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Report Date : |
06.02.2013 |
IDENTIFICATION DETAILS
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Name : |
LIOR MARTIN 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 : |
22.06.2010 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
DEALERS,
IMPORTERS, EXPORTERS AND MARKETERS OF DIAMONDS (POLISHED AND ROUGH). |
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No. of Employees : |
5 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 |
|
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 |
LIOR MARTIN LTD.
Telephone 972 3 613 00 90
Fax 972 3 613 00 91
1 Jabotinsky Street
Diamond Exchange, Maccabi Bldg.
RAMAT GAN 5252001 ISRAEL
Originally established as a sole proprietorship in 2008.
Converted into a private limited company and registered as such as per
file No. 51-446390-0 on the 22.06.2010.
Authorized share capital of NIS 39,100.00, divided into:-
39,100 ordinary shares
of NIS 1.00 each,
of which 100 shares amounting to NIS 100.00 were issued.
Subject is fully owned by Lior Martin.
Lior Martin.
Dealers, importers, exporters and marketers of diamonds (polished and
rough).
Some 33% of sales are for export.
Among local clientele: ROSY BLUE SALES, 4-C'S, A.V.R.I. DIAMONDS SHIMON
BALULU.
Operating from rented office premises, on an area of 75 sq. meters, in 1
Jabotinsky Street, Diamond Exchange, Maccbi Building (19th Floor),
Ramat Gan.
Having 5 employees.
Financial data not forthcoming.
There are 3 charges for unlimited amounts registered on the company's
assets (all assets) in favor of Bank Leumi Le'Israel Ltd. (charges placed July
2010).
Sales data not forthcoming.
Bank Leumi Le'Israel Ltd., Diamond Exchange Branch (No. 629), Ramat Gan.
Nothing unfavorable learned.
Prior to establishing subject, between 2000-2007, Lior Martin held 30%
in ALON FRUCHTER & CO. - DIAMOND COMPANY LTD., a diamond company.
According to a media report from February 3rd, 2013, Bank
Leumi which is responsible to some 16% of the credit to the local diamond
branch (is also subject's banker) has been cutting in credits to its diamond
clients significantly. Officials in the branch complain, claiming the branch
has been in recovery trend since the beginning of 2013 and the bank's policy
(unlike others) is damaging.
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$ 1.6 billion (in 2012), 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.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.53.29 |
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|
1 |
Rs.83.96 |
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Euro |
1 |
Rs.71.88 |
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.