|
Report Date : |
29.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
RICH DIAMONDS INC |
|
|
|
|
Registered Office : |
1-13-36 Takabatake Kofu City
Yamanashi-Pref 400-0042 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.07.2013 |
|
|
|
|
Date of Incorporation : |
September 1994 |
|
|
|
|
Com. Reg. No.: |
0900-01-002483 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Import, wholesale of polished diamonds,
jewelry |
|
|
|
|
No. of Employees : |
19 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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
RICH DIAMONDS INC
REGD NAME: Rich
Diamonds KK
MAIN OFFICE: 1-13-36
Takabatake Kofu City Yamanashi-Pref 400-0042 JAPAN
Tel:
055-233-3451 Fax: 055-233-3452
URL: http://www.richdia.com
E-Mail address: info@richdia.com
Import, wholesale
of polished diamonds, other jewelry
Tokyo
(subcontracted)
ANUP KUMAR ARUN
AGARWAL, PRES (Indian resident)
Hiroshi Fujikawa,
dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 4,736 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 20 M
TREND UP WORTH Yen (-) 183 M
STARTED 1994 EMPLOYES 19
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established by
Shanti Enterprise, India, as its marketing base in Japan for wholesaling polished diamonds and other jewelry. This is a trading firm for import & wholesale of polished diamonds centrally, and
other gem stones. Goods are imported
from the parent and its group firm in Hong Kong. Based in Kofu City, a hub of jewelry
processors and stores, its clients are jewelry processors, wholesalers, jewelry
stores covering the greater-Tokyo region.
The Tokyo Branch Office functions as its marketing base in Tokyo area,
covering the nationwide networks.
The sales volume for Jul/2013 fiscal term amounted to Yen 4,736 million,
a 12% up from Yen 4,221 million in the previous term. Diamonds & jewelry prices were up. The recurring profit was posted at Yen 377
million, while the bottom line posted Yen 428 million net losses for the term,
respectively, compared with Yen 79 million recurring profit and Yen 13 million
net profit, respectively, a year ago.
The deficits come from the extraordinary losses to write off the
accumulated foreign currency exchanges losses.
For the current term ending Jul 2014 the recurring profit is projected
at Yen 50 million and the net profit at Yen 20 million, respectively, on a 3%
rise in turnover, to Yen 4,900 million.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements.
Date Registered:
Sept 1994
Regd No.:
0900-01-002483
(Yamanashi-Kofu)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,600
shares
Issued: 400
shares
Sum: Yen
20 million
Major shareholders (%): Sohan Ginka (100)
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports and wholesales polished diamonds,
other gem stones (--50%),
fingerings,
earrings, pendants, necklaces, bracelets, other jewelry products (--50%).
(Brands): La Fantazia, I Wish, Richdiamonds, Midas
Goods are imported
from India, Hong Kong, Korea, etc.
Clients: [Jewelry
processors, jewelry wholesalers, jewelers] Lucky Co, Infinity Co, Takano
Kikinzoku Co, Jewelry Iinuma, San-Ai International, Jewelry Tsutsumi, Koho
Shokai, other
No. of accounts:
300
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Imports from Shanti Enterprise (India), Unirich Diamond (Hong Kong) (--group firms), DTC, BHP, Rio
Tinto Diamonds, Alrosa, other from Israel, Russia, Korea, other.
Payment record: Slow but correct
Location: Business area Kofu
City. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References: Mizuho
Bank (Kofu)
Resona
Bank (Kofu)
Relations:
Satisfactory
(In Million Yen)
|
Terms Ending: |
31/07/2014 |
31/07/2013 |
31/07/2012 |
31/07/2011 |
|
|
Annual
Sales |
|
4,900 |
4,736 |
4,221 |
5,220 |
|
Recur.
Profit |
|
50 |
377 |
79 |
54 |
|
Net
Profit |
|
20 |
-428 |
13 |
25 |
|
Total
Assets |
|
|
4,683 |
4,268 |
4,086 |
|
Current
Assets |
|
|
3,962 |
3,633 |
3,439 |
|
Current
Liabs |
|
|
4,589 |
3,884 |
3,672 |
|
Net
Worth |
|
|
-183 |
245 |
231 |
|
Capital,
Paid-Up |
|
|
20 |
20 |
20 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
3.46 |
12.20 |
-19.14 |
27.41 |
|
|
Current Ratio |
|
.. |
86.34 |
93.54 |
93.65 |
|
N.Worth Ratio |
.. |
-3.91 |
5.74 |
5.65 |
|
|
R.Profit/Sales |
|
1.02 |
7.96 |
1.87 |
1.03 |
|
N.Profit/Sales |
0.41 |
-9.04 |
0.31 |
0.48 |
|
|
Return On Equity |
.. |
.. |
5.31 |
10.82 |
|
Notes: Forecast
(or estimated) figures for the 31/07/2014 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.62.39 |
|
|
1 |
Rs.101.80 |
|
Euro |
1 |
Rs.84.75 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.