MIRA INFORM REPORT

 

 

Report Date :

13.01.2011

 

IDENTIFICATION DETAILS

 

Name :

NIRU DIAMONDS ISRAEL (1987) LTD.

 

 

Formerly Known As :

NIRU SALES LTD

 

 

Registered Office :

1 Jabotinsky Street, Diamond Exchange, Maccabi Bldg., Ramat Gan 52520

 

 

Country :

Israel

 

 

Date of Incorporation :

10.07.1987

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers, Processors, Cutters, Exporters and Marketers of 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 

 

NIRU DIAMONDS ISRAEL (1987) LTD.

Telephone    972 3 575 23 52

Fax             972 3 575 23 51

1 Jabotinsky Street

Diamond Exchange, Maccabi Bldg.

RAMAT GAN-52520-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-121024-7 on the 10.07.1987, 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 the 01.07.2002.

 

 

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 Ranjeet Barmacha.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Ranjeet Barmacha

 

 

BUSINESS

 

Manufacturers, processors, cutters, exporters and marketers of diamonds, dealing with rough and polished diamonds. Subject specializes in long and square diamonds.

 

Manufacturing activities are carried out via sub-contractors (also in China and Sri-Lanka).

 

Most (some 70%) 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. Premises serve also subsidiary BARCODIAM.

 

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

 

Having 38 employees (similar to previous years).

 

 

MEANS

 

Financial data not forthcoming.

 

There are 6 charges for unlimited amounts registered on the company's assets, in favor of Bank Leumi Le’Israel Ltd., Mizrahi Tefahot Bank Ltd. and SBI State Bank of India.

 

 

ANNUAL SALES

 

Reported sales for export of polished diamonds:

·         2006 sales were US$ 43,000,000.

·         2007 sales were US$ 65,000,000.

·         2008 sales were US$ 91,000,000.

·         2009 sales were US$ 57,000,000.

 

Sales for export comprise some 70% of overall sales, which means that total sales are estimated at over US$ 80,000,000. We also assume sales in 2010 rose from 2009 (as it generally rose in most local diamond firms).

 

 

OTHER COMPANIES

 

BARCODIAM LTD., 79%, established in 1998, importers, exporters and marketers of diamonds.

 

Sister companies:

NIRU DIAMONDS NEW YORK,

NIRU DIAMONDS HONG KONG,

NIRU DIAMONDS BANGKOK,

NIRU DIAMONDS DUBAI.

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan – main account. 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 reports published by the Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject ranked 9th in both recent couple of years (2008, 2009) lists of Israel's largest polished diamonds exporters, after being ranked 16th place in the 2007, 19th in 2006 and 30th in 2005. In 2004 subject was ranked 25th, in 2003 – 23rd and 22nd in 2002.

 

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 in sales and collapse of about 70% in sales later. 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). Further improvement witnessed during the first half of 2010.

 

Overall in 2009, export diamonds shrank by 40%. Export of cut diamonds (net) were US$ 3,922.6 million, representing 37% decrease compared to 2008. The depression in the diamond sector comes after year 2007 marked a record in the export of cut diamonds from Israel, with net sales for export of US$ 7.076 billion, while 2008 witnessed a decrease of 11.8% to US$ 6.240 billion.

 

In comparison to the parallel period in 2009, export of cut diamonds (net) in 2010 first 3 quarters increased by 62.5% to US$ 4,244 million, and export of rough diamonds (net) reached US$ 2,263 million, representing 80% rise. Yet, in comparison to previous years, export is still well lower.

 

Import of rough diamonds (net) in the first 3 quarters of 2010 grew by 64% to US$ 2,609 million, compared with the parallel period in 2009, while import of cut diamonds (net) saw 84% rise reaching US$ 2,803 million.

 

For the first time, Far East markets have become Israel’s diamond industry’s main target. Sales to Hong Kong in the first 9 months of 2010 are close to these of the USA, traditionally all the years the main market for Israel’s export of cut diamonds but decreased dramatically in view of the economic situation where the U.S. suffered the biggest hit. Some 35%-40% of total the export in 2010 was to the USA, comparing to 60%-65% in past years. Hong Kong (27%-38%), Belgium (5%-9%), India (4%), 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.

 

According to the President of the Israeli Diamonds Association, local banks contracted credit given to local diamond firms in view of the global financial crisis, however, he believes the local diamond sector is healthy: 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. Israel Ministry for Industry & Trade also committed to support local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.

 

SUMMARY

 

Good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.16

UK Pound

1

Rs.70.64

Euro

1

Rs.58.68

 

 

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

----

NB

New Business

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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%)

 

 

 

 

 

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.