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Report Date : |
08.10.2013 |
IDENTIFICATION DETAILS
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Name : |
RMC GEMS JAPAN LTD |
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Registered Office : |
Kotokudo Bldg 602, 5-7-7 Ueno Taitoku
Tokyo 110-0005 |
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Country : |
Japan |
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Date of Incorporation : |
January 1996 |
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Com. Reg. No.: |
0105-01-016832 (Tokyo-Taitoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Importer, wholesaler of precut diamonds, rubies, other colored
& precious stones, beads, jewelry products |
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No. of Employees : |
05 |
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 : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
–--- |
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 |
RMC GEMS JAPAN LTD
R.M.C. Gems Japan
KK
Kotokudo Bldg 602,
5-7-7 Ueno Taitoku Tokyo 110-0005 JAPAN
Tel:
03-5816-2777 Fax: 03-5816-2778
E-mail address: sales@rmcgems.com
Import,
wholesale of diamonds, rubies, other gem stones
Kofu
(Yamanashi)
India,
Hong Kong, Thailand
(subcontracted)
MANOJ KUMAR
BHADARI, PRES (Indian resident)
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES
Yen 350 M
PAYMENTSREGULAR CAPITAL Yen 20 M
TREND UP WORTH
Yen 48 M
STARTED 1996 EMPLOYES
5
IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS AND
OTHER GEM STONES.
FINANCIAL SITUATION CONSIDERED
FAIR AND SHOULD BE GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established as Japan marketing base of RMC Gems,
India. The firm imports and wholesales
loose diamonds, rubies, beads, other colored & gem stones. We have contacted directly with the owner and
the information contained here is mostly collected from the owner and derived
from its website. He does not, however,
disclose full financials and the following figures are the best we have
gathered and guessed from the dialogue we had with the owner’s secretary. The firm has a branch office in Kofu, the
center of jewelry processing.
Financials are not disclosed. The
following figures have been collected only verbally from phone conversation
with the owner. They are believed
correct, although they have not been verified by outside sources.
The sales volume for Dec/2012 fiscal term amounted to Yen 350 million, a
3% up from Yen 340 million in the previous term. The net profit is supposed to have been
posted at Yen 4 million.
For the current term ending Dec 2013 the net profit is projected at Yen
5 million, on a 3% rise in turnover, to Yen 370 million. .
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements.
Date Registered: Jan 1996
Regd No.: 0105-01-016832 (Tokyo-Taitoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
800 shares
Issued:
400 shares
Sum: Yen 20 million
Major shareholders (%): Manoj
Kumar Bhadari (100)
Nothing
detrimental is known as to his commercial morality.
Activities: Imports and
wholesales precut diamonds, rubies, other colored & precious stones, beads,
jewelry products (--100%).
(Handling Items):
Precious Stones: diamonds, ruby,
topaz, moon stone, lolite, amethyst, tourmaline, iolite, peridot, other;
Beads: diamond beads,
precious beads, semi-precious beads, tourmaline beads;
Synthetic Stones: created emerald,
alexite, mexifire, perublu, syn. White sapphire, other;
Jewelry: necklaces, broaches, other
Clients:
Jewelry processors, jewelry stores, other.
No. of accounts: Unavailable
Domestic areas of activities:
Centered in greater-Tokyo
Suppliers:
[Mfrs, wholesalers] Imports from RMC Gems, India and group firms.
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References:
Mizuho
Bank (Ueno)
Relations:
Satisfactory
(In Million Yen)
NOT DISCLOSED AND UNAVAILABLE
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.61.78 |
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UK Pound |
1 |
Rs.99.06 |
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Euro |
1 |
Rs.83.84 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
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 |
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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.