MIRA INFORM REPORT
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Report Date : |
30.09.2011 |
IDENTIFICATION DETAILS
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Name : |
ISHIKAWA SHOTEN CO LTD |
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Registered Office : |
2-20-4 Tokoji
Kofu City Yamanashi-Pref 400-0807 |
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Country : |
Japan |
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Financials (as on) : |
31.10.2010 |
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Date of Incorporation : |
December
1980 |
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Com. Reg. No.: |
(Yamanashi-Kofu)
000142 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale
of diamonds, gem stones, jewelry products |
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 : |
Moderate |
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Payment
Behaviour : |
Regular |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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
ISHIKAWA SHOTEN CO LTD
REGD NAME
Ishikawa Shoten KK
MAIN OFFICE
2-20-4 Tokoji Kofu
City Yamanashi-Pref 400-0807 JAPAN
Tel:
055-232-7771 Fax: 055-232-7775
URL: N/A
ACTIVITIES
Import,
wholesale of diamonds, gem stones, jewelry products
BRANCHES
Nil
FACTORIES
(locally
subcontracted)
OFFICERS
YUKICHI
ISHIKAWA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 400 M
PAYMENTS REGULAR CAPITAL Yen 30 M
TREND SLOW WORTH Yen
145 M
STARTED 1980 EMPLOYES 1
COMMENT
IMPORTER AND WHOLESALER SPECIALIZING IN JEWELRY.
FINANCIAL SITUATION CONSIDERED
RATHER WEAK BUT SHOULD BE GOOD FOR ORDINARY BUSIENSS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established by Zensuke Ishikawa in order to make most of his experience in the subject line of business. Yukichi is his son. This is a family-based firm, operating at home residence, specializing in import and wholesale of diamonds, other gem stones and jewelry products. Goods are imported from India, Israel, Thailand, Hong Kong, etc. Goods are partially subcontracted mfg to local processors into jewelry products. Clients are jewelry processors, jewelry stores, wholesalers, etc, centering in Yamanashi-Pref, extending into greater-Tokyo region.
FINANCIAL INFORMATION
Financials are only partially disclosed as is the case with family-based companies.
The sales volume for Oct/2010 fiscal term is believed amounted to Yen 400 million, 2% down from Yen 420 million in the previous term, affected by the global economic downturn. The net profit was posted at Yen 1 million, compared with Yen 2 million a year ago.
For the current term ending Oct 2011 the net profit is projected at Yen 1 million, on a similar turnover, at Yen 400million.
The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.
REGISTRATION
Date Registered: Dec
1980
Regd No.: (Yamanashi-Kofu) 000142
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 2,400 shares
Issued: 600 shares
Sum: Yen 30 million
Major shareholders (%): Yukichi
Ishikawa (80) and families (--20)
No. of shareholders: 7
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports and wholesales diamonds, other gemstones, jewelry products (--100%).
Goods are imported from India, Israel, Thailand, Hong Kong, etc, and partially subcontracted mfg to local jewelry processors into jewelry products.
Clients: Jewelry processors, jewelry stores, wholesalers, other.
No. of accounts: 100
Domestic areas of activities: Centered in Yamanashi-Pref, including greater-Tokyo area.
Suppliers: [Mfrs, wholesalers] Imports from India (25%), Israel (20%), Thailand (20%), Hong Kong (15%), other.
Payment record: Regular
Location: Business area Kofu City, Yamanashi-Pref. Office premises at the caption address are owned by Y Ishikawa as his private residence, sharing as office, and maintained satisfactorily.
Bank References:
Yamanashi Chuo Bank (H/O)
Relations: Satisfactory.
FINANCES
(In Million Yen)
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Terms Ending: |
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31/10/2011 |
31/10/2010 |
31/10/2009 |
31/10/2008 |
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Annual
Sales |
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400 |
400 |
410 |
430 |
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Recur.
Profit |
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Net
Profit |
|
1 |
1 |
2 |
2 |
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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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145 |
144 |
142 |
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Capital,
Paid-Up |
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30 |
30 |
30 |
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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 |
0.00 |
-2.44 |
-4.65 |
-4.44 |
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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 |
0.25 |
0.25 |
0.49 |
0.47 |
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Notes: Financials are only
partially disclosed.
Forecast
(or estimated) for the 31/10/2011 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.48.93 |
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UK Pound |
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
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.