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Report Date : |
20.02.2013 |
IDENTIFICATION DETAILS
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Name : |
RICH DIAMONDS INC |
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Registered Office : |
1-13-36 Takabatake Kofu City Yamanashi-Pref 400-0042 |
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Country : |
Japan |
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Financials (as on) : |
31.07.2012 |
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Date of Incorporation : |
September, 1994 |
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Com. Reg. No.: |
0900-01-002483 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, wholesale of polished diamonds,
other jewelry |
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No. of Employees : |
17 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
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 : |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
RICH DIAMONDS INC
Rich Diamonds KK
1-13-36 Takabatake Kofu City Yamanashi-Pref
400-0042 JAPAN
Tel:
055-233-3451 Fax: 055-233-3452
URL: http://www.richdia.com
E-Mail address: info@richdia.com
Import, wholesale
of polished diamonds, other jewelry
Tokyo
(subcontracted)
ANUP KUMAR ARUN
AGARWAL, PRES (Indian resident)
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 4,221 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 20 M
TREND SLOW WORTH Yen
245 M
STARTED 1994 EMPLOYES 17
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established by Shanti Enterprise, India, as its marketing base in Japan for wholesaling polished diamonds and other jewelry. This is a trading firm for import
and wholesale of polished diamonds centrally, and other gem stones. Goods are imported from the parent and its
group firm in Hong Kong. Based in Kofu
City, a hub of jewelry processors and stores, its clients are jewelry processors,
wholesalers, jewelry stores covering the greater-Tokyo region. The Tokyo Branch Office functions as its
marketing base in Tokyo area, contributing to sales growth.
The sales volume for Jul/2012 fiscal term amounted to Yen 4,221 million,
a 19% down from Yen 5,220 million in the previous term. Consumer spending was sluggish for art,
jewelry and other big-ticket items. The
recurring profit was posted at Yen 79 million and the net profit at Yen 13
million, respectively, compared with Yen 54 million recurring profit and Yen 25
million net profit, respectively, a year ago.
For the current term ending Jul 2013 the recurring profit is projected
at Yen 80 million and the net profit at Yen 15 million, respectively, on a 2%
rise in turnover, to Yen 4,300 million.
The financial situation is considered
maintained FAIR and good for ORDINARY business engagements.
Date Registered:
Sept 1994
Regd No.:
0900-01-002483
(Yamanashi-Kofu)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,600
shares
Issued: 400
shares
Sum: Yen
20 million
Major shareholders (%): Sohan Ginka (100)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports and wholesales polished diamonds, other gem stones (--50%), fingerings, earrings, pendants, necklaces, bracelets, other jewelry products (--50%).
Goods are imported from India, Hong Kong,
Korea, etc.
Clients: [Jewelry
processors, jewelry wholesalers, jewelers] Lucky Co, Infinity Co, Takano
Kikinzoku Co, Jewelry Iinuma, San-Ai International, Jewelry Tsutsumi, Koho
Shokai, other
No. of accounts: 300
Domestic areas of activities:
Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Imports from Shanti Enterprise (India), Unirich Diamond (Hong
Kong) (--group firms), other from Israel, Russia, Korea, other.
Payment record: No complaints
Location: Business area Kofu City. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank (Kofu)
Resona Bank (Kofu)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/07/2013 |
31/07/2012 |
31/07/2011 |
31/07/2010 |
|
|
Annual
Sales |
|
4,300 |
4,221 |
5,220 |
4,097 |
|
Recur.
Profit |
|
80 |
79 |
54 |
27 |
|
Net
Profit |
|
15 |
13 |
25 |
17 |
|
Total
Assets |
|
|
4,268 |
4,086 |
3,044 |
|
Current
Assets |
|
|
3,633 |
3,439 |
2,637 |
|
Current
Liabs |
|
|
3,884 |
3,672 |
2,706 |
|
Net
Worth |
|
|
245 |
231 |
205 |
|
Capital,
Paid-Up |
|
|
20 |
20 |
20 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
1.87 |
-19.14 |
27.41 |
21.46 |
|
|
Current Ratio |
|
.. |
93.54 |
93.65 |
97.45 |
|
N.Worth Ratio |
.. |
5.74 |
5.65 |
6.73 |
|
|
R.Profit/Sales |
|
1.86 |
1.87 |
1.03 |
0.66 |
|
N.Profit/Sales |
0.35 |
0.31 |
0.48 |
0.41 |
|
|
Return On Equity |
.. |
5.31 |
10.82 |
8.29 |
|
Notes: Forecast
(or estimated) figures for the 31/07/2013 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.
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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.
-
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.54.29 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
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 |
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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 |
|
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 |
|
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.