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Report Date : |
22.09.2014 |
IDENTIFICATION DETAILS
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Name : |
ZABAN BECHOR -
JEWELLERY LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
20.08.1995 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, importers, exporters and marketers
of fancy jewelry made of gold, and gold combined with precious stones,
diamonds. |
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No. of Employees : |
27 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 : |
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
|
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.
|
Source
: CIA |
ZABAN BECHOR - JEWELLERY LTD.
Telephone 972
3 516 99 91
Fax 972 3 516 99 93
26 Rambam Street Tel
Aviv 6581312 Israel
A private limited company, incorporated as per
file No. 51-219285-7 on the 20.08.1995.
Authorized share capital NIS 3,000.00, divided
into -
3,000
ordinary shares of NIS 1.00 each,
of which 1,000 shares amounting to NIS 1,000
were issued.
Subject is fully owned by Bechor Shushan Zaban.
Bechor Shushan Zaban, born 1953.
Manufacturers, importers, exporters and marketers
of fancy jewelry made of gold, and gold combined with precious stones,
diamonds.
Subject transferred its retail activity (which
operated under the name "B. Zaban") to sister company KORAL
MILLENIUIM.
22% of sales are for export.
Sole local representative of:
Invicta, of USA
Advertizing agency: G GROUP.
Operating from main premises (offices, retail
store), owned by the shareholders, on an area of 270 sq. meters, in 26 Rambam
Street (corner of 82 Allenby Street), Tel Aviv.
Having 27 employees in subject (had 35 employees
in the beginning of 2011), and 175 employees serving ZABAN Group (had 120
employees in Group in the beginning of 2011).
In August 2010 it was reported that Group is
intending to invest NIS 24 million in opening 12 stores (subject and sister
company).
Other financial data not forthcoming.
There are 7 charges for unlimited amounts
registered on the company's assets (financial assets), in favor of Mizrahi
Tefahot Bank Ltd., Bank Leumi Le'Israel Ltd. and Bank Hapoalim Ltd. (last 2 charges placed April-September 2013).
2007 sales claimed to be NIS 47,000,000.
2008 sales claimed to be NIS 55,000,000.
2009 sales claimed to be NIS 60,000,000, of
which 10% for export.
2010 sales claimed to be NIS 65,000,000, of
which 17% for export.
Later sales data not forthcoming.
Also owned by Bechor Shushan Zaban:
KORAL MILLENIUIM LTD., 7 retail stores under the
name "B. Zaban" (activity taken from subject), as well as operating 36
points of sales for jewelry and watches within the stores of the HAMASHBIR
DEPARTMENT STORES, under the style "Coral Jewelry".
ZABAN DIAMONDS B.S. LTD., importers,
traders, dealers and exporters of diamonds (small size, up to 1 carat).
Bechor Shushan Zaban is also involved in real
estate, among others via:
MIKADO SHILUV PROMOTION AND BUILDING LTD.,
RAMOT MIKADO CENTER LTD., both partly owned by
Bechor Shushan Zaban.
Mizrahi Tefahot Bank Ltd., Terafon Branch (No.
430), Bnei Brak.
Bank Leumi Le'Israel Ltd., Tel Aviv Central branch
(No. 800), Tel Aviv.
Nothing unfavorable learned.
Mr. Bechor Zaban is a well-known figure in the
local jewelry industry and trade.
Prior to establishing subject, Bechor Shushan
Zaban held some 50% in the leading jewelry company PAZ CHEN, then a public
limited company whose shares traded on the Tel Aviv Stock Exchange. During the
1990’s he sold most of his shares in this company and in 1997, he sold his
remaining 6% in this company, for a sum of NIS 5.6 million.
In 1998, it was reported that a group of
investors, including Bechor Zaban, acquired a plot on an area of 4,000 sq.
meters in North Tel Aviv, for a sum of US$ 5.72 million. The group is currently
erecting a 5,000 sq. meter commercial center on the plot.
In August 2007 it was reported that subject
became sole representative of Invicta
watches from USA.
IN August 2008 it was reported that Group will
sell jewelry designed by Aya Azrielant.
In August 2010 it was reported that Group is
launching an advertizing campaign with an investment of NIS 1 million.
In November 2010 it was reported that Group is
opening a store in Arena Mall in Herzliya with an investment of NIS 2.5
million.
According to the Ministry of Industry,
Trade & Labour data, export of Gold, Silver
and Fashion Jewelry from Israel in 2012 reached US$ 268.5 million, up from US$
254.7 million in 2011. These numbers are still well below those prior to the
global economic crisis: export level was close to US$ 300 million in 2009, and
over US$ 400 in 2007.
The division in export in 2012 was US$ 105.1
million for gold jewelry, and US$ 112 million in silver jewelries, and US$ 51.4
million in fashion jewelry.
Import of jewelry in 2012 summed up to US$ 182.9
million, comparing to US$ 189.9 million in 2011. Division of import was: US$
142.7 million for gold jewelry, US$ 19.8 million in silver jewelries, and US$
20.4 million in fashion jewelry.
There are some 250 jewelry manufacturers, 200 of
which are exporters, manufacturing gold jewelry, silver jewelry and other
fashionable jewelry.
Most exports are to the USA and Canada and
Western Europe
From the Central Bureau of Statistics (CBS) data, export by the local manufacturers of fine jewelry and imitation jewelry
and related articles reached US$ 525 million in 2013, 14% increase from 2012.
From CBS data gross imports to Israel in the segment of Jewelry, Watches and Precious Stones in summed up to US$ 219.5 million in 2012,
US$ 241.5 million in 2013. Import rose by 5% in the first 4 months of 2014
comparing to the parallel period in 2013.
Good for trade engagements.
Note: Since February 2013 Israel Post has started using a new area code
method of 7 digits (the old method of 5 digits is no longer valid).
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.60.81 |
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1 |
Rs.100.06 |
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Euro |
1 |
Rs.78.47 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
SDA |
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.