MIRA INFORM REPORT

 

 

Report Date :

29.06.2012

 

IDENTIFICATION DETAILS

 

Name :

SUGANUMA TRADING CO LTD

 

 

Registered Office :

1-17-1 Aonuma Kofu Yamanashi-Pref 400-0867

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2011

 

 

Date of Incorporation :

February  1984

 

 

Legal Form :

Private Limited Company (Yugen Gaisha)

 

 

LINE OF BUSINESS :

IMPORTS AND WHOLESALES POLISHED, PRECUT DIAMONDS AND OTHER GEM STONES,  JEWELRY PRODUCTS

 

 

No. of Employees :

3

 

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 :

Slow

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

 

SUGANUMA TRADING CO LTD

REGD NAME:    YK Suganuma Boeki

MAIN OFFICE:  1-17-1 Aonuma Kofu Yamanashi-Pref 400-0867 JAPAN

Tel: 055-237-1888     Fax: 055-233-7300

 

URL:                 N/A

 

 

ACTIVITIES

 

Import, wholesale of diamonds, other precious stones, jewelry

 

BRANCHES

 

Nil

 

FACTORIES  

 

(subcontracted)

 

 

OFFICER(S)  

 

KIYOZUMI SUGANUMA, PRES

Shuji Tsuchiya, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                       A/SALES          Yen 210 M

PAYMENTS      SLOW                          CAPITAL           Yen 5 M

TREND SLOW                          WORTH            Yen 100 M

STARTED         1984                             EMPLOYES      3

 

 

 

COMMENT    

 

IMPORTER SPECIALIZING IN DIAMONDS & JEWELRY.

FINANCIAL SITUATION CONSIDERED RATHER WEAK AND DOUBTFUL FOR CREDIT ENGAGEMENTS: US$500,000.00 / DA TERMS.

                                   

 

HIGHLIGHTS

 

The subject company was established by Kiyozumi Suganuma in order to make most of his experience in the subject line of business.  This is a family-based trading firm for import and wholesale of polished diamonds, and other precious stones.  Goods are imported from India centrally.  Stones are partially subcontracted mfg into jewelry products at local jewelry processors.  Clients are jewelry processors, makers, jewelry stores, etc centering in Kofu-Pref, extending into greater-Tokyo region. 

           

 

FINANCIAL INFORMATION

 

            Financials are only partially disclosed as is the case with family-based companies.

 

The sales volume for Aug/2011 fiscal term amounted to Yen 210 million, a 16% drop from Yen 250 million in the previous term.  Consumer spending was sluggish and down pressed.  Sales of art, jewelry and other big-ticket items nosedived.  The net profit was posted at Yen 2 million, compared with Yen 3 million a year ago.

 

For the current term ending Aug 2012 the net profit is projected at Yen 3 million, on a 5% rise in turnover, to Yen 220 million.  Demand continues languish for clothing, jewelry and other big-ticket items.  Consumers are restraint in purchasing products that are not of immediate necessities. 

 

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

 

 

REGISTRATION

 

Date Registered: Feb 1984

Legal Status:   Private Limited Company (Yugen Gaisha)

Regd Capital:   Yen 5 million

Major shareholders (%): Kiyozumi Suganuma (80), Eiko Suganuma (20)

No. of shareholders: 2

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

 

 

OPERATION

 

Activities: Imports and wholesales polished, precut diamonds and other gem stones,

jewelry products (--100%). 

Goods are imported centrally from India.

 

Partially processes them into jewelry products on consignment to local jewelry processors.

 

Clients: [Jewelry processors, jewelry stores] Gosho Jewel, Meijido Co, Takano Kikinzoku, Higuchi Inc, Watanabe Seigyokudo, other.

No. of accounts: 200

Domestic areas of activities: Centered in Kofu-Pref, extending into greater-Tokyo area.

Suppliers: [Mfrs, wholesalers] Imports from India centrally, other from Israel, Belgium, etc.

 

Payment record: Slow

Location: Business area in Kofu City, Yamanashi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Kofu Shinkin Bank (Minami)

Resona Bank (Kofu)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

　

　

31/08/2012

31/08/2011

31/08/2010

31/08/2009

Annual Sales

　

220

210

250

310

Recur. Profit

　

　

　

　

　

Net Profit

　

3

2

3

4

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

100

98

95

Capital, Paid-Up

　

　

5

5

5

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

4.76

-16.00

-19.35

-6.06

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

1.36

0.95

1.20

1.29

 

Notes: Financials are only partially disclosed.

Forecast (or estimated) figures for the 31/08/2012 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.56.92

UK Pound

1

Rs.88.91

Euro

1

Rs.71.25

 

 

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.