MIRA
INFORM REPORT
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Report Date : |
10.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
DIAMANTI LTD. |
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Registered Office : |
P.O. Box 389 (52103), 21 Tuval Street, Diamond Exchange, Yahalom
Building, Ramat Gan 52521 |
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Country : |
Israel |
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Date of Incorporation : |
23.9.1999 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, Importers, Exporters and Marketers of Small Diamond Stones. |
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 : |
No Complaints |
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Litigation : |
Clear |
name & address
DIAMANTI LTD.
Telephone 972 3 571 61 70
Fax 972 3 612 25 70
P.O. Box 389 (52103)
21 Tuval Street
Diamond Exchange, Yahalom Building
RAMAT GAN 52521
ISRAEL
HISTORY & LEGAL FORMATION
A private limited company,
incorporated as per file No. 51-283362-5 on the 23.9.1999, continuing the
activities of a non-registered partnership established in 1994, under the name
"DIAMANTI".
SHARE CAPITAL
Authorized share
capital of NIS 24,000.00 divided into:
24,000 ordinary
shares, of NIS 1.00 each,
of which shares
amounting to NIS 10,050.00 were issued.
SHAREHOLDERS
1. Zion
Bezalel, over 99%,
2. Joseph
Tayar, less than 1%.
SOLE DIRECTOR
Joseph Tayar.
GENERAL MANAGER
Zion Bezalel, born 1961.
BUSINESS
Traders,
importers, exporters and marketers of small diamond stones.
Some 50% of sales
are exported.
Among clients:
AFIC DIAMONDS, GAL DIAMONDS, SAMUEL - ROSENBAUM (1999), etc.
All purchasing is
from import.
Operating from
rented office premises, on an area of 40 sq. meters, in 21 Tuval Street (also
known as 54 Bezalel Street), Diamond Exchange, Yahalom Building (16th
Floor, Room 1671), Ramat Gan.
Having 6 employees
(had 7 employees in 2007).
MEANS
Financial data not
forthcoming.
There are 2 charges
for unlimited amounts registered on the company's assets, in favor of Union
Bank of Israel Ltd.
ANNUAL SALES
2005 sales claimed to be US$ 19,000,000, over 50% of which was for export.
2006 sales claimed to be US$ 20,000,000, over 50% of which was for export.
2007 sales claimed to be US$ 20,000,000, over 50% of which was for export.
Projected 2008
sales are US$ 24,000,000, 50% of which for export.
OTHER COMPANIES
Subject's owners
are also involved in other companies. Among them:
VITAL LTD., real
estate company.
BANKERS
Union Bank of
Israel Ltd., Diamond Exchange Branch (No. 062), Ramat Gan, account No.
370400/93.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m account.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Local diamond
companies have been facing depression in business in general in recent period
due to the recession in the U.S. markets, which worsened with the collapse in the
financial markets in the U.S.A. and spread over the world during
September-October-November 2008. 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 have been reports on
delays in payments from clients, causing a cash flow problem to some local
companies. Some diamond dealer report sales are stagnant.
The crisis in the
world financial markets affected the diamond industry: Export of cut diamonds
(net) during the first 10 months of 2008 summed up to US$ 5.8 billion,
representing a 2.2% decrease comparing to parallel period in 2007. That after
in October 2008, cut diamonds export fell by 46% comparing to October 2007.
Export of rough diamonds (net) from Israel in October fell even sharper – by
58.5% comparing to October 2007.
Import of rough
diamonds (net) rose 1.7% in the first 10 months of 2008 (from 2007) to US$ 4.07
billion, while in October alone import fell by 52.6%. Import of cut diamonds
(net) also fell sharply in October 2008 by 44.4% reaching total of US$ 3.79
billion for the whole first 10 months of 2008.
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). 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 currently
43%, comparing to 60%-65% in past years. The secondary markets are Hong Kong
(24%), Belgium (9%), U.K (3%), followed by China, Switzerland and India.
According to the
President of the Israeli Diamonds Association, local banks are expected to
contract credit given to local diamond firms, in view of the global financial
crisis. However, he believes the local diamond sector is healthy, as trade in
the sector rolls annual turnover of US$ 25 billion whereas total debt to the
banks stands on US$ 2.5 billion.
SUMMARY
Good for trade
engagements.
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.12 |
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UK Pound |
1 |
Rs.72.59 |
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Euro |
1 |
Rs.63.52 |
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%)