|
|
|
MIRA INFORM REPORT
|
Report No. : |
508072 |
|
Report Date : |
11.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
ANNITA DIAMONDS LTD. |
|
|
|
|
Registered Office : |
21 Tuval Street,
Diamond Exchange, Yahalom Bldg., Ramat Gan 5252236 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
12.09.2010 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Dealers,
Importers, Polishers, Exporters and Marketers of Rough and Cut Diamonds. |
|
|
|
|
No. of Employees : |
1 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Israel |
B1 |
B1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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 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.
|
Source
: CIA |
COMPANY
NAME AND ADDRESS
ANNITA DIAMONDS LTD.
Telephone 972 3 600 60 08
Cellular 972 54 345 00 00
Fax 972 3 600 60 07
21 Tuval Street
Diamond
Exchange, Yahalom Bldg.
RAMAT
GAN 5252236 ISRAEL
HISTORY
& LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-449587-8 on the 12.09.2010.
SHARE
CAPITAL
Authorized share capital
of NIS 39,100.00, divided into:-
39,100 ordinary
shares of NIS 1.00 each, of which 100 shares amounting to NIS 100.00 were
issued.
SHAREHOLDERS
1. Chinar Shah, 75%,
2. Ms. Puja Shah, 25%.
SOLE
DIRECTOR
Chinar Shah, Managing Director.
BUSINESS
Dealers,
importers, polishers, exporters and marketers of rough and cut diamonds.
Some 60% of sales
are for export.
Operating from
rented office premises, on an area of 70 sq. meters, in 21 Tuval Street,
Diamond Exchange, Yahalom Building (Units #775-778), Ramat Gan.
Having 1 permanent
employee, and further employees/ agents overseas (traveling and while in Israel
operating from subject’s premises).
MEANS
Current stock is
valued at US$ 80,000,000 (was valued at US$ 78,000,000 in mid-2014, US$
80,000,000 in mid-2013).
Other financial
data not forthcoming.
There is 1 charge
for an unlimited amount registered on the company's assets (financial assets),
in favor of Mizrahi Tefahot Bank Ltd. (charge placed in 2010).
REVENUES
2011 sales said to be US$ 50 – US$ 70,000,000.
2012 sales are said to be US$ 50,000,000.
2013 sales are said to be US$ 50,000,000, 60% were for export.
2014 sales are said to be US$ 50,000,000, 60% were for export.
2015 sales data not forthcoming.
2016 sales for export said to be US$ 47,000,000, and around 60%
of sales were for export (so total sales estimated to be circa US$ 80,000,000).
Official said 2017 figures still not finalized.
According to the data published by the Israel Supervisor on Diamonds in
the Ministry of Industry & Trade, export of polished diamonds by
subject (actual overall sales are higher, as there are local sales of polished
diamonds (around 40% of sales are local, and there are sales of rough diamonds
as well), were:
2016 sales for export were US$ 42,000,000.
2017 sales for export were US$ 47,000,000.
BANKERS
Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466),
Ramat Gan.
OTHER
COMPANIES
JOGDIAM (ISRAEL) 1988
LTD., Chinar Shah holds 15% in this company (according to our), established in
1988, importers, manufacturers, polishers, exporters and marketers of diamonds.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
According to the
Israel Supervisor on Diamonds in the Ministry of Industry & Trade, subject
was ranked 8th in the 2017 list of Israel’s largest polished diamond
exporters, after being ranked 11th in the 2016 list.
Mr. Chinar Shah is
veteran in the diamond branch. He is a member of the Diamond Exchange since
1994.
We traced a legal
dispute between subject and Israel Union Bank Ltd., which is pending and awaits
the end of mediation procedure. Case’s content unavailable.
Export (net) of
polished diamonds from Israel in 2017 totaled US$ 4,478 million, some 4% lower
than in 2016 and 2015 (US$ 4,675 million and US$ 4,996 million, respectively),
and well below 2014 (US$ US$ 6,269 million) and from its peak on the eve of the
crisis in the branch, with export of polished diamonds of US$ 7 billion.
The diamonds
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. 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 most
of 2017.
Export (net) of
rough diamonds fell 10.4% in the first 9 months of 2017 (compared to the parallel
period in 2016), reaching US$ 1,796 million (summed up to US$ 2,702 million in
all 2016, 23% higher than 2015).
Net imports of
polished diamonds in 2017 totaled US$ 2,700 million, compared to US$ 3,282
million in 2016.
Net import of
rough diamonds summed at US$ 3,246 million in 2016, up 16.7% from 2015, and
reached US$ 2,089 million in the first 9 months of 2017, down 11.6% compared to
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.38 |
|
|
1 |
INR 91.39 |
|
Euro |
1 |
INR 79.89 |
|
ILS |
1 |
INR 18.86 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.