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Report Date : |
01.08.2012 |
IDENTIFICATION DETAILS
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Name : |
SN ASIA (ISRAEL) LTD. |
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Registered Office : |
54 Bezalel Street, Diamond Exchange, Yahalom Bldg.,
RAMAT GAN 5252138 |
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Country : |
Israel |
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Date of Incorporation : |
20.11.2003 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
MANUFACTURERS AND
TRADERS IN DIAMONDS, DEALING AS CUTTERS, POLISHERS, IMPORTERS, EXPORTERS AND
MARKETERS OF DIAMONDS. |
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No. of Employees : |
200 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 |
SN ASIA (ISRAEL) LTD.
(Also trading as: SCHACHTER NAMDAR ASIA)
Telephone 972
3 576 75 00
Fax 972
3 576 75 06
54 Bezalel Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252138 ISRAEL
A private limited company, incorporated as per file No.
51-347105-2 on the 20.11.2003.
Subject is continuing part of the activities of
SCHACHTER & NAMDAR POLISHING WORKS LTD. (known as SCHACHTER NAMDAR GROUP),
incorporated in 1981 (original activities founded years earlier), after the
company's partners decided to split their activities during 2003/4. (Following
the move latter company changed name into LEO SCHACHTER DIAM
Authorized share capital NIS 100,000.00, divided into
-
100,000 ordinary shares, of NIS 1.00 each, of which
101 shares amounting to NIS 101.00 were issued.
1.
Avraham Namdar,
79.2%,
2.
Emanuel Namdar,
19.8%,
3.
SCHACHTER
NAMDAR PROPRIETARY LTD., 1%, a foreign company.
Avraham Namdar, born 1954.
Emanuel Namdar (of Israeli operations)
Subject and the Group operate as international
manufacturers and traders in diamonds, dealing as cutters, polishers,
importers, exporters and marketers of diamonds.
Among
local suppliers: MOSHE NAMDAR & CO.
Main foreign supplier: DE BEERS.
Operating from premises in 54 Bezalel Street (also
called 21 Tuval Street), Yahalom Building (21st Floor), Diamond
Exchange, Ramat Gan.
Also operating from plants and offices in South
Africa, and offices in New York, Hong Kong, Shanghai, Dubai and Tokyo.
Having some 200 employees serving the SN ASIA Group
worldwide (most in South Africa). Number of employees in Israel is not
forthcoming, known to be over 10 employees.
Financial data not forthcoming, however known to be
financially strong.
Subject is a DTC Sightholder.
There are 2 charges for unlimited amounts registered
on the company's assets, in favor of Union Bank of Israel Ltd.
SCHACHTER & NAMDAR POLISHING WORKS LTD. 2004 sales
for export were US$ 434,000,000.
According to the data published
by the Israel Supervisor on Diamonds in the Ministry of Industry & Trade,
export of polished diamonds by subject (actual overall sales presumed to be
higher, as there are local sales of polished diamonds and may have sales of
rough diamonds as well), were as follows:
2004 sales for export (net) were US$ 77,000,000.
2005 sales for export (net) were US$ 86,000,000.
2006 sales for export (net) were US$ 86,000,000.
2007 sales for export (net) were US$ 86,000,000.
2008 sales for export (net) were US$ 86,000,000.
2009 and 2009 figures were not published.
2011 sales for export (net) were US$ 59,000,000.
AVRAHAM
NAMDAR HOLDINGS LTD., a holding company.
SCHACHTER & NAMDAR (PTY), LTD., South Africa,
controlled by Avraham Namdr, diamond mining, cutting and manufacturing,
EURO-SAT
INVESTMENTS LTD., a public company whose shares are traded on the Tel Aviv
Stock Exchange, dealing in real estate properties development for the
construction of luxurious residential buildings, controlled by Avraham Namdar
(54.4%). Current market value 29.75 million.
Avraham
Namdar is also involved in other local and foreign companies in the diamonds,
real estate, finance and investment areas.
Union Bank of Israel Ltd., Ramat Gan Btanch (062),
Ramat Gan.
Subject may be working with other bank branches but we
could not confirm that.
Nothing unfavorable learned on subject.
Subject’s General Manager, Emanuel Namdar, the only
authorized person allowed to disclose data on the company, is presently abroad.
In principle, subject's policy is refraining from disclosing data.
Mr.
Avraham Namdar is a well-known veteran diamond dealer. Subject is known
worldwide and enjoys an excellent reputation in the market. Mr. Namdar is also
involved in real estate investments and entrepreneurship.
