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Report Date : |
22.11.2014 |
IDENTIFICATION DETAILS
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Name : |
MOSHE NAMDAR MASINGITA LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
16.04.2008 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders,
importers, exporters and marketers of cut and rough diamonds. |
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No. of Employees : |
25 |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
MOSHE NAMDAR
MASINGITA LTD.
Telephone: 972 3 576 70 00
Fax” 972 3 576 70
49
Email: info@masingita.com
Diamond Exchange,
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
Subject is fully owned by Moshe Namdar.
During 2012 Moshe Namdar acquired the shares
of SALANT GROUP LTD. (51%) and of Mr. Haim Habif (less than 1%).
According to the Registrar of companies, in
August 2014 Moshe Namdar assumed the shares of Ms. Yael Namdar, (4.05%, Moshe's
daughter) and of Itzhak Livian (less than 1%) and reached full ownership.
1. Moshe Namdar,
2. David Namdar.
1. Ms. Yael Namdar,
2. Moshe Namdar.
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
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.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain unanswered.
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 DIAM
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 being 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% 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.
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.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements and for high credits.
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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.62.10 |
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1 |
Rs.97.32 |
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Euro |
1 |
Rs.77.91 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
VNT |
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.