MIRA INFORM REPORT

 

 

 

Report Date :

11.06.2008

 

IDENTIFICATION DETAILS

 

Name :

AAROHI DIAMONDS (ISRAEL) LTD.

 

 

Registered Office :

23 Tuval Street, Diamond Exchange, Noam Bldg. Ramat GAN 52522

 

 

Country :

Israel

 

 

Date of Incorporation :

14.11.1986.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, Polishers, Importers and Exporters of Diamonds of various types (large and small).

 

 

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

 

AAROHI DIAMONDS (ISRAEL) LTD.

Telephone    972 3 752 56 41

Fax             972 3 752 56 45

23 Tuval Street

Diamond Exchange, Noam Bldg.

RAMAT GAN 52522 ISRAEL

 

 

HISTORY

 

A private limited company, incorporated as per file No. 51-115134-2 on the 14.11.1986.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 2,640.00 divided into:

2,640 ordinary shares of NIS 1.00 each, of which shares amounting to NIS 2,500.00 were issued.

 

 

SHAREHOLDERS

 

1. B.A.N. TRADING INVESTMENTS, 35.24%, of Panama,

2. Rupen Bhansali, 19.96%,

3.  Ashuk Shah, 15%,

4.  Ankor Bhansali, 15%,

5.  Jay Gotualla, 14.80%.

 

 

DIRECTORS

 

1.  Rupen Bhansali, General Manager,

2.  Kashik Bhansali,

3.  Jay Gotualla,

4.  Ankor Bhansali.

 

 

BUSINESS

 

Traders, polishers, importers and exporters of diamonds of various types (large and small).

 

Operating from offices, in 23 Tuval Street, Diamond Exchange, Noam Building, 1st floor, Room No. 1, Ramat Gan.

 

Having 9 employees.

 

 

MEANS

 

Financial data not forthcoming.

 

There are 7 charge for unlimited amounts registered on the company's assets, in favor of Israel Discount Bank Ltd., Bank Leumi LeIsrael Ltd. and Union Bank of Israel Ltd.

 

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

 

BANKERS

 

Bank Leumi LeIsrael Ltd., Ramat Gan Branch (No. 629), Ramat Gan.

Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's officials we spoke to told us that concerning financial data we should speak with the General Manager, Rupen Bhansali. Mr. Bhansali was unavailable and we were informed that we could reach him Thursday (12/6). Once we manage to speak with him, we shall update you accordingly.

 

Subject is a veteran diamond firm in the local diamond industry.

 

In the end of 2002, subject was officially recognized by the Israel-Asia Chamber of Commerce for its contribution to the development of bilateral trade between the two countries.

 

In October 2004, it was reported that subject opened a new office in Hong Kong.

 

Local diamond companies are facing a depression in business in general in recent months due to the recession in the U.S. markets, according to reports. 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 April 2008, for the first time since the beginning of the year, a decrease of 17.2% (from April 2007) in the export of cut diamonds was noticed, caused mainly by the However, in yearly aspect, sales are still higher than 2007.

 

In the first quarter of 2008, there was an increase trend in all money parameters of import and export: export of cut diamonds (net) from Israel rose 14% comparing to parallel period in 2007, reaching US$ 2.16 billion (though carat value fell by 14%). Export of rough diamonds (net) from Israel also increased by 28% to US$ 1.1 billion (10% fall in carat value).

 

Import of rough diamonds (net) rose 13% in the first quarter of 2008 (from 2007) to US$ 1.32 billion (though carat value fell by 25%), while import of cut diamonds (net) also increased in 2007 by 10.5% reaching US$ 1.06 billion (carat value rose by 4.5%).

 

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 Switzerland, Belgium, U.K, Hong Kong and India.

 

 

SUMMARY

 

Notwithstanding lack of financial data, considered 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.

 

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