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Report Date : |
20.08.2014 |
IDENTIFICATION DETAILS
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Name : |
MULTI-NATIONAL
DIAMONDS LTD. |
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Formerly Known as : |
RINGER & INFELD LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
01.06.1995 |
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Com. Reg. No.: |
51-215765-2 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Traders,
Importers, Exporters and marketers
of Polished Diamonds |
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No of Employees : |
· Current Number of employees not disclosed 10 (2010) 10 (2008) |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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. Cut diamonds,
high-technology equipment, and pharmaceuticals are among the leading exports.
Its major imports include crude oil, grains, raw materials, and military equipment.
Israel usually posts sizable trade deficits, which are covered by tourism and
other service exports, as well as significant foreign investment inflows.
Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. 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. 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. The economy has recovered better than most advanced, comparably sized
economies, but slowing demand domestically and internationally, and a strong
shekel, have reduced forecasts for the next decade to the 3% level. Natural gas
fields discovered off Israel's coast since 2009 have brightened Israel's energy
security outlook. The Tamar and Leviathan fields were some of the world's largest
offshore natural gas finds this past decade. The massive Leviathan field is not
due to come online until 2018, but production from Tamar provided a one
percentage point boost to Israel's GDP in 2013 and is expected to contribute
0.5% growth in 2014. In mid-2011, public protests arose around income
inequality and rising housing and commodity prices. Israel's income inequality
and poverty rates are among the highest of OECD countries and there is a broad
perception among the public that a small number of "tycoons" have a
cartel-like grip over the major parts of the economy. 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. Over the long term, Israel faces structural issues, including
low labor participation rates for its fastest growing social segments - the
ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive,
globally competitive, knowledge-based technology sector employs only 9% of the
workforce, with the rest employed in manufacturing and services - sectors which
face downward wage pressures from global competition.
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Source : CIA |
MULTI-NATIONAL DIAMONDS LTD.
Telephone 972 3 612 05 90
Fax 972 3 752 01 19
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
Ramat Gan 5252220
Israel
A private limited
company, incorporated as per file No. 51-215765-2 on the 01.06.1995.
Originally
registered under the name RINGER & INFELD LTD., which changed to the
present name on the 19.08.1997.
Authorized share
capital of NIS 27,100.00, divided into:
27,100 ordinary
shares of NIS 1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
Subject is fully owned by Marc Schreiber.
Marc Schreiber, a Belgian citizen.
Traders,
importers, exporters and marketers of polished diamonds.
In 2010 some 85%
of sales were for export (current export rate not forthcoming).
Among clients:
E.F.D. DIAMONDS, ESPEKA DIAMONDS, etc.
Purchasing is from
both local and foreign suppliers.
Among local
diamond suppliers: LEO SCHACHTER DIAMONDS, MOSHE NAMDAR & CO., etc.
Operating from
rented offices, on an area of 60 sq. meters, in 21 Tuval Street (also referred to
as 54 Bezalel Street), Diamond Exchange, Yahalom Building (31st
floor), Ramat Gan.
Had 10 employees
in 2010 (same as in 2008), current number of employees not disclosed.
Stock was valued
at US$ 10,000,000 in mid 2008.
Later and other
financial data not forthcoming.
There are 2
charges for unlimited amounts registered on the company's assets (financial
assets and fixed assets), in favor of Mizrahi Tefahot Bank Ltd. (last charge
placed June 2012, prior charge placed 2003).
· 2005 sales claimed to be US$ 27,000,000.
2006
sales claimed to be US$ 32,000,000.
2007
sales claimed to be US$ 45,000,000.
2008
sales claimed to be US$ 45,000,000, of which 85% for export.
Subject's General
Manager informed us that 2009 sales were less than of 2008, though exact figure
were not disclosed. 85% of sales were for export.
Later sales
figures not forthcoming.
Mizrahi Tefahot
Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan, account No.
158710.
A check with the Central Banks' database did not reveal negative
information on subject’s a/m bank account.
Nothing
unfavorable learned.
Subject's officials refused to disclose financial, employees and other
details on the company.
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 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).
Notwithstanding
the refusal to disclose financial and other data, considered 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.60.73 |
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UK Pound |
1 |
Rs.101.48 |
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Euro |
1 |
Rs.81.04 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIS |
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.