MIRA INFORM REPORT

 

 

Report Date :

02.05.2011

 

IDENTIFICATION DETAILS

 

Name :

AAROHI DIAMONDS (ISRAEL) LTD.

 

 

Registered Office :

23 Tuval Street Diamond Exchange, Noam Bldg. Ramat Gan 52522          

 

 

Country :

Israel

 

 

Date of Incorporation :

14.11.1986.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, polishers, importers and exporters of diamonds of various types (large and small, from 10 carats to larger than 25 carats).

 

 

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

 

                                                                         

Name and address

 

AAROHI DIAMONDS (ISRAEL) LTD.

Telephone    972 3 752 56 42

Fax             972 3 752 56 45

23 Tuval Street

Diamond Exchange, Noam Bldg.

RAMAT GAN     52522     ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-115134-2 on the 14.11.1986.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 2,640.00, divided into:

                2,640 ordinary shares of NIS 1.00 each,

of which 2,500 shares amounting to NIS 2,500.00 were issued.

 

 

SHAREHOLDERS

 

1.    B.A.N. TRADING & INVESTMENTS, 35%, of the USA,

2.    Rupen Bhansali, 20%,

3.    Ashuk Shah, 15%, of India,

4.    Ankor Bhansali, 15%,

5.    Jay Gotualla, 15%, of India.

 

 

DIRECTORS

 

1.    Rupen Bhansali, General Manager,

2.    Ankor Bhansali,

3.    Jay Gotualla.

 

 

BUSINESS

 

Traders, polishers, importers and exporters of diamonds of various types (large and small, from 10 carats to larger than 25 carats).

 

Operating from offices, in 23 Tuval Street (also referred to as 52 Bezalel Street), Diamond Exchange, Noam Building, 1st floor, Room No. 1, Ramat Gan.

 

Having 9-10 employees, as of 2010.

 

 

MEANS

 

Financial data not forthcoming.

 

There are 5 charge for unlimited amounts registered on the company's assets, in favor of Israel Discount Bank Ltd. and Bank Leumi Le'Israel Ltd.

 

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

AAROHI DIAMONDS INC., New York, USA, affiliated company, owned by Paigu Bhansali. Also has a company in India and Hong kong.

 

 

BANKERS

 

Bank Leumi Le'Israel Ltd., Ramat Gan Branch (No. 629), Ramat Gan.

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts, so far we were unable to speak to subject's shareholder and General Manager, Mr. Rupen Bhansali, as he was always unavailable (other officials refused to disclose data on subject). We left a message. We shall update you in case we manage to get any new data.

In the past subject's officials refused to disclose financial data.

 

Subject is a veteran diamond firm in the local diamond industry. According to our sources, the company enjoys very good reputation.

 

In the end of 2002, subject was officially recognized by the Israel-Asia Chamber of Commerce for its contribution to the development of bilateral trade between the two countries.

 

In October 2004, it was reported that subject opened a new office in Hong Kong.

 

During 2010 and 2011 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, into 2011. In 2011 first quarter, a significant improvement was recorded, although still well below 2007 and 2008 first 3 quarters levels.

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.

In the 1st quarter of 2011, 45.7% increase was noted comparing to the parallel period in 2010 with export of polished diamonds of US$2,123 million. Export of rough diamonds also noted 39.6% rise, reaching US$ 1,158 million.

 

Import of rough diamonds (net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat terms) compared with 2009, and by 24.9% in 2011 1stQ (compared to 2010 1stQ), summing up to US$1,144 million. Import of polished diamonds (net) saw 68% rise in 2010 reaching US$ 4,218 million (39% rise in karat terms), and 48.5% rise  in 2011 1stQ (US$ 1,234 million).

 

In terms of target export (polished diamonds) countries, overall in 2010 the USA returned to be main destination, with 41% of total export (45% in 2011 1stQ). 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 2010 and early 2011, export to Hong Kong comprised around 26% of sales. Other main target countries include Belgium, India, Switzerland and China.

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

 

 

SUMMARY

 

Notwithstanding lack of updated data from subject’s officials, considered good for trade engagements.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.38

UK Pound

1

Rs.73.88

Euro

1

Rs.65.83

 

 

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

 

--

 

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.