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Report No. : |
308583 |
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Report Date : |
17.02.2015 |
IDENTIFICATION DETAILS
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Name : |
I – DIAMONDS (ISR) LTD |
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Registered Office : |
23 Tuval Street
Diamond Exchange, Noam Bldg. Ramat Gan 5252238 |
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Country : |
Israel |
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Date of Incorporation : |
04.01.2012 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject operates in the diamonds field (exact line of business not
forthcoming). |
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No. of Employee : |
Number of employees not forthcoming,
believed to be few. |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Israel |
A2 |
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 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 |
I – DIAMONDS (ISR) LTD.
Telephone 972 3 613 33 14
Fax 972
3 613 32 96
Email: info@bendiaco.com
23 Tuval Street
Diamond Exchange,
Noam Bldg.
RAMAT GAN 5252238 ISRAEL
A private limited company, incorporated as
per file No. 51-471330-4 on the 04.01.2012.
Authorized share capital NIS 10,000.00,
divided into -
10,000
ordinary shares of NIS 1.00 each,
of which 1,000 shares amounting to NIS
1,000.00 were issued.
Subject is fully owned by Marcus Schwalb.
Marcus Schwalb.
Subject operates in the diamonds field
(exact line of business not forthcoming).
Operating from the
rented offices premises of BENDIACO LTD. (controlled by Beni Schwalb, the son
of Marcus Schwalb), on an area of 68 sq. meters, in 23 Tuval Street (also
referred to as 52 Bezalel Street), Diamond Exchange, Noam Building (2nd floor,
room No. 212), Ramat Gan.
Number of employees not forthcoming,
believed to be few.
Having 4 employees in BENDIACO (in 2013).
Financial data not forthcoming.
There are no charges registered on the company's assets.
Sales figures not forthcoming.
BENDIACO LTD., owned by Beni Schwalb
(50.85%), Marc Schwalb, (33.90%), both of Belgium and Hitash Shah (15.25%), of
India. Established 1996. Traders, importers, exporters and marketers in
diamonds. 2009 and 2010 sales claimed to be between US$ 7 million – US$ 10
million, 30% for export.
Bank data not forthcoming.
Nothing unfavorable learned.
Subject's owner and General Manager, Mr. Marcus Schwalb, refused to disclose
any data.
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.
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.
Considering the refusal to disclose data,
dealings are recommended on secured basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.20 |
|
|
1 |
Rs.96.00 |
|
Euro |
1 |
Rs.71.00 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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.