MIRA INFORM REPORT

 

 

 

Report Date :

07.03.2008

 

IDENTIFICATION DETAILS

 

Name :

MARVAL GEMS (ISRAEL) LTD.

 

 

Registered Office :

3 Jabotinsky Street Diamond Exchange, Shimshon Bldg. Ramat Gan 52520

 

 

Country :

Israel

 

 

Date of Incorporation :

9.7.2000.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, 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 :

No Complaints

 

 

Litigation :

Clear

 

 

 

 

 

 

 

 

 

name & address

 

MARVAL GEMS (ISRAEL) LTD.

Telephone 972 3 575 56 67

Mobile       972 54 397 59 47

Fax           972 3 575 56 68

3 Jabotinsky Street

Diamond Exchange, Shimshon Bldg.

RAMAT GAN 52520 ISRAEL

 

 

HISTORY

 

A private limited company, incorporated as per file No. 51-297725-7 on the 9.7.2000.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 39,100.00 divided into:

39,100 ordinary shares, of NIS 0.0001 each, of which shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1.    Rajush Modo, 90%,

2.    Mehta Mokash Bhavesh, 10%.

 

In March 2007, we were informed that Mr. Mahta Subashi Fonnit, who used to hold 15% in subject sold his shares, and in practice, subject was fully owned by Rajush Modo.

Later, according to the Registrar of Companies, Mr. Mehta Mokash Bhavesh became a shareholder in subject (10%).

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Rajush Modo

 

 

BUSINESS

 

Importers, exporters and marketers of diamonds.

 

Subject is affiliated to MILESTONE of India.

 

Operating from office premises, in 3 Jabotinsky Street, Diamond Exchange, Shimshon Building, Ramat Gan.

 

Number of employees not forthcoming.

 

MEANS

 

Financial data not forthcoming.

 

There are no charges registered on the company's assets.

                                                                                                           

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

STAR – ROUGH (ISRAEL) LTD., established 1986, importers, processors, exporters and marketers of diamonds. Mehta Mokash Bhavesh holds 10% in this company.

 

 

BANKERS

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

We called subject with our request for data, and were asked to send a fax with our request. We sent the fax and were later told that we should get a reply (the secretary could not tell us when and if we will get information, only mentioned that Mr. Modo will relate to our request).

Therefore, as soon as we receive any reply, we shall update you accordingly.

In the previous interview a year ago, subject’s owner and General Manager, Mr. Modo, refused to disclose any details on his business.

 

Subject is affiliated to MILESTONE of India, manufacturers and exporters of diamonds, and also a DE BEERS sightholders. Subject represents and markets also MILESTONE's goods.

 

In 2007, we received a positive recommendation from subject's bankers.

We spoke with subject's account manager, who informed us that their bank works with subject for 5 years, their account is well-managed, and they are most reliable clients.

 

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.

 

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%).

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 recession in the U.S. markets. However, in yearly aspect, sales are still higher than 2007.

 

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 the refusal to disclose financial information, 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