MIRA INFORM REPORT

 

 

Report Date :

28.06.2013

 

IDENTIFICATION DETAILS

 

Name :

OMTIME DISTRIBUTION LTD.

 

 

Registered Office :

P.O. Box 1158, 48 Ha'atzmaut Rd., Industrial Zone, Yehud-Monoson 5630421

 

 

Country :

Israel

 

 

Date of Incorporation :

24.01.1978

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of watches and Jewellery

 

 

No. of Employees :

Number of employees not forthcoming

 

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. 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, and production from the Tama field is expected to meet all of Israel's natural gas demand beginning mid-2013. 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

 

 


Company name & address

 

OMTIME DISTRIBUTION LTD.

Telephone                972 3 517 25 40

Fax                         972 3 510 29 64

P.O. Box 1158

48 Ha'atzmaut Rd.

Industrial Zone

YEHUD-MONOSON  5630421                              ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a private limited company and registered as such as per file No. 51-077339-3 on the 24.01.1978.

 

Converted into a public limited company and registered as such as per file  No. 52-004138-5 on the 01.03.1994.

 

At a later date re-converted into a private limited company (keeping the latter registration number).

 

 

SHARE CAPITAL

 

Authorized share capital NIS 20,000,000.00, divided into -

              20,000,000 ordinary shares of NIS 1.00 each,

of which 875 shares amounting to NIS 875.00 were issued.

 

 

SHAREHOLDERS

 

1.  Ms. Lea Falach, 42.86%,

2.  Uriel Falach, 42.29%, husband of Lea,

3.  ISREIKO IMPORT AND MARKETING OF WATCHES AND CLOCKS (1986) LTD., 9.49%, owned by Falah family,

4.  THE ISRAELI CENTER FOR GOLD TRADE LTD., 4.8%, owned by Falah family,

5.  There are further 5 shareholders, each holding 1 single share.

 

 

DIRECTORS

 

1. Uriel (Uri) Falach, General Manager,

2. Ms. Lea Falach.

 

BUSINESS

 

Importers and marketers of watches and jewellery.

 

Sales are via some 190 points of sale, including Group's retail chain ROYALTY JEWELLERY (some 50 shops) and other jewellery and watches shops countrywide.

 

Subject and the Group are exclusive local importers and representatives of: SEIKO, FERRARI, NINA RICCI, MILUS, PULSAR, ELLE, SAINT HONORE, LORUS, and others.

 

Operating from premises, in 48 Ha'atzmaut Road, Industrial Zone, Yehud – Monoson.

 

Number of employees not forthcoming.

 

 

MEANS

 

Financial data not forthcoming.

 

There are 9 charges for unlimited amounts registered on the company's assets (financial assets, fixed assets and vehicles), in favor of Bank Leumi Le’Israel Ltd. and Bank Otsar Hahayal Ltd. (there are 5 charges placed between 1991 and 1998 on financial and other assets, plus 4 charges placed during 2006-2007 on financial assets).

 

 

SALES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

Also part of subject's Group:

GOLDEN SUN JEWELRY LTD. (known as ROYALTY JEWELLERY), operating a retail chain (some 50 shops) for jewellery and watches. Reported turnover in 2007 NIS 168 million.

 

ISREIKO IMPORT AND MARKETING OF WATCHES AND CLOCKS (1986) LTD.,

 

SUPERGOLD JEWELLERY LTD.,

 

THE ISRAELI CENTER FOR GOLD TRADE LTD.

 

 


BANKERS

 

According to our, working with Bank Leumi Le’Israel Ltd., branch data unavailable. We were unable to confirm that so far.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts, so far we were unable to speak with subject's CFO, the person authorized to disclose data on the company, as he was too busy to take our calls. We left several messages which so far remain unanswered.

In case we receive fresh data from subject we shall update you accordingly

 

Subject is a veteran business and among the leading in their field. Ms. Lea and Uri are well-known, operating in the watches and jewellery business since 1976.

 

 

SUMMARY

 

Notwithstanding the lack of data from subject's officials, considered good for trade engagements.


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.

-            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 –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.59

UK Pound

1

Rs.92.92

Euro

1

Rs.78.94

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.