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MIRA INFORM REPORT
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Report Date : |
06.01.2012 |
IDENTIFICATION DETAILS
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Name : |
NIRU DIAMONDS ISRAEL (1987) LTD. |
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Formerly Known As : |
NIRU SALES LTD. |
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Registered Office : |
1 Jabotinsky Street, Diamond Exchange, Maccabi Bldg., Ramat Gan 52520 |
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Country : |
Israel |
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Date of Incorporation : |
10.07.1987 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, Processors, Cutters, Exporters and Marketers of
diamonds, dealing with rough and polished diamonds. Subject specializes in
long and square diamonds. |
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No. of Employee: |
38 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 : |
Usually Correct |
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Litigation : |
--- |
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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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 & address
NIRU DIAM
Telephone 972 3 575 23 52
Fax 972 3 575 23 51
1 Jabotinsky Street
Diamond Exchange, Maccabi Bldg.
RAMAT GAN 52520-ISRAEL
HISTORY & LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-121024-7 on the 10.07.1987, continuing
activities originally founded in 1979.
Originally
registered under the name NIRU DIAM
SHARE CAPITAL
Authorized share
capital of NIS 2,640.00, divided into:
2,640 ordinary
shares of NIS 1.00 each, fully issued.
SHAREHOLDERS
Subject is fully owned by NEW CENTURY MARKETING LTD., a
foreign company from Hong Kong, owned by Ranjeet Barmacha.
SOLE DIRECTOR & GENERAL
MANAGER
Ranjeet Barmacha
BUSINESS
Manufacturers,
processors, cutters, exporters and marketers of diamonds, dealing with rough and
polished diamonds. Subject specializes in long and square diamonds.
Manufacturing
activities are carried out via sub-contractors (also in China and Sri-Lanka).
Most (some 70% in
2010) sales are for export.
Operating from
premises, owned by the shareholders, on an area of 200 sq. meters, in 1
Jabotinsky Street, Diamond Exchange, Maccabi Building (22nd floor),
Ramat Gan. Premises serve also subsidiary BARCODIAM.
Also operating
from affiliated companies premises in New York, Hong Kong, Switzerland, Bangkok
and Dubai, as well as other branches in other countries.
Having 38
employees (similar to previous years).
MEANS
Financial data not
forthcoming, known to be of solid financial standing.
There are 6
charges for unlimited amounts registered on the company's assets, in favor of
Bank Leumi Le’Israel Ltd., Mizrahi Tefahot Bank Ltd. and SBI State Bank of
India.
REVENUES
Reported sales for export of polished diamonds:
2006 sales were
US$ 43,000,000.
2007 sales were
US$ 65,000,000.
2008 sales were US$
91,000,000.
2009 sales were
US$ 57,000,000.
2010 sales were
US$ 68,000,000.
Sales for export
comprise some 70% of overall sales, which means that total sales are estimated
at over to US$ 95,000,000.
OTHER COMPANIES
BARCODIAM LTD.,
79%, established in 1998, importers, exporters and marketers of diamonds.
Sister companies:
·
NIRU DIAM
·
NIRU DIAM
·
NIRU DIAM
·
NIRU DIAM
BANKERS
· Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan – main account.
· SBI State Bank of India, Diamond Exchange Branch (No. 001), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject's official
refused to disclose financial data.
Subject is a veteran
business, well-known in the branch.
According to the
reports published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject ranked 10th in 2010 lists of Israel's
largest polished diamonds exporters, 9th in 2008 and 2009, after
being ranked 16th place in the 2007, 19th in 2006 and 30th
in
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
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
In the 1st
half of 2011, 34% increase was noted comparing to the parallel period in 2010
with net export of polished diamonds of US$3,400 million. Export of
rough diamonds also climbed almost 40%, reaching US$ 2,250 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 36.7% in 2011 1st half (compared
to 2010), summing up to US$2,500 million. Import of polished diamonds (net) saw
68% rise in 2010 reaching US$ 4,218 million (39% rise in karat terms), and
almost 50% rise in 2011 1st
half (US$ 2,800 million).
In terms of target
export (polished diamonds) countries, overall in 2010 the USA returned to be
main destination, with 41% of total export (48% in 2011 1st half).
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
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.52.78 |
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UK Pound |
1 |
Rs.82.33 |
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Euro |
1 |
Rs.68.19 |
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.