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Report Date : |
03.06.2013 |
IDENTIFICATION DETAILS
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Name : |
BRILLIANT JEWELLERY CO LTD |
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Registered Office : |
Classic Bldg 2F, 3-12-5 Taito Taitoku Tokyo 110-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
May 1997 |
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Com. Reg. No.: |
0105-02-015528 (Tokyo-Taitoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesale of diamond jewelry |
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No. of Employees : |
4 |
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 : |
Moderate |
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Payment Behaviour : |
Regular |
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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 – 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 |
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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 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
BRILLIANT JEWELLERY CO LTD
REGD NAME: YK
Brilliant Jewelry
MAIN OFFICE: Classic
Bldg 2F, 3-12-5 Taito Taitoku Tokyo 110-0005 JAPAN
Tel:
03-5817-3621 Fax: 03-5817-3622
URL: N/A
Wholesale of
diamond jewelry
Kofu
HEMANT JAIN, PRES
(Indian resident)
Yen Amount: In million Yen, unless otherwise stated
FINANCES R/WEAK A/SALES Yen 1,469 M
PAYMENTSREGULAR CAPITAL Yen
25 M
TREND SLOW WORTH Yen 53 M
STARTED 1997 EMPLOYES 4
WHOLESALER OF DIAMOND JEWELRY, AFFILIATED TO CLASSIC DIAMONDS CO
LTD.
FINANCIAL SITUATION CONSIDERED RATHER WEAK
BUT SHOULD BE GOOD FOR MODERATEBUSINESS ENGAGEMENTS.
The subject
company was established on the basis of a wholesale division separated from
Classic Diamonds Co Ltd, importer & wholesaler of diamonds, at the caption
address (see REGISTRATION). The subject shares the office with the
parent, with phone/Fax numbers being jointly used. Specializes in importing, exporting and wholesaling
diamonds & jewelry. Nearly 50% are
said exports. Clients are local jewelry
processors, jewelry stores, other.
The sales volume for Mar/2012 fiscal term amounted
to Yen 1,469 million, a 20% down from Yen 1,841 million in the previous
term. High Yen hurt import/export
earnings in Yen terms. The recurring
profit was posted at Yen 15 million and the net profit at Yen 15 million,
respectively, compared with Yen 28 million recurring loss and Yen 28 million
net losses, respectively, a year ago.
For the term that
ended Mar 2013 the recurring profit was projected at Yen 20 million and the net
profit at Yen 20 million, respectively, on a 4% rise in turnover, to Yen 1,530
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: May 1997
Regd No.:
0105-02-015528 (Tokyo-Taitoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 2,000 shares
Issued: 500 shares
Sum: Yen 25 million
Major
shareholders (%): Henmart Jain (60), Classic Diamonds Co Ltd* (28%), M Emshin (12)
No.
of shareholders: 3
*.. Importer & wholesaler of diamonds
& jewelry, at the caption address, founded 1996, capital Yen 65 million,
sales Yen 7,622 million, net profit Yen 29 million, employees 14, pres M Emshin
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports, exports and wholesales polished
diamonds & jewelry (--100%).
Exports (about
50%)
Export
destinations are mainly Hong Kong & New York.
Clients: [Jewelry stores,
jewelry processors] Fukazawa Shokai, Higuchi, Oguchi Cast, Ishii Co, Classic
Diamond, Princess Jewelry, Excellent Diamonds, other.
Exports to Hong Kong, New York, other
No. of accounts:
100
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Supplied mostly from Classic Diamonds.
Also imports from Golden Dragon Jewelry, VK
Jewelry, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
State Bank of
India (Tokyo)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
31/03/2011 |
31/03/2010 |
|
|
Annual
Sales |
|
1,530 |
1,469 |
1,841 |
1,955 |
|
Recur.
Profit |
|
20 |
15 |
-28 |
|
|
Net
Profit |
|
20 |
15 |
-25 |
8 |
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Total
Assets |
|
|
964 |
1,661 |
1,220 |
|
Current
Assets |
|
|
862 |
1,558 |
|
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Current
Liabs |
|
|
386 |
1,057 |
|
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Net
Worth |
|
|
53 |
38 |
64 |
|
Capital,
Paid-Up |
|
|
25 |
25 |
25 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
4.15 |
-20.21 |
-5.83 |
5.68 |
|
|
Current Ratio |
|
.. |
223.32 |
147.40 |
.. |
|
N.Worth Ratio |
.. |
5.50 |
2.29 |
5.25 |
|
|
R.Profit/Sales |
|
1.31 |
1.02 |
-1.52 |
.. |
|
N.Profit/Sales |
1.31 |
1.02 |
-1.36 |
0.41 |
|
|
Return On Equity |
.. |
28.30 |
-65.79 |
12.50 |
|
Notes: Forecast (or estimated) figures for 31/03/2013 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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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 –
-
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.
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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.56.49 |
|
|
1 |
Rs.86.01 |
|
Euro |
1 |
Rs.73.68 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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 |
|
<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.