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Report Date : |
18.02.2012 |
IDENTIFICATION DETAILS
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Name : |
S. SCHNITZER DIAMONDS LTD. |
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Registered Office : |
1 Jabotinsky
Street, Diamond Exchange, Maccabi Bldg., Ramat Gan 52520 |
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Country : |
Israel |
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Date of Incorporation : |
15.12.2010 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, traders, importers, exporters and marketers of round
and fancy shaped diamonds |
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No. of Employees : |
Not Available |
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 : |
Unknown |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
S. SCHNITZER
DIAMONDS LTD.
Telephone 972 3 575 66 00
Fax 972
3 575 66 01
1 Jabotinsky
Street
Diamond Exchange, Maccabi Bldg.
RAMAT GAN 52520-ISRAEL
A private limited
company, incorporated as per file No. 51-453316-5 on the 15.12.2010. We assume
that subject may be continuing the veteran diamond business activities originally
established in 1952 by the late Moshe Schnitzer (operating mainly via MOSHE
SCHNITZER & CO. DIAMONDS – see below).
Authorized share
capital of NIS 1,000,000.00, divided into:-
5 management shares (4 shares
issued)
999,995 ordinary shares (100
shares issued), all of NIS 1.00 each,
of which shares amounting to NIS 104.00 were
issued.
1. Shmuel Schnitzer, 75% of management shares
and 80% of ordinary shares,
2. Shay Schnitzer, 25% of management shares and
20% of ordinary shares.
1. Shmuel Schnitzer,
2. Shay Schnitzer, son of
Shmuel.
Manufacturers,
traders, importers, exporters and marketers of round and fancy shaped diamonds.
Operating from
office premises in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (18th
floor), Ramat Gan.
Number of
employees not forthcoming.
Financial data not
forthcoming, believed to be financially solid.
There are 3 charges
for unlimited amounts registered on the company's assets (financial assets), in
favor of Bank Leumi Le'Israel Ltd. (all charges placed in March 2011).
Sales figures not forthcoming.
In an interview from September 2010, Shmuel Schnitzer said that although
subject does not supply data to the Israel Supervisor on Diamonds in the
Ministry of Industry & Trade, regarding export of polished diamonds,
subject is among the leading 25 exporters of polished diamonds.
S.SCHNITZER DIAMONDS (HK) LTD.
S. SCHNITZER DIAMONDS (USA), INC.
MOSHE SCHNITZER & CO. DIAMONDS, a general partnership, 50% owned by
Shmuel Schnitzer, originally established in 1952 by the Late Moshe Schnitzer
(father of Shmuel Schnitzer), traders, importers, processors, exporters and
marketers of diamonds of all sizes.
SHAY SCHNITZER DIAMONDS LTD., owned by Shay Schnitzer.
M. SCHNITZER & CO DIAMONDS CORPORATION (ISRAEL) LTD.
DSee IMAGING LTD., Shay Schnitzer is a partner in this firm, engaged in
3-D imaging technologies for the diamond industry and other industrial
applications.
Bank Leumi Le'Israel Ltd., Diamond Exchange Branch (No. 629), Ramat Gan.
Nothing
unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
MOSHE SCHNITZER
& CO. DIAMONDS is a veteran well-known diamond firm, enjoying world
reputation and among Israel’s leading diamonds manufacturers and exporters. Its
founder Moshe Schnitzer passed away in 2007. He was one of the most veteran
diamond dealers in Israel, among the founders of the local diamond industry. He
served as the President of the Israeli Diamond Exchange (leading the huge
expansion of the local diamond industry) and of the World Federation of Diamond
Bourses (WFDB), as well as achieving many awards and recognitions.
Moshe's son and
subject's shareholder Shmuel Schnitzer also served as the President of the
Israeli Diamond Exchange President between 1998-2005, and the WFDB President
between 2002-2006. He serves as Honorary President of the Israel Diamond
Exchange, and WFDB for the rest of his life.
In July 2011
subject, jointly with diamond company RAFI BEN-DAVID DIAMONDS LTD. finalized on
the acquisition of office space in the upcoming International Gem Tower (IGT)
facility in New York’s Diamond District (expected to be ready during 2012).
A recent affair of
an underground bank is 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
couple of reported bankruptcies of local diamond firms, significant decrease in
transactions (especially in purchase of raw diamonds) and a very bad general
atmosphere which casts on the whole branch, as dealers –local and foreign- face
uncertainty.
Despite the
slow-down in activity in the global diamond branch during the last third of
2011, export by the local diamond sector in all 2011 recorded US$ 7,202 million
sales in 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
current 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.
Export of rough
diamonds in 2011 also climbed almost 15%, reaching US$ 3,515 million (fell
almost 29% in karat terms).
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 import of rough diamonds
rose by 17.5% from 2010, totaling US$ 4,413 million (11% fall in karat terms).
In 2010, export (net)
of cut diamonds was US$ 5,832 million (up 48% from 2009, when it noted 37%
decrease from 2008), rough diamonds export (net) reached US$ 3,060 million (62%
rise from 2009). Import of rough diamonds (net) in 2010 grew by 51% to US$
3,755 compared with 2009, and import of polished diamonds (net) saw 68% rise in
2010 reaching US$ 4,218 million.
In terms of target
export (polished diamonds) countries, in 2011 the USA continued to be the main
destination, with 39% of total export (41% 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 26%
of sales in 2011 (29% in 2010). Other main target countries included
Switzerland (6%), India (5%), UK (3%) and the rest of the World (21%).
According to the
President of the Israeli Diamonds Association, local diamond sector in general
managed to cross one of worst depressions in the global diamond sector caused
by the global economic crisis in 2008/9. 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%. 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.
Local diamond
sector employs some 15,000 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 lack of updated data from subject's officials, as well being a relatively
new company, considered good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.21 |
|
|
1 |
Rs.77.75 |
|
Euro |
1 |
Rs.64.58 |
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.