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Report Date : |
11.11.2013 |
IDENTIFICATION DETAILS
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Name : |
S. MILLER DIAMONDS LTD. |
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Registered Office : |
P.O. Box 508, Ramat Gan (5210501), 3
Jabotinsky Street, Diamond Exchange, Shimshon Bldg., Ramat Gan 5252005 |
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Country : |
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Date of Incorporation : |
02.03.1993 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, importers, exporters and marketers of diamonds (mostly fancy
diamonds). |
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No. of Employees : |
5 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
S. MILLER DIAM
Telephone 972
72 225 53 91 /2
Fax 972
3 575 05 19
P.O. Box 508, RAMAT GAN (5210501)
3 Jabotinsky Street
Diamond Exchange, Shimshon Bldg.
Ramat Gan 5252005 Israel
A Private Limited Company, incorporated as per file No. 51-178754-1 on
the 02.03.1993.
Originally registered under the name MILLER RIECHMAN DIAMONDS LTD.,
which changed to the present name on the 25.01.1999.
Authorized share capital of NIS 21,400.00, divided into:-
21,400 ordinary shares
of NIS 1.00 each,
of which 43 shares amounting to NIS 43.00 were issued.
Shmuel Miller, 69.8%,
Abraham Freilich, 30.2%.
Until September 2012 Mr. Shmuel Miller, founder, fully owned subject. In
October 2012 Abraham Freilich entered as a partner.
Shmuel Miller.
Traders, importers, exporters and marketers of diamonds (mostly fancy
diamonds).
70% of sales are exports.
Among clientele: Dany Avlas Diam
Operating from rented office premises, on an area of 15 sq. meters, in 3
Jabotinsky Street, Diamond Exchange, Shimshon Building (8th Floor,
Room #18), Ramat Gan.
Having 5 employees (same as in the 1st half of 2013, had 4
employees in 2011 and 2 employees mid 2010).
Current stock is valued at US$ 1,500,000 (similar to the 1st
half of 2013, was valued at US$ 1,000,000 in end of 2011).
Other financial data not forthcoming.
There are 4 charges for unlimited amounts registered on the company's
assets, in favor of Bank Leumi Le'Israel Ltd. (last charge placed in March
2012, prior to that charges placed in 1994).
2008 sales claimed to be US$ 3,000,000, 20% were for export.
2009 sales claimed to be US$ 3,000,000, 20% were for export.
2010 sales claimed to be US$ 5,000,000, 45% were for export.
2011 sales claimed to be US$ 6,000,000, 45% were for export.
2012 sales claimed to be US$ 12,000,000, 70% were for export.
Projected 2013 sales are US$ 12,000,000, 70% for export.
SHAHAR FREILICH DIAM
Bank Leumi Le'Israel Ltd., Diamond Exchange Business Branch (No. 743),
Ramat Gan.
Nothing unfavorable learned.
Subject enjoys good reputation in the diamond branch.
Subject's General Manager, Mr. Shmuel Miller, informed us they witnessed
a significant growth over the last year.
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.
Good for trade engagements.
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 : |
SDA |
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.