MIRA INFORM REPORT

 

 

Report Date :

19.06.2012

 

IDENTIFICATION DETAILS

 

Name :

ROSY BLUE LTD

 

 

Registered Office :

Jewelry Mart 3F, 1-10-6 Higashiueno Taitoku Tokyo 110-0015

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

February 1978

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

LINE OF BUSINESS :

IMPORT, WHOLESALE OF ROUGH DIAMONDS, POLISHED & PRECUT DIAMONDS

 

 

No. of Employees :

40

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

ROSY BLUE LTD

REGD NAME:    KK Rosy Blue

MAIN OFFICE:  Jewelry Mart 3F, 1-10-6 Higashiueno Taitoku Tokyo 110-0015 JAPAN

Tel: 03-3836-7088     Fax: 03-3836-7099

 

URL:                 http://www.rosyblue.com/

E-Mail address: Tokyo@rosyblue.com

 

 

ACTIVITIES

 

Import, wholesale of rough diamonds, polished & precut diamonds

 

BRANCHES   

 

Nil

 

FACTORIES

 

(subcontracted)

 

 

OFFICER(S)  

 

ATUL JHAVERI, PRES (Indian resident)

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 6,500 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 33 M

TREND UP                                WORTH            Yen 344 M

STARTED         1978                             EMPLOYES      40

 


COMMENT    

 

IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS, JAPAN BRANCH OF ROSY BLUE GROUP, BELGIUM. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

HIGHLIGHTS

 

The subject company was established originally in 1974 as a marketing office in Japan by Rosy Blue Group, founded 1973 in Belgium as satellite office for B Arunkumar & Co, India, for procurement of rough & polished diamonds.  The subject firm was incorporated in 1978.  The subject specializes in importing and wholesaling diamonds, from rough to polished & precut ones.  Also handles jewelry products.  Goods are imported widely from mining companies in Canada, Russia, S Africa, S America, etc, including those from group firms in 15 global networks.  Diamonds are subcontracted mfg into fine jewelry products.  Clients are major jewelry wholesalers, jewelry processors, chain stores, other.

           

 

FINANCIAL INFORMATION

 

            Financials are only partially disclosed.

 

            The sales volume for Dec/2011 fiscal term is reported amounted to Yen 56,500 million, a 16% up from Yen 5,600 million in the previous term.  Price hikes of diamonds contributed to the sales growth.  The net profit was posted at Yen 15 million, compared with Yen 10 million a year ago.

 

For the current term ending Dec 2012 the net profit is projected at Yen 20 million, on a 3% rise in turnover, to Yen 6,700 million.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered:  Feb 1978

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         2,640 shares

Issued:                660 shares

Sum:                   Yen 33 million

Major shareholders (%): Rosy Blue Finance, Atul Jhaveri & relatives (--100)

No. of shareholders: 5

 

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

 

 

OPERATION

 

Activities: Imports and wholesales rough diamonds, polished, precut diamonds (--90%),

fine jewelry, other jewelry products (--10%). 

 

Partially retails them, too. 

 

Goods are imported from Belgium, Hong Kong, Israel, South Africa, Switz, India, China, and            other group firms in 15 locations worldwide.

 

Rough diamonds include: sawables, makeables, cleavages, industrials, crystals, etc.

Polished diamonds include: stars, full cuts, melees, pointers, caraters, larger specials, ideal cuts, certificate goods, princess cuts, fancies

 

 

Clients: Local jewelers, jewelry processors, jewelry mfrs, chain stores, consumers, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, mining firms, wholesalers] Rosy Blue NV (Belgium), Rosy Blue India Pri- vate Ltd (India), DTC (De Beers), BHP (Australia), Rio Tinto, Alrosa, other from Hong Kong,         Israel, South Africa, Switz, India, China, UAE, Russia, Luxemburg, Sri Lanka, Thailand,            USA, etc.

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (Ueno)

MUFG (Ueno-Chuo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

 

 

31/12/2012

31/12/2011

31/12/2010

31/12/2009

Annual Sales

 

6,700

6,500

5,600

6,000

Recur. Profit

 

 

 

 

 

Net Profit

 

20

15

10

10

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

344

334

327

Capital, Paid-Up

 

 

33

33

33

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.08

16.07

-6.67

0.00

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.30

0.23

0.18

0.17

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/12/2012 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.55.59

UK Pound

1

Rs.87.34

Euro

1

Rs.70.66

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.