MIRA INFORM REPORT

Report Date :

28.11.2012

IDENTIFICATION DETAILS

Name :	JEWELEX JAPAN LTD

Registered Office :	Miyachi Bldg Honkan 3F, 4-30-8 Taito Taitoku Tokyo 110-0016

Country :	Japan

Date of Incorporation :	January, 1988

Reg. No.:	0105-02-007353

Legal Form :	Private Limited Company

Line of Business :	Importer and Wholesaler Specializing in Diamonds

No. of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

japan - ECONOMIC OVERVIEW

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company Name

JEWELEX JAPAN LTD

REGD NAME

Jewelex Japan YK

MAIN OFFICE

Miyachi Bldg Honkan 3F, 4-30-8 Taito Taitoku Tokyo 110-0016 JAPAN

Tel: 03-3839-2322 Fax: 03-3839-2320

URL: N/A

ACTIVITIES

Import, wholesale of polished diamonds & jewelry

BRANCHES

Nil

FACTORIES

(subcontracted)

OFFICER(S)

H M PANDYA, PRES (Indian resident)

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 200 M*

PAYMENTS UNKNOWN CAPITAL Yen 125 M

TREND SLOW WORTH Yen 155 M

STARTED 1988 EMPLOYES 2

* Verbally given from the owner but not verified by third parties.

COMMENT

IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

FINANCIAL FIGURES, WE RECOMMENDING SECURED TERMS ON NEW TRANSACTIONS AS FINANCIALS ARE ONLY PROFESSED BY THE OWNER AND NOT VERIFIED.

HIGHLIGHTS

The subject company was established by H M Pandya, an Indian resident, in order to make most of his experience in the jewelry business. Originally titled as Dia Star YK and renamed as captioned in Apr 2004. Specializes in import and wholesale of polished diamonds centrally, including semi-finished & finished jewelry. Stones include artificial ones, too. Goods are imported from group firms in India centrally.

FINANCIAL INFORMATION

Financials are not disclosed, except verbally.

The transactions amount to about Yen 200 million annually and 10% is earned as commissions. The owner says financials are only disclosed to direct parties on special request only.

The sales volume for Dec/2011 fiscal term amounted to Yen 200 million, a 20% decline from Yen 250 million in the previous term. Consumer spending was sluggish particularly for jewelry, art and other big-ticket items. No further information is made available. The net profit is believed posted at Yen 1 million.

For the current term ending Dec 2012 the net profit is projected at Yen 1 million, on a similar turnover, at Yen 200 million. No further details are available

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3.5 million, on 30 days. We, however, strongly recommend secured terms on new transactions as financials are not verified by third parties.

REGISTRATION

Date Registered: Jan 1988

Regd No.: 0105-02-007353 (Tokyo-Taitoku)

Legal Status: Private Limited Company (Yugen Gaisha)

Regd Capital: Yen 125 million

Major shareholders (%): H M PANDYA (100%)

Nothing detrimental is known as to his commercial morality.

OPERATION

Activities: Imports and wholesales polished diamonds (including semi-finished & finished jewelry products) (--100%)

Goods are imported from group firms in India centrally.

Clients: Local jewelry processors, jewelers, other.

No. of accounts: 50

Domestic areas of activities: Centered in greater-Tokyo

Suppliers: [Mfrs, wholesalers] Imports from Dia Star group, India, De beers (Israel), other.

Payment record: Unknown

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

Bank References:

ABN Amro Bank (Tokyo)

MUFG (Asakusa)

Relations: Satisfactory

FINANCES

(In Million Yen)

NOT DISCLOSED AND UNAVAILABLE

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.89.34
Euro	1	Rs.72.35

INFORMATION DETAILS

Report Prepared by :

SDA

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%)

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