MIRA INFORM REPORT
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Report Date : |
11.02.2012 |
IDENTIFICATION DETAILS
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Name : |
MASINGITA LTD. |
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Registered Office : |
21 Tuval Street Diamond Exchange, Yahalom Bldg.Ramat Gan 52522 |
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Country : |
Israel |
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Date of Incorporation : |
16.04.2008 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, exporters and marketers of polished diamonds. |
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No. of Employees : |
60 employees |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
MASINGITA LTD.
Telephone 972
3 576 70 00
Fax 972 3 576 40 79
21 Tuval Street
Diamond Exchange,
Yahalom Bldg.
RAMAT GAN-52522 ISRAEL
HISTORY & LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-412867-7 on the 16.04.2008.
SHARE CAPITAL
Authorized share
capital of NIS 100,000.00, divided into:
100,000 ordinary shares of
NIS 1.00 each,
fully issued.
SHAREHOLDERS
1. SALANT GROUP LTD., 51%, owned
by (brothers) Avner Salant and Igal Salant,
2. Moshe Namdar, 44.1%,
3. Ms. Yael Namdar, 4.67%,
4. Haim Habif, 0.686%,
5. Itzhak Levian, 0.147%.
DIRECTORS
1. Ms. Yael Namdar, General Manager,
2. Moshe Namdar,
3. Avner Salant,
4. Igal Salant,
5. Reuven Salant,
6. David Nmadar.
BUSINESS
Importers,
exporters and marketers of polished diamonds.
Almost 100% of
sales for export.
Among suppliers: STEINMETZ Group.
Operating from owned
offices premises, on an area of over 550 sq. meters, in 21 Tuval Street (also
referred to as 54 Betzalel Street), Diamond Exchange, Yahalom Building (30th
floor), Ramat Gan. Subject also operates from offices in New York, Italy and
Hong Kong (these offices may serve parent and affiliated companies).
Having 60
employees (same as in 2010 and 2009).
MEANS
Financial data not
forthcoming, however subject is enjoying the solid financial backing of its
shareholders, i.e. parent company SALANT GROUP and the Namdar family (see more
below).
There are 2 charges for unlimited amounts registered on the company's
assets, in favor of Israel Discount Bank Ltd. (last charge placed September
2011).
REVENUES
Subject began
sales in June 2008. Almost all sales are for export.
According to the data published by the
Israel Supervisor on Diamonds in the Ministry of Industry & Trade, export
of polished diamonds by subject (as seen above, actual overall sales are
higher, as there sales of jewelry and of rough diamonds as well), were as
follows:
2008 sales for export (net) were US$ 49,000,000.
Subject's 2009 & 2010 sales data not
published.
2011 sales for export (net) were US$ 65,000,000.
SALANT GROUP 2008 sales for export were US$ 100,000,000, almost all for export.
OTHER COMPANIES
SALANT GROUP LTD.,
importers of rough diamonds, polishers, international
dealers, exporters, marketers in diamonds. Sight holders from DCT since 1990.
SALANT DIAM
OVERSEAS DIRECT
INC., USA.
MOSHE NAMDAR & CO. LTD., owned by Moshe Namdar, international traders
in diamonds, dealing as cutters, processors, importers, exporters and marketers
of diamonds. Ms. Yael Namdar is involved in this firm as well. 2007 sales for
export (net) were US$ 199 million.
Namdar family has holdings in many other companies and assets, including in
the diamonds branch (MOSHE NAMDAR GEMS LTD.), holdings & real estate assets
(MOSHE NAMDAR HOLDINGS LTD., MOSHE NAMDAR & ASSOCIATES (2005) LTD.) and
industrial companies (Moshe Namdar controls HABONIM INDUSTRIAL VALVES & ACTUATORS
LTD., manufacturers, marketers and exporters of ball valves and pneumatic
actuators).
BANKERS
Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject’s officials refused to disclose
financial details.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 14th in the 2011 list of
Israel's largest polished diamonds exporters. Subject was ranked 19th
in the list of 2008 (it did not appear in 2009 & 2010 lists (it is not
necessarily that it did not qualify for the largest diamond exporters these
years, because a company may choose not to be enlisted in a certain year).
Both the Salant
and Namder families are veteran diamond dealers, both are at the top of
Israel's diamond industry and trade, with worldwide renown reputation.
Salant family
business for diamond polishing and trade was originally founded by the late
Moshe Salant in
Ms. Yael Namdar is the daughter of Moshe
Namdar, owner of MOSHE NAMDAR & CO. She, as well as
shareholders No. 4 & 5 also serve as directors in MOSHE NAMDAR & CO. Mr. Moshe Namdar is a well-known veteran diamond
dealer, who was partner in the leading diamond firm SCHACHTER & NAMDAR (established in 1981 as partnership of Namdar family
and LEO SCHACHTER DIAM
In July 2010 it
was reported that subject implemented MICROSOFT's Microsoft Online Services
(BPOS) for its IT sector.
A recent affair of
an underground bank is shocking the local diamond branch in these days, after
in late January 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 couple of
reported bankruptcies of local diamond firms, significant decrease in transactions
(especially in purchase of raw diamonds) and a very bad general atmosphere
which casts on the whole branch, as dealers –local and foreign- face
uncertainty.
Despite the
slow-down in activity in the global diamond branch during the last third of
2011, export by the local diamond sector in all 2011 recorded US$ 7,202 million
sales in 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
current 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.
Export of rough
diamonds in 2011 also climbed almost 15%, reaching US$ 3,515 million (fell almost
29% in karat terms).
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 import of rough diamonds
rose by 17.5% from 2010, totaling US$ 4,413 million (11% fall in karat terms).
In 2010, export
(net) of cut diamonds was US$ 5,832 million (up 48% from 2009, when it noted
37% decrease from 2008), rough diamonds export (net) reached US$ 3,060 million (62%
rise from 2009). Import of rough diamonds (net) in 2010 grew by 51% to US$
3,755 compared with 2009, and import of polished diamonds (net) saw 68% rise in
2010 reaching US$ 4,218 million.
In terms of target
export (polished diamonds) countries, in 2011 the USA continued to be the main
destination, with 39% of total export (41% 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 26%
of sales in 2011 (29% in 2010). Other main target countries included
Switzerland (6%), India (5%), UK (3%) and the rest of the World (21%).
According to the
President of the Israeli Diamonds Association, local diamond sector in general
managed to cross one of worst depressions in the global diamond sector caused
by the global economic crisis in 2008/9. 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%. 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.
Local diamond
sector employs some 15,000 persons.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
SUMMARY
Notwithstanding
the refusal to disclose financial details, considered good for trade
engagements.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.64 |
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1 |
Rs.78.35 |
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Euro |
1 |
Rs.65.79 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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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<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.