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Report Date : |
15.04.2014 |
IDENTIFICATION DETAILS
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Name : |
AMI IMPEX CO LTD |
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Registered Office : |
Shahiya Bldg 5F, 1-12-6 Misuji Taitoku Tokyo 111-0055 |
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Country : |
Japan |
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Financials (as on) : |
31.07.2013 |
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Date of Incorporation : |
April 1993 |
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Com. Reg. No.: |
0105-01-022046 |
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Legal Form : |
Limited Company |
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Line of Business : |
Importer, wholesaler of polished diamonds, precious
metals, jewelry products |
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No of Employees : |
8 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.
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Source
: CIA |
AMI
IMPEX CO LTD
Ami Impex KK
Shahiya Bldg 5F, 1-12-6 Misuji Taitoku Tokyo
111-0055 JAPAN
Tel: 03-3832-3006 Fax: 03-3832-3002
* Moved to the caption address from the one
as given, which is Registered Address
E-Mail address: ashah@amiimpex.net
Import, wholesale of polished diamonds,
precious metals, jewelry products
Kofu
Ueno, Osaka
India (Raj Gems – Headquarters), Bangkok,
Hong Kong, Belgium, USA
(subcontracted)
RAKESH J SHAH, PRES
Yen Amount: In
million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 5,000 M
PAYMENTSNO COMPLAINTS CAPITAL Yen
100 M
TREND SLOW WORTH Yen 187 M
STARTED 1993 EMPLOYES 8
IMPORTER AND
WHOLESALER SPECIALIZING IN POLISHED DIAMONDS & JEWELRY, OWNED BY RAJ GEMS,
INDIA
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject
company was established by Raj Gems, India as its marketing office in
Japan. Rakesh J Shah was appointed as
its representative. He is elder son of J
B Shah, founder and owner of Raj Gems, India.
This is a trading firm specializing in importing & wholesaling
polished diamonds from India, and from Israel, Belgium, Hong Kong, etc. About 60% of the goods are supplied from Raj
Gems. Goods are shipped to jewelry
processors, jewelers centrally in greater-Tokyo area, extending into Kofu,
Yamanashi-Pref, a hub of jewelry factories and workshops, where the firm
operates a branch office. Goods are
partially retained. Diamonds are
partially subcontracted mfg into jewelry products to local jewelry processors.
Financials are
only partially disclosed.
The sales volume
for Jul/2013 fiscal term amounted to Yen 5,000 million, a 1% down from Yen
5,030 million in the previous term. The
pervious term’s figures are confirmed as Yen 5,030 million, which we reported
as estimated in the last report. The net
profit was posted at Yen 5 million, compared with Yen 7 million a year ago.
For the current
term ending Jul 2014 the net profit is projected at Yen 7 million, on a 5% rise
in turnover, to Yen 5,250 million.
The financial situation
is considered FAIR and good for ORDINARY business engagements.
Date
Registered: Apr 1993
Regd
No.: 0105-01-022046
(Tokyo-Taitoku)
Legal
Status: Limited
Company (Kabushiki Kaisha)
Authorized: 2,000 shares
Issued: 2,000
shares
Sum:
Yen
100 million
Major
shareholders (%): Rakesh J Shah (100)
Nothing detrimental is known as to his
commercial morality.
Activities: Imports, exports
and wholesales and retails polished diamonds, tanzanite gems, ruby, sapphire,
opal, other gem stones & precious metals, engagement rings, jewelry
products (--100%).
60% of the goods are supplied from Raj Gems, India, other from Israel,
Belgium, Hong Kong, Thailand, etc.
Diamonds and precious metals are partially
subcontracted mfg to local processors into jewelry
products.
Clients: [Jewelers,
jewelry processors, consumers] Lucky Co, Kashikey Co, Gem Trading,
Taniguchi Jewelry, EMA Japan, Uchihara Co,
other.
No.
of accounts: 300 (Wholesale Div)
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Raj Gems, Mohit Diamonds (--India), Kay Diamonds NV (Belgium),
ESPEKA, other.
Payment
record: No complaints
Location: Business
area Tokyo. Office premises at the
caption address are leased and maintained satisfactorily.
Bank
References:
Bank of India (Tokyo)
State Bank of India (Tokyo)
Relations: Satisfactory
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Terms Ending: |
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31/07/2014 |
31/07/2013 |
31/07/2012 |
31/07/2011 |
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Annual
Sales |
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5,250 |
5,000 |
5,030 |
3,900 |
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Recur.
Profit |
|
.. |
.. |
.. |
.. |
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Net
Profit |
|
7 |
5 |
7 |
7 |
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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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187 |
182 |
175 |
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Capital,
Paid-Up |
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100 |
100 |
100 |
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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 |
5.00 |
-0.60 |
28.97 |
-2.50 |
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Current Ratio |
.. |
.. |
.. |
||
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N.Worth Ratio |
.. |
.. |
.. |
||
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N.Profit/Sales |
0.13 |
0.10 |
0.14 |
0.18 |
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Notes:
Financials are only partially disclosed.
The 31/07/2012 fiscal term’s figures are confirmed.
Forecast
(or estimated) figures for the 31/07/2014 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
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 60.26 |
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|
1 |
Rs. 101.09 |
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Euro |
1 |
Rs. 83.73 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
DPT |
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.