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Report Date : |
03.04.2014 |
IDENTIFICATION DETAILS
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Name : |
SEGALDIAM LTD. |
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Registered Office : |
P.O. Box 88, 54 Bezalel Street, Diamond Exchange, Yahalom Bldg., Ramat
Gan 5252138 |
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Country : |
Israel |
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Date of Incorporation : |
06.03.1988 |
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Com. Reg. No.: |
51-127935-8 |
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Legal Form : |
Private Limited Company |
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Line of business : |
Importers, Traders, Exporters and Marketers of diamonds. |
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No. of Employees : |
07 employees (same as in 2012, had 9 employees in 2011 and 8 employees
in 2010). |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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. 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 since 2011
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 Tamar field started meeting all of Israel's natural gas
demand in 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. In May 2013 the Israeli
government, in a politically difficult process, passed an austerity budget to
reign in the deficit and restore confidence in the government’s fiscal
position.
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Source : CIA |
SEGALDIAM LTD.
Telephone 972 3 575 28 67
Fax 972 3 575 07 91
P.O. Box 88
54 Bezalel Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252138 ISRAEL
A private limited company, incorporated as per file No. 51-127935-8 on
the 06.03.1988.
Authorized share capital NIS 10,000.00, divided into –
10,000 ordinary shares
of NIS 1.00 each, of which 150 shares amounting to NIS 150.00 were issued.
1. Raju Shah, 78%,
2. Rahil Shah, 16.67%,
3. Prashant Parbhakran, 5.33%.
According to our, in the course of the first half of 2008, Navimchand
Shaha Paraj, who held some 10.7% of subject, left subject and the shares were
transferred to shareholder No. 1, Raju Shah. Also, in January 2012 Vipol Shah
and Sejal Shah exited from subject and Rahil Shah entered.
1. Raju Shah, General Manager,
2. Prashant Parbhakran.
Importers, traders, exporters and marketers of diamonds.
Some 70% of sales are for export.
Operating from owned premises, on an area of around 90 sq. meters, in 54
Bezalel Street (also referred to as 21 Tuval Street), Diamond Exchange, Yahalom
Bldg. (3rd floor, Rooms 367-369), Ramat Gan.
Also operating from branches in Mumbai and in Bangkok.
Having 7 employees (same as in 2012, had 9 employees in 2011 and 8
employees in 2010).
Financial data not forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets, in favor of Mizrahi Tefahot Bank Ltd. and The State Bank of India.
2009 sales claimed to be between US$ 25 – 30,000,000.
2009 sales were relatively low due to the significant slow-down in the
global markets and diamond sector in particular.
2010 sales claimed to be US$ 60,000,000, 70% of which for export.
2011 sales claimed to be over US$ 90,000,000, 70% of which for export.
2012 sales claimed to be between US$ 45,000,000 – US$ 50,000,000, 70% of
which for export. The decrease in sales is explained at the slowdown in the
diamond sector due to global economy factors and the local underground bank
affair in the Diamond Exchange (as detailed below).
2013 sales claimed to be around US$ 50,000,000, 70% of which for export.
Mizrahi Tefahot Bank Ltd., Diamond Exchange Business Center Branch
(No. 466), Ramat Gan.
The State Bank of India (SBI), Main Branch (No. 001), Ramat Gan.
Nothing unfavorable learnt.
Subject is known in the local diamond branch and their reputation is
well.
Israel's diamond industry remarked on impressive growth in almost all
trade parameters in 2013, from the data by Israel's Diamond Administration at
the Ministry of Economics: Net export of polished diamonds rose by 11.6% from
2012, reaching US$ 6.2 billion. The market has been volatile in recent years:
the branch –in Israel as well as globally- experienced its worst depression in
the 2nd half of 2008 and 2009 due to the global economic crisis
(almost an entire freeze and collapse in sales of about 70% in the peak of the
crisis), then recovered in 2010 and mainly in and fell again in 2012 (net
export fell by 23% in 2012 from 2011).
Net rough diamond exports totaled US$2.9 billion in 2013, a mere rise from
2012.
Net imports of polished diamonds remained in similar level as 2012
(after drop by 25% in 2012 from 2011), totaling US$4.3 billion, while net rough
diamonds imports summed at US$ 4 billion, 4% up from 2012 (when it fell 13%
from 2011).
The United States continued to be Israel’s major market for polished
diamonds, accounting for 37% of the market in 2013 (35% in 2013). Hong Kong is
the next largest market with 27% of exports, with Switzerland accounting for
9.3%, Belgium 7.3%, and India accounting for 2.3% of Israel's polished diamond
export.
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 global crisis. The Ministry of Economics also
assisted the local diamond exporters by providing bank guarantees in total
scope of NIS 1 billion.
In February 2009, Israel was ranked as the world’s largest exporter of
cut diamonds, followed by India, Belgium and South Africa.
Local diamond sector employs some 20,000 persons.
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. The Attorney General is in
process of preparing indictments.
In the end of December 2013 it was reported that 5 diamond dealers were
summoned to a hearing (not mandatory) regarding the a/m affair, prior to filing
an indictment, before the Tel Aviv District Attorney (Tax and Finance sector).
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.59.64 |
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UK Pound |
1 |
Rs.99.21 |
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Euro |
1 |
Rs.82.39 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.