MIRA
INFORM REPORT
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Report Date : |
11.10.2011 |
IDENTIFICATION DETAILS
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Name : |
BETA DIAM |
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Registered Office : |
3 Jabotinsky Street Diamonds Exchange, Yahalom Bldg. Ramat Gan 52520 |
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Country : |
Israel |
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Date of Incorporation : |
07.01.1999 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Cutters, processors, polishers, importers, exporters and traders of diamonds (round, square, fancy, etc). |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
company Name and address
BETA DIAM
Telephone 972 3
751 40 50
Fax 972
3 751 40 51
3 Jabotinsky
Street
Diamonds Exchange,
Yahalom Bldg.
RAMAT GAN 52520 ISRAEL
HISTORY & LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-272722-3 on the 07.01.1999.
Subject was established
by the u/m shareholders after they separated from their previous company –
DELTA DIAM
SHARE CAPITAL
Authorized share
capital of NIS 34,300.00, divided into: -
34,300 ordinary shares of NIS
1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
SHAREHOLDERS
1. Isaac Mandler, 60%,
2. Avraham Mandler, 20%,
3. Tomer Sematna, 20%.
In March
It is possible that shareholder No. 3, Tomer
Sematna is related to Mr. Mizrahi.
DIRECTORS AND JOINT GENERAL
MANAGERS
1. Isaac Mandler,
2. Avraham Mandler,
3. Tomer Sematna.
BUSINESS
Cutters,
processors, polishers, importers, exporters and traders of diamonds (round,
square, fancy, etc).
Sells mainly to
the U.S.A. and Far East.
Operating from
owned offices, on an area of 200 sq. meters, in 3 Jabotinsky Street, Diamond
Exchange, Yahalom Building (15th Floor, room No. 1571 – spreading on
7 offices), Ramat Gan. Also operating from subsidiary’s premises in New York,
USA and Shanghai, China.
Having 50
employees (same as in 2010).
MEANS
Financial data not
forthcoming, however known to be financially solid.
There are 7
charges for unlimited amounts registered on the company's assets (fixed and financial
assets), in favor of Union Bank of Israel Ltd. and Bank Leumi Le’Israel Ltd.
and Union Bank of Israel Ltd.
REVENUES
Subject’s Joint
General Manager provided us sales for export figures, but did not provide
overall sales (including local sales) or the rate of export from all sales:
2009 sale for
export claimed to be US$ 35,000,000.
2010 sale for
export claimed to be US$ 50,000,000.
According to the
reports published by the Israel Supervisor on Diamonds, subject's sales
(net) for export of cut diamonds were as follows:
2005 - US$
62,000,000.
2006 - US$
61,000,000.
2007 - US$
65,000,000.
2008 - US$
37,000,000.
2009 - US$
29,000,000.
2010 - US$
42,000,000.
Note: The gap in
sales for export figures in 2009 and 2010 (between subject’s claimed figures to
the reported by the Supervisor ones) could be explained by several factors,
mainly that: reported figures are net (which is calculated after
“returns” of diamonds) and only for cut diamonds.
OTHER COMPANIES
BETA USA INC., USA,
dealing in diamonds.
BETA SHANGHAI,
subsidiary in China.
DAON PROPERTIES & INVESTMENTS
LTD.
BANKERS
Israel Union Bank
Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Bank Leumi
Le’Israel Ltd., Diamond Exchange Business Branch (No. 729), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 18th in the 2010 list of
Israel's largest polished diamonds exporters, 20th in the 2009 list,
23rd in the 2008 list, 15th in the 2007 list, 16th
in 2006 and in 2005.
During 2010 and
2011 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
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
In the 1st
half of 2011, 34% increase was noted comparing to the parallel period in 2010
with net export of polished diamonds of US$3,400 million. Export of
rough diamonds also climbed almost 40%, reaching US$ 2,250 million.
Import of rough
diamonds (net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat
terms) compared with 2009, and by 36.7% in 2011 1st half (compared
to 2010), summing up to US$2,500 million. Import of polished diamonds (net) saw
68% rise in 2010 reaching US$ 4,218 million (39% rise in karat terms), and
almost 50% rise in 2011 1st
half (US$ 2,800 million).
In terms of target
export (polished diamonds) countries, overall in 2010 the USA returned to be
main destination, with 41% of total export (48% in 2011 1st half).
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 2010 and early 2011, export to Hong Kong comprised around 26% of
sales. Other main target countries include Belgium, India, Switzerland and
China.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
SUMMARY
Good for trade engagements.
DIAMOND INDUSTRY –
INDIA
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From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
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The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
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The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.49.07 |
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|
1 |
Rs.76.65 |
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Euro |
1 |
Rs.66.17 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.