MIRA
INFORM REPORT
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Report Date : |
29.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANTI GEMS (1982) LTD. |
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Registered Office : |
52 Bezalel Street, Diamond Exchange, Noam Building, Ramat
Gan 52521 |
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Country : |
Israel |
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Date of Incorporation : |
1.2.1982 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers,
exporters and marketers of diamonds. |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
SHANTI GEMS (1982) LTD.
52 Bezalel Street
Diamond Exchange, Noam Building
RAMAT GAN 52521 ISRAEL
Telephone 972 3 575 71 36
Fax 972 3 752 18 48
HISTORY
A private limited
company, incorporated as per file No. 51-091532-5 on the 1.2.1982.
SHARE CAPITAL
Authorized share
capital of NIS 10.00 divided into: 100,000 ordinary shares, of NIS 0.0001 each,
of which shares amounting to NIS 0.01 were issued.
SHAREHOLDERS
1. Kumar
Dhadha, 75%,
2. Sati
Rajchar, 15%,
3. Emit
Chand Butara, 5%,
4. Golecha
Niraj, 5%.
Although no notice to this effect has so far been noted in the Registrar of
Companies, we are informed that shareholders Nos. 2 & 3 have sold their shares
in subject to the existing shareholders recently, and as of January 2007,
ownership in subject is by:
1. Kumar
Dhadha,
2. Golecha
Niraj.
(both shareholders are foreign citizens)
SOLE DIRECTOR
1. Kumar
Dhadha, of Mumbai, India,
2. Golecha
Niraj.
GENERAL MANAGER
Shanti Dhadha.
BUSINESS
Importers,
exporters and marketers of diamonds.
30% - 40% of sales
are for export.
Operating from
rented office premises, on an area of 100 sq. meters, in 52 Bezalel Street, Diamond
Exchange, Noam Building, Ramat Gan.
Having 7 employees
(had 6 employees in early 2007).
MEANS
Financial data not
forthcoming.
There are no
charges registered on the company's assets.
ANNUAL SALES
Sales figures not
forthcoming.
OTHER COMPANIES
SHANTI GEMS
INTERNATIONAL INVESTMENTS LTD.
BANKERS
Israel Discount
Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
First
International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat
Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learnt.
Subject's General
Manager, Mr. Shanti Dhadha refuses to disclose financial data on subject.
Subject is a very
long established business.
According to the
Ministry of Industry and Trade, the local diamonds branch managed to stabilize
the total volume of export of cut diamonds during 2006, a year that witnessed
many local and global challenges, and end in the same level as 2005. In rough
diamonds a decrease was noted, due to marketing motives, and as high prices
made the trade in rough diamonds less attractive.
Total (net) export
of cut diamonds from Israel in 2006 reached US$ 6.610 billion, a mere decrease
of 1.5% from 2005 (US$ 6.709 billion). Exports (net) of rough diamonds were US$
2.701 billion, a 23.2% decrease from 2005 (US$ 3.517 billion, which was a 20.6%
increase from 2004).
Import of rough
diamonds (net) also fell in 2006 by 11.4% (from 2005) to US$ 4.709 billion,
while import of cut diamonds (net) increased in 2006 by 3.3% reaching US$ 4.025
billion.
The USA is the
main market for Israel’s export of cut diamonds (over 50%). The secondary
markets are Hong Kong (around 18%), Belgium (around 8%), Switzerland (7%) and
the UK (4%).
During the first
10 months of 2007, import rough diamonds (net) to Israel noted a 10% increase
comparing to the parallel period in 2006, summing at US$ 4.1 billion. Import of
cut diamonds (net) also rose - by 12% up to US$ 3.52 billion. In the first 10
months of 2007, export of cut diamonds (net) rose by 6.9% comparing to the
parallel period in 2006, summing up to US$ 5.93 billion. Export of rough
diamonds (net) also witnessed an increase of 26.7% to US$ 2.86 billion.
SUMMARY
Notwithstanding
the refusal to disclose financial information, considered good for trade
engagements.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)