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Report Date : |
13.02.2014 |
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 : |
21 Tuval Street Diamond Exchange, Yahalom Bldg. Ramat Gan 5252236 |
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Country : |
Israel |
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Date of Incorporation : |
22.09.2003 |
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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, rough and polished. |
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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, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 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
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Source
: CIA |
ANDRE MESSIKA LTD.
Telephone 972 3 751 06 23
Fax 972 3 612 88 22
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252236 ISRAEL
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 NIS 50,000.00, divided into -
50,000 ordinary shares of NIS 1.00 each,
of which 100 shares amounting to NIS 100.00 were issued.
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, rough and polished.
Some 80% of sales are for export.
Subject is a wholesale diamond supplier to jewellery houses and a wholesale jewellery manufacturers and retailers with outlets in Europe, such as Gallery Lafayette.
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 (same as in 2011).
Owned property in Yahalom Building, Diaond 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.
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 Jjewellery 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% 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.62.13 |
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|
1 |
Rs.102.25 |
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Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
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.