MIRA INFORM REPORT
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Report Date : |
15.05.2012 |
IDENTIFICATION DETAILS
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Name : |
E.M.A. DIAMONDS LIMITED PARTNERSHIP |
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Registered Office : |
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Country : |
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Date of Incorporation : |
11.12.2006 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Traders, Importers, Processors, Exporters and Marketers of diamonds,
handling both rough and polished diamonds |
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No. of Employees : |
14 |
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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
E.M.A. DIAM
(In short: E.M.A.
DIAM
Telephone 972 3 575 05 99
Fax 972 3 575 99 68
54 Bezalel Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 52521
ISRAEL
A limited
partnership, registered as per file No. 54-022569-2 on the 11.12.2006.
Subject was established
in view of assuming part of the business activities of E.M.A. DIAM
1. E.M.A. DIAM
2. EDGA LTD., 50%, limited
partner, owned by LEO SCHACHTER DIAM
3. EMA SUCCESS MANAGEMENT LTD.,
general partner.
Jeremy Medding
Traders,
importers, processors, exporters and marketers of diamonds, handling both rough and polished
diamonds.
Sales are for the
local market and for export.
Operating from
rented office premises, on an area of 100 sq. meters, in 54 Bezalel Street,
Diamond Exchange, Yahalom Building, 20th floor, Room #2079, Ramat
Gan.
Also operating
from overseas branches.
Having 14
employees (had 13 employees in 2010, same as in 2009).
Financial data
not forthcoming, believed to be financially solid.
Financial data not forthcoming (see also CHARACTER below).
LEO SCHACHTER
DIAM
Israel Discount
Bank of Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
Mizrahi Tefahot Bank Ltd., Diamonds Business Center Branch (No. 466), Ramat
Gan.
Nothing
unfavorable learned.
Subject’s
officials refused to disclose financial data.
E.M.A. DIAM
EMA DIAM
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, E.M.A. DIAM
LEO SCHACHTER
DIAM
In March 2006 it
was reported that Jeremy Medding, one of subject's partners, opened a subsidiary
in Japan during 2005 (probably via subject).
In February 2008
LEO SCHACHTER DIAM
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.
Notwithstanding
the refusal to disclose financial data, considered 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.71 |
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UK Pound |
1 |
Rs.86.34 |
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Euro |
1 |
Rs.69.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.