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Report No. : |
310336 |
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Report Date : |
27.02.2015 |
IDENTIFICATION DETAILS
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Name : |
STYLE PEARL GEM LTD |
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Registered Office : |
Ohtsu Bldg 2F, 1-20-3 Higashiueno Taitoku Tokyo 110-0015 |
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Country : |
Japan |
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Date of Incorporation : |
December 1975 |
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Com. Reg. No.: |
(Kobe-Chuoku) 014536 |
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Legal Form : |
Private Limited Company (Yugen Gaisha) |
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Line of Business : |
Imports and wholesales polished diamonds, pearls, other gemstones,
jewelry products |
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No. of Employee : |
5 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 |
STYLE PEARL GEM LTD
REGD NAME: YK
Style Pearl Gem
MAIN OFFICE: Ohtsu
Bldg 2F, 1-20-3 Higashiueno Taitoku Tokyo 110-0015 JAPAN
Tel: 03-3837-5479
Fax: 03-3837-5408
*.. Registered
& headquartered at: 5-1-23 Kagoikedori Chuoku Kobe 651-0053,
as given
**.. The is its
P.OB (Post Office Box) number
URL: N/A
Import,
wholesale of polished diamonds, pearls, other gem stones
Tokyo
(Main Operating Office) (Headquartered in Kobe as given above)
(subcontracted)
GUMNANI
G RUPCHAND, PRES
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 720 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen 20 M
TREND UP WORTH Yen 147 M
STARTED 1975 E MPLOYES 5
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS,
PEARLS, OTHER JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
The subject company was established by father of Gumnani
Rupchand, resident Indian businessman, in order to make most of his experience
in the subject line of business. This is
a trading firm specializing in import and wholesale of polished, pre-cut
diamonds centrally, pearls and other gemstones & jewelry products. Originally started as a pearl trader in Kobe
and later shifted its mainstay item to polished diamonds, which are the major
source of earnings. Goods are imported
from India, Israel, etc and supplied to local jewelry stores, jewelry
processors, other. Operates Tokyo Main
Office to cover Tokyo market and Kofu City, Yamanashi-Pref, the hub of jewelry
processors and shops. Gemstones are
partially subcontracted mfg to local jewelry processors into jewelry
products. Clients include jewelry
processors, jewelry stores, wholesalers, other.
Financials are only partially disclosed.
The sales volume for Dec/2013 fiscal term amounted to Yen
720 million, a 9% up from Yen 660 million in the previous term. Material prices increased. The net profit was posted at Yen 5 million,
compared with Yen 2 million a year ago.
For the term that ended Dec 2014 the net profit was
projected at Yen 10 million, on a 5% rise in turnover, to Yen 755 million. Final results are yet to be released.
The financial situation is considered maintained FAIR and
good for ORDINARY business engagements.
Max credit limit is estimated at Yen 15.4 million, on 30 days normal
terms.
Date Registered: Dec 1975
Regd No.: (Kobe-Chuoku)
014536
Legal Status: Private
Limited Company (Yugen Gaisha)
Regd Capital: Yen
20 million
Major shareholders (%): Gumnani
Rupchand (70) & families (--30)
No. of shareholders: 5
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports and wholesales polished diamonds,
pearls, other gemstones, jewelry products
(--100%).
Goods are imported from India,
Israel, Belgium
Clients:
[Jewelry stores, jewelry processors] Savvy, Gosho, Daiwa Hoshoku, Taiho Kikin- zoku, Komiya Co, Lucky Co, Hyuga
Hoshoku, Sakai Trading, Hyuga Hoshoku, other.
No. of
accounts: 300
Domestic
areas of activities: Nationwide.
Suppliers: [Mfrs, wholesalers] Mani Export,
Dalumi Asher, Laxmi Diamond, Ip Patel, Dalumi Asher, other
Imports from India, Israel,
Belgium, other.
Payment record: Slow but correct
Location: Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References:
SMBC
(Midosuji)
MUFG
(Ueno-Chuo)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
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31/12/2014 |
31/12/2013 |
31/12/2012 |
31/12/2011 |
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Annual
Sales |
|
755 |
720 |
660 |
680 |
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Recur.
Profit |
|
.. |
.. |
.. |
.. |
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Net
Profit |
|
10 |
5 |
2 |
2 |
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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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|
147 |
142 |
140 |
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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 |
|
4.86 |
9.09 |
-2.94 |
-9.33 |
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Current Ratio |
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|
.. |
.. |
.. |
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N.Worth Ratio |
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.. |
.. |
.. |
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N.Profit/Sales |
|
1.32 |
0.69 |
0.30 |
0.29 |
Notes:
Financials are only partially disclosed.
Forecast
(or estimated) figures for the 31/12/2014 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 –
-
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
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|
1 |
Rs.96.24 |
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Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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.