MIRA INFORM REPORT

 

 

Report Date :

17.01.2007

 

IDENTIFICATION DETAILS

 

Name :

E.M.A. DIAMOND MANUFACTURING LTD.

 

 

Registered Office :

54 Bezalel Street, Diamonds Exchange, Yahalom Tower, Ramat Gan 52521

 

 

Country :

Israel

 

 

Date of Incorporation :

28.12.1993

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Processors, importers, exporters and marketers of diamonds.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Correct Name

 

E.M.A. DIAMOND MANUFACTURING LTD.

 

 

address

 

54 Bezalel Street

Diamonds Exchange, Yahalom Tower

RAMAT GAN 52521 ISRAEL

Telephone  972 3 575 05 99

Fax            972 3 575 99 68

 

 

HISTORY

 

A private limited company, incorporated as per file No. 51-190486-4 on the 28.12.1993.  We are informed by subject's General Manager, that as of 31.12.2006 subject ceased all activities in Israel and all operations were split to affiliated companies owned by subject's shareholders.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 22,900.00 divided into: 22,000 ordinary "A" shares, 900 ordinary "B" shares, all of NIS 1.00 each, of which shares amounting to NIS 270.00 were issued.

 

 

SHAREHOLDERS

 

1.    Jeremy Medding              - 33.33%,

2.    Meir Alon                        - 33.33%,

3.    Amram Hochstein           - 33.33%.

 

 

DIRECTORS & JOINT GENERAL MANAGERS

 

1.    Jeremy Medding,

2.    Meir Alon.

 

 

BUSINESS

 

Until December 2006 operated in Israel as processors, importers, exporters and marketers of diamonds.

Sales were both for export and to the local market.

 

Also have other related operations (e.g. processing, marketing, etc.) abroad.

 

During 2006 all diamond activities in Israel were gradually sold to affiliated businesses abroad (owned by subject's shareholders) and as of January 2007 became a holding company, operating abroad through several diamond partnerships. Subject is no longer a diamond processor.

 

Also gradually, all above mentioned foreign activities are to be sold to the shareholders' affiliated companies or other non- affiliated third parties.

 

Operating from rented office premises in 54 Bezalel Street, Diamonds Exchange, Yahalom Tower (20th Floor, rooms 74), Ramat Gan.

 

EMA Group also operating from a plant in China and offices in in New York, Hong Kong, Tokyo and Antwerp.

 

Having no employees in Israel. Until December 2006 had several tens of employees in Israel and many other abroad. All employees moved to the affiliated companies.

 

 

MEANS

 

Financial data not forthcoming, however has been known to be financially strong.

 

As of 2004 subject became a DTC Sight holder (special concession from DE BEERS).

 

There are 3 charges for unlimited amounts registered on the company's assets, in favor of local banks.

 

                                                                                                           

ANNUAL SALES

 

1999 sales for export reported to be US$ 61,000,000.

2000 sales for export reported to be US$ 75,000,000.

2001 sales for export reported to be US$ 53,000,000.

2002 sales for export reported to be US$ 61,000,000.

2003 sales for export reported to be US$ 67,000,000.

 

2004 sales for export reported to be US$ 73,000,000.

EMA's consolidated sales in 2004 reported to be US$ 100,000,000.

 

2005 sales for export reported to be US$ 76,000,000.

 

2006 sales claimed to be US$ 50,000,000, most for export. (2006 sales diminished as a result of the gradual split of activities as noted above).

 

OTHER COMPANIES

 

E.M.A. DIAMOND MANUFACTURING AND EXPORT (2006) LTD.

 

 

BANKERS

 

Israel Union Bank Ltd., Diamonds Exchange Branch (No. 062), Ramat Gan.

Mizrahi Tefahot Bank Ltd., Diamonds Business Center Branch (No. 466), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

According to the report published by the Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject was ranked 13th in the 2005 list of Israel's largest polished diamonds exporters. In 2004 subject was ranked 12th, in 2003 – 11th, in 2002 – 10th, as in 2001. In 2000 subject was ranked 7th and received the "Excellent Exporter" award from the Ministry of Industry and Trade.

 

In December 2004 it was published that as of 1.2.2005 subject is to merge its US operations with RAMA MANUFACTURING, the American diamonds and jewelry manufacturer. The new company will operate under the new name of EMA-RAMA.

 

It was also reported that EMA’s diamond main manufacturing facilities are located in Panyu, China, where it employs about 600 cutters. The EMA’s marketing offices are located in New York, Hong Kong, Tokyo and Antwerp.

 

In 2004, RAMA’s turnover (owned by the Ratzersdorfer family) reached US$ 50 million alone. Subject hopes, that as a result of the merger, the US$ 100 million combined sales turnover in 2004 will double to US$ 200 million in 2005.

 

In March 2006 it was reported that Jeremy Medding, one of subject's owners, opened a subsidiary in Japan during 2005.

 

"Le Lumiere", of EMA Diamonds’ hearts and arrows flagship brand was launched in Hong Kong in late 2003. The "Le Lumiere" brand has penetrated well into the Far Eastern market, and sold in over 120 retail outlets in Hong Kong, Singapore, Malaysia, India, Korea, Macau, Taiwan and China. It was reported that the company works closely with retailers and carries out co-branding campaigns in Hong Kong, Singapore and Malaysia.

 

April 2005 De Beers' Diamond Trading Company (DTC) said it planned to expand its "Forevermark program", a unique inscription on selected diamonds of 0.30 carats and above, which was launched as a pilot in Hong Kong in September 2004". As of 2005, the Forevermark was sold in over 100 outlets in Hong Kong by six exclusive retailers. DTC said it plans to expand the retail network from nine to twelve sightholders and subject said to be one of them. Amount of retailers will also increase to ten.

 

According to a report from November 2006, the diamonds branch is on the verge of a significant recuperation after the deep crisis it got into, the worst one for decades, which affected the profitability of Israeli diamond businesses. World sales towards Thanksgiving Day grew by 10% comparing to 2005. That already led to a rise in rough diamonds.

 

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 (around 60%). The secondary markets are Hong Kong (15%), Belgium (7%), Switzerland (5%) and the UK (2%).

 

 

SUMMARY

 

Notwithstanding the changes in subject's Group, in view of subject's character and reputation, subject is considered good for trade engagements.

 

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

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