MIRA INFORM REPORT
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Report Date : |
06.08.2012 |
IDENTIFICATION DETAILS
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Name : |
ILAN GLIKSMAN |
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Registered Office : |
54 Bezalel Street, Diamond Exchange,
Yahalom Bldg. RAMAT GAN 525213 |
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Country : |
Israel |
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Date of Incorporation : |
Not Available |
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Legal Form : |
A sole proprietorship |
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Line of Business : |
Dealers, importers, polishers, marketers
and exporters of diamonds. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
ILAN GLIKSMAN
Telephone 972
3 575 94 28
Fax 972
3 575 94 28
54 Bezalel Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252138,
ISRAEL
A sole proprietorship, date of establishment
not forthcoming.
Operating under Licensed Dealer No.
051183408.
The business is registered with the Tax
Authorities’ Files under the name of "GLIKSMAN ILAN".
We assume subject is continuing part of the
activities of G.H. DIAMONDS, a registered general partnership as per file No. 54-020684-4
(together with Shay Hopstein), which seems to have split up (Shay Hopstein seem
to have his own diamond business). We could not confirm that, as Mr. Gliksman
refused to cooperate with us.
Ilan Gliksman
Ilan Gliksman.
Dealers, importers, polishers, marketers and
exporters of diamonds.
Operating from premises, in 54 Bezalel
Street (street name is also referred to as 21 Tuval Street), Diamond Exchange,
Yahalom Building (10th Floor, Room No. 72), Ramat Gan.
Number of employees not forthcoming,
believed to be few.
Financial data not forthcoming.
Sales figures not forthcoming.
Bank data not forthcoming.
Nothing
unfavorable learned.
Subject’s owner son, Itay Gliksman, refused
categorically to disclose any details.
An affair of an underground bank has been
shocking the local diamond branch in these days, after in late January 2012
Police raided the Diamond Exchange (after a long undercover operation, in
cooperation with the Exchange officials), arrested several individuals for
investigation and blocked several bank accounts (which led to a chain reaction
of not respecting checks of dealers). The Police suspect that a group of
people, including diamond dealers, run an illegal bank in the Diamond Exchange
compound for loans, money transfer abroad and exchange in volume of NIS 1
billion for several years. The affair has already led to several of reported
bankruptcies of local diamond firms, a decrease of up to 70% in transactions,
frozen bank accounts, a paralysis (especially in purchase of raw diamonds) with
substantial fear of the a collapse of the sector, while dealers –local and
foreign- face uncertainty.
In early March 2012 the Police announced it
suspends the investigation of further suspects for the time being. This move is
a result of the big pressure from the diamond branch (to stop the continuing
damage inflicted) and the Government (who is losing US$ hundred millions from
decrease in tax collection).
The Supervisor of Diamonds at the Ministry
of Industry, Trade & Labor published the diamond's sector import-export
data for the 1st half of 2012, which reveals a 19% fall in net sale
of cut diamonds, and a fear of another deep crisis in the branch. The sector
recovered in 2010 and mainly in 2011 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 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%.
In 2011 the local diamond sector recorded
US$ 7,202 million in net sales of cut diamonds, 23.5% higher than in 2010. This
was thanks to the strong first 2 thirds of 2011, which were stalled in the last
third, reflecting the fragile global economy and fear of another recession wave
in USA and Europe. It should be noted that in karat terms, net export of cut
diamonds rose only by 4% from 2010.
Net export of rough diamonds in 2011 also
climbed almost 15%, reaching US$ 3,515 million (fell almost 29% in karat
terms).
Net import of cut diamonds in 2011 summed up
to US$ 5,682 million, representing 34.7% increase comparing to 2010 (18% rise
in karat terms), while net import of rough diamonds rose by 17.5% from 2010,
totaling US$ 4,413 million (11% fall in karat terms).
In the 1st half of 2012, export
(net) of cut diamonds was US$ 3,264 million, down 18.9% from the 1st
half of 2011, and rough diamonds export (net) reached
US$ 1,516 million, a 33% decrease. Import of rough diamonds (net) in the 1st
half of 2012 were down 19.3% to US$ 1,993 million compared with the parallel
period in 2011, while import of polished diamonds (net) saw 21.7% fall reaching
US$ 2,201 million.
In terms of target export (polished
diamonds) countries, in 2011 the USA continued to be the main destination, with
47% of total export (39% in 2011). This comes after in early 2010, for the
first time Far East markets became Israel’s diamond industry’s main target
(traditionally sales to the USA comprised some 60%-65% of total export). Hong
Kong is the 2nd largest target country, comprising 29% of sales in
2011 (26% in 2010). Other main target countries included Belgium (7%),
Switzerland (6%), UK (2%) and the rest of the World (9%).
According to the President of the Israeli
Diamonds Association, in 2010 the trade in the local diamond 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.
Local diamond sector employs some 20,000
persons.
In February 2009, Israel was ranked as the
world’s largest exporter of cut diamonds, followed by India, Belgium and South
Africa.
Considering the refusal to disclose any
data, dealings are recommended of fully secured basis.
Note: Since the beginning
of 2012 Israel Post started using a new area code method of 7 digits (the old
method of 5 digits will still be valid till end of 2012).
DIAMOND INDUSTRY –
INDIA
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From time
immemorial, India is well known in the world as the birthplace for diamonds.
It is difficult to trace the origin of diamonds but history says that in the
remote past, diamonds were mined only in India. Diamond production in India can
be traced back to almost 8th Century B.C. India, in fact,
remained undisputed leader till 18th Century when Brazilian fields
were discovered in 1725 followed by emergence of S. Africa, Russia and
Australia.
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The
achievement of the Indian diamond industry was possible only due to combination
of the manufacturing skills of the Indian workforce and the untiring and
unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
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The area
of study of family owned diamond businesses derives its importance from the
huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
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Some of
the basic traits of family run business enterprises include spirit of
entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
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Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
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The
diamond jewellery industry in India today may be more than Rs 60000 mil and is
rated amongst the fastest growing in the world. Indi ranks third in the
world in domestic diamond consumption.
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Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company
transactions, financially assisted by banks. In the process, several public
sector banks lost several hundred million rupees. They mostly diverted borrowed
money for diamond business into real estate and capital markets.
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Excerpts
from Times of India dated 30th October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK
WITH 2K CR DEBT
This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.
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Most of
the money borrowed from the banks in the name of their diamond business has
been diverted in real estate and the share market. The banks are not in a
position to seize their properties because in many cases, these were purchased
in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.08 |
|
|
1 |
Rs.87.03 |
|
Euro |
1 |
Rs.68.36 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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 |
|
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 |
|
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.