MIRA
INFORM REPORT
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Report Date : |
27.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
LEO SCHACHTER DIAMONDS LTD. |
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Registered Office : |
54 Bezalel Street, Diamond Exchange, Yahalom Building, Ramat GAN 52521 |
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Country : |
Israel |
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Date of Incorporation : |
13.07.1981 |
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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 : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & 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. Eliot Tenenbaum, President,
2. David Greenberg,
3. Dov Tenenbaum,
4. Marc Tenenbaum,
5. Jonathan Austin.
GENERAL MANAGER
Yair Friedman
BUSINESS
Diamond cutters, polishers,
traders, importers, marketers and exporters.
Almost all sales
are for export.
Among local
clients: B. BRIZA COLORS.
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, Hong Kong, Bangkok and Dubai.
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:
2003
sales for export (net) reported to be US$ 417,000,000.
2004 sales for export (net) reported to be US$ 434,000,000.
Subject's 2005 sales for export (net) were US$ 418,000,000.
Subject's 2006 sales for export (net) were US$ 460,000,000.
Subject's 2007 sales for export (net) were US$ 446,000,000.
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 2007 list of Israel's largest
polished diamonds exporters, same ranking as in 2006 and 2005. Subject is only
2nd to L.L.D. DIAMONDS LTD. (US$ 550 million) and by far larger than the 3rd
MOSHE NAMDAR & CO. LTD. (circa US$ 200 million).
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.
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.
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 Switzerland,
Belgium, U.K, Hong Kong and India.
SUMMARY
Notwithstanding the refusal to disclose
financial details, 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.46.43 |
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UK Pound |
1 |
Rs.85.38 |
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Euro |
1 |
Rs.67.95 |
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%)