MIRA INFORM REPORT

 

 

Report Date :

13th March, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

NIRU DIAMONDS ISRAEL (1987) LTD.

 

 

Registered Office :

1 Jabutinsky Street Ramat Gan  52520 Israel

 

 

Country :

Israel

 

 

Date of Incorporation :

10.7.1987

 

 

Com. Reg. No.:

51-121024-7

 

 

Legal Form :

Private Limited company

 

 

Line of Business :

Manufacturers, exporters and marketers of diamonds.

 

 

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 :

Regular

 

 

Litigation :

Clear

 

 

 

Name & address

 

NIRU DIAMONDS ISRAEL (1987) LTD.

Telephone         972 3 575 23 52

Fax                   972 3 575 23 51

1 Jabutinsky Street

RAMAT GAN  52520 ISRAEL

 

 

HISTORY

 

A private limited company, registered as per file No. 51-121024-7 on the 10.7.1987.

 

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. Staya Rushan.

 

 

BUSINESS

 

Manufacturers, exporters and marketers of diamonds.

 

All sales are exports.

 

Operating from premises owned by the shareholders, on an area of 200 sq. meters, in 1 Jabutinsky street, Ramat Gan.

 

Having 38 employees.

 

                                                                                               

 

MEANS

 

Financial data not forthcoming.

 

There are 4 charges for unlimited amounts registered on the company's assets, in favor of Bank Leumi LeIsrael B.M and Mizrahi Tefahot Bank Ltd.

 

                                                                                                                       

ANNUAL SALES

 

2004 sales reported to be US$ 38,000,000.

2005 sales reported to be US$ 31,000,000.

 

 

OTHER COMPANIES

 

NIRU DIAMANTS LTD.

 

 

BANKERS

 

Bank Leumi LeIsrael B.M., Ramat Gan.

Mizrahi Tefahot Bank Ltd., Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

According to an article from June 2006, the local diamonds branch is in deep crisis, and only 30% of Israeli diamonds companies are managing to make a profit. Part of the crisis is attributed to the new marketing systems of the global monopoly DE BIRS.

 

According to the Ministry of commerce, total export of cut diamonds from Israel in 2005 (net) reached US$ 6.706 billion, 5.8% increase from 2004. exports of rough diamonds were US$ 3.51 billion, 20.6% increase from 2004.

Import of rough diamonds also increased by 3.2% to US$ 5.31 billion, and imports of cut diamonds increased by 9.3% to US$ 4.508 billion.

 

In the first 5 months of 2006, exports of cut diamonds were US$ 3.043 million, 1.5% decrease fro the parallel period in 2005, and imports of rough diamonds decreased by 11.6%.

 

The USA is the main market for Israel’s export of cut diamonds (69%). The secondary markets are Hong Kong (13%), Belgium (6%), Switzerland (4%) and the UK (2%).

 

 

SUMMARY

 

Good for trade engagements.

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions