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MIRA INFORM REPORT
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Report No. : |
502830 |
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Report Date : |
16.04.2018 |
IDENTIFICATION DETAILS
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Name : |
VARDI DAVID |
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Registered Office : |
1 Jabotinsky
Street, Diamond Exchange, Maccabi Bldg., Ramat Gan 5252001 |
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Country : |
Israel |
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Date of Incorporation : |
Not Available |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importers, Exporters and Marketers of
Diamonds. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Poor |
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Payment Behaviour : |
-- |
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Litigation : |
-- |
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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company
Name And Address
VARDI DAVID
(Also known as VARDI DAVID
DIAMONDS)
Telephone 972 3 575 09 89
Fax 972 3 575 16 17
Email: vardi-am@inter.net.il
1 Jabotinsky Street
Diamond
Exchange, Maccabi Bldg.
RAMAT
GAN 5252001 ISRAEL
HISTORY
& LEGAL FORMATION
A sole
proprietorship, year of establishment not forthcoming.
Operating under Licensed Dealer No.
45707254.
The business is registered with the Tax
Authorities’ Files under the name of "VARDI DAVID".
OWNERSHIP
David Vardi.
GENERAL
MANAGER
David Vardi.
BUSINESS
Importers, exporters and marketers of diamonds.
Operating from office premises, in 1
Jabotinsky Street, Diamond Exchange, Maccabi Building, Ramat Gan.
Note: We could not
get confirmation for room number (No. 1142 as you gave).
Number of
employees not forthcoming.
MEANS
Financial data not
forthcoming.
It is possible
that Mr. Vardi is an owner of office premises in Maccabi Bldg., as from reports
in 2005 a diamond dealer named David Vardi purchased one entire floor in the
building (among a group of diamonds dealers which purchased 10 floors).
REVENUES
Sales figures not forthcoming.
OTHER
COMPANIES
According to our David Vardi also owns:
VALDIAM LTD., incorporated 2001,
VARDI DAVID PROPERTIES LTD.
BANKERS
Bank data not forthcoming.
CHARACTER
AND REPUTATION
Nothing unfavorable learned (notwithstanding the media reports below,
which we could not determine indeed related to subject).
So far, we did not
get business information from subject’s owner and manager, Mr. David Vardi. The
secretary asked us for an email with our request, which we sent, and they will
consider our request.
We found reports
on veteran diamond dealer named David Vardi, who in 2010 was suspended and
removed from the Israeli Diamond Exchange (which also published notification of
such), after he was arrested in connection to try to smuggle (via proxy) “blood
diamonds” worth NIS 0.5 million from Zimbabwe to Israel. In the report it is
mention that David Vardi was 72 years old (then).
Reportedly, in
January 2013, following the Court’s recommendation (after Vardi appealed to the
Supreme Court), the Diamond Exchange Management decided to annul Mr. Vardi’s
suspension (hence return to operate in the Israeli Diamond Exchange).
We could not
ascertain it concerns subject, though it is likely that it concerns subject
(and so the report above in MEANS of purchasing real estate property in Maccabi
Building, which suggests Mr. Vardi is a wealthy person).
Export (net) of
polished diamonds from Israel in the first 9 months of 2017 totaled US$ 3,383
million, which represents 11.8% decrease compared to the parallel period in
2016, while export of net rough diamonds fell 10.4% in this period, reaching
US$ 1,796 million. That is in contrast to the figures in 2016, which showed signs
of recovery for the Israeli diamond trade, coming after the export of diamonds
from Israel experienced a drastic fall by 20% in 2015 from 2014 (down 40% from
2011).
Net export of
polished diamonds in 2016 decreased by 6.4% from 2015, reaching US$ 4,675
compared to US$ 4,993 million in 2014 (after 0.6% rise in 2014 and 11.6% in
2013), however net rough diamonds exports jumped 23.1% to US$2,702 million (in
2015 fell 28.3% from 2014, after 4.2% rise in 2014, and a mere rise in 2013).
Yet the figures are well away from its peak on the eve of the crisis with
export of polished diamonds of US$ 7 billion.
In total, diamonds
export (polished and rough) in 2017 were expected to sum up to US$ 7 billion,
7% lower than in 2016, from the Ministry of Economy forecast.
The market has
been volatile over the last years after experiencing its worst depression due
to the global economic crisis. According to Israel's Diamond Administration
(IDA) at the Ministry of Economics, profit margins have been decreasing due to
smaller gaps between rough (increasing) and polished (decreasing) diamond
prices.
In addition, the
local diamond sector has been negatively affected by other significant factors:
the production of counterfeit diamonds, whose quality keeps improving (harming the
raw diamonds market), the entrance of new rules by the local Tax Authorities on
the Diamond Exchange for enforcing money laundering, and the "underground
bank" affair – as below.
As a result, local
diamond dealers report on difficulties in executing transactions and bad
atmosphere in the branch. Signs of recovery appeared towards the last quarter
of 2016 – mainly due to the growing stability of the market and the industry’s
agreement with the Israel Tax Authority in December, yet the market is still volatile,
as witnessed with the endurance of the depression trend during 2017.
Net imports of
polished diamonds totaled US$ 3,282 million in 2016, 5.7% decrease from 2015,
while net import of rough diamonds reached US$ 3,246 million, up 16.7% from
2015.
Net imports of
polished diamonds decrease by 15.1% in the first 9 months of 2017 and totaled
US$ 2,015 million, compared to the parallel period in 2016, whereas net import
of rough diamonds reached US$ 2,089 million, down 11.6% from 2016.
The United States continued
to be Israel’s major market for polished diamonds, accounting for 45% of the
market in the first 9 months 2017 (was 39% in 2016). Hong Kong is 2nd
largest market with 30% of exports (26% in 2016), followed by Switzerland 9%
(7%), Belgium 8% (8%), and the rest of the world account for the remaining 8%
of Israel's polished diamond export.
An affair of an
"underground bank" (known as the "Check List" Affair)
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, and for a while to paralysis (especially in raw
diamonds purchase) due to uncertainty among local and foreign dealers.
Later in 2012 the
Police decided to lower the profile of the investigation for a while (pressure
from the diamond branch due to the continuing damage inflicted and the
Government (losing US$ hundred millions from decrease in tax collection), but
resumed investigation in 2013.
In mid-2014, based
on the Police and Tax Authorities recommendations, the State Attorney started
the process of filing indictments against central defendants in the affair,
initially against dealers who provided foreign currency services to the
"bank" (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, a fine and confiscation of assets in volume of NIS
millions, part of a plea bargain). Since late 2015 indictments for severe
charges pressed against 11 diamond dealers and their firms for tax felonies
committed and issuing fictitious invoices in volumes of millions US$ (latest
indictments filed by the Tel Aviv District Attorney in August 2016). Their
cases are pending.
SUMMARY
In case it
concerns the veteran wealthy diamond dealer David Vardi, subject appears to be
suitable for trade engagements (also considering that the said suspension
terminated 5 years ago).
However, since we
did not get any business information from subject’s officials, at this stage we
prefer to remain cautious and recommend dealings on secured basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.22 |
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1 |
INR 92.77 |
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Euro |
1 |
INR 80.34 |
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ILS |
1 |
INR 18.65 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.