.00	0.00
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	0.59	-1.58	-26.83	-23.55
Current Ratio		..	..	..
N.Worth Ratio		-18.26	..	..
N.Profit/Sales	0.53	0.56	-30.69	-0.15

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/03/2011 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.27
UK Pound	1	Rs.72.08
Euro	1	Rs.63.66

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

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%)

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