MIRA INFORM REPORT

 

 

Report No. :

323560

Report Date :

21.05.2015

 

IDENTIFICATION DETAILS

 

Name :

MODI IMPEX CO LTD

 

 

Registered Office :

TKB Bldg 4F, 5-22-11 Ueno Taitoku Tokyo 110-0005

 

 

Country :

Japan

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

July 2004

 

 

Com. Reg. No.:

0105-02-020418

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Import, wholesale of diamonds, jewelry

 

 

No of Employees :

4

 

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

 

MODI IMPEX CO LTD

 

 

REGD NAME   

 

YK Modi Impex

 

 

MAIN OFFICE

 

TKB Bldg 4F, 5-22-11 Ueno Taitoku Tokyo 110-0005 JAPAN

Tel: 03-3833-5505     Fax: 03-3833-5505

                       

*.. Moved to the caption address in 2015 and registered

                       

URL:                 N/A

 

 

ACTIVITIES     

 

Import, wholesale of diamonds, jewelry

 

 

BRANCHES

 

Nil

 

 

FACTORIES    

 

(subcontracted)

 

 

OFFICERS       

 

JAIN PANKAG, PRES (Indian resident)

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY      

 

FINANCES        R/WEAK                                   A/SALES          Yen 389 M

PAYMENTSSLOW BUT CORRECT                     CAPITAL           Yen 23 M

TREND UP                                            WORTH            Yen 83 M

STARTED         2004                                         EMPLOYES      4

 

 

COMMENT      

 

IMPORTER AND WHOLESALER SPECIALIZING IN DIAMONDS FROM INDIA.

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

                       

 

HIGHLIGHTS

           

            The subject company was established by Jain Pankag in order to make most of his experience in the subject line of business.  This is a trading firm specializing in import, export and wholesale of diamonds and jewelry products.  Diamonds are imported from India centrally and subcontracted mfg to local jewelry processors into jewelry products.  Clients are local jewelry stores, processors, chain stores, other.  

 

 

FINANCIAL INFORMATION

           

            Financials are only partially disclosed.  Profits are not precisely disclosed

 

            The sales volume for Jun/2014 fiscal term amounted to Yen 389 million, a 14% up from Yen 340 million in the previous term.  The net profit is estimated posted at Yen 7 million, compared with Yen 6 million a year ago.  Profits are only estimated as not precisely disclosed 

 

For the current term ending Jun 2015 the net profit is projected at Yen 10 million, on a 5% rise in turnover, to Yen 410 million. 

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements. 

 

 

REGISTRATION

 

Date Registered:                       Jul 2004

Regd No.:                     0105-02-020418 (Tokyo-Taitoku)

Legal Status:                Private Limited Company (Yugen Kaisha)

Regd Capital:                           Yen 23 million

Major shareholders (%):           Modi Pankag (100)

           

Nothing detrimental is known as to his commercial morality.

 

 

OPERATION

 

Activities: Imports and wholesales polished diamonds centrally from India (100%).

            Diamonds are partially subcontracted mfg into jewelry products.

 

Clients: Jewelry stores, jewelry processors, other. 

No. of accounts: 200

Domestic areas of activities: Centered in greater-Tokyo

 

Suppliers: [Mfrs, wholesalers] Imports from India centrally.

 

Payment record: Slow But Correct

 

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

 

Bank References:

                        Asahi Shinkin Bank (Nishimachi)

                        MUFG (Ueno)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

Terms Ending:

　

30/06/2015

30/06/2014

30/06/2013

30/06/2012

Annual Sales

　

410

389

340

469

Recur. Profit

　

..

..

..

..

Net Profit

　

10

7

6

8

Total Assets

　

　

N/A

N/A

N/A

Net Worth

　

　

83

78

74

Capital, Paid-Up

　

　

23

23

23

Div.P.Share(¥)

　

　

0.00

0.00

0.00

<Analytical Data>

　

(%)

(%)

(%)

(%)

    S.Growth Rate

　

5.40

14.41

-27.51

-6.20

    Current Ratio

　

　

..

..

..

    N.Worth Ratio

　

　

..

..

..

    N.Profit/Sales

　

2.44

1.80

1.76

1.71

Note: Financials are only partially disclosed.  Profits are estimated as not disclosed.

Forecast (or estimated) figures for the 30/06/2015 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 :

SAN

 

 

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.