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Report Date : |
01.11.2012 |
IDENTIFICATION DETAILS
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Name : |
MASINGITA LTD. |
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Registered Office : |
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Country : |
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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 : |
25 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 |
israel - ECONOMIC OVERVIEW
Israel has a technologically
advanced market economy. It depends on imports of crude oil, grains, raw
materials, and military equipment. Cut diamonds, high-technology equipment, and
agricultural products (fruits and vegetables) are the leading exports. Israel
usually posts sizable trade deficits, which are covered by tourism and other
service exports, as well as significant foreign investment inflows. The global
financial crisis of 2008-09 spurred a brief recession in Israel, but the
country entered the crisis with solid fundamentals - following years of prudent
fiscal policy and a resilient banking sector. The economy has recovered better
than most advanced, comparably sized economies. In 2010, Israel formally
acceded to the OECD. Natural gasfields discovered off Israel's coast during the
past two years have brightened Israel's energy security outlook. The Leviathan
field was one of the world's largest offshore natural gas finds this past
decade. In mid-2011, public protests arose around income inequality and rising
housing and commodity prices. The government formed committees to address some
of the grievances but has maintained that it will not engage in deficit
spending to satisfy populist demands.
|
Source : CIA |
MASINGITA LTD.
Telephone 972 3 576 70 00
Fax 972 3 576 40 79
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252236 ISRAEL
A private limited company, incorporated as per file No. 51-412867-7 on
the 16.04.2008.
Authorized share
capital of NIS 100,000.00, divided into:
100,000 ordinary shares of
NIS 1.00 each,
fully issued.
1. Moshe Namdar, some 95.8%,
2. Ms. Yael Namdar, 4.05%, daughter of Moshe,
3. Itzhak Levian, holding 0.15% of issued shares.
During 2012 Moshe Namdar acquired the shares
of SALANT GROUP LTD. (51%) and of Mr. Haim Habif (less than 1%).
1. Ms. Yael Namdar, Joint General Manager,
2. Moshe Namdar, Joint General Manager,
3. David Nmadar.
Igal Salant, Avner
Salant and Reuven Salant are still registered as directors in subject, though
we are informed they left subject (as noted above) during 2012.
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 25
employees.
Financial data not
forthcoming, however subject is enjoying the solid financial backing of its
shareholders, i.e. Namdar family (see more below).
There is 1 charge for an unlimited amount registered on the company's
assets, in favor of Israel Discount Bank Ltd. (charge placed September 2011, on
all assets).
2011 sales claimed to be US$ 100,000,000, almost all for export.
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 were as follows (as seen above, actual overall
sales are higher, as there are other sales e.g. local sales, sales of rough
diamonds, etc.):
2008 sales for export (net) were US$ 49,000,000.
Subject's 2009 & 2010 sales for export data
not published.
2011 sales for export (net) were US$ 65,000,000.
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).
Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
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).
Namder family is
veteran diamond dealers, at the top of Israel's diamond industry and trade,
with worldwide renown reputation.
Moshe Namdar is also the owner of MOSHE NAMDAR & CO. He is a well-known diamond dealer, who was partner
in the leading diamond firm SCHACHTER & NAMDAR
(established in 1981 as partnership of Namdar family and LEO SCHACHTER DIAM
Salant family,
which was partners/ shareholders in subject until 2012, is also among the
veteran and leading diamond dealers in Israel.
In July 2010 it
was reported that subject implemented MICROSOFT's Microsoft Online Services
(BPOS) for its IT sector.
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 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).
The positive trend
reversed in 2012 and in the first 9 months, export (net) of cut diamonds was
US$ 4,262 million, down 27% from the parallel period in 2011, and rough
diamonds export (net) reached US$ 2,068 million, a 30.5% decrease. Import of
rough diamonds (net) in the first 9 months of 2012 were down 25% to US$ 2,646
million compared with the parallel period in 2011 (53% down in karat terms),
while import of polished diamonds (net) witnessed a 26% fall reaching US$ 3,083
million.
In terms of target
export (polished diamonds) countries, in 2012 the USA was the main destination,
with 35% of total export, while Hong Kong being the 2nd largest
target country, with 31%. Traditionally, the USA has been by far the largest
export market for the local export (60%-65% of total export), though the
continuing economic crisis in the USA brought a change in the trend, where the
Far Eastern markets have been growing on America and Europe's account (in early
2010, for the first time Far East markets even became Israel’s diamond
industry’s main target).
Other main target
countries included Belgium (9%) and Switzerland (5%).
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.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.12 |
|
UK Pound |
1 |
Rs.87.08 |
|
Euro |
1 |
Rs.70.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
|
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 |
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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.