MIRA
INFORM REPORT
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Report Date : |
04.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
GALCO DIAMONDS |
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Registered Office : |
3 Jabotinsky Street, Diamond Exchange, Shimshon Bldg.,Ramat Gan 52520
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Country : |
Israel |
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Date of Incorporation : |
21.3.1991 |
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Legal Form : |
General Partnership |
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Line of Business : |
International Traders, Importers, Exporters and Marketers of 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 : |
No Complaints |
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Litigation : |
Clear |
name & address
GALCO DIAMONDS
Telephone 972 3 612 24 42
Cellular 972 54 397 77 87; 54
397 72 17
Fax 972 3 612 24 37; 575 04 64
3 Jabotinsky Street
Diamond Exchange, Shimshon Bldg.
RAMAT GAN
52520 ISRAEL
HISTORY & LEGAL FORMATION
A general partnership
established on the 21.3.1991 as per file No. 54-017628-6.
PARTNERS
1. Yaacov Galili,
2. Ms. Irit Galili.
GENERAL MANAGER
Yaacov Galili
BUSINESS
International
traders, importers, exporters and marketers of diamonds.
25% of sales are for
export.
Operating from
rented office premises (to where they moved from the Exchange Hall), on an area
of 70 sq. meters, 3 Jabotinsky Street (5th floor, Room 8), Shimshon
Building, Diamond Exchange, Ramat Gan.
Having 9 employees
(had 4 employees in 2006).
MEANS
Financial data not
obtainable.
ANNUAL SALES
2005 sales claimed
to be US$ 20,000,000, most of which were exports.
2006-2007 sales
figures not obtainable.
First 10 months of
2008 sales claimed to be US$ 35,000,000.
OTHER COMPANIES
GALCO DIAMONDS
(2000) CO. LTD., non-active.
BANKERS
Union Bank of
Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Local diamond
companies have been facing some depression in business in general in recent
period due to the recession in the U.S. markets, which worsened with the
collapse in the financial markets in the U.S.A. and the world in
September-October 2008. 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 have been reports on
delays in payments from clients, causing a cash flow problem to some local
companies.
The crisis in the world
financial markets affected the diamond industry: Export of cut diamonds (net)
during the first 10 months of 2008 summed up to US$ 5.8 billion, representing a
2.2% decrease comparing to parallel period in 2007. That after in October 2008,
cut diamonds export fell by 46% comparing to October 2007. Export of rough
diamonds (net) from Israel in October fell even sharper – by 58.5% comparing to
October 2007.
Import of rough
diamonds (net) rose 1.7% in the first 10 months of 2008 (from 2007) to US$ 4.07
billion, while in October alone import fell by 52.6%. Import of cut diamonds
(net) also fell sharply in October 2008 by 44.4% reaching total of US$ 3.79
billion for the whole first 10 months of 2008.
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). 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 currently
43%, comparing to 60%-65% in past years. The secondary markets are Hong Kong
(24%), Belgium (9%), U.K (3%), followed by China, Switzerland and India.
According to the
President of the Israeli Diamonds Association, local banks are expected to
contract credit given to local diamond firms, in view of the global financial
crisis. However, he believes the local diamond sector is healthy, as trade in
the sector rolls annual turnover of US$ 25 billion whereas total debt to the
banks stands on US$ 2.5 billion.
SUMMARY
Good for trade
engagements.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.96 |
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UK Pound |
1 |
Rs.80.26 |
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Euro |
1 |
Rs.63.08 |
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. |
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%)