MIRA INFORM REPORT

 

 

Report Date :

26.04.2012

 

IDENTIFICATION DETAILS

 

Name :

MAX

 

 

Registered Office :

2615-14 Minami Yatsushirocho Fuefuki City Yamanashi-Pref 406-

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

July 1999

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Import, wholesale of polished diamonds

 

 

No. of Employees :

03

 

 

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 :

Slow

 

 

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

MAX (SOLE PROPRIETORSHIP)

 

 

REGD NAME

 

Max (sole proprietorship & not registered)

 

 

MAIN OFFICE

 

2615-14 Minami Yatsushirocho Fuefuki City Yamanashi-Pref 406-0822 JAPAN

Tel: 055-265-3090    

Fax: 055-265-3090

           

URL:                 N/A

 

 

ACTIVITIES  

 

Import, wholesale of polished diamonds

 

 

BRANCHES   

 

Nil

 

 

FACTORIES

 

(subcontracted)

 

 

OFFICERS

 

KANJI SUEKI, PROPRIETOR

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    R/WEAK                       A/SALES          Yen 100 M

PAYMENTS      REGULAR                     CAPITAL           - - -

TREND             SLOW                          WORTH            Yen 10 M

STARTED                     1999                             EMPLOYES      3

 

 

COMMENT

 

IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS.

 

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

 

WE RECOMMEND FULLY GUARANTEED TERMS ON NEW TRANSACTIONS.

 

 

HIGHLIGHTS

 

The subject firm was started by Kanji Sueki as a proprietorship in order to make most of his experience in the subject line of business.  A sole proprietorship owned and operated from his home address, specializing in import and wholesale of polished diamonds from India centrally.  Goods are imported from India centrally, and shipped to jewelry processors, jewelry stores, centering in Yamanashi-Pref.

 

 

FINANCIAL INFORMATION

 

Financials are only partially disclosed.

 

The sales volume for Dec/2011 fiscal term amounted to Yen 100 million, a 1% up from Yen 99 million in the previous term.  The net profit was posted at Yen 1 million, similarly in the previous year.

 

For the current term ending Dec 2012 the net profit is projected to mark time at Yen 1 million, on a similar turnover, at Yen 100 million.

 

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

 

 

REGISTRATION

 

Date Registered:  Not registered (Founded Jul 1999)

Legal Status:      Sole Proprietorship

Net Worth:          Yen 10 million

 

This is a sole proprietorship owned and operated by Kanji Sueki, operating from his home address.  The net worth is estimated at Yen 10 million, which derived from his past savings.

 

Nothing detrimental is known as to his commercial morality.

 

OPERATION

           

Activities: Imports and wholesales polished diamonds from India centrally (100%).

 

Clients: Jewelry processors, jewelry stores, other

No. of accounts: 100

Domestic areas of activities: Centered in Yamanashi-Pref

 

Suppliers: [Mfrs, wholesalers] Imports from India centrally.

 

Payment record: Regular

 

Location: Business area in Fuefuki City, Yamanashi-Pref.  Office premises at the caption address are owned by Kanji Sueki as his home residence and maintained satisfactorily.

 

Bank References:

Yamanashi Chuo Bank (Yatsushiro)

Relations: Money deposits & transfers only.

 

FINANCES

(In Million Yen)

 

Terms Ending:

　

31/12/2012

31/12/2011

31/12/2010

31/12/2009

Annual Sales

　

100

100

99

100

Recur. Profit

　

　

　

　

　

Net Profit

　

1

1

1

1

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

10

10

10

Capital, Paid-Up

　

　

　

　

　

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

0.00

1.01

-1.00

0.00

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

1.00

1.00

1.01

1.00

 

Financials are only partially disclosed.

Forecast (or estimated) for the 31/12/20122 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.52.49

UK Pound

1

Rs.84.66

Euro

1

Rs.69.25

 

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

 

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.