|
Report Date : |
07.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
MOSHE NAMDAR
MASINGITA LTD. |
|
|
|
|
Formerly Known As : |
MASINGITA LTD. |
|
|
|
|
Registered Office : |
21 Tuval Street, Diamond Exchange, Yahalom Bldg. RAMAT GAN 5252236 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
16.04.2008 |
|
|
|
|
Com. Reg. No.: |
51-412867-7 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Traders,
importers, exporters and marketers of cut and rough diamonds. |
|
|
|
|
No of Employees : |
25 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 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.
|
Source
: CIA |
MOSHE NAMDAR MASINGITA LTD.
Telephone 972 3 576 70 00
Fax 972 3 576 70 49
Email: info@masingita.com
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252236 ISRAEL
A private limited company, incorporated as per file No. 51-412867-7 on
the 16.04.2008.
Originally registered under the name MASINGITA LTD., which changed to
the present name on the 30.03.2014.
Authorized share capital of NIS 100,000.00, divided into:
100,000 ordinary shares
of NIS 1.00 each, fully issued.
1. Moshe Namdar, some
95.8%,
2. Ms. Yael Namdar, 4.05%,
daughter of Moshe,
3. Itzhak Livian, holding
0.15% of issued shares.
During 2012 Moshe Namdar acquired the shares of SALANT GROUP LTD. (51%)
and of Mr. Haim Habif (less than 1%).
1. Ms. Yael Namdar, Joint
General Manager,
2. Moshe Namdar, Joint
General Manager,
3. David Nmadar.
Igal Salant, Avner Salant and Reuven Katz are still registered as
directors in subject, though we are informed they left subject (as noted above)
during 2012.
Traders, importers, exporters and marketers of cut and rough diamonds.
Subject's and sister company MOSHE NAMDAR &
CO.'s activities are intertwined.
Over 95% of sales are for export.
Among suppliers: STEINMETZ Group.
Operating from owned offices premises, on an area of over 500 sq.
meters, in 21 Tuval Street (also referred to as 54 Betzalel Street), Diamond
Exchange, Yahalom Building (30th floor), Ramat Gan. Subject and its
Group also operate from offices in New York, Italy and Hong Kong.
Having 25 employees (same as in 2013 and 2012).
Financial data not forthcoming, however subject is enjoying the solid
financial backing of its shareholders, i.e. Moshe Namdar family (see more
below).
There is 1 charge for an unlimited amount registered
on the company's assets, in favor of Israel Discount Bank Ltd. (charge placed
in 2008, on all assets).
As given by subject's Accountant:
2011 sales claimed to be US$ 100,000,000, almost all
for export.
Later sales figures were not disclosed.
Subject began sales in June 2008. Almost all sales are for export.
According to the data published by the Israel Supervisor on Diamonds in
the Ministry of Industry & Trade, export of polished diamonds by subject
were as follows (as seen above, actual overall sales are higher, as there are
other sales e.g. local sales, sales of rough diamonds, etc.):
2008 sales for export (net) were US$ 49,000,000.
Subject's 2009 & 2010 sales for export data
not published.
2011 sales for export (net) were US$ 65,000,000.
2012 sales for export (net) were US$ 48,000,000.
2013 sales for export (net) were US$ 57,000,000.
MOSHE NAMDAR & CO. LTD., owned by Moshe
Namdar, international traders in diamonds, dealing as cutters, processors,
importers, exporters and marketers of diamonds. Ms. Yael Namdar is involved in
this firm as well.
Namdar family has holdings in many other
companies and assets, including in the diamonds branch (MOSHE NAMDAR GEMS
LTD.), holdings & real estate assets (MOSHE NAMDAR HOLDINGS LTD., MOSHE
NAMDAR & ASSOCIATES (2005) LTD.) and industrial companies (Moshe Namdar
controls HABONIM INDUSTRIAL VALVES & ACTUATORS LTD., manufacturers, marketers
and exporters of ball valves and pneumatic actuators).
Israel Discount Bank Ltd., Diamond
Exchange Branch (No. 080), Ramat Gan.
Nothing unfavorable learned.
Subject’s officials refused to disclose financial details.
According to the report published by the Israel Supervisor on Diamonds in
the Ministry of Industry and Trade, subject was ranked 14th in 2013
list of Israel's largest polished diamonds exporters, after being ranked 15th
in the 2012 and 14th in 2011. It was ranked 19th in the
list of 2008, though did not appear in 2009 & 2010 lists (not necessarily
that it did not qualify for the largest diamond exporters these years, because
a company may choose not to be enlisted in a certain year).
Namder family is veteran diamond dealers, at the top of Israel's diamond
industry and trade, with worldwide renown reputation.
Moshe Namdar is also the owner of MOSHE NAMDAR &
CO.
He is a well-known diamond dealer, who was partner in the leading diamond firm SCHACHTER & NAMDAR (established in 1981 as partnership of Namdar family
and LEO SCHACHTER DIAMONDS), until deciding to split in 2006/7.
Until 2012, SALANT GROUP, owned by Salant family (also among the veteran
and leading diamond dealers in Israel) was co-owners/partners in subject with
Moshe Namder and subject's Group were DTC Sightholders.
In July 2010 it was reported that subject implemented MICROSOFT's
Microsoft Online Services (BPOS) for its IT sector.
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 a/m affair, prior to filing an
indictment, before the Tel Aviv District Attorney (Tax and Finance sector).
reach an arrangement for past debts.
Good for trade engagements and for high credits.
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. 60.32 |
|
|
1 |
Rs. 100.03 |
|
Euro |
1 |
Rs. 82.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
DPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.