MIRA INFORM REPORT

 

 

Report No. :

324743

Report Date :

29.05.2015

           

IDENTIFICATION DETAILS

 

Name :

KINGSTONE LTD

 

 

Registered Office :

1-12-3 Tohkoji Kofu Yamanashi-Pref 400-0807

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

April, 1992

 

 

Com. Reg. No.:

000787

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import, wholesale of diamonds

 

 

No. of Employee :

1

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

COMPANY NAME & ADDRESS

 

KINGSTONE LTD

REGD NAME:   YK Kingstone

MAIN OFFICE:  1-12-3 Tohkoji Kofu Yamanashi-Pref 400-0807 JAPAN

Tel: 055-227-6224     Fax: 055-227-6222

 

URL:                 N/A

 

 

ACTIVITIES

 

Import, wholesale of diamonds

 

 

BRANCHES

 

Nil

 

 

FACTORIES    

 

(subcontracted)

 

 

OFFICER(S)

 

MAKOTO FUKUSHI, PRES

Hiromi Fukushi, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY      

 

FINANCES        R/WEAK                       A/SALES          Yen 41 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 3 M

TREND             SLOW                           WORTH            Yen 26 M

STARTED         1992                             EMPLOYES      1

 

 

COMMENT      

 

IMPORTER AND WHOLESALER OF DIAMONDS.

FINANCIAL SITUATION CONSIDERED RATJER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 0.9 MILLION, 30 DAYS NORMAL TERMS

 

 

 

HIGHLIGHTS

 

The subject company was established by Makoto Fukushi in order to make most of his experience in the subject line of business.  This is a family-based trading firm, operated from private residence, for importing and wholesaling polished diamonds and diamond jewelry.  Diamonds are wholesaled and partially subcontracted mfg to local processors into diamond jewelry.  Clients are local jewelry processors, jewelers, individual customers, other.

 

 

FINANCIAL INFORMATION

 

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

 

The sales volume for Dec/2014 fiscal term amounted to Yen 41 million, a 3% up from Yen 40 million in the previous term.  The net profit is estimated posted at Yen 1 million, compared with a minimum amount post-taxes a year ago.

 

For the term that ended Dec 2015 the net profit was projected at 2 million, on a 2% rise in turnover, to Yen 42 million.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 0.9 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:   Apr 1992

Regd No.:            (Yamanashi-Kofu) 000787

Legal Status:       Private Limited Company (Yugen Kaisha)

Regd Capital:      Yen 3 million

Major shareholders (%): Makoto Fukushi (50), Hiromi Fukushi (10)

No. of shareholders: 5

 

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

 

 

OPERATION

 

Activities: Imports and wholesales polished diamonds, diamond jewelry (--100%)

Diamonds are partially subcontracted mfg into jewelry to local jewelry processors.

 

Clients: [Jewelry processors, Jewelers] Tamura Shokai, Gem Select, L Jewelry, Sanpo, other.

No. of accounts: 100

Domestic areas of activities: Centered in Yamanashi-Pref extending into Tokyo.

Suppliers: [Mfrs, wholesalers] Shrenuj & Co Ltd (80%), other.

 

Payment record: Slow but Correct

 

Location: Business area in Kofu City.  Office premises at the caption address are owned by M Fukushi as his private residence and maintained satisfactorily.

 

Bank References:

Yamanashi Shinkin Bank (H/O)

Resona Bank (Kofu)

Relations: Money deposits & transfers only

 

 

FINANCES

 

(In Million Yen)

Terms Ending:

　

31/12/2015

31/12/2014

31/12/2013

31/12/2012

Annual Sales

　

42

41

40

40

Recur. Profit

　

..

..

..

..

Net Profit

　

2

1

0

0

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

26

25

25

Capital, Paid-Up

　

　

3

3

3

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

2.44

2.50

0.00

-20.00

    Current Ratio

　

　

..

..

..

    N.Worth Ratio

　

　

..

..

..

    N.Profit/Sales

　

4.76

2.44

0.00

0.00

Notes: Financials are only partially disclosed.  Profits are not disclosed and estimated only.

Forecast (or estimated) figures for the 31/12/2015 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.

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SDA

 

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.