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Report No. : |
354187 |
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Report Date : |
08.12.2015 |
IDENTIFICATION DETAILS
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Name : |
JAYVIDIAM (ISRAEL) LTD. |
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Registered Office : |
23 Tuval Street,
Diamond Exchange, Noam Bldg., Ramat Gan 5252137 |
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Country : |
Israel |
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Date of Incorporation : |
24.01.2001 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, importers, exporters and marketers of all sorts of diamonds. |
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No. of Employees : |
Not Available |
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Israel |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
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 |
JAYVIDIAM (ISRAEL)
LTD.
Telephone 972
3 571 84 10
Mobile 972 54 397 40 64
Fax 972
3 571 84 38
23 Tuval Street
Diamond Exchange,
Noam Bldg.
Ramat Gan 5252137 Israel
A private limited
company, incorporated as per file No. 51-315798-2 on the 24.01.2001.
Authorized share
capital of NIS 20,000.00, divided into:
20,000 ordinary shares
of NIS 1.00 each, of which 1,000 shares amounting to NIS 1,000.00 were issued.
1. Manishkomar Tejani, 85%,
2. Samitash Tejani (cousin of
Manishkomar), 15%.
Manishkomar Tejani
Traders, importers,
exporters and marketers of all sorts of diamonds.
Almost 100% of
sales are for export.
Most supply is
from import.
Having hundreds of
customers and suppliers.
Operating from premises,
owned by Manishkomar Tejani, which includes 4 offices on an area of 120 sq.
meters, in 23 Tuval Street (also referred to as 52 Bezalel Street), Diamond
Exchange, Noam Building (10th Fl.), Ramat Gan. Also maintain offices in Belgium
(Antwerp), Dubai, in Mumbai and Surat (India).
As of early 2015,
subject itself has no employees, only the shareholders are engaged in the
business (as in 2013). Working with subcontractors/ agents who use subject's
premises. Subject’s Group, which includes the diamond plants in India and
offices in Belgium, has 1,500 – 2,000 employees (similar to end 2013).
Financial data not
forthcoming.
There are 3
charges for unlimited amounts registered on the company's assets (financial assets),
in favor of the Union Bank of Israel Ltd. and The State Bank of India Ltd. (2
charges placed in 2002, 1 in 2010).
Sales figures not
forthcoming.
Sister diamond
companies:
JAYVIDIAM N.V.,
Antwerp, Belgium,
DIAM ROUGH DMCC,
Dubai.
Manishkomar Tejani
also owns a company in India for diamond manufacturing and polishing, with
facilities in Mumbai and Surat.
Union Bank of
Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
The State Bank of
India (SBI), Main Branch (No. 001), Ramat Gan.
Nothing
unfavorable learned.
Mr. Manishkomar
Tejani, subject's General Manager and the only authorized person to disclose
data on the company, is presently abroad and due back towards the end of this
month. We shall call him upon his return and update you accordingly. In past
interviews, Mr. Tejani refused to disclose financial data, saying it is
confidential.
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.
In addition, the
local diamond sector has been negatively affected by 2 other significant
factors: the production of counterfeit diamonds, whose quality keeps improving
(harming the raw diamonds market) and the "underground bank" affair –
see below. As a result, local diamond dealers report on difficulties in
executing transactions and bad atmosphere in the branch.
The data published
for the 1st half of 2015 (compared to 1stH 2014) points on a negative
reverse trend in all parameters: Net export of polished diamonds represents 17%
decrease, reaching US$2,975 million, and net rough diamond exports decreased by
22%, totaled US$ 1,361 million. Net imports of polished diamonds fell by 17%,
reaching US$ 1,793 million, while net import of rough diamonds fell 21%
totaling US$ 1,623 million.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 44%
of the market in the 1stH 2015 (some recovery from 39% in latest years). Hong
Kong is 2nd largest market with 31% of exports (30% in 2014), then
Switzerland 10%, Belgium 6.5%, and U.K. accounting for 2.4% 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.
Since mid 2014 the
State Attorney started to file indictments against central defendants in the
affair, initially against dealers who
provided foreign currency services to the "underground bank", for
felonies of money laundering and tax evasion in volumes of US$ millions (in
June 2015 the court made the first conviction in the affair, sending a foreign
currency dealer who pretended also to be a diamond dealer, for 4 years prison
and a fine, part of a plea bargain), and in October 2015 indictments for severe
charges pressed against 5 diamond firms and persons for felonies committed in
volumes of millions US$.
Notwithstanding the lack of updated data from subject's officials,
considered 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.63 |
|
|
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.72.40 |
|
ILS |
1 |
Rs. 17.27 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ASH |
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.