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Report Date : |
02.02.2013 |
IDENTIFICATION DETAILS
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Name : |
INFINITY GEMS 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 : |
29.01.2007 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, exporters and traders of diamonds |
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No. of Employees : |
7 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 : |
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
|
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 |
INFINITY GEMS LTD
Telephone972 3 575 00 99
Fax 972 3 575 53 67
1 Jabotinsky Street
Diamond Exchange, Maccabi Bldg.
RAMAT GAN 5252001 ISRAEL
A private limited company, incorporated as per file No. 51-393301-0 on
the 29.01.2007.
Subject was established in view of continuing most of the activities of
ARJAV INTERNATIONAL LIMITED, a local private limited company established in
October 1988, after the exit of one of ARJAV shareholders (ARJAV INTERNATIONAL
LIMITED is currently voluntarily liquidated)
Authorized share capital of NIS 20,000.00, divided into:
20,000 ordinary shares
of NIS 1.00 each,
of which 1,000 shares amounting to NIS 1,000.00 were issued.
1. Mukesh Parikh Suryakant,
80%,
2. Hitesh Patel Lalubai,
20%.
Mukesh Parikh Suryakant, a citizen of India.
Importers, exporters and traders of diamonds.
70% - 80% of sales are export.
Operating from office premises, owned by the shareholders, on an area of
25 sq. meters, in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (20th
Floor, Room 2044), Ramat Gan.
Having 7 employees (had 8 employees in 2010).
Financial data not forthcoming.
There are 3 charges for unlimited amounts registered on the company's
assets (financial and fixed assets), in favor of Union Bank of Israel Ltd. and
Israel Discount Bank Ltd. (all charges placed in 2007).
Sales started in March 2007.
Sales figures not forthcoming.
Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Nothing unfavorable learned.
Subject officials refused to disclose financial data.
Subject is continuing activities of a veteran company.
An affair of an underground bank has been shocking 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 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%.
While the global diamond industry experienced major declines during the
year, Israel saw a steady improvement in its diamond trade in the third and
fourth quarters of the year, according to Ministry of Industry, Trade and Labor
Diamond Controller Shmuel Mordechai, who published figures for Israel’s diamond
imports and exports during 2012.
Israel’s net polished diamond exports stood at US$5.6 billion in 2012,
compared a decline of 23% from 2011. Mr. Mordechai said that Israel’s diamond
trade seems likely to continue to improve in 2013 and return to levels of 2011,
which was a record year. Israel’s 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$3.8 billion, 13 % less than in
2011.
The United States continued to be Israel’s major market for polished
diamonds, accounting for 36% of the market. Hong Kong was the next largest
market with 28% of exports, with Belgium accounting for 8%, Switzerland 5%,
U.K. 5% and the rest of the world 18%.
According to the President of the Israeli Diamonds Association, in 2010 the
trade in the local diamond sector rolled annual turnover of US$ 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.
Notwithstanding the refusal to disclose financial data, considered good
for trade engagements.
Note: Since the beginning of 2012 Israel Post started using a new area code
method of 7 digits (the old method of 5 digits will still be valid till end of
January 2013).
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.53.32 |
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|
1 |
Rs.84.60 |
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Euro |
1 |
Rs.72.63 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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.