MIRA INFORM REPORT

 

 

Report Date :

20.08.2014

 

IDENTIFICATION DETAILS

 

Name :

ROSY BLUE LTD

 

 

Registered Office :

4-6-12 Yushima Bunkyoku Tokyo

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014 (Estimated)

 

 

Date of Incorporation :

February 1978

 

 

Com. Reg. No.:

0100-01-086053 (Tokyo-Bunkyoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Importer, Wholesaler and Retailer of Rough Diamonds, Polished, Precut Diamonds, Fine Jewelry and Other Jewelry Products.

 

 

No of Employees :

45

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow But Correct 

 

 

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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.

 

Source : CIA

 

 

Company name

 

ROSY BLUE LTD

 

 

REGD NAME

 

KK Rosy Blue

 

 

MAIN OFFICE

 

Jewelry Mart 3F, 1-10-6 Higashiueno Taitoku Tokyo 110-0015 JAPAN

 

Tel: 03-3836-7088     Fax: 03-3836-7099

 

*.. Registered at: 4-6-12 Yushima Bunkyoku Tokyo

 

URL:                 Error! Hyperlink reference not valid.

E-Mail address:            Tokyo@rosyblue.com

 

 

ACTIVITIES

 

Importer, wholesaler and retailer of Rough Diamonds, Polished, Precut Diamonds, Fine Jewelry & Other Jewelry Products

 

 

BRANCHES

 

Nil

 

 

OVERSEAS

 

Belgium, Israel, India, UAE, Hong Kong, USA (--group firms)

 

 

FACTORIES

 

(subcontracted)

 

OFFICER(S)

 

ATUL JHAVERI, PRES (Indian resident)

C R Jhaveri, s/mgn dir                                        N Jhaveri, dir

S Jhaveri, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 6,500 M

PAYMENTS      Slow But Correct  CAPITAL           Yen 33 M

TREND UP                                            WORTH            Yen 374 M

STARTED         1978                                         EMPLOYES      45

 

 

COMMENT    

 

IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS, JAPAN BRANCH OF ROSY BLUE GROUP, BELGIUM. 

           

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

HIGHLIGHTS

 

The subject company was established originally in 1974 as a marketing office in Japan by Rosy Blue Group, founded 1973 in Belgium as satellite office for B Arunkumar & Co, India, for procurement of rough & polished diamonds.  The subject firm was incorporated in 1978.  The subject specializes in importing and wholesaling diamonds, from rough to polished & precut ones.  Also handles jewelry products.  Goods are imported widely from mining companies in Canada, Russia, S Africa, S America, etc, including those from group firms in 15 global networks.  Diamonds are subcontracted mfg into fine jewelry products.  Clients are major jewelry wholesalers, jewelry processors, chain stores, with steady and close business connections.

 

FINANCIAL INFORMATION

 

Financials are only partially disclosed.  Profits are not precisely disclosed and only estimated.

 

The sales volume for Dec/2013 fiscal term amounted to Yen 6,500 million, a similar amount in the previous term.  The net profit was posted at Yen 17 million, compared with Yen 15 million a year ago.

 

For the current term ending Dec 2014 the net profit is projected at Yen 20 million, on a 3% rise in turnover, to Yen 6,700 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                      Feb 1978

Regd No.:                                 0100-01-086053 (Tokyo-Bunkyoku):

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  2,640 shares

Issued:                          660 shares

Sum:                            Yen 33 million

Major shareholders      (%): Rosy Blue Finance, Atul Jhaveri & relatives (--100)

No. of shareholders:    5

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

OPERATION

 

Activities: Imports, wholesales and retails rough diamonds, polished, precut diamonds (--90%), fine jewelry, other jewelry products (--10%).

 

Partially retails them, too. 

 

Goods are imported from Belgium, Hong Kong, Israel, South Africa, Switz, India, China, and other group firms in 15 locations worldwide.

 

Rough diamonds include: sawables, makeables, cleavages, industrials, crystals, etc.

Polished diamonds include: stars, full cuts, melees, pointers, caraters, larger specials, ideal cuts, certificate goods, princess cuts, fancies

 

Clients: [Jewelers, jewel processors, chain stores, consumers] Nagahori Corp,

            Sadamatsu Co, other to local jewelers, jewelry processors, jewelry mfrs, chain stores, consumers, other.

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, mining firms, wholesalers] Rosy Blue NV (Belgium), Rosy Blue India Private Ltd (India), DTC (De Beers), BHP (Australia), Rio Tinto, Alrosa, other from Hong

Kong,    Israel, South Africa, Switz, India, China, UAE, Russia, Luxemburg, Sri Lanka,

Thailand, USA, etc.

 

Payment record: Slow But Correct 

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

SMBC (Ueno)

Tokyo Tomin Bank (Kasugacho)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

Terms Ending:

　

31/12/2014

31/12/2013

31/12/2012

31/12/2011

Annual Sales

　

6,700

6,500

6,500

6,500

Recur. Profit

　

..

..

..

..

Net Profit

　

20

17

15

15

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

374

359

344

Capital, Paid-Up

　

　

13

13

13

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.08

0.00

0.00

16.07

    Current Ratio

 

 

..

..

..

    N.Worth Ratio

 

..

..

..

    N.Profit/Sales

0.30

0.26

0.23

0.23

 

Notes: Financials are only partially disclosed.

 

Forecast (or estimated) figures for the 31/12/2014 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.60.73

UK Pound

1

Rs.101.48

Euro

1

Rs.81.04

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

 

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%)

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