MIRA INFORM REPORT
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Report Date : |
10.03.2012 |
IDENTIFICATION DETAILS
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Name : |
KGK DIAMONDS (FAR EAST) INC |
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Registered Office : |
1-10-3 Higashiueno Taitoku Tokyo 110-0015 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
December 1995 |
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Com. Reg. No.: |
(Tokyo-Taitoku) 014387 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Import, wholesale
of rough diamonds, colored gemstones, diamond jewelry |
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No. of Employee: |
10 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Slow |
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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 |
KGK DIAMONDS (FAR EAST) INC
YK K. G. K.
1-10-3 Higashiueno
Taitoku Tokyo 110-0015 JAPAN
Tel:
03-3835-1449 Fax: 03-3837-5145
E-Mail address: kgkjapan@kgkgroup.com
Import,
wholesale of rough diamonds, colored gemstones, diamond jewelry, other
Nil
(locally
subcontracted)
SUNJAY
NAVRATTAN KOTHARI, PRES
Yen
Amount: In million Yen, unless otherwise
stated
FINANCES FAIR A/SALES Yen 1,970 M
PAYMENTS REGULAR CAPITAL Yen 80 M
TREND SLOW WORTH Yen
163 M
STARTED 1995 EMPLOYES 10
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS AND
JEW-ELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
The subject company was established as a marketing arm in Japan by KGK Group, India. The Indian principal is headed by Narvattan Kothari, ch. Owned and managed by Kothari family. The subject imports polished diamonds, ruby, sapphire, tanzanite, and other colored gemstones. Also handles diamond jewelry, gem-set jewelry, platinum jewelry, other. Goods are imported from group firms in India, Thailand, China, Belgium, etc. Diamonds and other gemstones are partially mfr’d on consignment by domestic jewelry processors. The subject also managed two firms at the caption address: Far East Gems Inc & KGK Gems Ltd. Clients include major department stores, jewelry stores, chain stores, wholesalers, etc. .
Financials are only partially disclosed.
The sales volume for Mar/2011 fiscal term amounted to Yen 2,000 million, a similar amount in the previous term. Consumer spending was sluggish, particularly for jewelry & luxurious items. The net profit was reportedly posted at Yen 10 million, similarly in the previous period.
For the current term ending Mar 2012 the net profit is projected at Yen 10 million, on a 2% rise in turnover, to Yen 2,000 million. Business is seen reviving.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements.
Date Registered: Dec 1995
Regd No.: (Tokyo-Taitoku) 014387
Legal Status: Private
Limited Company (Yugen Kaisha)
Regd Capital: Yen
80 million
Major shareholders (%): KGK Group (India) (100)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports and wholesales polished diamonds, rubies, emeralds, sapphire, tanzanite, alexandrite, other colored gemstones, diamond jewelry, gem-set jewelry, platinum jewelry, others (--100%).
Stones are partially subcontracted mfg to local processors into jewelry products.
Clients: [Department stores, chain stores, jewelry stores] Takashimaya, other.
No. of accounts: 200
Domestic areas of activities: Centered in greater-Tokyo
Suppliers: [Mfrs, wholesalers] Imports from KGK group firms in India, Thailand, Singapore, China, other.
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
· Mizuho Bank (Ueno)
· MUFG (Ueno)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
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31/03/2012 |
31/03/2011 |
31/03/2010 |
31/03/2009 |
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Annual
Sales |
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2,000 |
1,970 |
2,000 |
2,000 |
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Recur.
Profit |
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Net
Profit |
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10 |
10 |
10 |
10 |
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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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163 |
156 |
149 |
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Capital,
Paid-Up |
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80 |
80 |
80 |
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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 |
1.52 |
-1.50 |
0.00 |
33.33 |
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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 |
0.50 |
0.51 |
0.50 |
0.50 |
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Financials
are only partially disclosed.
Forecast
(or estimated) for the 31/03/2012 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.50.02 |
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UK Pound |
1 |
Rs.79.01 |
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Euro |
1 |
Rs.66.18 |
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.