MIRA INFORM REPORT

 

 

Report Date :           

13.12.2011

 

IDENTIFICATION DETAILS

 

Name :

STAR DIAMOND CO LTD

 

 

Registered Office :

Ryutsu Honten Bldg 201, 5-22-4 Ueno Taitoku Tokyo 110-0005

 

 

Country :

Japan

 

 

Date of Incorporation :

February 2000

 

 

Com. Reg. No.:

(Tokyo-Taitoku) 017146

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import, wholesale of polished diamonds

 

 

No. of Employees :

5 persons

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Small Company

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

STAR DIAMOND CO LTD

 

 

REGD NAME

 

Star Diamond YK

 

 

MAIN OFFICE

 

Ryutsu Honten Bldg 201, 5-22-4 Ueno Taitoku Tokyo 110-0005 JAPAN

            Tel: 03-3832-5075     Fax: 03-3832-5086

URL:                 N/A

 

 

ACTIVITIES

 

Import, wholesale of polished diamonds

 

 

BRANCHES

 

Nil

 

 

FACTORIES

 

(subcontracted)

 

 

OFFICER(S)

 

PATEL CHANDRAKANT, PRES (Indian resident)

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 400 M

PAYMENTS      REGULAR                     CAPITAL           Yen 10 M

TREND             SLOW                          WORTH            Yen 55 M

STARTED                     2000                             EMPLOYES      5

 

 

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS.FINANCIALSITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

 

HIGHLIGHTS

 

The subject company was established by Patel Chandrakant, an Indian businessman residing in Japan, in order to import and market polished diamonds and other gem stones in Japan.  90% of the goods are imported from India and the rest from Belgium, etc.  The firm employs 5 sales staff, including three Indians.  Diamonds are partially processed into jewelry products on consignment to local jewelry processors. 

           

 

FINANCIAL INFORMATION

 

The subject does not disclose financials and the following figures have been verbally obtained from Patel Chandrakant by phone.  No business are reported from outside sources, either.

 

The sales volume for Jan/2011 fiscal term amounted to Yen 400 million, a 7% down from Yen 430 million in the previous term.  The net profit is not mentioned but is believed to have posted Yen 3 million.  All these figures are only verbally collected and not verified by the third parties.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  We recommend, however, fully secured terms on new transactions.  This is because the financials have been verbally obtained from Patel Chandrakant, with no outside sources to verify the figures.

 

 

REGISTRATION

 

Date Registered:  Feb 2000

Regd No.:         (Tokyo-Taitoku) 017146

Legal Status:      Private Limited Company (Yugen Gaisha)

Regd Capital:   10 million

Major shareholders (%): Patel Chandrakant (100)

 

Nothing detrimental is known as to his commercial morality.

 

 

OPERATION

 

Activities: Imports and wholesales polished diamonds, other gem stones (--100%). 

 

90% of the goods are imported from India and the rest from Belgium, etc.

 

Clients: Jewelry processors, jewelry stores, chain stores, other (Details not disclosed)

            No. of accounts: 200

            Domestic areas of activities: Centered in greater-Tokyo.

 

Suppliers: [Mfrs, wholesalers] 90% imported from India and 10% from Belgium, etc.

 

Payment record: Regular

 

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

 

Bank References:

·         State Bank of India (Tokyo)

·         Asahi Shinkin Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

NOT MADE AVAILABLE


DIAMOND INDUSTRY – INDIA

 

-          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.

-          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.

-          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.

-          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.

-          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.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          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.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

 

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.42

UK Pound

1

Rs.81.92

Euro

1

Rs.69.94

 

 

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.