MIRA INFORM REPORT

 

Report Date :

9th March, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

SHANTI GEMS (1982) LTD.

 

 

Registered Office :

52 Bezalel Street, Diamond Exchange, Noam Building, Ramat Gan 52521 Israel

 

 

Country :

Israel

 

 

Date of Incorporation :

01.02.1982

 

 

Com. Reg. No.:

51-091532-5

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, exporters and marketers of diamonds.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

Company Name & Address

 

SHANTI GEMS (1982) LTD.

Telephone  972 3 575 71 36

Fax           972 3 752 18 48

52 Bezalel Street

Diamond Exchange, Noam Building

RAMAT GAN 52521 ISRAEL

 

 

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 (Mr.).

 

 

BUSINESS

 

Importers, exporters and marketers of diamonds.

 

Operating from rented office premises, on an area of 100 sq. meters, in 52 Bezalel Street, Diamond Exchange, Noam Building, Ramat Gan.

 

Having 6 employees.

 

 

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 is a very long established business.

 

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 (over 50%). The secondary markets are Hong Kong (around 20%), Belgium (around 10%), Switzerland and the UK.

 

Since the beginning of 2007, import rough diamonds to Israel noted a 7.8% decrease comparing to the parallel period in 2006, due to a shortage in world markets, following the lowering in sales by DE BEERS and the tough winter in Africa that hurt mining. Nevertheless, the officials in the branch reported 11.7% increase in import of polished diamonds in January 2007.

In the first 2 months of 2007, export (net) of cut diamonds rose by 9.2% comparing to the parallel period in 2006, summing up to US$ 1.349 billion. Export of rough diamonds (net) also witnessed an increase.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial information, 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

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions