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Report Date : |
01.10.2013 |
IDENTIFICATION DETAILS
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Name : |
KUSHAL IMPEX CO LTD - 237927 |
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Registered Office : |
Yamashige Bldg 501, 1-24-2 Higashiueno Taitoku Tokyo 110-0015 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
October 1997 |
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Com. Reg. No.: |
0105-02-015752 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORT, WHOLESALE OF DIAMONDS,
JEWELRY PRODUCTS |
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No. of Employees : |
09 |
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 : |
No complaints |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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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
KUSHAL IMPEX CO LTD
REGD NAME: YK Kushal Impex
MAIN OFFICE: Yamashige Bldg 501, 1-24-2 Higashiueno Taitoku Tokyo 110-0015 JAPAN
Tel: 03-3836-3751
Fax: 03-3836-3752
URL: N/A
Import, wholesale of diamonds,
jewelry products
Nil
(subcontracted)
SUNIL KUMAR JAIN, PRES
W Jane, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES R/WEAK A/SALES Yen 1,000 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 3 M
TREND SLOW WORTH Yen 155 M
STARTED 1997 EMPLOYES 9
IMPORTER AND WHOLESALER
SPECIALIZING IN DIAMONDS & JEWELRY.
FINANCIAL SITUATION CONSIDERED
RATHER WEAK BUT SHOULD BE
GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
The subject company was
established by Sunil K Jain, an Indian businessman, in order to make most of
his previous experience in the subject line of business. This is a trading firm for import and
wholesale of diamonds & diamond jewelry, other gem stones &
products. Stones are partially subcontracted
mfg into jewelry products to local jewelry processors. Goods are imported from India, Hong Kong,
Belgium, other. Clients are local jewelry
processors, jewelry stores, other.
Financials are only partially
disclosed. Profits are not precisely
disclosed and are estimated only.
The sales volume for Dec/2012
fiscal term amounted to Yen 1,000 million, a similar amount in the previous
term. The net profit is believed posted
at Yen 20 million, similarly in the previous period.
For the current term ending Dec
2013 the net profit is projected at Yen 25 million, on a 10% rise in turnover,
to Yen 1,100 million. Weaker Yen may
raise export/import earnings in Yen terms.
The financial situation is
considered RATHER WEAK but should be good for MODERATE business
engagements.
Date Registered: Oct 1997
Regd No.: 0105-02-015752
(Tokyo-Taitoku)
Legal Status: Private
Limited Company (Yugen Kaisha)
Regd Capital: Yen
3 million
Major shareholders (%): Sunil K Jain (80), W Jain (20)
No. of shareholders: 2
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports
and wholesales diamonds, other gem stones, and jewelry prod-
ucts (--100%).
Goods are imported from Belgium,
India, Hong Kong, other.
Diamonds are partially
subcontracted mfg into jewelry products to local processors.
Clients: [Jewelry
stores, jewelry processors] Mikimoto & Co, K & Friends, Classic
Diamond, Kurita Co, Mitsuba Trading, Taniguchi & Co, other.
Exports to Hong Kong, Thailand,
India, other
No.
of accounts: 100
Domestic
areas of activities: Centered in greater-Tokyo
Suppliers:
[Mfrs, wholesalers] Imports from India, Hong Kong, Belgium, etc.
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
(Nishi)
Bank of India (Tokyo)
Relations: Money deposits &
transfers only
(In Million Yen)
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Terms Ending: |
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31/12/2013 |
31/12/2012 |
31/12/2011 |
31/12/2010 |
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Annual
Sales |
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1,100 |
1,000 |
1,000 |
1,100 |
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Recur.
Profit |
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.. |
.. |
.. |
.. |
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Net
Profit |
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25 |
20 |
20 |
20 |
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Total
Assets |
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N/A |
N/A |
N/A |
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Net
Worth |
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155 |
141 |
127 |
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Capital,
Paid-Up |
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3 |
3 |
3 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical
Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
10.00 |
0.00 |
-9.09 |
0.00 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
2.27 |
2.00 |
2.00 |
1.82 |
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Notes:
Financials are only partially disclosed.
Profits are not disclosed and estimated only.
Forecast
(or estimated) figures for 31/12/2013 fiscal term.
DIAMOND INDUSTRY – INDIA
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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 –
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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
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.78 |
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1 |
Rs.101.42 |
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Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.