MIRA
INFORM REPORT
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Report Date : |
21.10.2008 |
IDENTIFICATION DETAILS
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Name : |
LESHEM PRIMA DIAMOND'S LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
17.1.2007 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, Importers and Exporters of Diamonds, Mainly Polished. |
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 : |
New Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
LESHEM PRIMA
DIAMOND'S LTD.
Telephone 972 3 575 58 55/ 6
Fax
972 3 575 58 60
1 Jabotinsky
Street
Diamond Exchange,
Maccabi Building
RAMAT GAN 52520 ISRAEL
HISTORY & LEGAL FORMATION
A private limited company,
incorporated as per file No. 51-392614-7 on the 17.1.2007.
SHARE CAPITAL
Authorized share
capital NIS 10,000.00, divided into –
10,000 ordinary shares of NIS
1.00 each,
fully issued.
SHAREHOLDERS
1. YAHALOMEI ESPEKA INTERNATIONAL LTD. (YEI), 60%, owned by Abraham Fluk (50%) and
Itzhak Phillip Zivan-Sussholz,
2. Yaacov Marmelstein, 16%,
3. Dubby Bitton, 8%,
4. Rony Levy, 8%,
5. Efraim Stern, 8%.
DIRECTORS
1. Yaacov Marmelstein, General Manager,
2. Dubby Bitton
3. Rony Levy,
4. Efraim Stern,
5. YAHALOMEI ESPEKA INTERNATIONAL LTD. is also registered as a director in
subject.
BUSINESS
Traders, importers
and exporters of diamonds, mainly polished.
100% of sales are
for export.
Operating from
office premises, in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (16th
floor, Room No. 40), Ramat Gan.
Number of employees not forthcoming.
There are over 50
employees serving parent company ESPEKA DIAMONDS in Israel and many more
employees in the YEI Group worldwide.
MEANS
Financial data not
forthcoming, however enjoying the financial backing of parent YEI.
There are 2 charges for unlimited amounts
registered on the company's assets, in favor of Bank Leumi LeIsrael Ltd.
ANNUAL SALES
Sales figures not forthcoming.
YEI sales for export in 2005 were US$ 139,000,000.
YEI sales for export in 2006 were US$ 156,000,000
YEI sales for export in 2007 were US$ 194,000,000
(sales are higher as there are sales
to the local market as well).
OTHER COMPANIES
YAHALOMEI ESPEKA INTERNATIONAL LTD., subject's parent company, originally
founded in the 1960's, importers, processors,
exporters, marketers and international dealers in diamonds, also co-owners of:
VOEGELI & WIRZ
AG/AS, of Switzerland.
BANKERS
Bank Leumi Le’Israel Ltd., Diamond Exchange
Branch (No. 629), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject's parent
company YAHALOMEI ESPAKA INTERNATIONAL LTD., known in short
as YEI, is one of the largest and leading diamond dealers in the local diamond
market. It is a sight holder since 1971 and operating from manufacturing and
processing facilities in Israel, China and branches worldwide.
In 1999 YEI was
awarded the "Excellent Exporter" Award from the Ministry of Industry
& Trade.
YEI was ranked as
Israel’s 4th largest diamond exporter in 2007, according to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade.
Local diamond
companies are facing a depression in business in general in recent months due
to the recession in the U.S. markets. 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 financial and related data, subject -also being a
subsidiary of YAHALOMEI ESPEKA INTERNATIONAL LTD.- is
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.48.83 |
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UK Pound |
1 |
Rs.85.12 |
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Euro |
1 |
Rs.65.86 |
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%)