MIRA INFORM REPORT
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Report Date : |
07.02.2012 |
IDENTIFICATION DETAILS
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Name : |
EAST TRADING CO LTD |
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Registered Office : |
2-25-7 Taito Taitoku Tokyo 110-0016 |
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Country : |
Japan |
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Financials (as on) : |
31.07.2011 |
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Date of Incorporation : |
September 1989 |
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Com. Reg. No.: |
(Kabushiki Kaisha) |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale
of precut, loose diamonds, other jewelry |
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No. of Employees
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03 |
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 : |
Clear |
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
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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
EAST TRADING CO LTD
REGD NAME
KK East Trading
MAIN OFFICE
2-25-7 Taito
Taitoku Tokyo 110-0016 JAPAN
Tel:
03-3839-2346 Fax: 03-3839-2348
URL:
N/A
ACTIVITIES
Import,
wholesale of precut, loose diamonds, other jewelry
BRANCHES
Nil
FACTORIEs
(subcontracted)
OFFICER(S)
SHIGEAKI
SUENAGA, PRES
Junko
Suenaga, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 1,300 M
PAYMENTS No Complaints CAPITAL Yen
48 M
TREND SLOW WORTH Yen
119 M
STARTED 1989 EMPLOYES 3
COMMENT
IMPORTER AND WHOLESALER
SPECIALIZING IN DIAMONDS & JEWELRY.
FINANCIAL SITUATION IS CONSIDERED RATHER WEAK BUT SHOULD BEFAIR AND GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established by Shigeaki Suenaga in order to make most of his experience in jewelry industry. A family-owned and operated firm, the subject specializes in importing precut, loose diamonds centrally, and jewelry products. Goods are imported from Belgium, Israel, India, etc, and shipped to jewelry processors, jewelry stores in the greater-Tokyo area. Stones are partially subcontracted mfg to local jewelry processors.
FINANCIAL INFORMATION
Financials are only partially disclosed as is the case with family-based
companies.
The sales volume for Jul/2010 fiscal term amounted to Yen 1,300 million,
an 8% up from Yen 1,200 million in the previous term. Diamond unit prices increased. The net profit was posted at Yen 1 million,
similarly in the preceding term.
For the term that ended Jul 2011 the net profit was projected at Yen 2
million, on an 8% rise in turnover, to Yen 1,400 million. Final results are yet to be released.
The financial situation is considered RATHER WEAK but should be good for
MODERATE business engagements.
REGISTRATION
Date Registered: Sept 1989
Regd No.: (Tokyo-Taitoku) 007517
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
3,840 shares
Issued: 960 shares
Sum: Yen 48 million
Major shareholders (%):
Shigeaki Suenaga & families (--100)
No. of shareholders: 6
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports and wholesales precut diamonds
(90%), jewelry products (--10%).
Goods are imported from Belgium, Israel, India, etc.
Clients: Jewel processors,
jewelry stores, wholesalers, other
Exports to USA, Hong Kong, other
No. of accounts: Unavailable
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Dali Diamond, other
Imports from Israel, Belgium, India, other.
Payment record: No
Complaints
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
· Mizuho Bank (Ueno)
· Asahi Shinkin Bank (Nishimachi)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/07/2011 |
31/07/2010 |
31/07/2009 |
31/07/2008 |
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Annual
Sales |
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1,400 |
1,300 |
1,200 |
1,400 |
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Recur.
Profit |
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Net
Profit |
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2 |
1 |
1 |
4 |
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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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119 |
118 |
117 |
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Capital,
Paid-Up |
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48 |
48 |
48 |
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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 |
7.69 |
8.33 |
-14.29 |
-12.50 |
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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 |
0.14 |
0.08 |
0.08 |
0.29 |
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Notes: Financials are only partially disclosed. The 31/07/2011 Financials are yet to be
released.
Forecast (or estimated) figures for 31/07/2011 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
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.48.68 |
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UK Pound |
1 |
Rs.76.75 |
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Euro |
1 |
Rs.63.57 |
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.