MIRA
INFORM REPORT
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Report Date : |
14.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
LEO SCHACHTER DIAMOND LTD |
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Formerly Known as : |
SCHACHTER & NAMDAR POLISHING WORKS LTD |
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Registered Office : |
54 Bezdel Street, Diamond Exchange, Yahalom Building Ramat Gan, 52520 |
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Country : |
Israel |
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Date of Incorporation : |
13.07.1981 |
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Com. Reg. No.: |
51 – 089213 – 6 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, Importers, Marketers and Exporters. of Diamond Cutters, Polishers |
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 : |
Regular |
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Litigation : |
Clear |
name and address
LEO SCHACHTER DIAMONDS LTD.
Telephone 972 3 576 62 22
Fax 972 3 613 24 89
54 Bezalel Street
Diamond Exchange, Yahalom Building
RAMAT GAN 52521 ISRAEL
HISTORY
A private limited company, incorporated as per file No. 51-089213-6 on the 13.07.1981, continuing a non-registered business founded many years earlier.
Subject was founded by the Late Leo Schachter and David Namdar. It was originally registered under the name SCHACHTER & NAMDAR POLISHING WORKS LTD., which changed to LEO SCHACHTER LTD. on the 30.8.2005 and finally changed to the present name on the 24.7.2006.
During 2004 subject's
shareholders decided to split their activities, and part of the activities were
transferred to a newly established subsidiary MOSHE NAMDAR & CO. LTD.,
which later in 2007 separated from subject's Group altogether.
SHARE CAPITAL
Authorized share capital NIS 1,000.00, divided into –
1,000,000 ordinary shares of NIS 0.001 each,
of which shares amounting to NIS 75.798 were issued.
SHAREHOLDERS
1. LEO SHACHTER & CO. INC., of the USA, 49.5%, owned by the heirs of Leo Schachter, the Tenenbaum and Greenberg families,
2. MAGINIFORD JEWELERY, 41.17%, a foreign company,
3. Lenard Kramer, 5.5%,
4. Moshe Namdar, 3.83%.
DIRECTORS
1. David Greenberg,
2. Eliot Tenenbaum,
3. Dov Tenenbaum.
GENERAL MANAGER
Asher Baharav
BUSINESS
Diamond cutters, polishers, traders, importers, marketers and exporters.
Almost all sales are for export.
Operating from owned premises in Yahalom Building, Diamond Exchange, Floor No. 22, 54 Bezalel Street (also known as 21 Tuval Street), Ramat Gan.
Also operating from
several plants and offices in South Africa, Botswana, Antwerp, Geneve, New
York, Toronto, China and Hong Kong.
Having over 100
employees in Israel and several hundreds abroad.
MEANS
Financial data not forthcoming, but known to be financially solid.
Subject owns a Sight
from DE BEERS. According to reports from February 2004, they are the largest
receiver from a DE BEERS Sight in volume of US$ 150-200 million per year.
There are 9 charges for unlimited amounts registered on the company's assets, in favor of Bank Leumi LeIsrael Ltd., Israel Discount Bank Ltd. and The First International Bank of Israel Ltd.
ANNUAL SALES
SCHACHTER & NAMDAR POLISHING WORKS LTD. sales were:
2000 sales for export reported
to be US$ 476,000,000.
2001 sales for export reported to be US$ 394,000,000.
2002 sales for export reported to be US$ 441,000,000.
2003 sales for export reported to be US$ 417,000,000.
2004 sales for export reported to be US$ 434,000,000.
Subject's 2005 sales
for export were US$ 418,000,000.
Subject's 2006 sales for export were US$ 460,000,000.
LEO SHACHTER Group's estimated global turnover in 2004 was
US$ 1,000,000,000.
OTHER COMPANIES
LEO SCHACHTER DIAMONDS LLC, USA.
SHACHTER AND NAMDAR HOLDINGS LTD., a holding company.
BANKERS
Known to all local
bankers.
Working also with:
First International
Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat Gan.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Subject’s officials refused to disclose any details, as a matter of policy.
According to the report published by the Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject was ranked 2nd in the 2006 list of Israel's largest polished diamonds exporters (same ranking as in 2005). Until 2004, prior to the split from MOSHE NAMDAR, all activities were under the joint company SCHACHTER & NAMDAR, which was ranked 2nd largest in 2004 after L.L.D. DIAMONDS LTD.
Subject enjoys excellent reputation in Israel and world wide.
In 1995 it was reported that subject’s shareholders acquired 2 floors (21st and 22nd floors- total of 2,300 sq. meters) in the Yahalom Building, in consideration of US$ 10 million. Part of the area was rented, the rest used by subject.
In July 2003, it was reported that subject will own 49% in a new diamond processing plant in Canada.
In February 2004, it was reported that subject will establish a partnership with WILLIAM GOLDBERG DIAMONDS of the USA.
In May 2005, it was reported that the SCHACHTER & NAMDAR Group acquired a 3,000 sq. meters plot in central Tel Aviv, for a sum of US$ 15 million. The plot is designed for 18 story building, for residential and commercial purposes.
In February 2004
subject announced a structural change in the SCHACHTER & NAMDAR Group,
initially the establishment of a subsidiary MOSHE NAMDAR & CO. LTD, that,
in order to maximize potential where each party will focus on different
markets. In the beginning of 2007 the split was completed between the
activities of the Namdar Brothers, Moshe Namdar and Abraham Namdar and the LEO
ASCHACHTAR Group.
It was also reported that subject is operating to strengthen
its global activities in addressing the fast emerging Chinese market, and by
strengthening the "Leo" diamonds brand in the American, British and
Italian markets.
In March 2007 it was reported that subject is suing NIS 10 million from local contractor David Appel, claiming he failed to return on time a loan given to him in 2001.
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 half of 2007, import rough diamonds (net) to Israel noted a 5.4% increase comparing to the parallel period in 2006, summing at US$ 2.41 billion. Import of cut diamonds also rose by 5.2% up to US$ 1.96 billion.
In the first half of 2007, export of cut diamonds rose by 6% (mainly thanks to April sales) comparing to the parallel period in 2006, summing up to US$ 3.59 billion. Export of rough diamonds (net) also witnessed an increase of 22% to US$ 1.74 billion.
SUMMARY
Notwithstanding the refusal to disclose financial details, considered 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%)