MIRA
INFORM REPORT
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Report Date : |
10.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
SMART DIAMOND ENTERPRISES LTD. |
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Formerly Known as: |
STAR DIAMOND ENTERPRISES (2003) LTD |
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Registered Office : |
54 Bezalel Street,
Diamond Exchange, Yahalom Bldg., Ramat Gan 52521 |
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Country : |
Israel |
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Date of Incorporation : |
18.12.2003 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Dealers, Importers, Marketers and Exporters of Diamonds (specializing
in superior quality 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 : |
No Complaints |
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Litigation : |
Clear |
name
& address
Correct Name: SMART
DIAMOND ENTERPRISES LTD.
(Also trading as: SDE GROUP)
Telephone 972 3
575 93 51
Fax 972 3
752 21 05
54 Bezalel Street
Diamond Exchange,
Yahalom Bldg.
RAMAT GAN 52521 ISRAEL
HISTORY & LEGAL FORMATION
A private limited company,
incorporated as per file No. 51-347919-6 on the 18.12.2003 (continuing
activities founded several years earlier).
Originally
registered under the name STAR DIAMOND ENTERPRISES (2003) LTD., which changed
to the present name on the 27.04.2006.
SHARE CAPITAL
Authorized share
capital of NIS 20,000.00 divided into -
99,900 ordinary
shares,
300 management
shares, all of NIS 1.00 each,
of which shares
amounting to NIS 452.00 were issued.
SHAREHOLDERS
1. ASTRA DIAMONDS MANUFACTURERS LTD., owned by Avner Schnur, Joseph (Yossi) Grunfeld and Zvi Getsovich,
holding 51% of management shares and 50% of ordinary shares issued,
2. CEDACROFT LIMITED, holding 25%
of management shares and 33.9% of ordinary shares issued,
3. Didier Stein, holding 24% of
management shares and 16.1% of ordinary shares issued.
DIRECTORS
1.
Didier Stein, General Manager,
2.
Avner Schnur.
BUSINESS
Dealers,
importers, marketers and exporters of diamonds (specializing in superior
quality diamonds).
Most sales are for
export, to the U.S.A., Europe and Far East.
Operating from
premises, in 54 Bezalel Street, Diamond Exchange, Yahalom Building, Ramat Gan.
Also having office branches in Antwerp, Belgium and New York, U.S.A.
Number of
employees not forthcoming.
MEANS
Financial data not
forthcoming.
There are 3 charges for unlimited amounts
registered on the company's assets, in favor of Bank Leumi Le’Israel Ltd.
ANNUAL SALES
Sales figures not
forthcoming.
OTHER COMPANIES
ASTRA DIAMONDS MANUFACTURERS
LTD., processors, traders, importers, exporters and marketers of diamonds.
P.D.D. DIAMONDS
LTD., 50% owned by ASTRA, international traders, exporters of diamonds, with
2005 exports of polished diamonds of US$ 80,000,000. Overall 2004 sales were
US$ 150,000,000. This company also controls P.D.D. JAPAN LTD., diamonds
exporters to Japan.
ASTRA-MECHLIN
DIAMONDS LTD., 50% owned by ASTRA, exporters of diamonds, mainly to the U.S.A.
SIMDIAM ASTRA, India,
a new joint venture between ASTRA and SIMDIAM, a local and well respected
diamond manufacturing company in India.
ASTRA's shareholders control many other
companies. Joseph (Yossi) Grunfeld and Avner Schnur primarily control the KARDAN Group (see also below CHARACTER). Their
main holding is:
KARDAN N.V., international holdings and the roof company for the KARDAN
Group, a public limited liability company, shares of which
are traded on the Tel Aviv and Euronext Amsterdam Stock Exchanges, with current market
value
US$ 370 million.
BANKERS
Bank Leumi Le’Israel Ltd., Diamond Exchange
Branch (No. 629), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject's officials refused to disclose any details on their company.
The ASTRA DIAMONDS Group is veteran and considered among the leading in
the diamond branch in Israel. Having tens of employees in the ASTRA DIAMONDS
Group.
ASTRA shareholders
Joseph (Yossi) Grunfeld and Avner Schnur are well known
respected businessmen, and control the KARDAN Group (27% and 22% respectively),
among the leading concerns in Israel, with holdings in Israel and abroad in the
fields of trade and commerce, automotive, infrastructure and real estate, as
well as financial services.
Local diamond companies
have been facing some 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 the world in September-October 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.
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
Subject is part of
the ASTRA Group, known to be financially solid.
Notwithstanding the refusal to disclose any information, considered good
for trade engagements.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.47.76 |
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UK Pound |
1 |
Rs.74.87 |
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Euro |
1 |
Rs.60.81 |
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%)