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Report Date : |
04.04.2013 |
IDENTIFICATION DETAILS
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Name : |
CACHAREL FINE INDUSTRIES LTD. |
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Registered Office : |
16
Jabotinsky Street, Gedera 7057314 |
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Country : |
Israel |
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Date of Incorporation : |
30.05.1991 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Designers, manufacturers, exporters and
marketers of gold and diamond jewelry |
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No. of Employees : |
Having
10 employees (had 15 employees in mid 2011) |
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 : |
Usually Correct |
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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 |
|
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 |
CACHAREL
FINE INDUSTRIES LTD.
Telephone 972
8 869 32 28
Fax 972
8 869 31 99
16
Jabotinsky Street
GEDERA 7057314 ISRAEL
A private limited company, incorporated as
per file No. 51-157461-8 on the 30.05.1991.
Note: Since subject has no registered Latin
name, name may be also spelt CASHAREL.
Authorized share capital NIS 14,000.00,
divided into -
14,000
ordinary shares of NIS 1.00 each,
of which 100 shares amounting to NIS 100.00
were issued.
1. Yosef Kashi, 99%,
2. Moshe Kashi, 1%.
Yosef Kashi.
Designers, manufacturers, exporters and
marketers of gold and diamond jewelry.
5% of sales are export.
Sales are to many retail jewelry shops.
Among suppliers: B. BRIZA COLORS, GIVEON
NISAN & SONS, LICAST TOOLS, and more.
Operating from premises, owned by
shareholders, on an area of 1,000 sq. meters (600 sq. meters built), in 16
Jabotinsky Street, Gedera, and from rented store, on an area of 40 sq. meters,
in 105 Ben Gurion Ave., Gedera
Having 10 employees (had 15 employees in mid
2011).
Current stock is valued at US$ 400,000.
Property owned by shareholders in 16
Jabotinsky Street, Gedera (where subject is operating from) is valued at US$
1,300,000.
Other financial data not forthcoming.
There are 6 charges for unlimited amounts registered on the company's
assets (financial assets and vehicles), in favor of Mizrahi Tefahot Bank Ltd.,
Bank Hapoalim Ltd. and Bank Leumi Le'Israel Ltd. (last 2 charge placed in
Marchr 2012).
2009 sales claimed to be US$ 2,000,000, 20%-30% of which were for
export.
2010 sales claimed to be US$ 2,000,000, 20%-30% of which were for
export.
2011 sales claimed to be US$ 2,500,000, 5% of which were for export.
2012 sales claimed to be US$ 2,500,000, 5% of which were for export.
Mizrahi Tefahot Bank Ltd., Hachashmonaim
Branch (No. 494), Tel Aviv.\
Bank Hapoalim Ltd., Bat Yam Branch (No.
642), Bat Yam.
Bank Leumi Le'Israel Ltd., Gedera Branch
(No. 928), Gedera.
Nothing unfavorable learned.
Subject is a veteran business, and Yosef
Kashi is an offspring of the well-known Kashi family, whose jewelry business
founded in 1880 (family’s business split along the years).
According to the Ministry of Industry,
Trade & Labour data, export of Gold, Silver
and Fashion Jewelry from Israel reached US$ 255 million in 2011, up from US$
230 million in 2010. This marks a recovery, though numbers are still well below
those prior to the global economic crisis: export level were close to US$ 300
million in 2009, and over US$ 400 in 2007.
The division in export in 2011 was US$ 155
million for gold jewelry, and US$ 100 million in silver & fashion
jewelries.
There are some 250 jewelry manufacturers, 200 of
which are exporters, manufacturing gold jewelry, silver jewelry and other
fashionable jewelry.
Most exports are to the USA and Canada and Western Europe
Good for trade engagements.
DIAMOND INDUSTRY –
INDIA
-
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.
-
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.54.39 |
|
UK Pound |
1 |
Rs.82.05 |
|
Euro |
1 |
Rs.69.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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NB |
New Business |
---- |
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.