MIRA INFORM REPORT

 

 

Report Date :

28.02.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

PANFORD (ISRAEL) LTD.

 

 

Registered Office :

P.O. Box 3008, Ramat Gan (52130), 21 Tuval Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 52522          

 

 

Country :

Israel

 

 

Date of Incorporation :

02.07.1980

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, Importers, Exporters and Marketers of rough diamonds.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

PANFORD (ISRAEL) LTD.

Telephone      972 3 575 01 74

Fax                972 3 575 29 56

P.O. Box 3008, Ramat Gan (52130)

21 Tuval Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN  52522 -ISRAEL

 

 

HISTORY & LEGAL FORMATION   

 

A private limited company, incorporated as per file No. 51-085590-1 on the 02.07.1980, as part of the Steinmetz Family diamond businesses founded years earlier.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 200,000.00, divided into -

                200,000 ordinary shares of NIS 1.00 each,

of which 171,550 shares amounting to NIS 171,550.00 were issued.

 

 

SHAREHOLDERS     

 

1.    PANFORD (LONDON) LIMITED., registered in Isle of Man, known to be owned by Benny Steinmetz, Daniel Steinmetz and Steinmetz family, 84%,

2.    Daniel Steinmetz, 16%.

 

 

DIRECTORS

 

1.  Daniel Steinmetz,

2.  Itzhak Zissman.

 

 

GENERAL MANAGER

 

David Shiama.

 

BUSINESS    

 

Traders, importers, exporters and marketers of rough diamonds.

 

The main company handling the STEINMETZ Family diamond business in Israel.

 

Operating from office premises, owned by the Steinmetz Family, on a large area of several hundreds sq. meters, in 21 Tuval Street (also referred to as 54 Bezalel Street), Yahalom Building (28th Floor), Diamond Exchange, Ramat Gan (shares premises with sister companies of the Group).

 

We were informed that couple of years ago the Group sold the 500 sq. meters on the 17th Floor and purchased new offices, on an area of 1,000 sq. meters on the 28th Floor.

 

Having 15 employees (same as in 2010, had 20 employees in 2009).

 

 

MEANS    

 

Financial data not forthcoming, known to be financially solid.

 

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

 

 

ANNUAL SALES

 

Sales figures not forthcoming, known to be in scales of over hundred US$ million and much more.

 

 

OTHER COMPANIES

 

There are many diamond companies in the STEINMETZ Group in Israel and abroad. In Israel also operating via:

 

STEINMETZ-ASCOT LTD., processors and polishers, traders, importers, exporters and marketers of cut diamonds. Operate on relatively very low level.

 

The Steinmetz family has numerous other holdings in other fields (see more below).

 

 

BANKERS

 

·         Israel Discount Bank Ltd., Ramat Gan Branch (040), Ramat Gan.

·         The First International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat Gan.

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

The CFO of the STEINMETZ Group said subject is operating on very high volumes, but refused to disclose financial information.

 

The STEINMETZ Group is one of the world’s largest diamond miners, with wide operations in South Africa, Sierra Leone, and other African countries.

 

It is known that the Group has suffered from the global economic crisis that adversely hurt the global diamond industry, and as such, subject’s Group was also harmed, though financial data is unavailable.

                                                       

Mr. Benny Steinmetz, born 1956, is a international wealthy businessman and entrepreneur (in March 2010 Forbes Magazine evaluated his capital at US$ 2 billion). The origin of the wealth comes from the worldwide family diamond business. The BENNY STEINMETZ Group (BSGR) is an International concern, based in London, with several holdings in public (traded in London Stock Exchange) and many private companies in natural resources (including diamonds, gold, copper, cobalt, steel, etc.), finance, real estate and energy, both in Israel and overseas in volume of US$ billions. Among companies are KATANGA MINING, BSG RESOURCES, NIKANOR, CUNICO, KOIDU, ODIMO, BAKU STEEL, etc.

 

During the period prior to the global crisis BSGR and BATEMAN Groups, as well as SCORPIO (Steinmetz real estate investment arm) raised many hundreds of millions of US$ from the public (in London and Tel Aviv) to finance their expansion, and when the crisis occurred, they were highly leveraged, with clear problem to finance future obligations. These companies were obliged to seek arrangements with their bonds holders and bankers to prevent collapse. In Israel, the companies have NIS hundreds million debts to the banks and bonds holders. During 2010 debts the sides reached debts arrangements, however the affairs has their negative impact on Mr. Steinmetz reputation in these respect.

 

In May 2010, as part of becoming more liquidate, Steinmetz sold 51% of BSGR GUINEA with steel lead mining to VALE of Brazil for US$ 2.5 billion.

 

It should be emphasized that the above mentioned public affairs do not have any impact on subject.

 

During 2010 local diamond companies have been recovering from one of the worst depressions in the global diamond sector due to the severe economic crisis in global markets that erupted in September 2008. The diamond sector experienced almost an entire freeze and collapse in sales of about 70% in the peak of the crisis and 2009 export diamonds shrank by some 40%. Only since mid 2009 a mild recovery has been felt (in some markets, such as the American, it is estimated that it will take long time till fully recovering) and continued throughout 2010.

According to the President of the Israeli Diamonds Association, local diamond sector in general managed to cross the crisis, despite the sheer difficulties, including the fact that local banks contracted credit given to local diamond firms. The President said that trade in the sector rolls annual turnover of US$ 25 billion while total debt to the banks stands on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the crisis. The Ministry for Industry & Trade also assisted the local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.

 

Overall in 2010, export (net) of polished diamonds was US$ 5,832 million, representing 48% increase from 2009 (when it noted 37% decrease from 2008, also much less than 2007, a record year in polished diamonds export, with sales of US$ 7,076 million). In karat terms, net export of polished diamonds rose by 32%. Rough diamonds export (net) reached US$ 3,060 million, 62% up from 2009 and 36% increase in karat terms.

 

Import of rough diamonds (net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat terms), compared with 2009, while import of polished diamonds (net) saw 68% rise reaching US$ 4,218 million (39% rise in karat terms).

 

In terms of target export (polished diamonds) countries, overall in 2010 the USA returned to be main destination, with 41% of total export. This comes after earlier in 2010, for the first time Far East markets became Israel’s diamond industry’s main target, with sales to Hong Kong being close to these of the USA, to whom sales decreased dramatically in view of the severe economic crisis (traditionally sales to the USA comprised some 60%-65% of total export). In all 2010, export to Hong Kong comprised 25.5% of sales. Other target countries included India (4.5%), Switzerland (4%) and China (3%).

 

In February 2009, Israel was ranked as the world’s largest exporter of cut diamonds, followed by India, Belgium and South Africa.

 

 

SUMMARY      

 

Notwithstanding the refusal to disclose financial data, considered good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.37

UK Pound

1

Rs.73.25

Euro

1

Rs.62.68

 

 

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

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.