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Report No. : |
324668 |
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Report Date : |
03.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
DAVID ARABOV
& SONS (2013) LTD. |
|
|
|
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Registered Office : |
3 Jabotinsky
Street Diamond Exchange, Shimshon Bldg., Ramat Gan 5250005 |
|
|
|
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Country : |
Israel |
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|
|
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Date of Incorporation : |
26.12.2013 |
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|
|
|
Legal Form : |
Private Limited Company |
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|
|
|
Line of Business : |
Traders, Importers, Exporters and
Marketers of Polished Diamonds. |
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|
|
|
No. of Employees : |
6 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
DAVID ARABOV & SONS (2013) LTD.
Telephone 972 3 613 17 65
Fax 972 3 613 16 93
3 Jabotinsky
Street
Diamond Exchange,
Shimshon Bldg.
Ramat Gan 5250005 Israel
A private limited company, incorporated as
per file No. 51-474303-8 on the 26.12.2013.
Subject took over the business activities of
DAVID ARABOV & SONS (1998) LTD., established 1998, which became inactive.
Authorized share capital NIS 2,000.00,
divided into -
2,000
ordinary shares of NIS 1.00 each,
of which 200 shares amounting to NIS 200.00
were issued.
1. David Arabov, 50%,
2. Mrs.
Dalia Arabov, wife of David, 50%,
David Arabov.
Traders, importers, exporters and marketers
of polished diamonds.
40% of sales are export.
Operating from offices
premises, owned by the shareholders, on an area of 130 sq. meters, in 3
Jabotinsky Street, Diamond Exchange, Shimshon Building (10th floor,
Suite No. 01), Ramat Gan.
Having 6 employees.
Financial data not forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets (all assets), in favor of Union Bank of Israel Ltd. (charges placed
January 2014).
2013 sales claimed
to be US$ 17,000,000, 40% were for export.
2014 sales claimed
to be US$ 17,420,000, 40% were for export.
Also owned by
David Arabov & family:
DAVID ARABOV &
SONS (1998) LTD., non-active.
ARABOV INVESTMENTS
LTD., real estate.
D.N. DIAMONDS
(2007) LTD., incorporated in 2007, traders, importers, exporters and marketers
of diamonds. 2010 sales US$ 57.5 million.
Based on the
Companies' Registrar, David Arabov was registered as the 55% shareholder in
D.N. DIAMONDS, and in October 2012 a change in shareholders took place,
apparently his shares were transferred to Itzhak (Tzahi) Arabov. We know that
David Arabov is still involved in D.N. DIAMONDS, though.
ARABOV GROUP LTD., owned by Alon and Doron Arabov, sons of David Arabov,
an international diamond company with annual sales said to be of several
hundred US$ million, though exact figures not forthcoming, engaged in the
entire diamond branch – rough trading, polishing, polished dealing, jewelry
manufacturing and retailing.
ARABOV INVESTMENTS
LTD., real estate,
ARABOV GROUP USA DIAMOND DISTRIBUTION CENTER
INC., USA.
Union Bank of Israel Ltd., Ramat Gan
Branch (No. 062), Ramat Gan.
Nothing unfavorable learned on subject
itself.
ARABOV GROUP and
their owners/directors Alon Arabov and Doron Arabov are among the diamond dealers
involved in the recent illegal affair detailed below, were detained in January
2012 and released by Court home under restrictions.
According to one
media article from that date David Arabov, who is Alon and Doron's
father, was also mentions as one of the persons taken for interrogation, yet
in the Tax Authorities press release he is not mentioned.
David Arabov is a
veteran and known diamond dealer. He and his family are also known to have
holdings in real estate properties.
ARABOV GROUP was ranked 7th in
the 2011 list of Israel's largest polished diamonds exporters with sales for
export of polished diamonds of US$ 102 million. It does not appear in the 2012
List, though the reason is not known (it is possible that the company chose not
to be published in the list for its own motives, which is their choice).
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.
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.
The data published
for the first quarter of 2015 (compared to the parallel period in 2014) points
on a negative reverse trend in all parameters: Net export of polished diamonds
plunged by close to 30% from the 1stQ 2014, reaching US$1,610
million, and net rough diamond exports decreased by 23%, totaled US$ 694
million. Net imports of polished diamonds fell by 12%, reaching US$ 904
million, while net import of rough diamonds fell 18% totaling US$ 827 million.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 39%
of the market in the 1stQ 2015 (31% in 2014). Hong Kong is 2nd
largest market with 33% of exports (30% in 2014), then Switzerland 13%, Belgium
7%, and U.K. accounting for 2% 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.
Good for trade
engagements (apparently, subject is not related to a/m affair, and from what we
learn, neither is Mr. David Arabov himself).
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).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.83 |
|
|
1 |
Rs.97.10 |
|
Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
TPT |
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 |
|
|
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.