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MIRA INFORM REPORT
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Report No. : |
497460 |
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Report Date : |
16.03.2018 |
IDENTIFICATION DETAILS
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Name : |
SEGALDIAM LTD. |
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Registered Office : |
P.O. Box 88, 21 Tuval
Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 5252236 |
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Country : |
Israel |
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Date of Incorporation : |
06.03.1988 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, traders,
exporters and marketers of diamonds. |
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No. of Employees : |
7 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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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
SEGALDIAM LTD.
Telephone 972 3 575 28 67
Fax 972 3 575 07 91
Email: segaldiam@segaldiam.co.il
P.O. Box 88
21 Tuval Street
Diamond Exchange,
Yahalom Bldg.
RAMAT GAN 5252236, ISRAEL
HISTORY
& LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-127935-8 on the 06.03.1988.
SHARE
CAPITAL
Authorized share
capital NIS 10,000.00, divided into –
10,000 ordinary
shares of NIS 1.00 each, of which 150 shares amounting to NIS 150.00 were
issued.
SHAREHOLDERS
1. Raju Shah, 66%,
2. Rahil Shah, 16.67%,
3. Rmil Shah, 12%,
3. Prashant Parbhakran, 5.33%.
According to our
records, in the course of the first half of 2008, Navimchand Shaha Paraj, who held
some 10.7% of subject, left subject and the shares were transferred to
shareholder No. 1, Raju Shah. Also, in January 2012 Vipol Shah and Sejal Shah
exited from subject and Rahil Shah entered.
DIRECTORS
1. Raju Shah,
General Manager,
2. Prashant Parbhakran.
BUSINESS
Importers,
traders, exporters and marketers of diamonds.
Some 70% of sales
are for export.
Operating from
owned premises, on an area of around 90 sq. meters, in 21 Tuval Street (also referred
to as 54 Bezalel Street), Diamond Exchange, Yahalom Bldg. (3rd floor, Rooms
367-369), Ramat Gan.
Also operating
from branches in Mumbai and in Bangkok.
Website: http://www.segaldiam.com
Having 7 employees
(same as in the last previous years).
MEANS
Financial data not
forthcoming.
There are 3 charges for unlimited amounts
registered on the company's assets (financial assets and fixed assets), in
favor of Mizrahi Tefahot Bank Ltd.
REVENUES
2010 sales claimed
to be US$ 60,000,000, 70% of which for export.
2011 sales claimed
to be over US$ 90,000,000, 70% of which for export.
2012 sales claimed
to be between US$ 45,000,000 – US$ 50,000,000, 70% of which for export. The
decrease in sales is explained at the slowdown in the diamond sector due to
global economy factors and the local underground bank affair in the Diamond
Exchange (as detailed below).
2013 sales claimed
to be around US$ 50,000,000, 70% of which for export.
2014 sales claimed
to be around US$ 40,000,000, 70% of which for export.
2015 sales claimed
to be around US$ 20,000,000, 70% of which for export.
2016 sales claimed
to be around US$ 20,000,000, 70% of which for export.
2017 sales claimed
to be around US$ 20,000,000, 70% of which for export.
BANKERS
Mizrahi Tefahot Bank Ltd., Diamond Exchange
Business Center Branch (No. 466), Ramat Gan.
Subject ceased working with The State Bank of India
(SBI).
CHARACTER
AND REPUTATION
Nothing
unfavorable learnt.
Subject is known
in the local diamond branch and their reputation is well.
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
Good for trade engagements.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.94 |
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1 |
INR 90.73 |
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Euro |
1 |
INR 80.32 |
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ILS |
1 |
INR 18.81 |
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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VAR |
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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
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.