MIRA INFORM REPORT

 

 

Report Date :

15.01.2011

 

 

IDENTIFICATION DETAILS

 

Name :

SHANTI GEMS (1982) LTD. 

 

 

Registered Office :

52 Bezalel Street, Diamond Exchange, Noam Building, Ramat Gan 52521

 

 

Country :

Israel

 

 

Date of Incorporation :

01.02.1982

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, exporters and marketers of diamonds

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown 

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name & address 

 

SHANTI GEMS (1982) LTD.

Telephone         972 3 575 71 36

Fax                   972 3 752 18 48

52 Bezalel Street

Diamond Exchange, Noam Building

RAMAT GAN     52521   ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-091532-5 on the 01.02.1982.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 10.00, divided into:

            100,000 ordinary shares, of NIS 0.0001 each,

of which 100 shares amounting to NIS 0.01 were issued.

 

 

SHAREHOLDERS

 

1.         Kumar Dhadha, 95%,

2.         Golecha Niraj, 5% (both a/m shareholders are foreign citizens).

 

In August 2010 both former shareholders (Sati Rajchar, 15%, and Emit Chand Butara (5%) exited from subject, and shares were taken over by Kumar Dhadha.

 

 

DIRECTORS

 

1.         Kumar Dhadha, of Mumbai, India,

2.         Golecha Niraj.

 

 

GENERAL MANAGER

 

Shanti Dhadha.

 

BUSINESS

 

Importers, exporters and marketers of diamonds.

 

Some 30% - 40% of sales are for export (was 40% in 2009).

 

Operating from rented office premises, on an area of 100 sq. meters, in 52 Bezalel Street (also referred to as 23 Tuval Street), Diamond Exchange, Noam Building, Ramat Gan.

 

Having 7 employees (same as in previous years).

           

 

MEANS

 

Financial data not forthcoming.

 

There are no charges registered on the company's assets.

 

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

We are informed that 2008 sales were double then of 2007, however there was significant decline in sales in the 1st half of 2009.

 

Later sales figures not forthcoming.

 

 

OTHER COMPANIES

 

SHANTI GEMS INTERNATIONAL INVESTMENTS LTD.

 

 

BANKERS

 

Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.

 

First International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat Gan.

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

Subject's General Manager, Mr. Shanti Dhadha, refused to disclose financial data.

 

Subject is a very long established business.

 

During 2010 local diamond companies have been recovering from one of the worst depressions in the global diamond sector due to the severe economic crisis in global markets that erupted in September 2008. The diamond sector experienced almost an entire freeze in sales and collapse of about 70% in sales later. Only since mid 2009 a mild recovery has been felt (in some markets, such as the American, it is estimated that it will take long time till fully recovering). Further improvement witnessed during the first half of 2010.

 

Overall in 2009, export diamonds shrank by 40%. Export of cut diamonds (net) were US$ 3,922.6 million, representing 37% decrease compared to 2008. The depression in the diamond sector comes after year 2007 marked a record in the export of cut diamonds from Israel, with net sales for export of US$ 7.076 billion, while 2008 witnessed a decrease of 11.8% to US$ 6.240 billion.

 

Export of cut diamonds (net) in 2010 first half increased by 92% to US$ 3,002 million, and export of rough diamonds (net) reached US$ 1,624 million, representing 104% rise compared to the parallel period in 2009. Yet, in comparison to 2008 first half, export of cut diamonds in 2010 is 21% lower.

 

Import of rough diamonds (net) in 2010 first half grew by 113% to US$ 1,817 million, compared with the parallel period in 2009, while import of cut diamonds (net) saw a 105% rise reaching US$ 1,881 million.

 

The USA is still the main market for Israel’s export of cut diamonds, although its portion decreased significantly in view of the economic situation where the U.S. suffered the biggest hit – some 40% of total the export from Israel in 2010, comparing to 60%-65% in past years. In order to face the situation many companies have increased their marketing to Far Eastern markets. Secondary markets are Hong Kong (27%), Belgium (9%), India (4%) and China (3%).

 

In February 2009, Israel was ranked as the world’s largest exporter of cut diamonds, followed by India, Belgium and South Africa.

 

According to the President of the Israeli Diamonds Association, local banks contracted credit given to local diamond firms in view of the global financial crisis, however, he believes the local diamond sector is healthy: trade in the sector rolls annual turnover of US$ 25 billion while total debt to the banks stands on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the crisis. Israel Ministry for Industry & Trade also committed to support local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial data, considered good for trade engagements.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.30

UK Pound

1

Rs.71.73

Euro

1

Rs.60.40

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

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%)

 

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.