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Report Date : |
14.05.2014 |
IDENTIFICATION DETAILS
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Name : |
S. MILLER DIAMONDS LTD. |
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Registered Office : |
P.O. Box 508, Ramat Gan (5210501), 3 Jabotinsky Street, Diamond Exchange, Shimshon Bldg., Ramat Gan 5252005 |
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Country : |
Israel |
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Date of Incorporation : |
02.03.1993 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, importers, exporters and marketers of diamonds (mostly fancy
diamonds). |
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No. of Employees : |
5 employees |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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.
|
Source
: CIA |
S. MILLER DIAM
Telephone 972 72 225 53 91
/2
Fax 972 3 575 05 19
P.O. Box 508, RAMAT GAN (5210501)
3 Jabotinsky Street
Diamond Exchange, Shimshon Bldg.
RAMAT GAN 5252005 ISRAEL
A private limited company, incorporated as per file No. 51-178754-1 on
the 02.03.1993.
Originally registered under the name MILLER RIECHMAN DIAMONDS LTD.,
which changed to the present name on the 25.01.1999.
Authorized share capital of NIS 21,400.00, divided into:-
21,400 ordinary shares
of NIS 1.00 each,
of which 43 shares amounting to NIS 43.00 were issued.
Shmuel Miller, 69.8%,
Abraham Freilich, 30.2%.
Until September 2012 Mr. Shmuel Miller, founder, fully owned subject. In
October 2012 Abraham Freilich entered as a partner.
Shmuel Miller.
Traders, importers, exporters and marketers of diamonds (mostly fancy
diamonds).
70% of sales are exports.
Among clientele: Dany Avlas Diam
Operating from rented office premises, on an area of 15 sq. meters, in 3
Jabotinsky Street, Diamond Exchange, Shimshon Building (8th Floor,
Room #18), Ramat Gan.
Having 5 employees, as of end of 2013 (same as in the 1st
half of 2013, had 4 employees in 2011 and 2 employees mid 2010).
Current stock was valued at US$ 1,500,000 in the end of 2013 (similar to
the 1st half of 2013, was valued at US$ 1,000,000 in end of 2011).
Other financial data not forthcoming.
There is 1 charge for an unlimited amount registered on the company's
assets, in favor of The First International Bank of Israel Ltd. (charge placed
in November 2013).
2008 sales claimed to be US$ 3,000,000, 20% were for export.
2009 sales claimed to be US$ 3,000,000, 20% were for export.
2010 sales claimed to be US$ 5,000,000, 45% were for export.
2011 sales claimed to be US$ 6,000,000, 45% were for export.
2012 sales claimed to be US$ 12,000,000, 70% were for export.
2013 sales claimed to be around US$ 12,000,000, 70% for export.
In late 2013, subject's General Manager, Mr. Shmuel Miller, informed us
they witnessed a significant growth over the last year.
SHAHAR FREILICH DIAM
The First International Bank of Israel Ltd., Diamond Exchange Branch
(No. 026), Ramat Gan
Based on our findings, subject ceased working with Bank Leumi Le'Israel
Ltd.
For some reason that we are unable to explain, so far we did not get any
answer from subject's office in the last 3 days. We called both office
telephone numbers (in caption) but there is no reply at all. We called the
cellular telephone number of Mr. Shmuel Miller, subject's General Manager, who
first asked us to call later, and then when he called said he is extremely
busy. We called later but he did not answer. We also could not get hold of
subject's other shareholder, Mr. Abraham Freilich. It is possible that there is
some event that they participate, but we cannot know until we get to speak with
someone, so we keep trying.
We did not find any detrimental data on subject.
Subject has been enjoying good reputation in the diamond branch.
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).
We believe that subject is suitable for trade engagements, however in
view of the fact we could not speak with its officials, at this stage we prefer
to be cautious and await the final report in order to have a more definitive
recommendation.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.88 |
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|
1 |
Rs.100.98 |
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Euro |
1 |
Rs.82.40 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NNA |
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 |
|
-- |
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.