MIRA INFORM REPORT

 

 

 

 

 

Report Date :

27.08.2012

 

IDENTIFICATION DETAILS

 

Name :

ULTRA GEMS ISRAEL LTD.

 

 

Registered Office :

Jabotinsky Street, Diamond Exchange, Shimshon Building, Ramat Gan 52520

 

 

Country :

Israel

 

 

Date of Incorporation :

08.11.1993.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, Exporters, Processors and Marketers of Small Diamond Stones

 

 

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

 

name & address

 

ULTRA GEMS ISRAEL LTD.

Telephone 972 3 613 64 80

Fax           972 3 613 34 65

3 Jabotinsky Street

Diamond Exchange, Shimshon Building

RAMAT GAN 52520 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-187583-3 on the 08.11.1993.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 19,800.00 divided into:

19,800 ordinary shares of NIS 1.00 each,

of which shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Benjamin Muller.

 

 

SOLE DIRECTOR AND GENERAL MANAGER

 

Benjamin Muller (registered address: New York, USA).

 

 

BUSINESS

 

Importers, exporters, processors and marketers of small diamond stones.

Most of sales are for export.

 

Operating from office premises, in 3 Jabotinsky Street, Diamond Exchange, Shimshon Building, 9th Floor, Suite No. 13 (to where it moved from Suite No.340/341), Ramat Gan,

 

Had 8 employees in 2007, current number not forthcoming.

 

MEANS

 

Financial data not forthcoming.

 

There are 3 fixed charges for unlimited amounts registered on the company's assets, in favor of Bank Leumi Le’Israel Ltd.

 

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

 

BANKERS

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

Subject's official refused to update data on his business, including financial.

 

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, though the situation is still fragile.

Overall in the first half of 2009, export of cut diamonds (net) were US$ 1,580 million, representing 58% decrease from the parallel period in 2008.

For the same period, import of cut diamonds (net) witnessed a 61% fall reaching US$ 920 million. Export of rough diamonds (net) fell by 63% (US$ 797 million) and import of rough diamonds (net) went down by 69% (US$ 853 million) compared with the 1st half of 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 (gross), although its portion has been decreasing in view of the economic situation – the export rate is currently 51%, comparing to 60%-65% in past years. Secondary markets are Hong Kong (23%), Switzerland (9%), Belgium (7%), U.K (2%).

 

According to the President of the Israeli Diamonds Association, local banks are expected to contract 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, Israel Minister for Industry & Trade instructed his staff to form an aid plan, mainly by allocating credit resources which will result in “cheaper” credit and allow companies to sustain.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose any details, considered good for trade engagements.

 

 

 

Note: Subject's correct address is Shimshon Building and not Maccabi Building.

 

NOTES :

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

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.38

UK Pound

1

Rs.87.80

Euro

1

Rs.69.48

 

 

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

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

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.