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Report Date : |
12.09.2013 |
IDENTIFICATION DETAILS
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Name : |
SCHWARTZ JAPAN CO LTD |
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Registered Office : |
Sasuga Daini Bldg 402, 5-21-3 Ueno Taitoku Tokyo 110-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
May, 1994 |
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Legal Form : |
Limited Company |
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LINE OF BUSINESS : |
IMPORT,
WHOLESALE OF DIAMONDS, JEWELRY |
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No. of Employees : |
4 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
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 |
SCHWARTZ JAPAN CO
LTD
Schwartz Japan KK
Sasuga Daini Bldg 402, 5-21-3 Ueno Taitoku Tokyo 110-0005 JAPAN
Tel: 03-5818-2950
Fax: 03-5818-2953
URL: Error!
Hyperlink reference not valid.
E-Mail address: (thru the URL)
Import, wholesale of diamonds, jewelry
Nil
Israel
(subcontracted)
A LEVI, PRES (Only phonetically spelled)
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 870 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 100 M
TREND SLOW WORTH Yen 125 M
STARTED 1994 EMPLOYES 4
TRADING FIRM SPECIALIZING IN DIAMONDS & JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established by A Schwartz & Sons Diamonds
Ltd (Israel) as its marketing arm in Japan.
This is a trading firm for import and wholesale of diamonds, diamond
jewelry, other. Diamonds are partially
subcontracted mfg into jewelry products to local processors. Goods are wholly imported from A Schwartz
& Sons (Israel) and its group firms.
Clients include jewelers, jewel processors, other.
Financials are only partially disclosed.
The sales volume for Dec/2012 fiscal term amounted to Yen 870 million, a
13% down from Yen 1,000 million in the previous term. The net profit is estimated posted at Yen 15
million, compared with Yen 20 million a year ago. Profits are not precisely disclosed.
For the current term ending Dec 2013 the net profit is projected at Yen
20 million, on a 9% rise in turnover, to Yen 950 million. Weak Yen may push earnings upward in Yen
terms.
The financial situation is considered FAIR and good for ORDINARY business
engagements.
Date Registered: May 1994
Legal Status: Limited Company (Kabushiki
Kaisha)
Authorized: 8,000 shares
Issued: 2,000
shares
Sum: Yen
100 million
Major shareholders
(%): A Schwartz & Sons
Diamonds Ltd (51), A Levi (49)
No. of
shareholders: 2
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Imports and
wholesales diamonds, diamond jewelry, precious metal products, other (--100%)
Clients: [Mfrs, wholesalers]
Uchihara Co, Kashikey Co, Kunita Co, other
No. of accounts: 100
Domestic areas of
activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Imports from A Schwartz & Sons Diamonds Ltd (Israel)
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Nihombashi-Higashi)
Asahi Shinkin Bank (Ueno)
Relations: Satisfactory
(In Million Yen)
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Terms Ending: |
|
31/12/2013 |
31/12/2012 |
31/12/2011 |
|
Annual Sales |
|
950 |
870 |
1,000 |
|
Recur. Profit |
|
.. |
.. |
.. |
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Net Profit |
|
20 |
15 |
20 |
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Total Assets |
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|
N/A |
N/A |
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Net Worth |
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|
125 |
110 |
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Capital, Paid-Up |
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|
100 |
100 |
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Div.P.Share(¥) |
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|
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
9.20 |
-13.00 |
5.26 |
|
|
Current Ratio |
|
|
.. |
.. |
|
N.Worth Ratio |
|
.. |
.. |
|
|
N.Profit/Sales |
2.11 |
1.72 |
2.00 |
|
Notes: Financials are only partially disclosed.
Forecast (or estimated) figures for the 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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.90 |
|
|
1 |
Rs.100.47 |
|
Euro |
1 |
Rs.84.65 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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 |
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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 |
|
<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.