MIRA INFORM REPORT

 

 

 

 

Report Date :

17.03.2011

 

IDENTIFICATION DETAILS

 

Name :

BENDIACO LTD.

 

 

Formerly Known as :

S.D.T. & M. LTD.,

 

 

Registered Office :

23 Tuval Street (formerly 52 Bezalel Street), Diamond Exchange, Noam Building, Ramat Gan 52522

 

 

Country :

Israel

 

 

Date of Incorporation :

17.11.1996

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, Exporters and Wholesalers in 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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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

 

BENDIACO LTD.

Telephone      972 3 613 33 14

Fax                972 3 613 32 96

23 Tuval Street (formerly 52 Bezalel Street)

Diamond Exchange, Noam Building

RAMAT GAN  52522 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-239651-6 on the 17.11.1996 under the name S.D.T. & M. LTD., which changed to the present name on the 11.12.1996.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 17,600.00, divided into:

17,600 ordinary shares of NIS 1.00 each,

of which shares amounting to NIS 118.00 were issued.

 

 

SHAREHOLDERS

 

1.    Beni Schwalb, 50.85%,

2.    Marc Schwalb, 33.90%, of Belgium,

3.    Hitash Shah, 15.25%, of India.

 

 

SOLE DIRECTOR AND GENERAL MANAGER

 

Beni Schwalb

 

 

BUSINESS

 

Importers, exporters and wholesalers in diamonds.

 

Operating from offices in 23 Tuval Street (also known as 52 Bezalel Street), Diamond Exchange, Noam Building (2nd floor, room No. 12), Ramat Gan.

 

Number of employees not forthcoming, believed to be few.

MEANS

 

Financial data not forthcoming.

 

There are 4 charges for unlimited amounts registered on the company's assets (financial and fixed assets), in favor of Union Bank of Israel Ltd. and Mizrahi Tefahot Bank Ltd.

 

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

 

BANKERS

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts, we were unable to speak with subject’s General Manager, Mr. Schwalb, the only authorized person to disclose information. We sent a fax stating our request.

In previous interviews Mr. Schwalb refused categorically to disclose any details on his company.

 

According to our research, we came upon the name of SAMDIMON ISRAEL LTD. Subject had business connections with SAMDIMON. Based on our check, this company is non-active.

 

Local diamond companies have been facing a deep depression in business in general throughout the recent period due to the severe crisis in global markets due to the collapse in the financial markets in the U.S.A. Israeli diamond dealers have been especially hit from the sharp fall in orders from the U.S., which has been the No. 1 export market. In order to face the situation many companies have increased their marketing to Eastern markets.

The depression in the diamond sector started in the 3rdQ of 2008 and intensified in the 4th quarter of 2008 (sales fell by 60% and diamond prices fell), continuing during the 1stQ of 2009. There have been reports on delays in payments from clients, causing a cash flow problem to some local companies. Many diamond dealer reported sales are stagnant.

Some recovery has been felt since the 2nd quarter of 2009 through the 3rd quarter of 2009. Global diamond branch also fill the recovery, though it is still far from the rates of the recent years.

 

Overall in the first 9 months of 2009, export of cut diamonds (net) were
US$ 2,601 million, representing 53% decrease compared to the parallel period in 2008 (decrease in karat value was smaller – in rate of 36%). Export of cut diamonds in September itself marked a 33.5% decrease comparing to September 2008.

Import of rough diamonds (net) went down by 60% to US$ 1,588 million, compared with the first 9 months of 2008, while import of cut diamonds (net) witnessed a 56.5% fall reaching US$ 1,525 million. Export of rough diamonds (net) fell by 59% (US$ 1,259 million) compared with the parallel period in 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 February 2009, Israel was ranked as the world’s largest exporter of cut diamonds, followed by India, Belgium and South Africa.

 

The USA is still the main market for Israel’s export of cut diamonds, although its portion decreased significantly in view of the economic situation – some 37% of total the export from Israel (for the first 9 months of 2009), comparing to 60%-65% in past years. Secondary markets are Hong Kong (29%), Switzerland (7%), Belgium (7%), India (3%).

 

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$ 1.6 billion, down from US$ 2.5 billion in the beginning of the crisis, which tells about the sector’s strength. In addition, there are steps towards support to local diamond companies from the Israel Ministry for Industry & Trade.

 

 

SUMMARY

 

Considering the refusal to disclose information and the present situation in the diamond sector, dealings are recommended on a secured basis.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.72.59

Euro

1

Rs.63.13

 

 

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.