MIRA INFORM REPORT

 

 

Report Date :

22.02.2014

 

IDENTIFICATION DETAILS

 

Name :

IMAYO & CO LTD

 

 

Registered Office :

218 Okuracho Takeyamachi-Agaru Karasumadori Nakagyoku Kyoto 604-0861

 

 

Country :

Japan

 

 

Financials (as on) :

30.04.2013

 

 

Date of Incorporation :

May, 1966

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line Of Business :

Imports, Exports and Wholesales Diamonds, Emeralds, Sapphires, Pearls, Colored            Stones, Others (--60%), Fingerings, Earrings, Broaches, Pendants, Necklaces, Bracelets, Other Jewelry Products (--40%).

 

 

No. of Employees :

58

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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

 


Company name & address

 

IMAYO & CO LTD

 

REGD NAME:   KK Imayo

MAIN OFFICE:  218 Okuracho Takeyamachi-Agaru Karasumadori Nakagyoku Kyoto 604-0861

                        JAPAN

                        Tel: 075-211-5141    

Fax: 075-211-3626

 

                        *.. Registered at: 7 Narutaki-Fujinokicho Ukyoku Kyoto

 

URL:                 Error! Hyperlink reference not valid.

E-Mail address: www@imayo.co.jp

 

 

ACTIVITIES

 

Import, export, wholesale of diamond, other gemstones, jewelry products

 

 

BRANCHES   

 

Tokyo

 

 

OVERSEAS

 

TNT Trading (HK) Ltd; Imayo (Singapore) Pte Ltd; Imayo (Malaysia) Sdn Bhd; Thai Imayo Co Ltd (--subsidiaries)

 

 

FACTORIES  

 

Kyoto, Osaka (subsidiaries)

 

 

OFFICER(S)  

 

NOBUHIRO IMANISHI, PRES                 Yoshihiro Imanishi, mgn dir

Nobutaka Imanishi, mgn dir                    Takahiro Imanishi, dir    

                       

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY    

 

FINANCES        FAIR                                         A/SALES                      Yen 2,221 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL                       Yen 96 M

TREND             UP                                            WORTH                        Yen 1,160 M

STARTED         1966                                         EMPLOYES                  58

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN JEWELRY. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

 

                       

HIGHLIGHTS

           

The subject company was established originally in 1861 when Yohei Imanishi started a business in jewelry trading, on his account.  Imayo is named after the founder.  Incorporated in 1966, the firm has been succeeded by his descendants.  Nobuhiro is the 5th generation master, who took the office of presidency in July 1982.  This is a trading firm, solely owned and operated by the Imanishi family, specializing in importing, exporting and wholesaling diamonds, emeralds, sapphire, colored stones, also handling earrings, fingerings, broaches, necklaces, pendants, other jewelry products.  Goods are imported from Italy, Belgium, India, Israel, Hong Kong, Thailand, etc.  Owns 5 subsidiaries, of which two in jewelry processing, one in retailing.

           

 

FINANCIAL INFORMATION:

 

The sales volume for Apr/2013 fiscal term amounted to Yen 2,221 million, a 0.5% up from Yen 2,076 million in the previous term.  The recurring profit was posted at Yen 51 million and the net profit at Yen 124 million, respectively, compared with Yen 23 million recurring loss and Yen 286 million net losses, respectively, a year agoo

 

For the current term ending Apr 2013 the recurring profit is projected at Yen 1,100 million and the net profit at Yen 850 million, respectively, on a 3% rise I turnover, to Yen 3,300.   

           

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

 

 

REGISTRATION

 

Date Registered:            May 1966

Regd No.:                     (Kyoto-Ukyoku) 000227

Legal Status:                  Limited Company (Kabushiki Kaisha)

Authorized:                   768,000 shares

Issued:                          192,000 shares

Sum:                              Yen 96 million

Major shareholders (%): Nobuhiro Imanishi (309), Yoshihiro Imanishi (15), Nobutaka Imanishi (10)

No. of shareholders:        20

           

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

 

 

OPERATION

 

Activities: Imports, exports and wholesales diamonds, emeralds, sapphires, pearls, colored        stones, others (--60%), fingerings, earrings, broaches, pendants, necklaces, bracelets, other jewelry products (--40%).

           

Jewelry mfg & processing is done by two subsidiary makers; retailing by KK Diamond House (a subsidiary company).

           

Imports (80%)

 

 

Clients

 

[Jewelry processors, jewelry stores] Citizen Trading, Mitsukoshi Isetan, Shinyuu Trading, Jewel Hama, JR West Japan, Kashikey Co, Kyouhou, We Can Co, other.

 

No. of accounts: 800

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfr, wholesalers] Imports from Israel, India, Hong Kong, Belgium, Thailand, Italy, Malaysia, other.

Also domestically supplied from We Can Co, Oriental Diamond, Sojitz Jewelry, Shinyuu Trading, KF, Takaya Gem, other.

 

Payment record: Slow but correct

 

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

 

Bank References:

SMBC (Kyoto)

Mizuho Bank (Kyoto)

Relations: Satisfactory

 

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

30/04/2014

30/04/2013

30/04/2012

30/04/2011

Annual Sales

 

2,300

2,221

2,076

2,635

Recur. Profit

 

60

-51

-23

 

Net Profit

 

130

124

-286

-48

Total Assets

 

 

2,820

2,598

2,680

Current Assets

 

 

1,756

1,946

 

Current Liabs

 

 

1,082

1,108

 

Net Worth

 

 

1,160

1,035

13,222

Capital, Paid-Up

 

 

96

96

96

Div.P.Share(¥)

 

 

0.00

0.00

2.80

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.56

6.98

-21.21

-5.62

    Current Ratio

..

162.29

175.63

..

    N.Worth Ratio

..

41.13

39.84

493.36

    R.Profit/Sales

2.61

-2.30

-1.11

..

    N.Profit/Sales

5.65

5.58

-13.78

-1.82

    Return On Equity

..

10.69

-27.63

-0.36

 

Notes: Forecast (or estimated) figures for the 30/04/2014 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.62.16

UK Pound

1

Rs.103.44

Euro

1

Rs.85.26

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.