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Report Date : |
09.04.2014 |
IDENTIFICATION DETAILS
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Name : |
ROSY STAR CO LTD |
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Registered Office : |
Miki Ishigami Bldg 5F, 3-19-7 Ueno Taitoku
Tokyo 110-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.05.2013 |
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Date of Incorporation : |
June 2002 |
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Com. Reg. No.: |
0105-02-018844 (Tokyo-Taitoku) |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and wholesaler of polished & pre-cut diamonds |
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No. of Employees : |
07 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
Slow but Correct |
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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 – September 30th, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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.
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Source : CIA |
ROSY STAR CO LTD
YK Rosy Star
Miki Ishigami Bldg
5F, 3-19-7 Ueno Taitoku Tokyo 110-0005 JAPAN
Tel:
03-5807-8428 Fax: 03-5807-8429
URL: N/A
Import,
wholesale of polished diamonds
Nil
(Subcontracted)
SHAILESH
MANGUKIYA, PRES (Indian resident)
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 918 M
PAYMENTS Slow
but Correct CAPITAL Yen
20 M
TREND UP WORTH Yen 59 M
STARTED 2002 EMPLOYES 7
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established by Shailesh Mangukiya, an Indian resident businessman, in order to import and market polished diamonds as agent for Patdim Co Ltd, India. He had been working three years at the firm and became independent to open the office in Japan. The firm has gradually expanded import sources other than India to Belgium, Dubai, USA, etc. 80% of the goods are still imported from India alone. Clients are local jewel processors, jewelers and the related, numbering to about 200 clients. Partially processes the diamonds into jewelry products on consignment to local jewelry processors.
Financials are only partially disclosed.
The sales volume for May/2013 fiscal term amounted to Yen 918 million, a 7% up from Yen 856 million in the previous term. Sales rose thanks to expanded dealership arrangement in Tokyo and Kofu areas. The net profit was posted at Yen 7 million, compared with Yen 6 million a year ago.
For the current term ending May 2014 the net profit is projected at Yen 10 million, on a 4% rise in turnover, to Yen 950 million. Business is seen steadily expanding.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements.
Date Registered: Jun 2002
Regd No.: 0105-02-018844 (Tokyo-Taitoku)
Legal Status: Private
Limited Company (Yugen Kaisha)
Regd Capital: Yen
20 million
Major shareholders (%):
Shailesh Mangukiya (100)
Nothing
detrimental is known as to his commercial morality.
Activities: Imports and wholesales polished, pre-cut diamonds (100%).
Goods are imported from India (80%), Israel, Belgium, Thailand, USA, etc.
Goods are partially processed into products by subcontracted mfrs.
Clients: Jewel processors, jewelers, chain stores, other (Details undisclosed)
No. of accounts: 200
Domestic areas of activities: Centered in greater-Tokyo
Suppliers: [Mfrs, wholesalers] Imports from Patdim Jewellery Pvt, Padium Co, Star Light Jewellery LLC, India, other from Belgium, Dubai, USA, etc.
Imports from India account for about 80% of total imports.
Payment record: Slow but Correct
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
Asahi Shinkin Bank (Ueno)
SMBC (Ueno)
Relations: Money deposits & transfers only
(In Million Yen)
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Terms Ending: |
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31/05/2014 |
31/05/2013 |
31/05/2012 |
31/05/2011 |
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Annual
Sales |
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950 |
918 |
856 |
821 |
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Recur.
Profit |
|
.. |
.. |
.. |
.. |
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Net
Profit |
|
10 |
7 |
6 |
6 |
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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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59 |
52 |
46 |
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Capital,
Paid-Up |
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20 |
20 |
20 |
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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 |
3.49 |
7.24 |
4.26 |
2.75 |
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Current Ratio |
.. |
.. |
.. |
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N.Worth Ratio |
.. |
.. |
.. |
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N.Profit/Sales |
1.05 |
0.76 |
0.70 |
0.73 |
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Notes: Financials are only partially disclosed.
Forecast (or estimated) figures for 31/05/2014 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.95 |
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1 |
Rs.99.36 |
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Euro |
1 |
Rs.82.15 |
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.