MIRA INFORM REPORT

 

 

 

Report Date :

12.11.2013

 

IDENTIFICATION DETAILS

 

Name :

INDIAM LTD.

 

 

Registered Office :

P.O. Box 195 (52101), 3 Jabotinsky Street, Diamond Exchange, Shimshon Bldg., Ramat Gan 5252005

 

 

Country :

Israel

 

 

Date of Incorporation :

26.08.1998

 

 

Legal Form :

Private Limited Company

 

 

LINE OF BUSINESS :

TRADERS, IMPORTERS, EXPORTERS AND MARKETERS OF DIAMONDS.

 

 

No. of Employees :

20,000

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate 

Payment Behaviour :

Unknown 

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

 

Source : CIA

Company name and address

 

INDIAM LTD.

Telephone      972 3 612 64 40

Fax                972 3 612 39 48

P.O. Box  195 (52101)

3 Jabotinsky Street

Diamond Exchange, Shimshon Bldg.

RAMAT GAN  5252005                ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-267413-6 on the 26.08.1998.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 36,000.00, divided into: 36,000 ordinary shares of NIS 1.00 each, of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1.    Rajubani Sabany, 50%,

2.  Vallabhbhai Premjibhai Sabany, 40%, father of Rajubani,

3.  Mrs. Sheetalben Sabany, 10%, wife of Rajubani.

 

Until 2010 50% of subject was held by Indian firm BELADIYA VELAJIBHAI (other 50% held by Rajubani Sabany).

 

 

DIRECTORS

 

1.  Rajubani Sabany, General Manager,

2.  Vallabhbhai Premjibhai Sabany, of India.

 

 

BUSINESS

 

Traders, importers, exporters and marketers of diamonds.

 

All sales are for export.

 

Operating from rented offices premises, on an area of 80 sq. meters, in 3 Jabotinsky Street, Diamond Exchange, Shimshon Building (Room # 1609), Ramat Gan.

 

Subject’s General Manager Rajubani Sabany is the only one working in subject (same as in 2012).

 

 

MEANS

 

Financial data not forthcoming.

 

There is 1 charge (placed in 2009) for an unlimited amount registered on the company's assets, in favor of The State Bank of India Ltd.

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

JP FANCY DIAM, India.

 

 

BANKERS

 

SBI State Bank of India, Main Branch (No. 001), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject’s General Manager Rajubani Sabany is presently abroad.  We managed to obtain updates from his brother.

In previous interviews Mr. Sabany refused to disclose financial data.

 

Our sources commented favorably on Mr. Sabany and on subject

 

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 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 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.

 

 

SUMMARY

 

Good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.29

UK Pound

1

Rs.101.36

Euro

1

Rs.84.59

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

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