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Report Date : |
19.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIMEX CO LTD |
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|
|
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Registered Office : |
4-4-23 Kamiishida Kofu Yamanashi-Pref 400-0041 |
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Country : |
Japan |
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Financials (as on) : |
31.10.2013 |
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Date of Incorporation : |
November 1999 |
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|
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Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Imports and wholesales
polished diamond, other gem stones, handling jewelry products. |
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No. of Employees : |
6 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 |
DIMEX CO LTD
REGD NAME: YK
Dimex
MAIN OFFICE: 4-4-23
Kamiishida Kofu Yamanashi-Pref 400-0041 JAPAN
Tel:
055-235-5108 Fax: 055-235-5109
URL: http://www.colorfulldiamond.com
E-Mail
address: cdia@colorfulldiamond.com
Import,
wholesale of diamonds, diamond jewelry
Kofu,
Tokyo (2)
India
(subcontracted)
DHEERJ
SINGHI, PRES
Toshiaki
Kobayashi, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY:
FINANCES FAIR A/SALES Yen
580 M
PAYMENTS REGULAR CAPITAL Yen 8 M
TREND SLOW WORTH Yen
54 M
STARTED 1999 EMPLOYES 6
TRADING FIRM SPECIALIZING IN DIAMONDS & JEWELRY.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject
company was established jointly by Dheerj Singhi, an Indian resident business
man, and Toshiaki Kobayashi in order to make most of their experiences in the
subject line of business. This is a
trading house specializing in polished diamonds and other gem stones. Also handles jewelry products. Goods are imported centrally from India and
Belgium. Diamonds are partially
subcontracted mfg into jewelry products to local processors.
Financials
are only partially disclosed.
The sales volume for Oct/2012
fiscal term amounted to Yen 580 million, a 17% down from Yen 700 million in the
previous term, as affected by sluggish consumer spending. The net profit was posted at Yen 4 million,
compared with Yen 8 million a year ago.
For the
current term ending Oct 2013 the net profit is projected at Yen 5 million, on a
3% rise in turnover, to Yen 595 million.
Sales in Yen terms are raised by the weak Yen.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 10.5 million, on 30 days normal terms.
Date Registered: Nov 1999
Legal Status:
Private Limited Company (Yugen Kaisha)
Regd Capital: Yen 8 million
Major shareholders
(%): D Singhi (70), Toshiaki Kobayashi (30)
No. of shareholders: 2
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports and wholesales polished
diamond, other gem stones, handling jewelry products (--100%.)
Diamonds are partially
subcontracted mfg to local processors.
Clients: [Mfrs, wholesalers] Jewel/precious metal
companies (60%), Sinc Corp (30%), Kondo Jewelry Co (10%)
No. of
accounts: 30
Domestic
areas of activities: Centered in Kofu
Suppliers: [Mfrs, wholesalers] Imports from India
(50%), domesic suppliers (50%)
Payment record: Regular
Location:
Business area in Kofu, Yamanashi-Pref.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References:
Yamanashi
Chuo Bank (Minami-Ryuoh)
Resona
Bank (Kofu)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
Terms Ending: |
|
31/10/2013 |
31/10/2012 |
31/10/2011 |
31/10/2010 |
|
Annual
Sales |
|
595 |
580 |
700 |
580 |
|
Recur.
Profit |
|
.. |
.. |
.. |
.. |
|
Net
Profit |
|
5 |
4 |
8 |
2 |
|
Total
Assets |
|
|
N/A |
N/A |
N/A |
|
Net
Worth |
|
|
54 |
50 |
42 |
|
Capital,
Paid-Up |
|
|
8 |
8 |
8 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
|
|
S.Growth Rate |
2.59 |
-17.14 |
20.69 |
0.00 |
|
|
Current Ratio |
|
|
.. |
.. |
.. |
|
N.Worth Ratio |
|
.. |
.. |
.. |
|
|
N.Profit/Sales |
0.84 |
0.69 |
1.14 |
0.34 |
|
Notes:
Financials are only partially disclosed.
Forecast
(or estimated) figures for the 31/10/2013 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.63.14 |
|
|
1 |
Rs.100.48 |
|
Euro |
1 |
Rs.84.36 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.