|
Report Date : |
15.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
ASHER GERTLER |
|
|
|
|
Registered Office : |
1 Jabotinsky Street Diamond Exchange, Maccabi Bldg. Ramat Gan 5252001 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Year of Incorporation : |
1969 |
|
|
|
|
Legal Form : |
Sole Proprietorship |
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|
|
|
Line of Business : |
Traders, importers, exporters and marketers of diamonds. |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Unknown |
|
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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
ASHER GERTLER
Telephone 972 3 752 69 69
Fax 972
3 752 69 99
1 Jabotinsky Street
Diamond Exchange, Maccabi Bldg.
RAMAT GAN 5252001
ISRAEL
A sole proprietorship,
established 1969.
Operating under Licensed Dealer No.
001415207.
The business is registered with the Tax
Authorities’ Files under the name of "GERTLER ASHER".
Asher Gertler.
Asher Gertler.
Traders, importers, exporters and marketers of
diamonds.
All sales are export.
Operating from
premises, part of the owned offices premises of the MOSHE SCHNITZER & CO.
Group, on an area of 300 sq. meters, in 1 Jabotinsky Street, Diamond Exchange,
Maccabi Building (12th floor), Ramat Gan.
Number of
employees not forthcoming.
Financial data not
forthcoming, known to be financially solid.
Sales figures not
forthcoming.
MOSHE SCHNITZER
& CO. DIAM
Asher Gertler is
known to have holdings in other local and foreign firms.
Union Bank of
Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with Asher Gertler, the
only one authorized tom disclose data, as he was always unavailable. We left
messages which so far remain unanswered. In the previous interviews, Mr.
Gertler refused to disclose business data, besides few details.
Asher Gertler is a
veteran, respectful and well-known diamond dealer.
Mr. Gertler is in
the diamond business several tens of years.
He is the
brother-in-law of Shmuel Schnitzer, son of the Late Moshe Schnitzer, who
founded MOSHE SCHNITZER & CO., which is a veteran well-known diamond firm,
sightholders, enjoying world reputation and among Israel’s leading diamonds
manufacturers and exporters.
Asher’s son, Dan Gertler, is a well-known
international diamond dealer, mainly via DGI Group, operating worldwide, mainly
Africa, in development of natural resources in emerging markets. He is also a
controlling shareholder in public companies NIKANOR PLC (U.K), dealing in
copper and cobalt mining (in Africa) and Canadian KATANGA mining company, among
many others, worth
US$ billions.
Ms. Hana Gertler, wife of Asher, also has
investments in other companies.
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 lack of updated details
from subject's officials, 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
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.54.63 |
|
|
1 |
Rs.88.17 |
|
Euro |
1 |
Rs.73.13 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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 |
|
-- |
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.