MIRA INFORM REPORT

 

 

Report Date :

08.06.2013

 

IDENTIFICATION DETAILS

 

Name :

GOLDSTAR JEWELLERY JAPAN CO LTD

 

 

Registered Office :

4-1-6 Taito Taitoku Tokyo 110-0016

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

March 2001

 

 

Com. Reg. No.:

0105-02-018259 (Tokyo-Taitoku)

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import, wholesale of precut, polished diamonds, Jewellery products

 

 

No. of Employees :

03 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory  

 

 

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 – 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

 

GOLDSTAR JEWELLERY JAPAN CO LTD

 

 

REGD NAME

 

YK Goldstar Jewellery

 

 

MAIN OFFICE

 

4-1-6 Taito Taitoku Tokyo 110-0016 JAPAN

Tel: 03-5807-8060     Fax: 03-5807-3915

 

*.. Moved to the caption address which is the home residence of the pres

                       

URL:                 http://www.goldstarjewellery.com

E-Mail address:            japan@goldstarjewellery.com

 

 

ACTIVITIES

 

Import, wholesale of precut, polished diamonds, Jewellery products

 

 

BRANCHES

 

Nil

 

 

OFFICERS

 

ASHRA BRIJESH, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 400 M

PAYMENTSSlow but Correct  CAPITAL      Yen 3 M

TREND SLOW                           WORTH            Yen 38 M

STARTED         2001                             EMPLOYES      3

 

 

COMMENT

 

IMPORTER OF POLISHED DIAMONDS AND JEWELRY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

           

The subject company was established by Goldstar Jewellery Ltd, India, as its Japan branch.  This is a trading firm for importing and wholesaling precut, polished diamonds and jewelry products.  Goods are imported essentially from the parent in India and its group companies.  Diamonds are subcontracted to local jewelry processors for mfg into jewelry products.  Clients are local jewelry processors, jewelry stores, consumers.

 

 

FINANCIAL INFORMATION

 

Financials are only partially disclosed and in rounded off numbers.

 

The sales volume for Mar/2012 fiscal term amounted to Yen 400 million, a similar amount in the previous term.  The net profit was posted at Yen 4 million, compared with Yen 5 million a year ago.

 

For the current term ending Mar 2013 the net profit is projected at Yen 3 million, on a similar turnover, at Yen 400 million.

 

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

 

 

REGISTRATION

 

Date Registered:        Mar 2001

Regd No.:                        0105-02-018259 (Tokyo-Taitoku)

Legal Status:       Private Limited Company (Kabushiki Gaisha)

Regd Capital:      Yen 3 million

     Major shareholders (%): Brijesh Ashra (100)

 

Nothing detrimental is known as to his commercial morality.

 

OPERATION

 

Activities: Imports and wholesales precut, polished diamonds, emerald, ruby, sapphire, tourmaline, aquamarine, other precious stones, diamond jewelry, platinum jewelry, other jewelry products (--100%).

 

Diamonds are subcontracted to local jewelry processors for mg into jewelry products.

 

Stones are imported from Zambia, Columbia, Brazil, Pakistan, Afghanistan, other.

 

Clients: Jewellery processors, Jewellery store, chain stores, etc

No. of accounts: 300

Domestic areas of activities: Centered in greater-Tokyo

 

Suppliers: [Mfrs] Imports from Goldstar Jewellery, India, other from Zambia, Columbia, Brazil, Pakistan, Afghanistan, etc.

 

Payment record: Slow but Correct 

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

MUFG (Ueno)

Asahi Shinkin Bank (Nishimachi)

Relations: Satisfactory.

 

 


FINANCES

(In Million Yen)

 

 

 

31/03/2013

31/03/2012

31/03/2011

31/03/2010

Annual Sales

 

380

400

400

400

Recur. Profit

 

 

 

 

 

Net Profit

 

3

4

5

5

Total Assets

 

 

N/A

N/A

N/A

Net Worth

 

 

38

34

29

Capital, Paid-Up

 

 

3

3

3

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

-5.00

0.00

0.00

0.00

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.79

1.00

1.25

1.25

 

Note: Financials are only partially disclosed.

Forecast (or estimated) for the 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.

-            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.56.74

UK Pound

1

Rs.88.53

Euro

1

Rs.75.20

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.