MIRA INFORM REPORT

 

 

Report Date :

21.02.2012

 

IDENTIFICATION DETAILS

 

Name :

GLOBAL GEMS LTD

 

 

Registered Office :

2-6-19 Yamamotodori Chuoku Kobe 650-0003

 

 

Country :

Japan

 

 

Date of Incorporation :

April 2005

 

 

Com. Reg. No.:

1400-02-025948 (Kobe-Chuoku)

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import, wholesale, retail of jewelry

 

 

No. of Employees :

2

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Unknown

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

 

GLOBAL GEMS LTD

REGD NAME:    Global Gems YK

MAIN OFFICE:  2-6-19 Yamamotodori Chuoku Kobe 650-0003 JAPAN

Tel: 078-222-6879      Fax: 078-222-6879

                                               

URL:                 N/A

 

 

ACTIVITIES

 

Import, wholesale, retail of jewelry

 

BRANCHES   

 

Nil

 

 

OFFICERS

 

A R SHAH, PRES (phonetically spelled)                                                 

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    UNDETD           A/SALES          Yen 100 M*

PAYMENTS                  UNKNOWN       CAPITAL           Yen 3 M

TREND             UNDETD           WORTH            Yen 3 M

STARTED                     2005                 EMPLOYES      2

 

*.. Estimated figures only; *.. Expressed by the paid-in capital

 

 

COMMENT    

 

TRADING FIRM SPECIALIZING IN JEWELRY.

FINANCIAL SITUATION UNDETERMINED DUE TO THE LACK OF PROVEN BUSINESS BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

           

            The subject company was established by A R Shah in order to make most of his experience in the subject line of business.  This is a trading firm specializing in import, wholesale and retail of jewelry.  The firm does not disclose any of its management & financial details and the information herein is derived from the Registration Certificate and those collected from outside sources.

 

 

FINANCIAL INFORMATION

           

            Financial are not disclosed.

 

The annual sales volume is estimated at Yen 100 million, as collected from outside sources, but the figures have not been confirmed by proven business records.  The owner declined to divulge them. 

 

Both the financial situation and business trends are not determined due to the lack of proven business records but should be good for MODERATE business engagements.  Max credit limit is unable to be assessed due to the same reason.

 

 

REGISTRATION

 

Date Registered:  Apr 2005

Regd No.:         1400-02-025948 (Kobe-Chuoku)

Legal Status:      Private Limited Company (Yugen Kaisha)

Regd Capital:      Yen 3 million

Major shareholders (%): A R Shah (100)

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

           

Activities: Imports, wholesales and retails precious stones, jewelry products (--100%)

 

Clients: Jewelry processors, jewelry stores, other

No. of accounts: Unavailable

Domestic areas of activities: Centered in greater-Osaka

Suppliers: [Mfrs, wholesalers] Imports from India, other

 

Payment record: Unknown

 

Location: Business area in Kobe.  Office premises at the caption address are owned by A R Shah as his private home residence and maintained satisfactorily.

 

Bank References:

Local Bank (Kobe)

Relations: Money deposits and transfers only

 

 

FINANCES

(In Million Yen)

 

NOT DISCLOSED AND UNAVAILABLE

 

 

 

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.49.21

UK Pound

1

Rs.77.75

Euro

1

Rs.64.58

 

 

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.