MIRA
INFORM REPORT
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Report Date : |
02.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
NIRU DIAMONDS ISRAEL (1987) LTD. |
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Registered Office : |
1 Jabotinsky
Street, Diamond Exchange, Maccabi Building, Ramat Gan 52520 |
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Country : |
Israel |
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Date of Incorporation : |
1979 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers,
processors, cutters, exporters and marketers of diamonds, dealing with rough
and polished diamonds. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
Correct Name &
address
NIRU DIAMONDS ISRAEL (1987) LTD.
1 Jabotinsky
Street
Diamond Exchange,
Maccabi Building
RAMAT GAN 52520 ISRAEL
Telephone 972 3 575
23 52
Fax 972
3 575 23 51
HISTORY
A private limited
company, registered as per file No. 51-121024-7 on the 10.7.1987, continuing
activities originally founded in 1979.
Originally
registered under the name NIRU DIAMONDS ISRAEL (1987) LTD., which
changed to NIRU SALES LTD. On 31.12.2001, which changed to the present name on
1.7.2002.
SHARE CAPITAL
Authorized share
capital of NIS 2,640.00 divided into: 2,640 ordinary shares of NIS 1.00 each,
fully issued.
SHAREHOLDERS
Subject is fully owned by NEW CENTURY MARKETING
LTD., a foreign company.
DIRECTORS
1. Ranjit Barmaca, General Manager,
2. Viral Shantilal Barmaca,
3. Setya Rushan.
BUSINESS
Manufacturers,
processors, cutters, exporters and marketers of diamonds, dealing with rough
and polished diamonds.
Manufacturing
activities are carried out via sub-contractors (also in China and Sri-Lanka).
All sales are for
export.
Operating from
premises owned by the shareholders, on an area of 200 sq. meters, in 1
Jabutinsky Street, Diamond Exchange, Maccabi Building (2nd floor,
room No. 246), Ramat Gan.
Having also
branches in London, New York, Toronto, Hong Kong and Bangkok.
Having 38
employees (same as in 2006).
MEANS
Financial data not
forthcoming.
There are 4 charges
for unlimited amounts registered on the company's assets, in favor of Bank
Leumi LeIsrael Ltd. and Mizrahi Tefahot Bank Ltd.
ANNUAL SALES
Reported sales for export of polished diamonds:
2002 sales were
US$ 32,000,000.
2003 sales were US$
35,000,000.
2004 sales were
US$ 38,000,000.
2005 sales were
US$ 31,000,000.
2006 sales were
US$ 43,000,000.
BANKERS
Bank Leumi LeIsrael Ltd., Diamond Exchange Branch (No. 629), Ramat Gan.
Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466),
Ramat Gan.
CHARACTER AND
REPUTATION
Nothing
unfavorable learnt.
Subject is a
veteran business, well-known in the branch.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject climbed to the 19th place in the 2006
list of Israel's largest polished diamonds exporters, after in 2005 it was
ranked 30th. In 2004 subject was ranked 25th, in 2003 – 23rd
and 22nd in 2002.
According to a
report from November 2006, the diamonds branch is on the verge of a significant
recuperation after the deep crisis it got into, the worst one for decades,
which affected the profitability of Israeli diamond businesses. World sales
towards Thanksgiving Day grew by 10% comparing to 2005. That already led to a
rise in rough diamonds.
According to the
Ministry of Industry and Trade, the local diamonds branch managed to stabilize
the total volume of export of cut diamonds during 2006, a year that witnessed
many local and global challenges, and end in the same level as 2005. In rough
diamonds a decrease was noted, due to marketing motives, and as high prices
made the trade in rough diamonds less attractive.
Total (net) export
of cut diamonds from Israel in 2006 reached US$ 6.610 billion, a mere decrease
of 1.5% from 2005 (US$ 6.709 billion). Exports (net) of rough diamonds were US$
2.701 billion, a 23.2% decrease from 2005 (US$ 3.517 billion, which was a 20.6%
increase from 2004).
Import of rough
diamonds (net) also fell in 2006 by 11.4% (from 2005) to US$ 4.709 billion,
while import of cut diamonds (net) increased in 2006 by 3.3% reaching US$ 4.025
billion.
The USA is the
main market for Israel’s export of cut diamonds (over 50%). The secondary
markets are Hong Kong (around 20%), Belgium (around 10%), Switzerland and the
UK.
Since the
beginning of 2007, import rough diamonds to Israel noted a 7.8% decrease
comparing to the parallel period in 2006, due to a shortage in world markets,
following the lowering in sales by DE BEERS and the tough winter in Africa that
hurt mining. Nevertheless, the officials in the branch reported 11.7% increase
in import of polished diamonds in January 2007.
In the first 2
months of 2007, export (net) of cut diamonds rose by 9.2% comparing to the
parallel period in 2006, summing up to US$ 1.349 billion. Export of rough
diamonds (net) also witnessed an increase.
SUMMARY
Good for trade
engagements.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)