MIRA INFORM REPORT

 

 

Report Date :

27.08.2013

 

IDENTIFICATION DETAILS

 

Name :

REGALIA CO LTD

 

 

Registered Office :

3-2-14 Aonuma Kofu 400-0867

 

 

Country :

Japan

 

 

Date of Incorporation :

April 2004

 

 

Com. Reg. No.:

0900-02-006480 (Yamanashi-Kofu)

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, wholesaler of diamonds, diamond jewelry & foodstuffs

 

 

No. of Employees :

03-05 employees

 

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 :

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

REGALIA CO LTD

 

 

REGD NAME

 

YK Regalia

 

 

MAIN OFFICE

 

3-2-14 Aonuma Kofu 400-0867 JAPAN

Tel: 090-4549-5409 (Mobile phone)

 

URL:                             Nil       

 

ACTIVITIES  

 

Imports, wholesale of diamonds, diamond jewelry, foodstuffs

 

 

BRANCHES   

 

Nil

 

 

FACTORIES

 

(subcontracted)

 

 

OFFICER(S)  

 

VIMAL PANCHMIA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 380 M*

PAYMENTSUnknown             CAPITAL           Yen 6 M

TREND UNDETD           WORTH            Yen 630 M*

STARTED         2004                 EMPLOYES      3-5

*.. Professed by the firm, but not verified. 

 

 

COMMENT

 

TRADING FIRM SPECIALIZING IN DIAMONDS & JEWELRY. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established by Vimal Panchamiya, an Indian resident, in order to make most of his experience in the subject line of business.  This is a trading firm for import, export and wholesale of diamonds and diamond jewelry.  Goods are imported from India, Israel, other.  Diamonds are partially subcontracted mfg to local jewelry processors.  Clients are local jewelry stores, jewelry processors, chain stores, extending into the greater-Tokyo region.  The firm does not disclose any of its business performance and financials except to its main Bank, Kofu Shinkin Bank.  The information contained here is mostly based on the Registration Certificate of the firm.  

 

 

FINANCIAL INFORMATION

 

Financials are not disclosed and we have obtained the following figures directly from the owner, but they are not verified by third parties. 

 

The sales volume for Mar/2013 fiscal term is reportedly amounted to Yen 380 million, a 5% down from Yen 400 million in the previous term, but the figures have not been verified by the third parties.  Net profit is estimated posted at 15 million, compared with Yen 20 million a year ago

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:             Apr 2004

Regd No.:           0900-02-006480 (Yamanashi-Kofu)

Legal Status:      Private Limited Company (Yugen Kaisha)

Authorized:        200 shares

Issued:               200 shares

Sum:                  Yen 6 million

Major shareholders (%): Vimal Panchmia (100)

 

Nothing detrimental is known as to his commercial morality.

 

 

OPERATION

 

Activities: Imports, exports and wholesales diamonds & diamond jewelry (--100%) Diamonds are partially subcontracted mfg to local jewelry processors.

 

Clients: Jewelry stores, jewelry processors, wholesalers, chain stores, other

            No. of accounts: Unavailable

            Domestic areas of activities: Kofu City, extending into the greater-Tokyo region

 

Suppliers: [Mfrs, wholesalers] Imports from India, Israel, other

 

Payment record: Unknown 

 

Location: Business area in Kofu.  Office premises at the caption address are owned by V Panchamiya as his private residence and maintained satisfactorily.

 

Bank References:

Kofu Shinkin Bank (Asaka)

Relations: Money deposits & transfers only

 

 

FINANCES

(In Million Yen)

 

NOT DISCLOSED AND UNAVAILABLE 

 

 

           

 
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.

-            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 –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.23

UK Pound

1

Rs.100.01

Euro

1

Rs.85.93

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.