MIRA INFORM REPORT
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Report Date : |
03.01.2012 |
IDENTIFICATION DETAILS
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Name : |
STYLE PEARL GEM LTD |
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Registered Office : |
Ohtsu Bldg 2F, 1-20-3 Higashiueno Taitoku
Tokyo 110-0015 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
December 1975 |
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Com. Reg. No.: |
(Kobe-Chuoku) 014536 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Import, wholesale
of polished diamonds, pearls, other gem stones |
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No. of Employees : |
5 |
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 : |
Usually Correct |
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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 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
STYLE PEARL GEM LTD
REGD NAME
YK Style Pearl Gem
MAIN OFFICE
Ohtsu Bldg 2F,
1-20-3 Higashiueno Taitoku Tokyo 110-0015 JAPAN
Tel: 03-3837-5479 Fax:
03-3837-5408
*.. Registered & headquarters at: 5-1-23 Kagoikedori Chuoku Kobe
651-0053
URL: N/A
ACTIVITIES
Import,
wholesale of polished diamonds, pearls, other gem stones
BRANCHES
Tokyo
(Headquarters in Kobe as given above)
FACTORIES
(subcontracted)
OFFICER(S)
GUMNANI
G RUPCHAND, PRES
Yen
Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 750 M
PAYMENTS REGULAR CAPITAL Yen 20 M
TREND SLOW WORTH Yen
138 M
STARTED 1975 EMPLOYES 5
COMMENT
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS,
PEARLS, OTHER JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
HIGHLIGHTS
The subject company was established by father of Gumnani Rupchand, resident Indian businessman, in order to make most of his experience in the subject line of business. This is a trading firm specializing in import and wholesale of polished, pre-cut diamonds centrally, pearls and other gemstones & jewelry products. Originally started as a pearl trader in Kobe and later shifted its mainstay item to polished diamonds, which are the major source of earnings. Goods are imported from India, Israel, etc and supplied to local jewelry stores, jewelry processors, other. Operates Tokyo Office to cover Tokyo market and Kofu City, Yamanashi-Pref, the hub of jewelry processors and shops. Gemstones are partially subcontracted mfg to local jewelry processors into jewelry products. Clients include jewelry processors, jewelry stores, wholesalers, other.
FINANCIAL INFORMATION
Financials are only partially disclosed.
The sales volume for Dec/2010 fiscal term amounted to Yen 750 million, a 15% up from Yen 650 million in the previous term. Consumer spending recovered. Exports increased. The net profit was posted at Yen 8 million, compared with Yen 6 million a year ago.
For the current term ending Dec 2011 the net profit is projected at Yen 8 million, on a 5% rise in turnover, to Yen 780 million. Business is seen expanding steadily.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Dec
1975
Regd No.: (Kobe-Chuoku) 014536
Legal Status: Private Limited Company (Yugen Gaisha)
Regd Capital: Yen 20 million
Major shareholders (%): Gumnani Rupchand (70) &
families (--30)
No. of shareholders: 3
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports and wholesales polished diamonds, pearls, other gemstones, jewelry products (--100%).
Goods are imported from India, Israel, Belgium, etc.
Clients: [Jewelry stores, jewelry processors] Savvy, Gosho, Daiwa Hoshoku, Taiho Kikin- zoku, Komiya Co, Lucky Co, Hyuga Hoshoku, Sakai Trading, other.
No. of accounts: 300
Domestic areas of activities: Nationwide.
Suppliers: [Mfrs, wholesalers] Mani Export, Dalumi Asher, Laxmi Diamond, Ip Patel, Dalumi Asher, other
Imports from India, Israel, Belgium, other.
Payment record: Regular
Location: Business
area in Tokyo. Office premises at the
caption address are leased and maintained satisfactorily.
Bank References:
· SMBC (Midosuji)
· MUFG (Ueno-Chuo)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
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31/12/2011 |
31/12/2010 |
31/12/2009 |
31/12/2008 |
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Annual
Sales |
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780 |
750 |
650 |
850 |
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Recur.
Profit |
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Net
Profit |
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8 |
8 |
6 |
8 |
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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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138 |
130 |
125 |
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Capital,
Paid-Up |
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20 |
20 |
20 |
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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 |
4.00 |
15.38 |
-23.53 |
0.00 |
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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 |
1.03 |
1.07 |
0.92 |
0.94 |
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Notes:
Financials are only partially disclosed.
Forecast
(or estimated) figures for the 31/12/2011 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 |
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US Dollar |
1 |
Rs.53.30 |
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UK Pound |
1 |
Rs.82.66 |
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Euro |
1 |
Rs.68.91 |
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.