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Report No. : |
345391 |
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Report Date : |
17.10.2015 |
IDENTIFICATION DETAILS
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Name : |
NICE DIAMOND CO LTD |
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Registered Office : |
13-11 Saiwaicho Kofu Yamanashi-Pref 400-0857 |
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Country : |
Japan |
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Financials (as on) : |
31.05.2014 |
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Date of Incorporation : |
October, 2004 |
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Com. Reg. No.: |
0900-02-006741 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Import, wholesale of polished diamonds, diamond jewelry |
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No. of Employee : |
6 |
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 |
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Status : |
Moderate |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 an
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. Scarce in many
natural resources, Japan has long been dependent on imported raw materials.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become even more
dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008.
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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) 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 2014 stood as the fourth-largest economy in the
world after first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
|
Source
: CIA |
NICE DIAMOND CO LTD’
REGD NAME: YK Nice Diamond
MAIN OFFICE: 13-11 Saiwaicho Kofu
Yamanashi-Pref 400-0857 JAPAN
Tel:
055-228-6665 Fax: 055-228-6665
URL: N/A
E-Mail address: niishchalsheth@yahoo.com
Import, wholesale of polished diamonds, diamond jewelry
Tokyo
(Subcontracted)
NISHCHAL KUMAR RAJANIKANT SHET, PRES
Yen Amount: In million Yen,
unless otherwise stated
FINANCES R/WEAK A/SALES Yen 800 M
PAYMENTS REGULAR CAPITAL Yen 5 M
TREND SLOW WORTH Yen 325 M
STARTED 2004 EMPLOYES 6
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS.
FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR
MODERATE BUSINESS ENGAGEMENTS.
The subject company was established by Nishchal Kumar, an Indian
resident businessman, in order to make most of his experience in the subject
line of business, utilizing his business networks in India and Japan. This is a trading firm, owned and operated by
Nishchal kumar operating from his home address, for import and wholesale of
polished, precut diamonds from India centrally, and also from Korea & Hong
Kong. Also handles diamond-bedded
jewelry products and others. Stones are
supplied to jewelry processors, jewelry stores, wholesalers, etc and are
partially subcontracted mfg to local processors. Kofu is the jewelry processing center in the
eastern Japan, from where products are shipped to Tokyo & Osaka
regions. 50% of the products are shipped
to jewelry processors & stores in Kofu City
Financials are only partially disclosed.
Profits are not precisely disclosed and estimated.
The sales volume for May/2014fiscal term amounted to Yen 800 million, a
20% down from Yen 1,000 million in the previous term. The weaker Yen made the selling prices at
high level in Yen terms and sales declined.
The net profit is estimated posted at Yen 28 million, compared with Yen
35 million a year ago.
.
For the term that ended May 2015 the net profit was projected at Yen 30
million, on a 6% rise in turnover, to Yen 850 million. Final results are yet to be released.
The financial situation is considered RATHER WEAK but should be good for
MODERATE business engagements.
Date Registered: Oct
2004
Regd No.: 0900-02-006741
(Kofu-Saiwaicho)
Legal Status: Private Limited Company (Yugen Gaisha)
Regd Capital: Yen 5 million
Major shareholders (%): Nishchal Kumar
Rajanikant Shet (100)
Nothing detrimental is known as to his
commercial morality.
Activities: Imports
and wholesales polished, precut diamonds and jewelry products (--100%).
Goods are imported from India centrally, and Korea, Hong Kong, etc.
Clients: Jewelry
processors, jewelry stores, other
(Kofu City 50%; Greater-Tokyo/Osaka regions 50%)
No. of accounts: 200
Domestic areas of activities: Centered in Kofu & greater-Tokyo region
Suppliers:
[Mfrs, wholesalers] Imports from India centrally, other from Korea, Hong
Kong.
Payment record: Regular
Location: Business area
in Kofu City, Yamanashi-Pref. Office
premises at the caption address are owned by Nishal Kumar as his private
residence and maintained satisfactorily.
Bank References: SMBC
(Kofu)
Relations: Money
deposits and transfers only
(In Million Yen)
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Terms Ending: |
|
31/05/2015 |
31/05/2014 |
31/05/2013 |
31/05/2012 |
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Annual Sales |
|
850 |
800 |
1,000 |
1,000 |
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Recur. Profit |
|
.. |
.. |
.. |
.. |
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Net Profit |
|
30 |
28 |
35 |
35 |
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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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|
325 |
297 |
273 |
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Capital, Paid-Up |
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|
5 |
5 |
5 |
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Div.P.Share(¥) |
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|
0.00 |
0.00 |
0.00 |
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<Analytical
Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
6.25 |
-20.00 |
0.00 |
0.00 |
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Current Ratio |
|
|
.. |
.. |
.. |
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N.Worth Ratio |
|
|
.. |
.. |
.. |
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N.Profit/Sales |
|
3.53 |
3.50 |
3.50 |
3.50 |
Note: Financials are only partially disclosed. Profits are not precisely disclosed and only estimated.
Forecast (or estimated) 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 –
-
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.65.11 |
|
|
1 |
Rs.99.50 |
|
Euro |
1 |
Rs.74.24 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
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 |
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.