MIRA INFORM REPORT

 

 

Report Date :           

16.04.2012

 

IDENTIFICATION DETAILS

 

Name :

VITHAL TRADING COMPANY, YK

 

 

Registered Office :

1-4-30 Naka-Ogawara Kofu Yamanashi-Pref 400-0855

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2011

 

 

Date of Incorporation :

August 2002

 

 

Com. Reg. No.:

(Yamanashi-Kofu) 006135

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import, wholesale of polished diamonds, diamond set jewelry, other, from India

 

 

No. of Employees :

05

 

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 :

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 – 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

 

VITHAL TRADING COMPANY, YK

 

 

REGD NAME 

 

YK Vithal Trading

 

 

MAIN OFFICE

 

1-4-30 Naka-Ogawara Kofu Yamanashi-Pref 400-0855 JAPAN

Tel: 055-242-7801     Fax: 055-242-7802

 

Former Address

Space Bros, 1273-3 Showacho Shimizu Arai Nakakomagun Yamanashi-Pref,

 

URL:                 N/A

 

 

ACTIVITIES  

 

Import, wholesale of polished diamonds, diamond set jewelry, other, from India

 

 

BRANCHES

 

Nil

 

 

FACTORIES

 

(subcontracted)

 

 

OFFICER(S)  

 

CHETAN BAHI KUMAR, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        R/WEAK                       A/SALES          Yen 570 M

PAYMENTS      REGULAR                     CAPITAL           Yen 9 M

TREND             SLOW                          WORTH            Yen 64 M

STARTED         2002                             EMPLOYES      5

 

                                                           

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS & JEWELRY,  FROM INDIA. 

 

FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUDINESS ENGAGEMENTS

 

 

HIGHLIGHTS

 

The subject company was established by Chetan Bahi Kumar, an Indian businessman residing in Japan over 8 years, speaking fluent Japanese, in order to make most of his experience in the subject line of business.  This is a trading firm for import and wholesale of polished diamonds and jewelry products.  Diamonds are partially subcontracted mfg into products by local jewelry processors.  The operations cover widely in the greater-Tokyo area.

 

 

FINANCIAL INFORMATION

 

The owner declined to disclose financials and we have managed to obtain the figures from outside sources.

 

The sales volume for Aug/2011 fiscal term amounted to Yen 570 million, a 2% up from Yen 560 million in the previous period.  Sales were affected by the North Japan Earthquake that hit the northern part of Japan in March 2011. Consumer spending was sluggish for arts, jewelry, watches, and other big-ticket items.  Originally sales were projected to reach Yen 580 million, up 4% from the previous year.  The net profit was posted at Yen 2 million, compared with Yen 3 million a year ago.

 

For the current term ending Aug 2012 the net profit is projected at Yen 3 million, on a 3% rise in turnover, to Yen 580 million.

 

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

 


REGISTRATION

 

Date Registered:                      Aug 2002

Regd No.:                     (Yamanashi-Kofu) 006135

Legal Status:               Private Limited Company (Yugen Kaisha)

Regd Capital:               Yen 9 million

Major shareholders (%):           Chetan Bahi Kumar (100).

 

Nothing detrimental is known as to his commercial morality.

 

 

OPERATION

 

Activities: Imports and wholesales polished diamonds, other precious stones, diamond set jewelry, other jewelry products, from India (--100%). 

 

Diamonds and other precious stones are partially subcontracted mfg to local jewelry processors.

 

Clients: [Jewelry processors, jewelry stores, consumers] Ishitomo Co, other

No. of accounts: 100

Domestic areas of activities: Centered in Yamanashi-Pref, extending into Tokyo.

Suppliers: [Mfrs] Imports solely from India

 

Payment record: Regular

 

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

 

Bank References:

·         Resona Bank (Kofu)

·         Yamanashi Chuo Bank (H/O)

Relations: Satisfactory

 


FINANCES

(In Million Yen)

 

Terms Ending:

 

31/08/2012

31/08/2011

31/08/2010

31/08/2009

Annual Sales

 

580

570

560

800

Recur. Profit

 

 

 

 

 

Net Profit

 

3

2

3

8

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

64

62

59

Capital, Paid-Up

 

 

9

9

9

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

1.75

1.79

-30.00

0.00

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.52

0.35

0.54

1.00

 

Notes:  Financials for the 31/08/2011 fiscal term have not yet been disclosed and we have compiled this statement from the data collected from outside sources. 

Forecast (or estimated) figures for the 31/08/2012 fiscal term

 

 


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.51.42

UK Pound

1

Rs.81.93

Euro

1

Rs.67.67

 

 

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.