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Report Date : |
24.05.2012 |
IDENTIFICATION DETAILS
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Name : |
KUSHAL IMPEX CO LTD |
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Registered Office : |
Yamashige Bldg 501, 1-24-2 Higashiueno Taitoku |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
October
1997 |
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Com. Reg. No.: |
0105-02-015752
(Tokyo-Taitoku) |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Import, wholesale
of diamonds, jewelry products |
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No. of Employees : |
05 |
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 : |
No Complaints |
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Litigation : |
Clear |
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
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
KUSHAL
IMPEX CO LTD
YK Kushal Impex
Yamashige Bldg
501, 1-24-2 Higashiueno Taitoku Tokyo 110-0015 JAPAN
Tel:
03-3836-3751 Fax: 03-3836-3752
URL: N/A
Import,
wholesale of diamonds, jewelry products
Nil
(subcontracted)
SUNIL
KUMAR JAIN, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES R/WEAK A/SALES Yen 1,000 M
PAYMENTS No Complaints CAPITAL Yen 3 M
TREND SLOW WORTH Yen 141 M
STARTED 1997 EMPLOYES 5
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS & JEWELRY.
FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
The subject company was established by Sunil K Jain, an
Indian businessman, in order to make most of his previous experience in the
subject line of business. This is a
trading firm for import and wholesale of diamonds & diamond jewelry, other
gem stones & products. Stones are
partially subcontracted mfg into jewelry products to local jewelry
processors. Goods are imported from
India, Hong Kong, Belgium, etc. Clients are local jewelry processors, jewelry
stores, other.
Financials are only partially disclosed.
Profits are not precisely disclosed and are estimated only.
The sales volume for Dec/2011 fiscal term amounted to Yen 1,000 million,
a 9% down from Yen 1,100 million in the previous term. Consumer spending was sluggish particularly
for arts, jewelry and other big-ticket items.
The net profit is believed posted at Yen 20 million, similarly in the
previous period.
For the current term ending Dec 2012 the net profit is projected at Yen
20 million, on a 5% rise in turnover, to Yen 1,050 million. Business is seen steadily expanding.
The financial situation is considered RATHER WEAK but should be good for
MODERATE business engagements.
Date Registered: Oct 1997
Regd No.: 0105-02-015752 (Tokyo-Taitoku)
Legal Status:
Private Limited Company (Yugen Kaisha)
Regd Capital: Yen
3 million
Major shareholders (%): Sunil
K Jain (80), W Jain (20)
No. of shareholders: 2
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports and
wholesales diamonds, other gem stones, and jewelry prod-
ucts (--100%).
Goods are imported from Belgium, India, Hong Kong, other.
Clients: [Jewelry stores,
jewelry processors] Mikimoto & Co, K & Friends, Classic Diamond, Kurita
Co, other.
No. of accounts: 100
Domestic areas of activities:
Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Imports from India, Hong Kong, Belgium, etc.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank
References:
Asahi Shinkin Bank (Nishi)
Bank of India (Tokyo)
Relations: Money deposits & transfers
only
(In Million Yen)
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31/12/2012 |
31/12/2011 |
31/12/2010 |
31/12/2009 |
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Annual
Sales |
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1,050 |
1,000 |
1,100 |
1,100 |
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Recur.
Profit |
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Net
Profit |
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20 |
20 |
20 |
20 |
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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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141 |
127 |
113 |
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Capital,
Paid-Up |
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3 |
3 |
3 |
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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 |
5.00 |
-9.09 |
0.00 |
37.50 |
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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 |
1.90 |
2.00 |
1.82 |
1.82 |
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Notes: Financials are only partially
disclosed. Profits are estimated only.
Forecast
(or estimated) figures for 31/12/2012 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 |
|
US Dollar |
1 |
Rs.55.93 |
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UK Pound |
1 |
Rs.88.15. |
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Euro |
1 |
Rs.70.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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.