|
Report Date : |
17.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
VITHAL TRADING COMPANY, YK |
|
|
|
|
Registered Office : |
1-4-30 Naka-Ogawara Kofu Yamanashi-Pref 400-0855 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.08.2012 |
|
|
|
|
Date of Incorporation : |
August, 2002 |
|
|
|
|
Com. Reg. No.: |
006135 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Import, wholesale of polished diamonds, diamond set jewelry, other |
|
|
|
|
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 : |
Small Company |
|
|
|
|
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 |
VITHAL TRADING
COMPANY, YK
YK Vithal Trading
1-4-30 Naka-Ogawara Kofu Yamanashi-Pref 400-0855 JAPAN
Tel: 055-242-7801 Fax:
055-242-7802
URL: http://www.vithaltrading.jp
E-mail address: vithaltrading@yahoo.co.jp
Import, wholesale of polished diamonds, diamond set jewelry, other, from
India
Nil
(subcontracted)
CHETAN KUMAR PALRIWARA, PRES
Yen Amount: In million Yen, unless
otherwise stated
FINANCES R/WEAK A/SALES Yen 410 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
9 M
TREND SLOW WORTH Yen 66 M
STARTED 2002 EMPLOYES 2
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS & JEWELRY, FROM INDIA.
FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR
MODERATE BUSINESS ENGAGEMENTS
The subject company was established by Chetan Kumar Palriwara, an Indian
businessman residing in Japan over 8 years, speaking fluent Japanese, in order
to make most of his experience in the subject line of business. This is a trading firm for import and
wholesale of polished diamonds and jewelry products. Diamonds are partially subcontracted mfg into
products by local jewelry processors.
The operations cover widely in the greater-Tokyo area.
Financials are only partially disclosed.
The sales volume for Aug/2012 fiscal term amounted to Yen 410 million, a
similar amount in the previous period.
The net profit was posted at Yen 2 million, similarly in the previous
term.
For the current term ending Aug 2013 the net profit is projected at Yen
2 million, on a 2% rise in turnover, to Yen 420 million.
The financial situation is considered RATHER WEAK but should be good for
MODERATE business engagements.
Date
Registered: Aug 2002
Reg. No.: (Yamanashi-Kofu)
006135
Legal Status: Private Limited Company
(Yugen Kaisha)
Reg. Capital: Yen 9 million
Major shareholders
(%): Chetan Kumar Palriwara
(100).
Nothing detrimental is known as to his commercial morality.
Activities: Imports and
wholesales polished diamonds, other precious stones, diamond set jewelry, other
jewelry products, from India (--100%).
Diamonds and other precious stones are partially subcontracted mfg to
local jewelry processors.
Clients: [Jewelry
processors, jewelry stores, consumers] Ishitomo Co, other
No. of accounts: 100
Domestic areas of activities: Centered in Yamanashi-Pref, extending into
Tokyo.
Suppliers: [Mfrs] Imports
solely from India
Payment record: Slow but Correct
Location: Business area in
Yamanashi City. Office premises at the
caption address are leased and maintained satisfactorily.
Bank References:
Resona Bank (Kofu)
Yamanashi Chuo Bank (H/O)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
|
31/08/2013 |
31/08/2012 |
31/08/2011 |
31/08/2010 |
|
Annual Sales |
|
420 |
410 |
410 |
560 |
|
Recur. Profit |
|
.. |
.. |
.. |
.. |
|
Net Profit |
|
2 |
2 |
2 |
3 |
|
Total Assets |
|
|
N/A |
N/A |
N/A |
|
Net Worth |
|
|
66 |
64 |
62 |
|
Capital, Paid-Up |
|
|
9 |
9 |
9 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
2.44 |
0.00 |
-26.79 |
-20.00 |
|
|
Current Ratio |
|
|
.. |
.. |
.. |
|
N.Worth Ratio |
|
.. |
.. |
.. |
|
|
N.Profit/Sales |
0.48 |
0.49 |
0.49 |
0.54 |
|
Notes: Financials are only
partially disclosed.
Forecast (or estimated) figures for the 31/08/2013 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.54.77 |
|
|
1 |
Rs.83.31 |
|
Euro |
1 |
Rs.70.46 |
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.