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Report Date : |
15.12.2014 |
IDENTIFICATION DETAILS
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Name : |
ANDRE MESSIKA LTD. |
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Formerly Known as : |
B.L.I.D. INTERNATIONAL LTD |
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Registered Office : |
Diamond
Exchange, Yahalom Bldg., |
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Country : |
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Year of Establishment : |
1972 |
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Com. Reg. No.: |
51-345768-9 |
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Legal Form : |
Private Limited Company |
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Line OF Business : |
Traders,
Processors, Importers, Marketers and Exporters of Large Diamonds as well as
Rough and Polished Diamonds |
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No. of Employees : |
15 |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
ANDRE MESSIKA LTD.
Telephone 972 3 751 06 23; 612
88 72
Fax 972 3 612 88 22
Diamond Exchange,
Yahalom Bldg.
A private limited company, incorporated as per file No. 51-345768-9 on
the 22.09.2003, continuing diamond business activities which started in 1972.
Originally registered under the name B.L.I.D. INTERNATIONAL LTD., which
changed to the present name on the 18.01.2011.
Authorized share
capital of
50,000 ordinary
shares of
Subject is fully owned by ANDRECO LTD., a
local private limited company, owned by Andre Messika.
Yaacov (Kobi) Amir
Traders,
processors, importers, marketers and exporters of large diamonds as well as
rough and polished diamonds.
74% of 2014 sales
are for export (80% in 2013).
Subject is a
wholesale diamond supplier to jewellery houses and a wholesale jewellery
manufacturers and retailers with outlets in
Among local
clients: M.I.D. HOUSE OF DIAM
Operating from
owned office premises, on an area of 280 sq. meters, in 21 Tuval Street (also
referred to as 54 Bezalel Street), Diamond Exchange, Yahalom Building (25th
floor), Ramat Gan. Also operate from offices in Paris.
Note: Subject moved
from the 24th floor (mentioned in your enquiry) to the 25th
floor.
Having 15
employees (similar to the last previous years).
Owned property in
Yahalom Building, Diamond Exchange (where subject is operating from) is valued
at US$ 2,300,000.
Other financial
data not forthcoming.
There are 5
charges for unlimited amounts registered on the company's assets, in favor of
The First International Bank of Israel Ltd., Union Bank of Israel Ltd. and
Israel Discount Bank Ltd. Charges placed in 2003, 2004, 2011 and latest in
August 2013, on all the company's assets.
2009 sales were
US$ 55,000,000, of which some 50% were for export.
2010 sales were US$
90,000,000, of which 43% were for export.
2011 sales were
US$ 160,000,000, of which 50% were for export.
2012 sales were
US$ 113,000,000, of which 73% were for export.
2013 sales were
US$ 125,000,000, of which 80% were for export.
2014 projected
sales are US$ 125,000,000, of which 74% were for export.
ANDRECO LTD., a
holding company
B.L.I.D. JEWELRY
LTD., non-active.
The First International Bank of Israel Ltd.,
Diamond Exchange Branch (No. 026), Ramat Gan.
Israel Discount Bank Ltd., Diamond Exchange
Branch (No. 080), Ramat Gan.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Bank Leumi Le’Israel Ltd., Diamond Exchange
Branch (No. 629), Ramat Gan.
Nothing
unfavorable learned.
Subject is a
relatively large and well-known diamond company.
Andre Messika is
respectful businessman, veteran diamond merchant (operating mainly from
France), also involved in other investments, including his partnership in
investment firm CORONIS PARTNERS.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 6thin the 2013 list of
Israel's largest polished diamonds exporters, after being ranked 8th both in 2011 and 2012 lists.
In December 2013
subject received Israel’s ‘Outstanding Exporter’ award for 2012 awarded by the
Ministry of Economics, in an official ceremony at the residence of the
President of Israel, Shimon Peres.
In February 2010
it was reported that vertically integrated diamond mining company NAMAKWA
DIAMONDS signed a cooperation agreement with subject, for a regular supply of
diamonds from southern Africa to subject.
In the end of
March 2011 it was reported that 4 diamonds in value of several million Dollars
were stolen from subject's display window while a leading jewelry exhibition in
Basel, Switzerland. The thieves stole the diamonds while their accomplices
distracted the presenters, and managed to disappear, as the merchants realized
the diamonds are gone too late.
In 2012, subject
became a RJC member (Responsible Jewellery Council).
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% in value terms 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 fell again in 2012 (net export fell 23% in 2012 from
2011).
Net export of
polished diamonds continued to grow in the 1st half of 2014 with 6%
rise in value terms compared to 2013 (fell 6.7% in karat terms), reaching
US$3.55 billion.
Net rough diamond
exports totaled US$2.9 billion in 2013, a mere rise from 2012, and totaled
US$1.75 billion in the 1stH 2014 (up 6% and 11.6% in value and in karat terms,
respectively).
Net imports of
polished diamonds remained in 2013 similar level as 2012 (after drop by 25% in
value in 2012 from 2011), totaling US$4.3 billion, and in the 1stH 2014 reached
US$2.05 billion (up 0.9% in value and 5.7% in karat). Net rough diamonds
imports rose 4% in 2013 summing up at US$4 billion, and summed at US$ 2.2
billion in the 1stH of 2014 (3% rise in value, 10% fall in karat terms).
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 said 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.
In July 2014 3
indictments were filed to the Tel Aviv District Court against central
defendants in the affair, who provided foreign currency services to the
"underground bank" (not against diamond dealers at this stage), for
felonies of money laundering and tax evasion in volumes of US$ millions.
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 |
|
US Dollar |
1 |
Rs.62.44 |
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|
1 |
Rs.98.15 |
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Euro |
1 |
Rs.77.38 |
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.