|
Report Date : |
23.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
KUPERMAN BROTHERS DIAMONDS LTD |
|
|
|
|
Registered Office : |
1 Jabotinsky Street Diamond Exchange, Macabbi Bldg. Ramat Gan 5252001 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
28.08.2002 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTERS,
TRADERS, POLISHERS, EXPORTERS AND MARKETERS OF WIDE RANGE OF DIAMONDS, FROM
SMALL TO 3 KARAT DIAMONDS. |
|
|
|
|
No. of Employees : |
17 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 |
|
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 |
KUPERMAN BROTHERS DIAM
KUPERMAN BROTHERS DIAM
Telephone 972 3 575 20 17/
8
Fax 972 3 575 02
33
1 Jabotinsky Street
Diamond Exchange, Macabbi Bldg.
RAMAT GAN 5252001 ISRAEL
A private limited company, incorporated as per file No. 51-329231-8 on
the 28.08.2002.
Subject is succeeding business activities originally founded by Shlomo
Kuperman in 1963 (during that time for many years until 2002, also operated
under a general partnership called KUPERMAN BROTHERS, established 1979).
Authorized share capital NIS 100,000.00, divided into –
20 management shares (2
shares issued),
99,980 ordinary
shares (200 shares issued), all of NIS 1.00 each,
of which shares amounting to NIS
202.00 were issued.
1. Shlomo Kuperman, 50%,
2. Ehud (
1. Shlomo Kuperman,
2. Ehud (
Importers, traders, polishers, exporters and marketers of wide range of
diamonds, from small to 3 karat diamonds.
Some 90% of sales are for export.
Most purchasing is from import.
Operating from office premises, owned by the shareholders, on an area of
150 sq. meters, in 1 Jabotinsky Street, Diamond Exchange (3rd floor,
Room 336), Macabbi Bldg., Ramat Gan, and from branches in New York, London and
Hong Kong.
Having 17 employees in Israel and further 10 employees serving in the
branches abroad (same as in 2012, 2011 and 2010, had 15 employees in Israel and
10 employees abroad as of end of 2009).
Financial data not forthcoming, however known to be financially solid.
There are 4 charges for unlimited amounts registered on the company's
assets, in favor of Union Bank of Israel Ltd. (charges were placed in 2002 –
2003).
Sales details as informed to us by subject's officials in the past:
2007 sales claimed to be US$ 70,000,000, of which US$ 50,000,000 for
export.
2008 sales claimed to be circa US$ 60,000,000, of which US$ 50,000,000
were for export.
2009 sales claimed to be circa US$ 48,000,000, of which US$ 42,000,000
were for export.
First 9 months of 2010 sales claimed to be
US$ 41,000,000, of which
US$ 36,000,000 were for export.
Subject's officials refused to disclose later sales figures.
According to the data published by the Israel Supervisor on Diamonds in
the Ministry of Industry & Trade, export of polished diamonds by subject
(actual overall sales presumed to be higher, as there are local sales of
polished diamonds and may have sales of rough diamonds as well), were as
follows:
2010 sales for export (net) were US$ 50,000,000.
2011 sales for export (net) were US$ 57,000,000.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Nothing unfavorable learned.
Subject's officials refused to update financial data.
This is a veteran family diamond business, enjoying good reputation in
the branch.
According to the report published by the Israel Supervisor on Diamonds
in the Ministry of Industry and Trade, subject was ranked 17th in
the 2011 list of Israel's 25 largest polished diamonds exporters. That marks
descend from 2010 and 2009 ranking (13th and 11th,
respectively). Subject's ranking in earlier years was as follows: 15th in 2008,
18th in 2007, 20th in 2006, 18th in 2005 and
21st in 2004.
Subject does not appear in the 2012 List, however it should be noted
that some companies which are included in the top-25 list choose to remain
confidential –on a year to year basis-, and in 2012 12 firms chose to do so.
Hence, we do not know if in subject's case they are part of the twelve, or just
got out of the 25 list.
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 update sales figures, 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
2012).
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.53.51 |
|
|
1 |
Rs.84.85 |
|
Euro |
1 |
Rs.71.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.