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Report Date : |
25.01.2013 |
IDENTIFICATION DETAILS
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Name : |
M. HENNESSY DIAMONDS LTD. |
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Formerly Known As : |
MICHAL HENNESSY DIAMONDS LTD |
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Registered Office : |
21 Tuval Street Diamond Exchange, Yahalom Bldg. Ramat Gan
5252236 |
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Country : |
Israel |
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Date of Incorporation : |
04.10.2010 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
TRADERS,
IMPORTERS AND MARKETERS OF DIAMONDS |
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No. of Employees : |
02 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 |
HENMESSY DIAMONDS LTD.
Correct Name:
M. HENNESSY DIAMONDS LTD.
Telephone 972 3
54 345 50 15
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252236 ISRAEL
A private limited company, incorporated as per file No. 51-450203-8
on the 04.10.2010 under the name MICHAL HENNESSY DIAMONDS LTD., which changed
to the present name on the 31.01.2011.
Authorized share capital of NIS 100,000.00, divided into:-
100,000
ordinary shares of NIS 1.00 each,
of which 100 shares amounting to NIS 100.00 were issued.
Subject is fully owned by Ms. Michal Hennessy.
Ms. Michal Hennessy.
Traders, importers and marketers of diamonds.
All sales are local.
Operating from office premises, on an area of 20 sq. meters,
in 21 Tuval Street (street name is also referred to as 54 Bezalel Street),
Diamond Exchange, Yahalom Building (5th Floor), Ramat Gan.
Having 2 employees (had 3 employees in early 2012).
Financial data not forthcoming.
There is 1 floating charge for an unlimited amount
registered on the company's assets, in favor of Mizrahi Tefahot Bank Ltd.
(charge placed July 2011).
Sales figures not forthcoming.
Mizrahi Tefahot Bank Ltd., Diamond Business Branch (No.
026), Ramat Gan.
Nothing unfavorable learned.
Subject's General Manager refused to disclose financial
data.
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.
Being a relatively new company, and the refusal to disclose
financial data, for the time being dealings are recommended on secured basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.85 |
|
|
1 |
Rs.85.25 |
|
Euro |
1 |
Rs.71.72 |
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 |
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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.