|
Report Date : |
01.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ROSY STAR CO LTD |
|
|
|
|
Registered Office : |
Miki Ishigami Bldg 5F, 3-19-7 Ueno Taitoku Tokyo 110-0005 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.05.2012 |
|
|
|
|
Date of Incorporation : |
June 2002 |
|
|
|
|
Com. Reg. No.: |
0105-02-018844 (Tokyo-Taitoku) |
|
|
|
|
Legal Form : |
Private Limited Company (Yugen Kaisha) |
|
|
|
|
Line of Business : |
Import, wholesale of polished diamonds |
|
|
|
|
No. of Employees : |
6 |
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 : |
No Complaints |
|
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 (31.03.2011) |
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
ROSY STAR CO LTD
REGD NAME: YK
Rosy Star
MAIN OFFICE: Miki
Ishigami Bldg 5F, 3-19-7 Ueno Taitoku Tokyo 110-0005 JAPAN
Tel:
03-5807-8428
Fax: 03-5807-8429
URL: N/A
Import, wholesale
of polished diamonds
Nil
(Subcontracted)
SHAILESH
MANGUKIYA, PRES (Indian resident)
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 856 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 20 M
TREND UP WORTH Yen 52 M
STARTED 2002 EMPLOYES 6
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject
company was established by Shailesh Mangukiya, an Indian resident businessman,
in order to import and market polished diamonds as agent for Patdim Co Ltd,
India. He had been working three years
at the firm and became independent to open the office in Japan. The firm has gradually expanded import
sources other than India to Belgium, Dubai, USA, etc. 80% of the goods are still imported from
India alone. Clients are local jewel
processors, jewelers and the related, numbering to about 200 clients. Partially processes the diamonds into jewelry
products on consignment to local jewelry processors.
Financials are
only partially disclosed.
The sales volume for May/2012 fiscal term
amounted to Yen 856 million, a 4% up from Yen 821 million in the previous
term. Sales rose thanks to dealership arrangement
in Tokyo and Kofu areas. The recurring
profit was posted at Yen 18 million and the net profit at Yen 6 million,
respectively, compared with Yen 6 million net profit a year ago.
For the current
term ending May 2013 the recurring profit is projected at Yen 20 million and
the net profit at Yen 7 million, respectively, on a 3% rise in turnover, to Yen
880 million. Business is seen steadily
expanding.
The financial
situation is considered maintained FAIR and good for ORDINARY business
engagements.
Date Registered: Jun
2002
Regd No.:
0105-02-018844 (Tokyo-Taitoku)
Legal Status: Private Limited Company (Yugen Kaisha)
Regd Capital: Yen 20 million
Major shareholders (%): Shailesh
Mangukiya (100)
Nothing
detrimental is known as to his commercial morality.
Activities: Imports and
wholesales polished, pre-cut diamonds (100%).
Goods are imported from India (80%), Israel,
Belgium, Thailand, USA, etc.
Goods are partially processed into products by
subcontracted mfrs.
Clients: Jewel processors, jewelers, chain stores,
other (Details undisclosed)
No. of accounts:
200
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Imports from Patdim Jewellery Pvt, Padium Co, Star Light Jewellery
LLC,India, other from Belgium, Dubai, USA, etc.
Imports from India account for about 80% of
total imports.
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Asahi Shinkin Bank
(Ueno)
SMBC (Ueno)
Relations: Money
deposits & transfers only
(In Million Yen)
|
Terms Ending: |
|
31/05/2013 |
31/05/2012 |
31/05/2011 |
31/05/2010 |
|
Annual
Sales |
|
880 |
856 |
821 |
799 |
|
Recur.
Profit |
|
20 |
18 |
.. |
7 |
|
Net
Profit |
|
7 |
6 |
6 |
5 |
|
Total
Assets |
|
|
409 |
N/A |
464 |
|
Net
Worth |
|
|
52 |
46 |
40 |
|
Capital,
Paid-Up |
|
|
20 |
20 |
20 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
2.80 |
4.26 |
2.75 |
11.13 |
|
|
Current Ratio |
|
|
.. |
.. |
.. |
|
N.Worth Ratio |
|
12.71 |
.. |
8.62 |
|
|
N.Profit/Sales |
0.80 |
0.70 |
0.73 |
0.63 |
|
Notes:
Financials are only partially disclosed.
Forecast
(or estimated) figures for 31/05/2013 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.
-
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.53.77 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.70.68 |
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 |
|
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.