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Report No. : |
354331 |
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Report Date : |
16.12.2015 |
IDENTIFICATION DETAILS
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Name : |
GERBI - NIMNI DIAM |
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|
|
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Registered Office : |
1 Jabotinsky
Street, Diamond Exchange, Ramat Gan 5252001 |
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|
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Country : |
Israel |
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|
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Date of Incorporation : |
27.02.2011 |
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|
|
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Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Importers,
Dealers, Processors, Marketers and Exporters of Diamond. |
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|
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 |
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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 |
GERBI - NIMNI DIAM
Telephone 972 3 613 55 57
Cellular 972 54 345 27 73
Fax 972 3 503 75 31
Email: barak@gerbidiamonds.com
1 Jabotinsky
Street
Diamond Exchange
Ramat Gan 5252001 Israel
A private limited
company, incorporated as per file No. 51-458344-2 on the 27.02.2011.
Originally
registered under the name SHMUEL GERBI DIAMONDS LTD., which change to the present
name on the 25.08.2014.
It is possible
that the change in name took place following the joining of Barak Nimni. Based
on our findings Mr. Shmuel Gerbi, the original shareholder in subject, started
to operate as a non-registered business in 1992 (under the style SHMUEL GERBI
DIAMONDS), which converted into a registered private limited company, i.e.
subject, in 2011. Since subject's official refused to cooperate at all, we
could not confirm the above developments.
Authorized share
capital of NIS 100,000.00, divided into:-
100,000 ordinary shares of NIS
1.00 each,
of which 135 shares amounting to NIS 135.00
were issued.
1.
Shmuel Gerbi, 74%,
2.
Barak Nimni, 26%.
Shmuel Gerbi.
Name of General Manager was not given.
Importers,
dealers, processors, marketers and exporters of diamond.
Based on our
findings, operating from office premises, in 1 Jabotinsky Street, in the Diamond
Exchange complex (we are not sure which building), Ramat Gan.
Subject's
shareholder we spoke to, refused even to say their address, so we cannot
confirm the above address.
In the Diamond
Exchange directory it just written "Room N".
Registered address
in the Registrar of Companies is 20 Haportzim Street, Netnya.
Number of
employees not forthcoming.
Financial data not
forthcoming.
There is 1 charge
for an unlimited amount registered on the company's assets (all assets), in
favor of Israel Discount Bank Ltd. (charge placed November 2014).
Sales data not
forthcoming.
According to our:
Israel Discount
Bank Ltd., Diamonds Exchange Branch (No. 080), Ramat Gan.
Nothing
unfavorable learned (please refer to NOTE below).
Subject's
shareholder, Mr. Barak Nimni, refused to disclose any data (including their
basic address data and general manager's name).
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$.
Considering the
refusal to disclose data, dealings are recommended on fully secured basis.
According to the
Registrar of Companies subject has a "Law Violating Company" Status.
As part of the
Registrar efforts in the last period to collect fees and supervision on meeting
all duties by Companies’ law, such status notes have been added to the registry.
Registration as a "Law Violating Company" is done due certain
violation by the subject company for not meeting the Registrar of Companies
regulations promptly, mainly for not paying Registrar fees, and/or not
submitting annual reports on time. The sanctions and penalties against the
company in such case include fines up to NIS 250,000, not allowing the company
to register new charges on its favor, not allow registration a charge on its
assets (which may deprive the company from taking new loans at their banks),
cannot make changes in the Registrar, and more.
It should be noted
that this may not necessarily be connected to the company's business activities
and financial standing, though we cannot tell the reason in subject's case
(although in many cases there is a connection. It is also possible that there
is a technical or administrative problem, as such things also happen).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.67.04 |
|
|
1 |
Rs.101.67 |
|
Euro |
1 |
Rs.73.93 |
|
ILS |
1 |
Rs.17.20 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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 |
|
|
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 |
-- |
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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.