MIRA INFORM REPORT

 

 

Report Date :           

20.09.2011

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

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 (similar to 2010), 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 referred to as 54 Bezalel Street), Diamond Exchange, Yahalom Building (7th Floor, room 765), Ramat Gan.

Also operating from offices in India, Belgium and Hong Kong.

 

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

There are some 35 employees in the Group, including overseas offices (similar to 2010).

 

 

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 was a recovery in 2010, much better than 2009.

Later sales figures unavailable (we are informed 2010 data is not ready yet).

 

 

OTHER COMPANIES

 

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

LOTUS STAR LIMITED, a sister company in Hong Kong.

 

 

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 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 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, into 2011. In 2011 first quarter, a significant improvement was recorded, although still well below 2007 and 2008 first 3 quarters levels.

 

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.

In the 1st quarter of 2011, 45.7% increase was noted comparing to the parallel period in 2010 with export of polished diamonds of US$2,123 million. Export of rough diamonds also noted 39.6% rise, reaching US$ 1,158 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 24.9% in 2011 1stQ (compared to 2010 1stQ), summing up to US$1,144 million. Import of polished diamonds (net) saw 68% rise in 2010 reaching US$ 4,218 million (39% rise in karat terms), and 48.5% rise  in 2011 1stQ (US$ 1,234 million).

 

In terms of target export (polished diamonds) countries, overall in 2010 the USA returned to be main destination, with 41% of total export (45% in 2011 1stQ). 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.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.47.79

UK Pound

1

Rs.75.06

Euro

1

Rs.65.35

 

 

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

----

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%)

 

 

 

 

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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.