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Report Date : |
11.11.2013 |
IDENTIFICATION DETAILS
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Name : |
HOLZMAN FABIAN DIAMONDS LTD |
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Registered Office : |
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Country : |
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Date of Incorporation : |
28.02.2007 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Dealers, Traders in Diamonds |
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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 : |
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) |
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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 |
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Source
: CIA |
HOLZMAN FABIAN DIAM
Telephone 972 54 397 07 32
Fax 972 3 612 73 43
Originally founded as a sole proprietorship, under the name FABIAN
HOLZMAN DIAM
Converted into a private limited company and registered as such as per
file No. 51-394792-9 on the 28.02.2007.
Authorized share capital
50,000 ordinary shares of
of which 100 shares amounting to
Subject is fully owned by Fabian Holzman.
Fabian Holzman, born 1970.
Dealers, traders in diamonds.
Operating from offices in 1 Jabotinsky Street, Diamond Exchange, Maccabi
Building (16th floor, Room No. 57), Ramat Gan.
Number of employee not forthcoming, though believed to be few.
Financial data not forthcoming.
There is 1 charge for an unlimited amount registered on the company's
assets (a floating charge on all of subject’s assets, including financial), in
favor of Mizrahi Tefahot Bank Ltd. (charge placed June 2006).
Sales figures not forthcoming.
Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466),
Ramat Gan.
According to the Registrar of Companies subject has a "Law
Violating Company" Status.
As part of the Registrar efforts in the last period to collect fees and
supervision on meeting all duties by Companies’ law, such status notes have
been added to the registry. Registration as a "Law Violating Company"
is done due certain violation by the subject company for not meeting the
Registrar of Companies regulations promptly, namely not paying Registrar fees,
and/or not submitting annual reports on time. The sanctions and penalties
against the company in such case include fines up to NIS 250,000, not allowing
the company to register new charges on its favor, not allow registration a
charge on its assets (which may deprive the company from taking new loans at
their banks), cannot make changes in the Registrar, and more.
It should be noted that this may not necessarily be connected to the
company's business activities and financial standing (although in many cases
there is a connection – we do not know how it is in subject's case; It
is also possible that there is a technical or administrative problem, as such
things also happen).
Nothing unfavorable learned.
Apart from that, nothing unfavorable learned.
We called Fabian Holzman, who asked us to call him again later since he
is busy, we called several times after however received no answer.
Subject's phone number 972 3 575 95 72 keeps being answered by a fax
(besides the other fax number in caption), during the normal working hour.
Subject is a small business.
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 economic crisis in global
markets that erupted in 2008. The sector experienced almost an entire freeze
and collapse in sales of about 70% in the peak of the crisis. While the global
diamond industry experienced major declines during 2012, Israel saw a steady
improvement in its diamond trade in the third and fourth quarters of the year,
according to the Diamond Administration at the Ministry of Industry &
Trade.
Israel’s net polished diamond exports stood at US$5.6 billion in 2012,
compared a decline of 23% from 2011. Net rough diamond exports totaled US$2.8
billion in
Net imports of polished diamonds dropped 25% from 2011, totaling US$4.27
billion, while net rough imports stood at US$3.8 billion, 13 % less than in
2011.
The diamond sector marked an improvement in almost all parameters in the
first 9 months of 2013. Net export of polished diamond increased by 8.7%
comparing to the parallel period in 2012, reaching US$ 4.7 billion, while
export of rough diamonds marked 8.5% rise to US$ 2.2 billion. Net import of
rough diamonds reached US$ 2.9 billion, an increase of 9.4%, whereas net import
of polished diamonds fell slightly by 1.1% to US$ 3.06 billion.
The United States continued to be Israel’s major market for polished
diamonds, accounting for 35% of the market in the first 9 months of 2013 (36%
in 2012). Hong Kong is the next largest market with 28% of exports, with
Switzerland accounting for 9.6%, and Belgium 7.6%.
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.
An affair of an underground bank shocked 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, and for a while to paralysis (especially in purchase of raw diamonds)
due to uncertainty among local and foreign dealers.
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.
In June 2013 it was reported that the Police resumed its raids on the
diamonds branch, and although names of suspects were not released, sources say
that it is also related to the above underground bank affair. In parallel, it
is also reported that the Tax Authorities and diamonds dealers' representatives
are trying to reach an arrangement for past debts.
Considering the refusal to disclose any data and subject being a
relatively small business, dealing are recommended on a secure basis.
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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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 –
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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.
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.73 |
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1 |
Rs.100.92 |
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Euro |
1 |
Rs.84.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
RATING EXPLANATIONS
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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 |
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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.