MIRA
INFORM REPORT
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Report Date : |
26.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SALANT GROUP LTD. |
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Registered Office : |
21 Tuval Street, Yahalom Tower, Diamond Exchange, Ramat
Gan 52522 |
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Country : |
Israel |
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Date of Incorporation : |
8.5.1986 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers of rough
diamonds, polishers, exporters, marketers and international dealers in
diamonds. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
SALANT GROUP LTD.
21 Tuval Street
Yahalom Tower, Diamond Exchange
RAMAT GAN 52522 ISRAEL
Telephone 972 3 575 01 29
Fax 972 3 613 89 42
HISTORY
A private limited company, incorporated as per file No. 51-112105-5 on the 8.5.1986, as a joint venture between 2 veteran diamond dealers:
1. Salant family business for diamond polishing and trade, originally founded by the late Moshe Salant in 1952.
2. ALPHA, diamond purchasing wholesaler founded by the late Zvi Rimer (who worked jointly with U.S. diamond company FABRIKANT).
Originally registered under the name FABSAL DIAMOND COMPANY LTD, which changed to FABRIKANT & SALANT DIAMOND COMPANY LTD. on 31.12.1987, then changed to FABRIKANT & SALANT GROUP LTD. on the 14.12.2003.
Following the departure of the FABRIKANT Group, name was changed to the present one on 8.11.2006.
SHARE CAPITAL
Authorized Share Capital NIS 2,000.00 divided into: 1,950 ordinary shares, 50 deferred shares, all of NIS 1.00 each, of which shares amounting to NIS 1,670.00 were issued.
SHAREHOLDERS
Subject is fully owned by the Salant Brothers (Igal and Avner), who in October 2006 acquired all of the FABRIKANT Group shares in subject (after the FABRIKANT Group of the USA encountered financial difficulties).
According to the Registrar of Companies, the Salant Bros. holdings divides to:
1. Avner Salant,
2. Igal Salant,
3. SALANT DIAMONDS LTD.
Shares are also registered under the name of subject itself.
DIRECTORS & JOINT GENERAL
MANAGERS
1. Igal Salant,
2. Avner Salant.
BUSINESS
Importers of rough
diamonds, polishers, exporters, marketers and international dealers in
diamonds. Almost 100% of sales are for
export.
Among suppliers:
STEINMETZ.
Operating from rented
offices in 21 Tuval Street (formerly 54 Bezalel Street), Diamond
Exchange Yahalom Tower (5th floor), Ramat
Gan. Also operating from polishing plants in China, India, Thailand and South
Africa.
Having some 80
employees (had some 100 employees in the end of 2006).
MEANS
Financial data not
forthcoming, however known to be financially solid.
Subject is a Sight
holder from DCT since 1990.
There are 7 fixed and
floating charges for unlimited amounts registered on the company’s assets
(financial assets), in favor of Israel Discount Bank Ltd., Bank Leumi
LeIsrael Ltd. and Union Bank of Israel Ltd.
SALES
Sales data while
FABRIKANT was a partner:
2000 sales reported to
be US$ 253,000,000, all for export.
2001 sales reported to
be US$ 187,000,000, all for export.
2002 sales reported to
be US$ 200,000,000, all for export.
2003 sales reported to
be US$ 200,000,000, all for export.
2004 sales reported to
be US$ 236,000,000, all for export.
2005 sales claimed to
be US$ 180,000,000, almost 100% for export.
Sales data in the
current form (SALANT GROUP, without FABRIKANT):
2006 sales were US$
180,000,000, almost 100% for export almost 100% for export, of which net
exported polished diamonds were U$ 95,000,000.
2007 sales were US$
150,000,000, almost 100% for export.
BANKS
Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan – main account.
Bank Leumi LeIsrael Ltd., Diamond Exchange Branch (No. 629) Ramat Gan.
Union Bank of Israel Ltd., Ramat Gan Branch (No.062), Ramat Gan.
CHARACTER AND REPUTATION
Nothing unfavorable
learned.
In October 1998, it was reported that subject won an “exceptional exporter” award for 1997.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of Industry
and Trade, subject was ranked 9th in the 2006 list of Israel's largest polished
diamonds exporters (subject's ranking in 2005 while still partnered with
FABRIKANT was 4th).
In June 2006 it was reported that subject's former shareholder, FABRIKANT Group, which was considered as one of the world's largest diamonds and jewelries companies, is on the verge of a collapse, mainly due to the crisis in the diamonds branch in the world at that time.
Subject's owner and
joint General Manager, Mr. Avner Salant, was quoted to say that subject is
financially solid, with an independent cash flow in Israel (to FABRIKANTs),
enjoying good reputation with no debts in the local market, meeting all its
obligations properly and paying almost on everything in cash.
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
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%)