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Report Date : |
30.04.2012 |
IDENTIFICATION DETAILS
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Name : |
ROYAL DIAMOND CO LTD |
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Registered Office : |
Shimada Bldg 3F, 3-34-5 Taito Taitoku |
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Country : |
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Financials (as on) : |
31.05.2011 |
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Year of Establishment : |
March 1998 |
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Com. Reg. No.: |
(Tokyo-Taitoku) 015957 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Import, wholesale of diamonds, jewelry |
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No. of Employees : |
10 |
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 : |
No Complaints |
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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 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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 |
ROYAL DIAMOND CO LTD
REGD NAME: Royal
Diamonds YK
MAIN OFFICE: Shimada
Bldg 3F, 3-34-5 Taito Taitoku
Tel: 03-3839-6005
URL: N/A
Import, wholesale
of diamonds, jewelry
Nil
(subcontracted)
BAVESH SHAH, PRES (Indian
resident)
Yen Amount: In million Yen, unless otherwise stated
FINANCES R/WEAK A/SALES Yen 800 M
PAYMENTS REGULAR CAPITAL Yen 130 M
TREND SLOW WORTH Yen 154 M
STARTED 1998 EMPLOYES 10
IMPORTER AND
WHOLESALER SPECIALIZING IN DIAMONDS
FINANCIAL SITUATION CONSIDERED RATHER WEAK
BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS
The subject company was established
by Bavesh Shah, an Indian resident, in order to make most of his experience in the
subject line of business. This is a
trading firm specializing in importing and wholesaling diamonds and diamond
jewelry. Goods are imported from India,
USA, Hong Kong, Bangkok, other. Clients
are jewelry processors, jewelers, other, centering in greater-Tokyo.
Financials are only partially
disclosed. The net profits are not
disclosed and they are only estimated.
The sales volume for May/2011 fiscal term amounted to Yen 800 million, a
similar amount in the previous term. Consumer
spending was sluggish, particularly for luxuries and things that are not for
immediate needs. High Yen hurt
import/export revenues in Yen terms. The
net profit is believed marked time at a minimum amount post-taxes. .
For the current term ending May 2012 the net
profit is projected at Yen 1 million, on a 3% rise in turnover, to Yen 820
million. Consumer spending is still
sluggish, but in some areas there is seen demand is recovering.
The financial situation is considered
RATHER WEAK but should be good for MODERATE business engagements.
Date Registered: Mar
1998
Regd No.:
(Tokyo-Taitoku) 015957
Legal Status: Private Limited
Company (Yugen Kaisha)
Regd Capital: Yen 130 million
Major
shareholders (%): Bavesh Shah (100)
Nothing
detrimental is known as to his commercial morality.
Activities: Imports and
wholesales diamonds & jewelry (--100%)
Clients: [Jewel
processors, jewelers] Sanghavi Jewellery Tokyo, Kyocera Corp, other
No. of accounts:
300
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Imports from Sanghavi Export, India, USA, Hong Kong, Bangkok,
other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Asakusa)
Mizuho Bank (Ueno)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
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31/05/2012 |
31/05/2011 |
31/05/2010 |
31/05/2009 |
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Annual
Sales |
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820 |
800 |
800 |
1,250 |
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Recur.
Profit |
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Net
Profit |
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1 |
1 |
0 |
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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154 |
153 |
153 |
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Capital,
Paid-Up |
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130 |
130 |
130 |
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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 |
2.50 |
0.00 |
-36.00 |
-3.85 |
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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 |
0.12 |
0.13 |
0.00 |
0.24 |
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Notes: Financials
are only partially disclosed.
Forecast (or
estimated) figures for the 31/05/2012 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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.68 |
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|
1 |
Rs.85.12 |
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Euro |
1 |
Rs.69.38 |
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.