MIRA INFORM REPORT

 

 

Report Date :           

28.03.2011

 

IDENTIFICATION DETAILS

 

Name :

TOMBAR DIME DIAMONDS LTD.

 

 

Registered Office :

P.O. Box 41, 21 Tuval Street, Diamond Exchange, Yahalom Building, Ramat Gan 52522  

 

 

Country :

Israel

 

 

Date of Incorporation :

21.11.1986

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and Exporters, Processors, Polishers and Marketers of diamonds and jewelries.

 

 

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 :

Regular

 

 

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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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  

 

TOMBAR DIME DIAMONDS LTD.

Telephone  972 3 575 03 48

Fax           972 3 613 38 26

P.O. Box 41

21 Tuval Street

Diamond Exchange, Yahalom Building

RAMAT GAN-52522-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-115275-3 on the 21.11.1986.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 2,640.00, divided into:

                   2,640 ordinary shares of NIS 1.00 each,

of which 20 shares amounting to NIS 20.00 were issued.

 

 

SHAREHOLDERS

 

1.    Nimish Modi, 60%,

2.    Mita Modi, 25%,

3.    Itash Shah, 15%, of India.

 

During 2009 Nimish Modi gained the control over the 15% held previously by Fredip Komar Domodran.

 

 

DIRECTORS

 

1.    Nimish Modi, General Manager,

2.    Mita Modi.

 

 

BUSINESS

 

Importers and exporters, processors, polishers and marketers of diamonds and jewelries.

 

Diamonds are sold in Israel and exported worldwide. 70% of sales are for export.

Diamond purchasing is from India, and Belgium.

 

Operating from office premises, owned by the shareholders, on an area of 120 sq. meters, in 21 Tuval Street (also referred to as 54 Bezalel Street), Diamond Exchange, Yahalom Building (3rd floor, Rooms No. 93-96), Ramat Gan. Premises is shared with sister company NAAM and activities are intertwined.

 

Having 8 employees (same as in 2010, had 4 employees in 2009 and 8-10 employees in 2007), of which 5 serve subject itself.

 

 

MEANS

 

Financial data not forthcoming.

 

There are 2 charges for unlimited amounts registered on the company's assets, in favor of Israel Discount Bank Ltd. and The State Bank of India.

 

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

NAAM DIAMONDS LTD., fully owned by Nimish Modi, importers and exporters, processors, polishers and marketers of diamonds, operating from same premises as subject.

 

 

BANKERS

 

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

·         The State Bank of India (SBI), Main Branch (No. 001), Ramat Gan.

·         Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject’s officials refused to disclose financial details on the company.

 

Subject is long established and both subject and sister company NAAM DIAMONDS well-known in the local diamond trade.

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 and collapse in sales of about 70% in the peak of the crisis and 2009 export diamonds shrank by some 40%. 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) and continued throughout 2010.

 

According to the President of the Israeli Diamonds Association, local diamond sector in general managed to cross the crisis, despite the sheer difficulties, including the fact that local banks contracted credit given to local diamond firms. The President said that 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. The Ministry for Industry & Trade also assisted the local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.

 

Overall in 2010, export (net) of polished diamonds was US$ 5,832 million, representing 48% increase from 2009 (when it noted 37% decrease from 2008, also much less than 2007, a record year in polished diamonds export, with sales of US$ 7,076 million). In karat terms, net export of polished diamonds rose by 32%. Rough diamonds export (net) reached US$ 3,060 million, 62% up from 2009 and 36% increase in karat terms.

 

Import of rough diamonds (net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat terms), compared with 2009, while import of polished diamonds (net) saw 68% rise reaching US$ 4,218 million (39% rise in karat terms).

 

In terms of target export (polished diamonds) countries, overall in 2010 the USA returned to be main destination, with 41% of total export. This comes after earlier in 2010, for the first time Far East markets became Israel’s diamond industry’s main target, with sales to Hong Kong being close to these of the USA, to whom sales decreased dramatically in view of the severe economic crisis (traditionally sales to the USA comprised some 60%-65% of total export). In all 2010, export to Hong Kong comprised 25.5% of sales. Other target countries included India (4.5%), Switzerland (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.

 

 

SUMMARY

 

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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.65

UK Pound

1

Rs.71.91

Euro

1

Rs.63.28

 

 

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.