MIRA INFORM REPORT

 

 

 

Report Date :

21.08.2008

 

IDENTIFICATION DETAILS

 

Name :

NIRU DIAMONDS ISRAEL (1987) LTD.

 

 

Registered Office :

1 Jabotinsky Street, Diamond Exchange, Maccabi Building, RAMAT GAN  52520

 

 

Country :

Israel

 

 

Date of Incorporation :

1979

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

.Manufacturers, Processors, Cutters, Exporters and Marketers of Diamonds, dealing with rough and polished 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 :

No Complaints

 

 

Litigation :

Clear

 

name & address

       

NIRU DIAMONDS ISRAEL (1987) LTD.

Telephone                972 3 575 23 52

Fax                         972 3 575 23 51

1 Jabotinsky Street

Diamond Exchange, Maccabi Building

RAMAT GAN  52520 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated 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 the 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 owned by Ranjit Barmaca.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Ranjit Barmaca

 

 

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).

 

Almost all sales are for export.

 

Operating from premises, owned by the shareholders, on an area of 200 sq. meters, in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (22nd floor), Ramat Gan.

Also operating from affiliated companies premises in New York, Hong Kong, Bangkok and Dubai, as well as other branches in other countries.

 

Having 38 employees (same as in 2007 and 2006).

 

 

MEANS

 

Financial data not forthcoming.

 

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

 

 

ANNUAL SALES

 

Reported sales for export of polished diamonds:

2004 sales were US$ 38,000,000.

2005 sales were US$ 31,000,000.

2006 sales were US$ 43,000,000.

2007 sales were US$ 65,000,000.

 

 

OTHER COMPANIES

 

Sister companies:

NIRU DIAMONDS NEW YORK,

NIRU DIAMONDS HONG KONG,

NIRU DIAMONDS BANGKOK,

NIRU DIAMONDS DUBAI.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Diamond Exchange Branch (No. 629), Ramat Gan.

Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.

SBI State Bank of India, Diamond Exchange Branch (No. 001), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

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 16th place in the 2007 list of Israel's largest polished diamonds exporters, after ranking 19th in 2006 and 30th in 2005. In 2004 subject was ranked 25th, in 2003 – 23rd and 22nd in 2002.

 

 

Local diamond companies are facing a depression in business in general in recent months due to the recession in the U.S. markets. The American market has been the No. 1 export market and the crisis in the U.S. market affects directly many Israeli diamond companies, as purchasing has gone down dramatically. There are reports on delays in payments from clients, causing a cash flow problem to some companies.

In the first half of 2008, there was an increase trend in all money parameters of import and export: export of cut diamonds (net) from Israel rose by 6% comparing to parallel period in 2007, reaching US$ 3.8 billion (though carat value fell by 17%). Export of rough diamonds (net) from Israel also increased by 26% to US$ 2.19 billion (2.5% fall in carat value).

Import of rough diamonds (net) rose 15% in the first half of 2008 (from 2007) to US$ 2.77 billion (though carat value fell by 11%), while import of cut diamonds (net) also increased in 2008 by 19.5% reaching US$ 2.35 billion (carat value rose by 2.3%).

 

Year 2007 marked a record in the export of cut diamonds from Israel, with net sales for export of US$ 7.076 billion, 7% rise from 2006 (US$ 6.611 billion). Total export of cut and rough diamonds crossed for the first time the US$ 12 billion line. Exports (net) of rough diamonds were US$ 3.386 billion, a 25.5% increase from 2006 (US$ 2.701 billion, which was a 23.2% decrease from 2005).

Import of rough diamonds (net) rose 8% in 2007 by (from 2006) to
US$ 5.084 billion, while import of cut diamonds (net) also increased in 2007 by 13.3% reaching US$ 4.558 billion.

 

The USA is the main market for Israel’s export of cut diamonds, although its portion has been decreasing in view of the economic situation – the export rate is circa 41%, comparing to 60%-65% in past years. The secondary markets are Hong Kong, Switzerland, Belgium, U.K, and India.

 

 

SUMMARY

 

Good for trade engagements.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.43.58

UK Pound

1

Rs.81.43

Euro

1

Rs.64.52

 

 

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.

 

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