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Report Date : |
05.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ADI GEMS LTD. |
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Formerly Known as: |
ADIAM (ISRAEL) LTD. |
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Registered Office : |
1 Jabotinsky Street*, Diamond Exchange, Maccabi Bldg.*, Ramat Gan 5252001 |
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Country : |
Israel |
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Date of Incorporation : |
29.07.1996 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, importers,
polishers, exporters and marketers of all sorts of diamonds |
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No. of Employees : |
Had 3 employee (including both joint General Managers) Current number of employees not forthcoming. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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.
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Source : CIA |
ADI GEMS LTD.
Telephone 972 3 613 74 66*
Cellular 972 54 397 27 38
Fax 972 3 613 74 65
1 Jabotinsky Street*
Diamond Exchange, Maccabi Bldg.*
RAMAT GAN 5252001 ISRAEL
A private limited
company, incorporated as per file No. 51-235500-9 on the 29.07.1996.
Originally
registered under the name ADIAM (ISRAEL) LTD., which changed to the present
name on the 25.05.2010.
* NOTE: So far we
were unable to contact any of subject's officials, therefore we could not
verify the company's address data, as well as other details.
Authorized share
capital of NIS 31,300.00, divided into:
31,300 ordinary shares of NIS
1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
1. Nalal Satish Parikh, 50%,
2. Ms. Stuti Parikh, 25%, wife
of Sahil,
3. Sahil Satish Parikh, 15%, son
of Nalal,
4. Sergio Parikh, 10%.
In August 2010 a change in ownership took
place, where above 1, 2 & 3 shareholders, who used till then to hold
jointly 50% in subject, gained ownership over the 50% shares from Amit Mehta
and Sanjiv Mehta.
1. Nalal Satish Parikh,
2. Sahil Satish Parikh,
3. Sergio Parikh.
As of end of 2010, Nalal and Sahil (above 1
& 2) served as Joint General Managers in subject.
Traders,
importers, polishers, exporters and marketers of all sorts of diamonds.
As of 2010, 100%
of sales are for export.
Were operating from rented offices premises,
on an area of 50 sq. meters, in 1 Jabotinsky Street, Diamond Exchange, Maccabi
Building (Rooms 2249-2250, 2nd floor), Ramat Gan. We are informed
that subject recently changed offices, moving probably to the 5th
floor at the same building. As noted above, we could not verify a/m address
details, which are based on end of 2010 data.
Had 3 employee
(including both joint General Managers). Current number of employees not
forthcoming.
Financial data not
forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets, in favor of Union Bank of Israel Ltd. (both charges placed in 1996).
Sales figures not
forthcoming.
Union Bank of Israel
Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
As noted above, we could not reach subject
and speak to any of its officials. We kept calling the company's telephone
number (+972-3-6137466) – phone rings but there is no reply. We also called the
cellular numbers we have, all confirmed to us by the Diamond Exchange
Secretariat: the one in caption, as well as:
+972-54-3972739; 3972748), always reaching
voicemail response. We left a message.
It is possible that subject's officials are
out of the country, vacation or else, however at this stage we cannot tell
that. We spoke with a source who knows Mr. Sahil Satish Parikh, who told us he
is active (he could not tell whether under subject or other firm, though we
believe ADI GEMS is their only local company).
We shall try to reach subject within the
next period and update you in case we manage to do reach them.
We did not find anything detrimental on
subject or its officials.
An affair of an underground
bank shocked the local diamond branch, after in late January 2012 Police raided
the Diamond Exchange (after a long undercover operation), arrested several
individuals for investigation, caught diamonds and various assets worth NIS
millions, and blocked several bank accounts. It is suspected that a group of
people, including diamond dealers, run an illegal bank in the Diamond Exchange
compound for loans, money transfer abroad based on fictitious transactions 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 in 2012, frozen bank accounts, a paralysis
(especially in purchase of raw diamonds) even with fear of the a collapse of
the sector, while dealers –local and foreign- face uncertainty.
In March 2012 the
Police decided to lower the profile of the investigation for a while 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). In November 2012 the Police and Tax Authorities recommended
on indictments against the 25 suspects in the affair, among them diamond
dealers, for the said suspicions and obstruction of the investigation.
Export of polished
diamonds from Israel fell by 23% in 2012 from 2011, after the sector recovered
in 2010 and mainly in 2011 from one of the worst depressions in the global
diamond sector due to the economic crisis in global markets that erupted in
2008. The sector experienced almost an entire freeze and collapse in sales of
about 70% in the peak of the crisis. While the global diamond industry
experienced major declines during 2012, Israel saw a steady improvement in its
diamond trade in the third and fourth quarters of the year, according to the
Diamond Administration at the Ministry of Industry & Trade.
The Administration
reported on a strong first 2 months of 2013 with 45% rise in diamond activity,
although 2013 1stQ shows mixed indicators (see below), but it is due
to technical reasons (high goods return
rate due to a large exhibition).
Israel’s net
polished diamond exports stood at US$5.6 billion in 2012, compared a decline of
23% from 2011. Net rough diamond exports totaled US$2.8 billion in 2012, a 20%
decrease from 2011.
Net imports of
polished diamonds dropped 25% from 2011, totaling US$4.27 billion, while net
rough imports stood at US$3.8 billion, 13 % less than in 2011.
Net polished
diamond exports in 2013 1stQ witnessed 8.3% decrease comparing to
2012 1stQ (reaching US$ 1.601 billion), while export of rough diamonds saw a
2.7% rise (summed at US$ 826 million). Net imports of polished diamonds in the
1stQ 2013 reached US$ 891 million, 10.2% decrease compared with the
parallel period in 2012, whereas import of polished diamonds fell 13% to US$
962 million.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 36%
of the market in 2012 (41% in 1stQ 2013). Hong Kong was the next
largest market with 28% of exports (35% in 1stQ 2013), with Belgium
accounting for 8%, Switzerland 5%, U.K. 5% and the rest of the world 18%.
According to the
President of the Israeli Diamonds Association, in 2010 the trade in the local
diamond sector rolled 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.
Considering the
fact we could not get in contact with subject, for the time being dealings are
recommended on fully secured basis.
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 |
|
US Dollar |
1 |
Rs.54.65 |
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UK Pound |
1 |
Rs.82.41 |
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Euro |
1 |
Rs.70.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.