MIRA INFORM REPORT
|
Report Date : |
04.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
ASHISH DIAMONDS LTD. |
|
|
|
|
Formerly Known As : |
A. DIAM LTD., |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
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 |
|
|
|
|
No. of Employees : |
35 |
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Israel |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
ASHISH DIAM
Telephone 972 3 613 21 62
Fax 972 3 751 81 64
P.O. Box 381 (52103)
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
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.
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.
1. Raxid Mehta, 70%,
2. Ashish Mehta, 15%, brother of
Raxid, both of India,
3. Sailes C. Botra, 15%.
1. Raxid Mehta, General Manager,
2. Ashish Mehta.
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 DIAM
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).
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.
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).
VIJAY DIAM, a
sister company in India, makes the purchasing for subject in India.
LOTUS STAR
LIMITED, a sister company in Hong Kong.
The First
International Bank of Israel Ltd., Diamonds Exchange Branch (No. 026), Ramat
Gan.
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
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
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.
Good for trade
engagements.
DIAMOND INDUSTRY – INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.56 |
|
UK Pound |
1 |
Rs.81.04 |
|
Euro |
1 |
Rs.67.48 |
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 |
---- |
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.