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Report Date : |
09.01.2013 |
IDENTIFICATION DETAILS
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Name : |
KINGSTONE LTD |
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Registered Office : |
1-12-3 Tohkohji Kofu Yamanashi-Pref 400-0807 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
Apr 1992 |
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Com. Reg. No.: |
(Yamanashi-Kofu) 000787 |
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Legal Form : |
Private
Limited Company (Yugen Kaisha) |
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Line of Business : |
Imports and wholesales polished diamonds, diamond jewelry |
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No. of Employees : |
1 |
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 : |
Small Company |
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Payment Behaviour : |
Slow but correct |
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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 |
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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 |
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.
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Source : CIA |
KINGSTONE LTD
REGD NAME: YK
Kingstone
MAIN OFFICE: 1-12-3
Tohkohji Kofu Yamanashi-Pref 400-0807 JAPAN
Tel:
055-227-6224 Fax: 055-227-6222
URL: N/A
Import,
wholesale of diamonds
Nil
(subcontracted)
MAKOTO
FUKUSHI, PRES
Hiromi
Fukushi, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES R/WEAK A/SALES Yen 50 M
PAYMENTS SLOW
BUT CORRECT CAPITAL Yen 3 M
TREND SLOW WORTH Yen
25 M
STARTED 1992 EMPLOYES 1
IMPORTER AND WHOLESALER OF
DIAMONDS.
FINANCIAL SITUATION CONSIDERED
RATJER WEAK BUT SHOULD BE GOOD
FOR MODERATE BUSINESS ENGAGEMENTS.
The
subject company was established by Makoto Fukushi in order to make most of his
experience in the subject line of business.
This is a family-based trading firm, operated from private residence, for
importing and wholesaling polished diamonds and diamond jewelry. Diamonds are wholesaled and partially
subcontracted mfg to local processors into diamond jewelry. Clients are local jewelry processors,
jewelers, individual customers, other.
Financials
are only partially disclosed. Profits
are not disclosed and estimated only.
The
sales volume for Dec/2011 fiscal term amounted to Yen 50 million, an 11% up
from Yen 45 million in the previous term.
Price hikes of diamonds contributed.
The net profit is estimated posted at a minimum amount post-taxes,
similarly in the previous term.
For the term that just ended Dec 2012 the net profit was
projected at a Yen 1 million, on a 10% rise in turnover, to Yen 55
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: Apr 1992
Regd No.: (Yamanashi-Kofu) 000787
Legal Status: Private
Limited Company (Yugen Kaisha)
Regd Capital: Yen
3 million
Major shareholders (%): Makoto Fukushi (83), Hiromi
Fukushi (17)
No. of shareholders: 2
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports
and wholesales polished diamonds, diamond jewelry (--100%)
Diamonds
are partially subcontracted mfg into jewelry to local jewelry processors.
Clients: [Jewelry processors, Jewellers]
Tamura Shokai, Gem Select, L Jewelry, Sanpo, other.
No. of
accounts: 100
Domestic
areas of activities: Centered in Yamanashi-Pref extending into Tokyo.
Suppliers:
[Mfrs, wholesalers] Shrenuj & Co Ltd (80%), other.
Payment record: Slow
but correct
Location:
Business area in Kofu City. Office
premises at the caption address are owned by M Fukushi as his private residence
and maintained satisfactorily.
Bank References:
Yamanashi
Shinkin Bank (H/O)
Resona
Bank (Kofu)
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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55 |
50 |
45 |
80 |
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Recur.
Profit |
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Net
Profit |
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1 |
0 |
0 |
0 |
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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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25 |
25 |
25 |
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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 |
10.00 |
11.11 |
-43.75 |
-55.56 |
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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 |
1.82 |
0.00 |
0.00 |
0.00 |
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Notes:
Financials are only partially disclosed.
Profits are not disclosed and estimated only.
Forecast
(or estimated) figures for the 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 |
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US Dollar |
1 |
Rs.54.97 |
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UK Pound |
1 |
Rs.88.10 |
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Euro |
1 |
Rs.71.66 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
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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 |
-- |
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.