According
to the reports published by the Israel Supervisor on Diamonds in the Ministry
of Industry and Trade, subject was ranked 16th in 2011 lists of
Israel's largest polished diamonds exporters. Subject was ranked 10th
place in the 2008 list and 11th in 2007, same rank as in the 2006
(Note: the list publishes the top 25 - 30 diamond firms; subject does not
appear in 2009 and 2010 lists, which could be either that it ranks lower, or
alternatively is that subject chose not to be included in the list, which is
its right).
During 2003/4 the SCHACHTER NAMDAR Group began a
strategic structural change in the Group in order to maximize potential, where
each party will focus on different markets. Initially Avraham Namdar formed
subject, focusing on the Asian markets, and in February 2004 his brother and
former partner Moshe Namdar split his businesses, forming MOSHE NAMDAR &
CO. LTD.
LEO SCHACHTER DIAM
Former
company, SCHACHTER NAMDAR was ranked 2nd
largest local diamond company until the split in 2004.
An
affair of an underground bank has been shocking the local diamond branch in
these days, after in late January 2012 Police raided the Diamond Exchange
(after a long undercover operation, in cooperation with the Exchange
officials), arrested several individuals for investigation and blocked several
bank accounts (which led to a chain reaction of not respecting checks of
dealers). The Police suspect that a group of people, including diamond dealers,
run an illegal bank in the Diamond Exchange compound for loans, money transfer
abroad and exchange in volume of NIS 1 billion for several years. The affair
has already led to several of reported bankruptcies of local diamond firms, a
decrease of up to 70% in transactions, frozen bank accounts, a paralysis
(especially in purchase of raw diamonds) with substantial fear of the a
collapse of the sector, while dealers –local and foreign- face uncertainty.
In
early March 2012 the Police announced it suspends the investigation of further
suspects for the time being. This move is a result of the big pressure from the
diamond branch (to stop the continuing damage inflicted) and the Government
(who is losing US$ hundred millions from decrease in tax collection).
The
Supervisor of Diamonds at the Ministry of Industry, Trade & Labor published
the diamond's sector import-export data for the 1st half of 2012,
which reveals a 19% fall in net sale of cut diamonds, and a fear of another
deep crisis in the branch. The sector recovered in 2010 and mainly in 2011 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 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%.
In
2011 the local diamond sector recorded US$ 7,202 million in net sales of cut
diamonds, 23.5% higher than in 2010. This was thanks to the strong first 2
thirds of 2011, which were stalled in the last third, reflecting the fragile
global economy and fear of another recession wave in USA and Europe. It should
be noted that in karat terms, net export of cut diamonds rose only by 4% from
2010.
Net
export of rough diamonds in 2011 also climbed almost 15%, reaching US$ 3,515
million (fell almost 29% in karat terms).
Net
import of cut diamonds in 2011 summed up to US$ 5,682 million, representing
34.7% increase comparing to 2010 (18% rise in karat terms), while net import of
rough diamonds rose by 17.5% from 2010, totaling US$ 4,413 million (11% fall in
karat terms).
In the 1st half of 2012, export (net) of cut
diamonds was US$ 3,264 million, down 18.9% from the 1st half of
2011, and rough diamonds export (net) reached
US$ 1,516 million, a 33% decrease. Import of rough diamonds (net) in the 1st
half of 2012 were down 19.3% to US$ 1,993 million compared with the parallel
period in 2011, while import of polished diamonds (net) saw 21.7% fall reaching
US$ 2,201 million.
In
terms of target export (polished diamonds) countries, in 2011 the USA continued
to be the main destination, with 47% of total export (39% in 2011). This comes
after in early 2010, for the first time Far East markets became Israel’s
diamond industry’s main target (traditionally sales to the USA comprised some
60%-65% of total export). Hong Kong is the 2nd largest target
country, comprising 29% of sales in 2011 (26% in 2010). Other main target
countries included Belgium (7%), Switzerland (6%), UK (2%) and the rest of the
World (9%).
According
to the President of the Israeli Diamonds Association, in 2010 the trade in the
local diamond 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.
Local
diamond sector employs some 20,000 persons.
In
February 2009, Israel was ranked as the world’s largest exporter of cut
diamonds, followed by India, Belgium and South Africa.
Notwithstanding
the refusal to disclose financial related data, considered good for trade
engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.80 |
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|
1 |
Rs.87.66 |
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Euro |
1 |
Rs.68.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.