MIRA INFORM REPORT
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Report Date : |
19.12.2011 |
IDENTIFICATION DETAILS
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Correct Name : |
A B DIAMOND, YK |
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Registered Office : |
3-5-30 Kokubo Kofu 400-0043 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
September 1999 |
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Com. Reg. No.: |
(Yamanashi-Kofu) 005629 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Import, wholesale
of polished diamonds |
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No. of Employees : |
3 persons |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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Payment
Behaviour : |
Usually Correct |
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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) |
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Japan |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
A B DIAMOND, YK
REGD NAME
YK A. B. Diamond
MAIN OFFICE
3-5-30 Kokubo Kofu
400-0043 JAPAN
Tel:
055-224-2448 Fax: 055-224-2449
URL: N/A
ACTIVITIES
Import,
wholesale of polished diamonds
BRANCHES
Nil
FACTORIES
(subcontracted)
OFFICERS
ASHISH
CHOUDHARI, PRES (Indian resident)
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 380 M
PAYMENTS REGULAR CAPITAL Yen 9 M
TREND STEADY WORTH Yen
27 M
STARTED 1999 EMPLOYES 3
COMMENT
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED
DIAMONDS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
HIGHLIGHTS
The subject company was reactivated in May 2002 by Ashish Choudhari on the basis of taking over a firm, Shubham International Ltd, in the similar line of importing polished diamonds, founded in Sept 1999 by an Indian businessman. This is a trading firm for import and wholesale of polished diamonds. About 80% of the diamonds are imported from India, and other from Hong Kong, Thailand, etc. A resident of Japan, A Choudhari speaks fluent Japanese with good business contacts in Kofu City, hub of jewelry processors and stores, and in greater-Tokyo area. Diamonds and other precious stones are partially subcontracted mfg into jewelry products to local processors. About 70% of the clients are in Tokyo area.
FINANCIAL INFORMATION
Financials are only partially disclosed in rounded-off figures.
The sales volume for Dec/2010 fiscal term amounted to Yen 380 million, a
19% up from Yen 320 million in the previous term. Reportedly the firm acquired two big volume-sales
retailers as new clients. The net profit
was posted at Yen 4 million, compared with Yen 3 million a year ago
For the current term ending Dec 2011 the net profit is projected at Yen
4 million, on a 5% rise in turnover, to Yen 400 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Sept
1999
Regd No.: (Yamanashi-Kofu)
005629
Legal Status: Private Limited Company (Yugen Kaisha)
Regd Capital: Yen 9 million
Major shareholders (%): Ashish Choudhari (100)
Nothing
detrimental is known as to his commercial morality.
OPERATION
Activities: Imports and
wholesales polished diamonds, diamond jewelry, other precious stones
(--100%).
Goods are imported from India centrally, and partially from Hong Kong
& Thailand. Goods are also
subcontracted mfg to local jewelry processors into products.
Clients: [Jewelry
processors, jewelry stores, chain stores] Clients in Kofu area (30%), in Tokyo region (70%).
No. of accounts: 200
Domestic areas of
activities: Centered in Kofu City and greater-Tokyo
Suppliers:
[Mfrs, wholesalers] Imports from India (about 80%), other from Hong Kong and
Thailand.
Payment record: Regular
Location: Business area in
Kofu City. Office premises at the
caption address are owned by A Choudhari as his private residence, shared as
office, and maintained satisfactorily.
Bank References:
· Kofu Shinkin Bank (Nishi)
· Mizuho Bank (Kofu)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/12/2011 |
31/12/2010 |
31/12/2009 |
31/12/2008 |
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Annual
Sales |
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400 |
380 |
320 |
310 |
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Recur.
Profit |
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Net
Profit |
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4 |
4 |
3 |
3 |
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Total
Assets |
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N/A |
N/A |
N/A |
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Net
Worth |
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27 |
24 |
21 |
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Capital,
Paid-Up |
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9 |
9 |
9 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
5.26 |
18.75 |
3.23 |
-8.82 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
1.00 |
1.05 |
0.94 |
0.97 |
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Notes:
Financials are only partially disclosed.
Forecast
(or estimated) figures for 31/12/2011 fiscal term.
DIAMOND INDUSTRY –
INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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Indian Rupees |
|
US Dollar |
1 |
Rs.52.81 |
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UK Pound |
1 |
Rs.82.00 |
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Euro |
1 |
Rs.68.81 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.