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Report No. : |
347543 |
|
Report Date : |
28.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
GSTV CO LTD |
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|
|
|
Registered Office : |
TOC Ariake West Tower 10F, 3-5-7 Ariake Kotoku Tokyo 135-0063 |
|
|
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|
Country : |
Japan |
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|
|
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Financials (as on) : |
31.03.2015 |
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|
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Date of Incorporation : |
May 1988 |
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|
|
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Com. Reg. No.: |
0111-01-026877 |
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Legal Form : |
Limited Company |
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|
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Line of Business : |
Imports and retails jewelry products, diamonds, gem stones (tin, pearl, antimony, ivory, other), jewelry, other (--100%) |
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|
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No. of Employees : |
150 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
GSTV CO LTD
REGD NAME: KK
GSTV
MAIN OFFICE: TOC
Ariake West Tower 10F, 3-5-7 Ariake Kotoku Tokyo 135-0063 JAPAN
Tel: 03-4477-7900
Fax: 03-4477-7901
URL: http://www.gstv.jp
E-Mail address: (thru the URL)
ACTIVITIES: Import,
retail of jewelry, diamonds, gem stones, other
BRANCHES: Kanazawa,
Nagoya, Osaka, Kobe, Fukuoka, other (Tot 9)
OVERSEAS: Sri
Lanka, Thailand, Hong Kong, China (--Business partners)
FACTORIES: Hong Kong (--subsidiary)
OFFICERS: TOHRU
IMAHASHI, PRES Soten Lee, s/mgn
dir
Akira Tezuka, dir Tomoaki Miyake, dir
Takeshi Fujioka, dir Kenjiro Toyoshima, dir
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 12,010 M
PAYMENTSSlow But
Correct CAPITAL Yen 400 M
TREND STEADY WORTH Yen
2,741 M
STARTED 1988 EMPLOYES 150
COMMENT: TRADING FIRM SPECIALIZING IN JEWELRY & GEM STONES. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject company was established by Tohru Imahashi originally as IMACBC Co Ltd, and was renamed as captioned in Apr 2015. This is a trading firm for import and retail of jewelry, gem stones, other. Goods are imported from Sri Lanka, Thailand, Hong Kong, China, other. Jewelry products are also retailed on TV. Has 9 domestic offices, including show-rooms, to retail them.
The sales volume for Mar/2015 fiscal term amounted to Yen 12,010 million, a 1% up from Yen 11,878 million in the previous term. The recurring profit was posted at Yen 35 million, while the net loss at Yen 63 million, respectively, compared with Yen 192 million recurring profit and Yen 292 million net profit, respectively, a year ago. The net loss for this term include extraordinary losses coming from the rising cost of materials.
For the current term ending Mar 2016 the recurring profit is projected at Yen 300 million and the net profit at Yen 150 million, respectively, on a 4% rise in turnover, to Yen 12,500 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 320.6 million, on 30 days normal terms.
Date Registered: May 1988
Regd No.:
0111-01-026877
(Tokyo-Kotoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 7.44
million shares
Issued: 3,322,000
shares
Sum: Yen
400 million
Major shareholders
(%): Tohru Imahashi (33), Aston Luxury Group Ltd (20), Masako
Imahashi (18), other
No.
of shareholders: 11
Nothing
detrimental is known as to the commercial morality of executives.
Activities: Imports and retails
jewelry products, diamonds, gem stones (tin, pearl, antimony, ivory, other),
jewelry, other (--100%)
Diamonds 6 gem stones are subcontracted
processing into Jewelry products to Hong Kong subsidiary factory and local
jewelry processors.
Clients: Individual
consumers (100%)
No. of accounts:
Unavailable
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] IMACBC Co Ltd (Hong Kong) (50%), EVOV-AVTAYYO, Mitaru Jewels,
Seiwa Ceramics, other
Payment record: Slow but correct
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactory.
Bank References:
SMBC (Tsukiji)
MUFG (Shinjuku)
Relations:
Satisfactory
(In Million
Yen)
|
Terms Ending: |
31/03/2016 |
31/03/2015 |
31/03/2014 |
31/03/2013 |
|
|
Annual
Sales |
|
12,500 |
12,010 |
11,878 |
3,000 |
|
Recur.
Profit |
|
200 |
35 |
192 |
|
|
Net
Profit |
|
150 |
-63 |
292 |
275 |
|
Total
Assets |
|
|
6,234 |
5,481 |
2,754 |
|
Current
Assets |
|
|
4,187 |
4,415 |
2,378 |
|
Current
Liabs |
|
|
2,398 |
2,300 |
808 |
|
Net
Worth |
|
|
2,741 |
2,804 |
1,044 |
|
Capital,
Paid-Up |
|
|
400 |
400 |
30 |
|
Div.P.Share(¥) |
|
|
0.00 |
0.00 |
0.00 |
|
<Analytical Data> |
|
(%) |
(%) |
(%) |
(%) |
|
S.Growth Rate |
|
4.08 |
1.11 |
295.93 |
-3.54 |
|
Current Ratio |
|
.. |
174.60 |
191.96 |
294.31 |
|
N.Worth Ratio |
|
.. |
43.97 |
51.16 |
37.91 |
|
R.Profit/Sales |
|
1.60 |
0.29 |
1.62 |
.. |
|
N.Profit/Sales |
|
1.20 |
-0.52 |
2.46 |
9.17 |
|
Return On Equity |
|
.. |
-2.30 |
10.41 |
26.34 |
Notes: Forecast (or estimated) figures for the
31/03/2016 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.95 |
|
|
1 |
Rs.99.73 |
|
Euro |
1 |
Rs.71.84 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.