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Report No. : |
313902.2 |
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Report Date : |
14.04.2015 |
IDENTIFICATION DETAILS
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Name : |
CLASSIC DIAMOND CO LTD |
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Registered Office : |
Classic Bldg 2F, 3-12-5 Taito Taitoku Tokyo 110-0016 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
May 1997 |
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Com. Reg. No.: |
010501016888 |
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Legal Form : |
Limited Company |
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Line of Business : |
Imports, Exports and Wholesales Polished Diamonds & Jewelry
(--100%). |
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No. of Employees : |
13 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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.
|
Source
: CIA |
CLASSIC DIAMOND CO
LTD
KK Classic Diamond
Classic Bldg 2F, 3-12-5 Taito Taitoku Tokyo 110-0016 JAPAN
Tel: 03-5817-3621 Fax: 03-5817-3622
URL: N/A
ACTIVITIES: Wholesale of diamond jewelry
BRANCHES: Kofu, Osaka
OFFICERS: M EMSHIN , PRES (Phonetically spelled)
Yen Amount: In million Yen,
unless otherwise stated
FINANCES FAIR A/SALES Yen 9,738 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 65 M
TREND STEADY WORTH Yen 329 M
STARTED 1996 EMPLOYES 13
COMMENT: WHOLESALER OF DIAMOND JEWELRY, OWNED BY
CLASSIC DIAMONDS CO LTD.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
The subject company was established on the basis of a wholesale division
separated from Classic Diamonds Co Ltd (India), with its representative office
at the caption address. This is a
trading firm for import, export and wholesale of diamonds & jewelry. Nearly 50% are said for exports. Clients are local jewelry processors, jewelry
stores, other.
The sales volume for Mar/2014 fiscal term amounted to Yen 9,738 million,
a 34% steep rise from Yen 7,249 million in the previous term. This is attributed to the diamond price hike
coupled with the weaker Yen which increased earnings in Yen terms. Exports to Hong Kong & USA were robust in
tie-up with traders in both countries.
The recurring profit was posted at Yen 56 million and the net profit at
Yen 42 million, respectively, compared with Yen 51 million recurring profit and
Yen 35 million net profit, respectively, a year ago.
For the term that ended Mar 2015 the recurring profit was projected at
Yen 60 million and the net profit at Yen 50 million, respectively, on a 5% rise
in turnover, to Yen 10,200 million.
Final results are yet to be released.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: May
1997
Regd No.: 010501016888
(Tokyo-Taitoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 5,200 shares
Issued:
1,300 shares
Sum: Yen
65 million
Major shareholders
(%): Classic Diamonds Co Ltd* (70%), M Emshin (30%)
No. of
shareholders: 2
*.. Holding Company of the group
firms
Nothing detrimental is known as to the commercial morality of
executives.
Activities: Imports, exports
and wholesales polished diamonds & jewelry (--100%).
Exports (about 50%)
Export destinations are mainly Hong Kong, China & New York.
Clients: [Jewelry stores,
jewelry processors] East Trading, Borglum Diamond, Kushar Diamond, Princess
Diamond, other
No. of accounts: 100
Domestic areas of activities: Centered in greater-Tokyo
Suppliers: [Mfrs,
wholesalers] Supplied mostly from Classic Diamonds and group firms.
Also imports from Eurostar Diamond (Belgium), Princess Jewelry, Finest
Diamond,
Golden Dragon Jewelry, other.
Payment record: Slow but correct
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
Mizuho Bank (Ueno)
Indo State Bank (Tokyo)
Relations: Satisfactory
(In Million Yen)
|
Terms Ending: |
31/03/2015 |
31/03/2014 |
31/03/2013 |
31/03/2012 |
|
|
Annual Sales |
|
10,200 |
9,738 |
7,249 |
7,622 |
|
Recur. Profit |
|
60 |
56 |
51 |
44 |
|
Net Profit |
|
50 |
42 |
35 |
29 |
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Total Assets |
|
|
4,796 |
4,654 |
5,000 |
|
Current Assets |
|
|
3,225 |
2,977 |
3,335 |
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Current Liabs |
|
|
2,180 |
2,925 |
3,174 |
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Net Worth |
|
|
329 |
287 |
252 |
|
Capital, Paid-Up |
|
|
65 |
65 |
65 |
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Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
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<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
4.74 |
34.34 |
-4.89 |
7.49 |
|
Current Ratio |
|
.. |
147.94 |
101.78 |
105.07 |
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N.Worth Ratio |
|
.. |
6.86 |
6.17 |
5.04 |
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R.Profit/Sales |
|
0.59 |
0.58 |
0.70 |
0.58 |
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N.Profit/Sales |
|
0.49 |
0.43 |
0.48 |
0.38 |
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Return On Equity |
|
.. |
12.77 |
12.20 |
11.51 |
Notes: Forecast (or estimated) figures for 31/03/2015 fiscal term.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.39 |
|
|
1 |
Rs.91.05 |
|
Euro |
1 |
Rs.66.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
-- |
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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.