|
Report Date : |
25.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
O.S.G. DIAMONDS LTD. |
|
|
|
|
Registered Office : |
21 Tuval Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 5252236 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
30.11.2008 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Dealers,
Importers, Exporters and Marketers of Rough Diamonds. |
|
|
|
|
No. of Employees : |
7 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
O.S.G. DIAMONDS LTD.
Telephone 972 3 612 00 08
Fax 972 3 612 02 00
21 Tuval Street
Diamond Exchange,
Yahalom Bldg.
RAMAT GAN 5252236 -ISRAEL
A private limited
company, incorporated as per file No. 51-420783-6 on the 30.11.2008, continuing
activities which began years earlier, as both owners are veteran diamond
dealers (date not forthcoming, see more CHARACTER).
Authorized share
capital of NIS 100,000.00, divided into:-
100,000 ordinary shares of NIS
1.00 each,
of which 100 shares amounting to NIS 100.00
were issued.
1. Sylvain Goldberg, 50%,
2. Arie Laniado, 50%.
Sylvain Goldberg, of
Belgium.
1. Sylvain Goldberg,
2. Arie Laniado.
Dealers,
importers, exporters and marketers of rough diamonds.
Some 60% - 70% of
sales are for export.
Operating from
rented office premises, on an area of 200 sq. meters, in 21 Tuval Street
(street name is also referred to as 54 Bezalel Street), Diamond Exchange,
Yahalom Building, Ramat Gan.
Having 7
employees.
Financial data not
forthcoming.
There is 1 charge for
an unlimited amount registered on the company's assets, in favor of Israel
Discount Bank Ltd.
Sales data not forthcoming.
O.S.G. POLISHING LTD., sister company, processors of diamonds.
Israel Discount Bank Ltd, Diamond Exchange Branch (No. 080), Ramat Gan.
Nothing
unfavorable learned.
Both subject's
shareholders are veteran diamond dealers. Sylvain Goldberg and his partner Ehud
Laniado (relative of Arie), both known as major Antwerp diamantaires, own the
Belgian diamond company OMEGA DIAMONDS. Sylvain Goldberg and
Laniado family, jointly with diamond tycoon Lev Leviev and the Angolan State, were partners in the ASCORP partnership.
Antwerp-based
OMEGA DIAMONDS, specialized in rough diamonds trade, has been involved in a
large-scale money laundering scheme. The case of OMEGA DIAMONDS is the largest
case of tax fraud in diamonds that has ever been investigated by the
prosecutor's office in Antwerp, as reported, a theft case worth more than two
billion Euros. According to the report in February 2012, at the beginning of
this century their company, OMEGA, grew to become a world-scale player. The
rapid growth of the company came to an end in 2006 when Antwerp’s authorities
started their investigation of the tax fraud, money laundering and large-scale
cheating of the Belgian customs service. OMEGA DIAMONDS’ business came into
view of the Belgian tax authorities because all the company’s transactions were
made exclusively via companies in Dubai, Tel Aviv and Geneva.
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.
Good for trade
engagements.
Note: Since the
beginning of 2012 Israel Post started using a new area code method of 7 digits
(the old method of 5 digits will still be valid till end of 2012).
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.59.44 |
|
|
1 |
Rs.91.24 |
|
Euro |
1 |
Rs.78.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.