MIRA INFORM REPORT

 

 

Report Date :

13.02.2012

 

IDENTIFICATION DETAILS

 

Name :

TRILOK DIA CO LTD

 

 

Registered Office :

Morozumi Bldg 2F, 4-8-2 Taito Taitoku Tokyo 110-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.07.2011

 

 

Date of Incorporation :

February 1992

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import, wholesale of diamonds, diamond jewelry

 

 

No. of Employees :

5

 

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 :

No Complaints

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address

 

TRILOK DIA CO LTD

REGD NAME:    Trilok Dia YK

MAIN OFFICE:  Morozumi Bldg 2F, 4-8-2 Taito Taitoku Tokyo 110-0016 JAPAN

Tel: 03-3837-3161     Fax: 03-3837-3130

 

URL:                 http://www.trilok.dia.com/

E-Mail address: info@trilok.dia.com

 

 

ACTIVITIES  

 

Import, wholesale of diamonds, diamond jewelry

 

BRANCHES   

 

Mumbai (India), Hong Kong, Shanghai, Shenzhen (--China), Taipei, Los Angeles

 

FACTORIES  

 

Mumbai (India)

 

 

OFFICER(S)

 

PRAKASH P PAREKH, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 2,000 M

PAYMENTS                  NO COMPLAINTS          CAPITAL           Yen 10 M

TREND             SLOW                          WORTH            Yen 140 M

STARTED                     1992                             EMPLOYES      5

 

 

 

COMMENT    

 

IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

            The subject company was established by Prakash Parekh (Indian resident) in order to make most of his experience in the subject line of business.  The firm started originally in 1942 as a representative office and was incorporated in1992.  This is a trading firm specializing in importing diamonds and diamond jewelry.  Rough diamonds are purchased from Belgium (Belgium-made) and sent to India (Surat) for cutting and polishing.  They are sent to its Mumbai office for marketing and exporting to different countries.  Operates 6 branch offices: USA, China, India, and Taiwan.  Jewelry products are mainly engagement rings, custom-design diamond jewelry, other.

 

 

FINANCIAL INFORMATION

 

            Financials are only partially disclosed.

 

The sales volume for July/2011 fiscal term reportedly amounted to Yen 2,000 million, a 5% down from Yen 2,100 million in the previous term.  Consumer spending was sluggish, particularly for arts, jewelry and other big-ticket items.  The net profit was posted at Yen 10 million, compared with Yen 12 million a year ago.

 

For the current term ending Jul 2012 the net profit is projected at Yen 11 million, on a 5% rise in turnover, to Yen 2,100 million.  Demand is seen increasing. 

 

            The financial situation is considered maintained FAIR and good for ORIDNARY business engagements. 

 

 

REGISTRATION

 

Date Registered:  Feb 1992

Legal Status:    Private Limited Company (Yugen Gaisha)

Regd Capital:    Yen 10 million

Major shareholders (%): Prakash Parekh (100)

           

Nothing detrimental is known as to his commercial morality.

 

 

OPERATION

 

Activities: Imports, exports and wholesales diamonds & diamond jewelry (--100%).

Purchases rough diamonds from Belgium and cut/polished in India (Surat) for exports to different countries.  Operates 6 branches centrally in Asian countries, including USA.

 

Clients: Jewelry processors, jewelers, other

No. of accounts: Unavailable

Domestic areas of activities: Centered in greater-Tokyo

Suppliers: Jewelry makers, jewelry processors, other

Imports from India, Belgium, other

 

Payment record: No Complaints

 

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

 

Bank References:

Indo State Bank (Tokyo)

SMBC (Nihombashi-Higashi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

Terms Ending:

 

31/07/2012

31/07/2011

31/07/2010

31/07/2009

Annual Sales

 

2,100

2,000

2,100

2,100

Recur. Profit

 

 

 

 

 

Net Profit

 

11

10

12

13

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

140

133

125

Capital, Paid-Up

 

 

10

10

10

Div.P.Share(₯)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

5.00

-4.76

0.00

-8.70

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.52

0.50

0.57

0.62

 

Notes: Financials are only partially disclosed.  The figures for the 31/07/2011 fiscal term are

estimated as the firm does not disclose the precise figures, only approximate figures

Forecast (or estimated) figures for the 31/07/2012 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.49.64

UK Pound

1

Rs.78.35

Euro

1

Rs.65.79

 

 

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.