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Report No. : |
348162 |
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Report Date : |
31.10.2015 |
IDENTIFICATION DETAILS
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Name : |
STYLE PEARL GEM LTD |
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Registered Office : |
Ohtsu Bldg 2F, 1-20-3 Higashiueno Taitoku Tokyo 110-0015 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
Dec., 1975 |
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Com. Reg. No.: |
1400-02-014536 (Kobe-Chuoku) |
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Legal Form : |
Private Limited Company (Yugen Gaisha) |
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Line of Business : |
Import and Wholesale of Polished Diamonds, Pearls, Other Gem Stones. |
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No. of Employees : |
5 |
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 : |
Small Company |
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Payment Behaviour : |
No Complaints |
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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 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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 |
STYLE PEARL GEM LTD
REGD NAME: YK
Style Pearl Gem
MAIN OFFICE: Ohtsu
Bldg 2F, 1-20-3 Higashiueno Taitoku Tokyo 110-0015 JAPAN
Tel: 03-3837-5479 Fax: 03-3837-5408
*.. Registered & headquartered at:
5-1-23 Kagoikedori Chuoku Kobe 651-0053
**.. The is its Tokyo Office
URL: N/A
Import, wholesale
of polished diamonds, pearls, other gem stones
Tokyo (Main Operating
Office) (Headquartered in Kobe as given above)
(Subcontracted)
RUPCHAND G
GUMNANI, PRES
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 720 M
PAYMENTSNO COMPLAINTS CAPITAL Yen 20 M
TREND UP WORTH Yen 157 M
STARTED 1975 EMPLOYES 5
IMPORTER AND WHOLESALER SPECIALIZING IN POLISHED DIAMONDS, PEARLS, OTHER JEWELRY.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
The subject
company was established by father of Rupchand G Gumnani, a resident Indian
businessman, in order to make most of his experience in the subject line of business. This is a trading
firm specializing in import and wholesale of polished, pre-cut diamonds
centrally, pearls and other gemstones & jewelry products. Originally started as a pearl trader in Kobe
and later shifted its mainstay item to polished diamonds, which are the major source of earnings. Goods are imported
from India, Israel, etc and supplied to local jewelry stores, jewelry processors, other. Operates Tokyo
Main Office to cover Tokyo market and Kofu City, Yamanashi-Pref, the hub of jewelry processors and shops. Gemstones are
partially subcontracted mfg to local jewelry processors into jewelry products. Clients include jewelry processors, jewelry
stores, wholesalers, other.
Financials are only partially disclosed.
The sales volume for Dec/2014 fiscal term amounted to Yen 720 million, a
similar turnover in the previous term.
The net profit was posted at Yen 10 million, compared with Yen 5 million
a year ago.
For the current term ending Dec 2015 the net profit was projected at Yen
12 million, on a 4% rise in turnover, to Yen 750 million.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements.
Date
Registered: Dec 1975
Regd
No.: 1400-02-014536 (Kobe-Chuoku)
Legal
Status: Private Limited Company
(Yugen Gaisha)
Regd
Capital: Yen 20 million
Major shareholders (%): Rupchand G
Gumnani (70) & families (--30)
No.
of shareholders: 5
Nothing
detrimental is known as to the commercial morality of executives.
Activities:
Imports and wholesales polished diamonds, pearls, other gemstones, jewelry products (--100%).
Goods are imported from India, Israel, Belgium, etc.
Clients: [Jewelry stores, jewelry processors] Daiho
Kikinzoku, Hyuga Hoshoku, Komiya Co,
Sakai Trading, other.
No. of accounts: 300
Domestic areas of activities: Nationwide.
Suppliers: [Mfrs,
wholesalers] Mani Export, Dalumi Asher, Laxmi Diamond, Ip Patel, Dalumi Asher,
other Imports from India,
Israel, Belgium, other.
Payment
record: No Complaints
Location: Business area in Tokyo. Office premises at
the caption address are leased and maintained satisfactorily.
Bank
References:
SMBC
(Midosuji)
MUFG
(Ueno-Chuo)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
|
31/12/2015 |
31/12/2014 |
31/12/2013 |
31/12/2012 |
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Annual
Sales |
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750 |
720 |
720 |
660 |
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Recur.
Profit |
|
.. |
.. |
.. |
.. |
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Net
Profit |
|
12 |
10 |
5 |
2 |
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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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|
157 |
147 |
142 |
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Capital,
Paid-Up |
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20 |
20 |
20 |
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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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S.Growth Rate |
|
4.17 |
0.00 |
9.09 |
-2.94 |
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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 |
|
1.60 |
1.39 |
0.69 |
0.30 |
Notes: Financials are only partially disclosed.
Forecast (or
estimated) figures for the 31/12/2015 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.65.22 |
|
|
1 |
Rs.99.93 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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.