MIRA INFORM REPORT

 

 

 

Report Date :

11.08.2008

 

IDENTIFICATION DETAILS

 

Name :

BETA DIAMONDS LTD.

 

 

Registered Office :

3 Jabotinsky Street, Diamonds Exchange, Yahalom Bldg., Ramat GAN 52520

 

 

Country :

Israel

 

 

Date of Incorporation :

7.1.1999

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Cutters, Processors, Polishers, Importers, Exporters and Traders 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 :

No Complaints

 

 

Litigation :

Clear

 

 

 

 

 

name & address

    

BETA DIAMONDS LTD.

Telephone                  972 3 751 40 50

Fax                           972 3 751 40 51

3 Jabotinsky Street

Diamonds Exchange, Yahalom Bldg.

RAMAT GAN 52520    ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-272722-3 on the 7.1.1999.

 

Subject was established by the u/m shareholders after they separated from their previous company – DELTA DIAMONDS LTD. (established in 1984) where they held 50%. Mr. Mendler and Mr. Mizrahi left DELTA and established subject.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 34,300.00 - divided into:

                   34,300 ordinary shares of NIS 1.00 each,

of which shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1.    Itzhak Mendler, 82%,

2.    Aharon Mizrahi, 18%.

 

 

DIRECTORS

 

1.    Itzhak Mendler, General Manager,

2.    Aharon Mizrahi.

 

 

BUSINESS

 

Cutters, processors, polishers, importers, exporters and traders of diamonds.

 

Operating from offices in 3 Jabotinsky Street, Diamonds Exchange, Yahalom Building (15th Floor, room No. 1571), Ramat Gan.

 

Having several tens of employees.

 

                                     

MEANS

 

Financial data not forthcoming, however known to be financially solid.

 

There are 6 charges for unlimited amounts registered on the company's assets (fixed and financial assets), in favor of Union Bank of Israel Ltd. and Bank Leumi Le’Israel Ltd.

                                                                                                           

 

ANNUAL SALES

 

Sales figures not forthcoming, however according to the report published by the Israel Supervisor on Diamonds, subject's sales for export of polished diamonds in 2005 amounted to US$ 62,000,000.

Sales for export of polished diamonds in 2006 reported to be US$ 61,000,000. Sales for export of polished diamonds in 2007 reported to be US$ 65,000,000.

 

 

BANKERS

 

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

Bank Leumi Le’Israel Ltd., Diamond Exchange Branch (No. 629), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's General Manager refused to disclose financial and related data on the company, including number of employees.

 

According to the report published by the Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject was ranked 15th in the 2007 list of Israel's 30-largest polished diamonds exporters (was 16th in the 2006, same as in 2005).

 

Local diamond companies are facing a depression in business in general in recent months due to the recession in the U.S. markets, according to reports. The American market has been the No. 1 export market and the crisis in the U.S. market affects directly many Israeli diamond companies, as purchasing has gone down dramatically. There are reports on delays in payments from clients, causing a cash flow problem to some companies.

 

In the first half of 2008, there was an increase trend in all money parameters of import and export: export of cut diamonds (net) from Israel rose by 6% comparing to parallel period in 2007, reaching US$ 3.8 billion (though carat value fell by 17%). Export of rough diamonds (net) from Israel also increased by 26% to US$ 2.19 billion (2.5% fall in carat value).

 

Import of rough diamonds (net) rose 15% in the first half of 2008 (from 2007) to US$ 2.77 billion (though carat value fell by 11%), while import of cut diamonds (net) also increased in 2008 by 19.5% reaching US$ 2.35 billion (carat value rose by 2.3%).

 

Year 2007 marked a record in the export of cut diamonds from Israel, with net sales for export of US$ 7.076 billion, 7% rise from 2006 (US$ 6.611 billion). Total export of cut and rough diamonds crossed for the first time the US$ 12 billion line. Exports (net) of rough diamonds were US$ 3.386 billion, a 25.5% increase from 2006 (US$ 2.701 billion, which was a 23.2% decrease from 2005).

Import of rough diamonds (net) rose 8% in 2007 by (from 2006) to
US$ 5.084 billion, while import of cut diamonds (net) also increased in 2007 by 13.3% reaching US$ 4.558 billion.

 

The USA is the main market for Israel’s export of cut diamonds, although its portion has been decreasing in view of the economic situation – the export rate is circa 41%, comparing to 60%-65% in past years. The secondary markets are Hong Kong, Switzerland, Belgium, U.K, and India.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose details, considered good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.20

UK Pound

1

Rs.81.48

Euro

1

Rs.64.27

 

 

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.

 

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