MIRA INFORM REPORT
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Report No. : |
324740 |
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Report Date : |
30.05.2015 |
IDENTIFICATION DETAILS
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Name : |
ROYAL DIAMOND CO LTD |
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Registered Office : |
Shimada Bldg 3F, 3-34-5 Taito Taitoku Tokyo 110-0005 |
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Country : |
Japan |
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Financials (as on) : |
31.05.2014 |
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Date of Incorporation : |
March, 1998 |
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Com. Reg. No.: |
(Tokyo-Taitoku)
015957 |
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Legal Form : |
Private Limited Company (Yugen Kaisha) |
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Line of Business : |
Import and
Wholesale of Diamonds, Jewelry. |
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No. of Employees : |
7 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
COMPANY NAME & ADDRESS
ROYAL
DIAMOND CO LTD
REGD
NAME: Royal Diamonds YK
MAIN
OFFICE: Shimada
Bldg 3F, 3-34-5 Taito Taitoku Tokyo 110-0005 JAPAN
Tel: 03-3839-6005 Fax: 03-3839-2237
URL: N/A
ACTIVITIES
Import, wholesale of diamonds, jewelry
BRANCHES
Nil
FACTORIES
(Subcontracted)
OFFICER(S)
BAVESH SHAH, PRES (Indian resident)
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,850 M
PAYMENTSNO COMPLAINTS CAPITAL Yen 130 M
TREND SLOW WORTH Yen 173 M
STARTED 1998 EMPLOYES 7
COMMENT
IMPORTER AND WHOLESALER SPECIALIZING IN
DIAMONDS FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
HIGHLIGHTS
The subject company was established by Bavesh
Shah, an Indian resident, in order to make most of his experience in the
subject line of business. This is a
trading firm specializing in importing and wholesaling diamonds and diamond
jewelry. Goods are imported from India,
USA, Hong Kong, Bangkok, other. Clients
are jewelry processors, jewelers, other, centering in the greater-Tokyo. Diamonds are partially subcontracted mfg to
local jewelry processors.
FINANCIAL INFORMATION
Financials are disclosed only partially.
The sales volume for May/2014 fiscal term
amounted to Yen 1,850 million, a -1.3 % down from Yen 1,876 million in the
previous term. The net profit was posted
at Yen 9 million, compared with Yen 7 million a year ago.
For the current term ending May 2015 the net
profit is projected at Yen 10 million, on a 5% rise in turnover, to Yen 1,950
million.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
Max credit limit is estimated at Yen 34.2 million, on 30 days normal
terms.
REGISTRATION
Date
Registered: Mar 1998
Regd
No.: (Tokyo-Taitoku)
015957
Legal
Status: Private Limited Company (Yugen Kaisha)
Regd
Capital: Yen 130 million
Major shareholders (%): Bavesh
Shah (100)
Nothing detrimental is known as to his
commercial morality.
OPERATION
Activities: Imports and wholesales diamonds &
jewelry (--100%)
Clients: [Jewel processors, jewelers] Sanghavi
Jewellery Tokyo, Kyocera Corp, other (--90%).
Diamond Jewelry as produced & processed in Japan are exported (10%)
No. of accounts: 300
Domestic areas of activities: Centered in the
greater-Tokyo
Suppliers: [Mfrs, wholesalers] Imports from Sanghavi Export,
India, USA, Hong Kong, Bangkok, other.
Payment
record: No Complaints
Location: Business area in Tokyo. Office
premises at the caption address are leased and maintained satisfactorily.
Bank
References:
Asahi
Shinkin Bank (H/O)
Hokuriku
Bank (Ueno)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms
Ending: |
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31/05/2015 |
31/05/2014 |
31/05/2013 |
31/05/2012 |
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Annual Sales |
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1,950 |
1,850 |
1,876 |
1,600 |
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Recur. Profit |
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.. |
.. |
.. |
.. |
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Net Profit |
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10 |
9 |
7 |
3 |
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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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173 |
164 |
157 |
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Capital, Paid-Up |
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130 |
130 |
130 |
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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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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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5.41 |
-1.39 |
17.25 |
33.33 |
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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 |
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0.51 |
0.49 |
0.37 |
0.19 |
Notes: Financials are only partially
disclosed.
Forecast (or estimated) figures for the
31/05/2015 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 –
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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.
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
DPT |
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 |
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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.