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Report Date : |
21.02.2013 |
IDENTIFICATION DETAILS
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Name : |
PADANI JEWELLERS LTD. |
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Registered Office : |
6 Kaufman Street Gibor House Tel Aviv 6801298 |
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Country : |
Israel |
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Date of Incorporation : |
30.10.1962 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, marketers, distributors and retailers of jewelry and exclusive watches. |
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No. of Employees : |
Not Available |
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 : |
-- |
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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
PADANI JEWELLERS
LTD.
Telephone 972 3 517 73 33
Fax 972 3 516 56 50
6 Kaufman Street
Gibor House
TEL AVIV 6801298 ISRAEL
A private limited
company, incorporated as per file No. 51-036592-7 on the 30.10.1962.
Subject is
continuing business activities which began in 1947 by Uri Padani, itself
continuing family jewelry business founded in
Authorized share
capital NIS 17.00, divided into -
170,000
ordinary shares of NIS 0.0001 each,
of which 151,001
shares amounting to NIS 15.1001 were issued.
Note: The currency in share capital was originally
in Old Israeli Shekel whose nominal value was 1 thousandth of the
current New Israeli Shekel (NIS), converted in 1986).
1.
Benyamin Padani, 99.9%,
2.
The Late Uri Padani, 0.1%.
1. Benyamin (Benny) Padani, General Manager,
2. Mrs. Melina Padani, wife of Uri.
Note: the Late Uri
Padani, founder and father of Benny, is still registered as a Director.
Importers,
marketers, distributors and retailers of jewelry and exclusive watches.
Also operating 9
stores in Israel and
Subject's products
are of the high end.
Sole
representatives of:
BURBERRY, CHANEL,
OFFICINE PANERAI, JAEGER-LECOULTRE, A.LANGE & SHONE, BREITLING, BVLGARY,
PATEK PHILIPPE, CARTIER, RAYM
Operating from
offices in 6 Kaufman Street, Tel Aviv, and from 9 rented retail stores in
Israel (4 in Tel Aviv, 2 in Eilat, 1 in Jerusalem, 1 in Ra'anana, 1 in Haifa),
as well as
Number of
employees not forthcoming.
Financial data not
forthcoming.
There are 15
charges for unlimited amounts registered on the company's assets (financial
assets and vehicles), in favor of Bank Leumi Le'Israel Ltd., Bank Hapoalim Ltd.
and a leasing company IGUD LEASING LTD. (last 9 charges since December 2009 are
on vehicles – LAST 3 CHARGES PLACED March-June 2012).
Sales figures not
forthcoming.
PADANI TIME LTD.,
PADANI DIAM
According to our
sources:
Bank Leumi
Le'Israel Ltd., Tel Aviv Main Branch (No. 800), Tel Aviv.
Bank Hapoalim
Ltd., Tel Aviv.
Since subject's
officials did not cooperate with us we could not verify a/m banks.
In March 2002, the
State of Israel filed an indictment against subject and its managers, Uri,
Biynamin and Ilan Padani, due to a tax fraud.
In March 2003,
subject’s Managers were found guilty.
Uri Padani,
subject’s founder was sentenced to a suspended 14 months prison term and a fine
of NIS 100,000, and his sons Binyamin and Ilan Padani were sentenced to 6
months of community service, a suspended 8 months prison term and a fine of NIS
100,000.
In April 2003, it
was reported that Israel Discount Bank Ltd. filed a request for the
receivership of PADANI LUSTIG, partly owned by the Padani Family, due to a debt
of NIS 24.3 million.
Apart from that,
nothing unfavorable learnt.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Subject’s officials are known to be discreet regarding the business.
Subject is a
leading prestigious jewelry chain store in Israel, catering to the upper class.
Subject represents the world’s elite watches and jewelry designers.
In May 2001, it
was reported that subject received the local concession to market EBEL watches.
In August 2001, it
was reported that subject received the local concession to market the Swiss
IGER watches.
In June 2003, it
was reported that subject received the local concession to market the
Scandinavian ACCENT watches.
In February 2004,
it was reported that subject received the local concession to market the
BURBERRY British watches.
In August 2005
subject became the Israeli representative of CHANEL watches.
In October 2006 it
was reported that subject is opening a concept store in Kent, UK, with an
investment of US$ 3 million.
In July 2007 it
was reported that subject will represent MICHAEL KORS watches.
In December 2008
it was reported that subject is expanding its shop in the prestigious Ramat
Aviv Mall, with an investment estimated at US$ 1 million. The expanded shop
will lie on an area of 130 sq. meters.
In January 2010 it
was reported that subject is opening a flag store in the new luxurious Mamila
Blvd. shopping area in Jerusalem investing NIS 6 million.
In February 2010
it was reported that subject signed a contract in volume of NIS 500,000 with
local large glass company SHVIRO for the erection of a showroom complex in the
Mamila shop.
In January 2012 it
as reported that subject received sole representation of MARK JACOBS and of
PIAGET.
In May 2012, Uri
Padani, founder and father of Benny, passed away at the age of 92.
Notwithstanding
lack of data from subject's officials, considered good for trade engagements.
Note: Since the beginning of February 2013
Israel Post has started using a new area code method of 7 digits (the old
method of 5 digits is no longer valid).
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.54.05 |
|
|
1 |
Rs.83.45 |
|
Euro |
1 |
Rs.72.53 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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.