|
Report Date : |
09.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
HERASH DIAM CO LTD |
|
|
|
|
Registered Office : |
Shahiyar Bldg 6F, 1-12-6 Misuji Taitoku Tokyo 111-0055 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
March, 1999 |
|
|
|
|
Com. Reg. No.: |
0105-02-016554 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Import, wholesale of diamonds, diamonds jewelry |
|
|
|
|
No. of Employees : |
2 |
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 : |
Slow but Correct |
|
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 |
|
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 |
HERASH DIAM CO LTD
Herash Diam YK
Shahiyar Bldg 6F, 1-12-6 Misuji Taitoku Tokyo 111-0055 JAPAN
Tel: 03-3863-1060 Fax:
03-3863-1061
URL: N/A
Import, wholesale of diamonds, diamonds jewelry
Nil
India, Thailand (--agents)
R KUMAR MOROKYA, PRES (Only phonetically spelled)
Yen Amount: In million Yen,
unless otherwise stated
FINANCES R/WEAK A/SALES Yen 458 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
3 M
TREND SLOW WORTH Yen 15 M
STARTED 1999 EMPLOYES 2
IMPORTER OF DIAMONDS.
FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR
MODERATE BUISNESS ENGAGEMENTS.
The subject company was established by R Morokya, an Indian resident, in
order to make most of his experience in the subject line of business, utilizing
his wide networks in Asian countries.
This is a trading firm, operating from his home address, for import and
wholesale of diamonds, diamonds jewelry, bridal jewelry, other. Goods are imported from India, Thailand, other. They are also exported to Thailand, India,
Hong Kong, Dubai, other.
Financials are only partially disclosed.
The sales volume for Dec/2011 fiscal term amounted to Yen 458 million, a
shade down from Yen 461 million in the previous term. The net profit remained similar at Yen 1
million.
For the term that just ended Dec 2012 the net profit was projected at
Yen 1 million, on a 2% rise in turnover, to Yen 465 million. Final results are yet to be released.
The financial situation is considered RATHER WEAK but should be good for
MODERATE business engagements.
Date Registered: Mar
1999
Regd No.: 0105-02-016554
(Tokyo-Taitoku)
Legal Status: Private Limited Company
(Yugen Kaisha)
Regd Capital: Yen 3 million
Major shareholders
(%): R Morokya (100)
Nothing detrimental is known as to his commercial morality.
Activities: Imports and wholesales
diamonds, diamonds jewelry, other (--100%)
Diamonds are
partially subcontracted to jewel processors into jewelry products.
Clients: [Mfrs, wholesalers]
Exports to Thailand, India, Hong Kong, Dubai, other
Domestically
supplied to jewelry processors, jewelry shops, chain stores, other
No.
of accounts: Unavailable
Domestic
areas of activities: Centered in greater-Tokyo
Suppliers: [Mfrs, wholesalers] Imports
from Thailand, India, other.
Domestically
supplied from jewelry processors, jewelry makers, other.
Payment record: Slow but Correct
Location: Business
area in Tokyo. Office premises at the
caption address are owned by R Morokya as his private residence and maintained
satisfactorily.
Bank References:
Tokyo Tomin Bank (Okachimachi)
Relations: Money deposits and transfers only
(In Million Yen)
|
|
|
31/12/2012 |
31/12/2011 |
31/12/2010 |
31/12/2009 |
|
Annual Sales |
|
465 |
458 |
461 |
457 |
|
Recur. Profit |
|
|
|
|
|
|
Net Profit |
|
1 |
1 |
1 |
1 |
|
Total Assets |
|
|
N/A |
N/A |
N/A |
|
Net Worth |
|
|
15 |
14 |
13 |
|
Capital, Paid-Up |
|
|
3 |
3 |
3 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical
Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
1.53 |
-0.65 |
0.88 |
-0.65 |
|
|
Current Ratio |
|
|
.. |
.. |
.. |
|
N.Worth Ratio |
|
.. |
.. |
.. |
|
|
N.Profit/Sales |
0.22 |
0.22 |
0.22 |
0.22 |
|
Notes: Financials are only partially disclosed.
Forecast (or estimated) figures for the 31/12/2012 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.
-
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.
-
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.
-
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.55.33 |
|
UK Pound |
1 |
Rs.89.05 |
|
Euro |
1 |
Rs.72.57 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.