MIRA INFORM REPORT

 

 

Report Date :

05.03.2011

 

IDENTIFICATION DETAILS

 

Name :

ASHISH DIAMONDS LTD.

 

 

Formerly Known as :

A. DIAM LTD

 

 

Registered Office :

P.O. Box 381 (52103), 21 Tuval Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 52521         

 

 

Country :

Israel

 

 

Date of Incorporation :

24.02.1997

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, exporters and marketers, dealing with both polished and rough diamonds.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints  

 

 

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

 

ASHISH DIAMONDS LTD.

Telephone      972 3 613 21 62

Fax                972 3 751 81 64

P.O. Box 381 (52103)

21 Tuval Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN  52521-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-245395-2 on the 24.02.1997, under the name A. DIAM LTD., which changed to the present name on 13.05.1997.

 

SHARE CAPITAL

 

Authorized share capital of NIS 32,700.00, divided into:

                   32,700 ordinary shares, of NIS 1.00 each,

of which 1,000 shares amounting to NIS 1,000.00 were issued.

 

 

SHAREHOLDERS

 

1.    Raxid Mehta, 70%,

2.    Ashish Mehta, 15%, brother of Raxid, both of India,

3.    Sailes C. Botra, 15%.

 

DIRECTORS & GENERAL MANAGERS

 

1.    Raxid Mehta, General Manager,

2.    Ashish Mehta.

 

BUSINESS

 

Importers, exporters and marketers, dealing with both polished and rough diamonds.

Also manufacturers of diamonds, through sub-contractors.

 

Around 40%-45% of sales are for export, rest is to the local market.

 

Among local suppliers: FISCHER DIAMONDS, MOLDAWSKY BROS., A.B.T. DIAMONDS, LLD DIAMONDS, YDI, EZ DIAMONDS, P.D.D., GIL KIMCHI DIAMONDS, R.D.S. DIAMONDS, POLIGEM, LEVI AT MARCUS, GAFNI DIAMONDS, AVI PAZ, etc.

 

Operating from offices premises, on an area of 131 sq. meters (35 sq. meters are owned, rest is rented), in 21 Tuval Street (also known as 54 Bezalel Street), Diamond Exchange, Yahalom Building (7th Floor, room 765), Ramat Gan.

Also operating from offices in India and Belgium.

 

Having 5 employees, including General Manager (same as in early 2010).

There are some 35 employees in the Group (including in India and Belgium).

 

 

MEANS

 

Financial data not forthcoming.

 

There are 2 charges for unlimited amounts registered on the company's assets, in favor of The First International Bank of Israel Ltd.

 

 

ANNUAL SALES

 

2006 sales claimed to be US$ 40,000,000, most for export.

2007 sales claimed to be over US$ 45,000,000, 60% of which were for export.

2008 sales claimed to be over US$ 45 -46,000,000, 60% of which were for export.

We are informed that subject witnessed some 30% decrease in sales in 2009, due to the crisis in the branch (around US$ 32,000, some 40% of sales were for export).

First half of 2010 sales claimed to be US$ 30,000,000, 40%-45% of which for export.

Subject’s General Manager said there is a recovery in 2010, much better than 2009.

 

 

OTHER COMPANIES

 

VIJAY DIAM, a sister company in India, makes the purchasing for subject in India.

 

 

BANKERS

 

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

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

According to our sources, subject is medium-sized relatively to the companies in its field in the Diamond Exchange. It enjoys good reputation.

 

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 1132% 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

 

Good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.99

UK Pound

1

Rs.73.24

Euro

1

Rs.62.80

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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