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Report No. : |
318787 |
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Report Date : |
29.04.2015 |
IDENTIFICATION DETAILS
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Name : |
AAROHI DIAM |
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Registered Office : |
Diamond
Exchange, Noam Bldg., Ramat Gan 5252 |
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Country : |
Israel |
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Date of Incorporation : |
14.11.1986 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
TRADERS,
POLISHERS, IMPORTERS AND EXPORTERS OF DIAMONDS OF ALL TYPES. |
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No. of Employees : |
7 [2014] |
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 : |
Slow but correct |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Israel |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 2013, 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. Israel's economy
also has weathered the Arab Spring because strong trade ties outside the Middle
East have insulated the economy from spillover effects. Slowing demand
domestically and internationally and reduced investment due to uncertainties
caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2%
during 2014. 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 expected to come online no sooner than 2017, but
production from Tamar provided a one percentage point boost to Israel's GDP in
2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the
grievances but has maintained that it will not engage in deficit spending to
satisfy populist demands. 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 |
AAROHI DIAM
Telephone 972 3 752 56 42
Fax 972 3 752 56 45
23 Tuval Street
Diamond Exchange,
Noam Bldg.
RAMAT GAN 5252238 ISRAEL
A private limited
company, incorporated as per file No. 51-115134-2 on the 14.11.1986.
Authorized share
capital of NIS 2,640.00, divided into:
2,640 ordinary
shares of NIS 1.00 each, of which 2,500 shares amounting to NIS 2,500.00 were
issued.
1. B.A.N. TRADING & INVESTMENTS, 35%, of the
USA,
2. Rupen Bhansali, 20%,
3. Ashuk Shah, 15%, of India,
4. Ankor Bhansali, 15%,
5. Jay Gotualla, 15%, of India.
1. Rupen Bhansali, General Manager,
2. Ankor Bhansali,
3. Jay Gotualla.
Traders,
polishers, importers and exporters of diamonds of all types (large and small,
from 10 carats to larger than 25 carats).
70%-80% of sales
were for export in 2014 (was 60% in 2012 – see more in CHARACTR).
Operating from
offices premises, owned by the shareholders, on an area of 180 sq. meters, in
23 Tuval Street (also referred to as 52 Bezalel Street), Diamond Exchange, Noam
Building, 1st floor, Room #101, Ramat Gan, and from subsidiaries in
Belgium and India.
Had 7 employees in
mid 2014 (had 8 employees in the beginning of 2013), current number unavailable.
Financial data not
forthcoming.
However we were
informed that subject owns 400 sq. meters office space in Yahalom Building in
the Diamond Exchange, which is very highly valued. This office space is being
leased to 3rd parties (hence subject enjoys revenues from leasing
fees).
There are 5 charge
for unlimited amounts registered on the company's assets, in favor of Israel
Discount Bank Ltd. and Bank Leumi Le'Israel Ltd. (last charge placed in 2008).
2011 sales claimed to be US$ 50,000,000, of which 60% were for export.
2012 sales claimed to be US$ 50,000,000, of which 60% were for export.
2013 sales claimed to be US$ 30,000,000, of which 70%-80% were for
export (see below regarding the drop in sales).
Later sales figures not forthcoming.
A.D. DIAMONDS, a
subsidiary in India,
Having also a
subsidiary in Belgium, name unavailable.
AAROHI INVESTMENTS
& ASSETS LTD.
AAROHI DIAM
AAROHI DIAM
AAROHI DIAMONDS
PVT LTD., India,
AAROHI DIAMONDS
LLC, Dubai, UAE.
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 directed to the General Manager, who was
always too busy to take our calls, so we left a message. We will also try to
call in a later day, in case we do not get response, and update you once we
receive fresh data.
Subject is a
veteran diamond firm in the local diamond industry. According to our sources,
the company enjoys very good reputation.
In mid 2014
subject's official informed us that they were decreasing local activity, and
increasing international activity, opening 2 subsidiaries in India and Belgium.
In the end of 2002, subject was officially recognized by the Israel-Asia
Chamber of Commerce for its contribution to the development of bilateral trade
between the two countries.
In October 2004, it was reported that subject opened a new
office in Hong Kong.
Israel's diamond
industry continued the growth trend in all trade parameters in 2014, after the impressive
growth in 2013 in most parameters, based on the data by Israel's Diamond
Administration (IDA) at the Ministry of Economics: Net export of polished
diamonds rose by 0.6% from 2013, reaching US$6.269 billion (after rising 11.6%
in 2013), and net rough diamond exports totaled US$3.061 billion in 2014, up
4.2% from 2013 (after a mere rise in 2013). The market has been volatile over
the last years after experiencing its worst depression due to the global
economic crisis, then recovered in 2010 but fell again in 2012. The recovery in
2013 and 2014 is positive news for the local branch (still away from its peak
on the eve of the crisis with export of polished diamonds of US$ 7 billion),
however it is reported that profit margins have been decreasing due to smaller
gaps between rough and polished diamond prices (leading the diamond dealers to
search for new rough sources in hope to decrease costs). Overall, IDA reports
that 2014 was tough year for the diamond industry in Israel and globally.
Net imports of
polished diamonds in 2014 totaled US$4.514 billion, and net import of rough
diamonds totaled US$ 4.022 billion, marking 4.8% and 0.8% increase from 2013,
respectively (in 2013 import was in similar levels to 2012).
The United States
continued to be Israel’s major market for polished diamonds, accounting for
30.8% of the market in 2014 (37% in 2013). Hong Kong is the next largest market
with 29.7% of exports (27% in 2013), with Belgium 8.5%, Switzerland 6.5%, and
U.K. accounting for 3.7% 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 stood on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the
global crisis.
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.
Notwithstanding the lack of updated data from subject's officials,
considered good for trade engagements.
Note: "POB 4" which you gave in the
address is an internal postal box in the Diamond Exchange. Please also note the
correct telephone numbers in caption.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.33 |
|
|
1 |
Rs.96.52 |
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Euro |
1 |
Rs.68.93 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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.