|
Report Date : |
16.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ASHISH DIAMONDS LTD. |
|
|
|
|
Formerly Known As : |
A. DIAM LTD., |
|
|
|
|
Registered Office : |
P.O. Box 381 (5210301),
21 Tuval Street, Diamond Exchange, Yahalom Bldg. Ramat Gan 5252236 |
|
|
|
|
Country : |
Israel |
|
|
|
|
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. Also
manufacturers of diamonds, through sub-contractors. |
|
|
|
|
No. of Employees : |
6 Employees |
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 – June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
israel - ECONOMIC OVERVIEW
Israel has a technologically
advanced market economy. It depends on imports of crude oil, grains, raw
materials, and military equipment. Cut diamonds, high-technology equipment, and
agricultural products (fruits and vegetables) are the leading exports. Israel
usually posts sizable trade deficits, which are covered by tourism and other
service exports, as well as significant foreign investment inflows. The global
financial crisis of 2008-09 spurred a brief recession in Israel, but the
country entered the crisis with solid fundamentals - following years of prudent
fiscal policy and a resilient banking sector. The economy has recovered better
than most advanced, comparably sized economies. In 2010, Israel formally
acceded to the OECD. Natural gasfields discovered off Israel's coast during the
past two years have brightened Israel's energy security outlook. The Leviathan
field was one of the world's largest offshore natural gas finds this past
decade. In mid-2011, public protests arose around income inequality and rising
housing and commodity prices. The government formed committees to address some
of the grievances but has maintained that it will not engage in deficit
spending to satisfy populist demands.
|
Source : CIA |
ASHISH DIAM
Telephone 972 3 613 21 62
Fax 972
3 751 81 64
P.O. Box 381
(5210301)
21 Tuval Street
Diamond Exchange,
Yahalom Bldg.
RAMAT GAN 5252236
ISRAEL
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.
According to the Registrar of Companies, shareholders are:
1. Raxid Mehta, 70%,
2. Ashish Mehta, 15%, brother of
Raxid, both of India,
3. Sailes C. Botra, 15%.
Mr. Raxid Mehta informed us that Mr. Sailes
C. Botra sold his shares to himself and as of 01.01.2013 he is no longer a
shareholder in subject (though this effect has yet to be recorded in the
Registrar's data). Therefore, ownership in subject is presently as follows:
1.
Raxid Mehta, 85%,
2.
Ashish Mehta, 15%.
1. Raxid Mehta,
2. Ashish Mehta.
Importers, exporters and marketers, dealing with both polished and rough
diamonds.
Also manufacturers of diamonds, through sub-contractors.
Around 30%-35% of sales are for export, rest is to the local market.
Among local suppliers: DOV DIAMONDS, 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 6 employees, including General Manager (same as in 2012, had 5
employees in 2011 and in 2010).
There are some 35 employees in the Group, including overseas offices
(similar to 2012, 2011 and 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$ 32,000,000, some 40% of sales were for export).
2010 sales claimed
to be US$ 60,000,000, 45% of which were for export.
2011 sales claimed
to be US$ 65,000,000, 45% of which were for export.
2012 sales claimed
to be US$ 80,000,000, 30%-35% of which were for export.
ELIS DIAMONDS
LTD., 50% owned by Raxid Mehta (other 50% owned by Eli Braverman), importers,
exporters and marketers of diamonds,
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.
In the framework of
internal mediation procedures handled by the local Diamond Exchange regarding
business conflicts, in September 2009 it was reported that subject and its
owners are entitled to receive US$ 1.7 million from several diamonds dealers.
An affair of an
underground bank has been shocking the local diamond branch, after in late
January 2012 Police raided the Diamond Exchange (after a long undercover
operation), arrested several individuals for investigation, caught diamonds and
various assets worth NIS millions, and blocked several bank accounts. It is
suspected that a group of people, including diamond dealers, run an illegal
bank in the Diamond Exchange compound for loans, money transfer abroad based on
fictitious transactions 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 in 2012, frozen bank
accounts, a paralysis (especially in purchase of raw diamonds) even with fear
of the a collapse of the sector, while dealers –local and foreign- face
uncertainty.
In March 2012 the
Police decided to lower the profile of the investigation for a while 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). In November 2012 the Police and Tax Authorities recommended on
indictments against the 25 suspects in the affair, among them diamond dealers,
for the said suspicions and obstruction of the investigation.
Export of polished
diamonds from Israel fell by 23% in 2012 from 2011, after 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%.
While the global
diamond industry experienced major declines during the year, Israel saw a
steady improvement in its diamond trade in the third and fourth quarters of the
year, according to Ministry of Industry, Trade and Labor Diamond Controller
Shmuel Mordechai, who published figures for Israel’s diamond imports and
exports during 2012.
Israel’s net
polished diamond exports stood at US$5.6 billion in 2012, compared a decline of
23% from 2011. Mr. Mordechai said that Israel’s diamond trade seems likely to
continue to improve in 2013 and return to levels of 2011, which was a record
year.
Israel’s net rough
diamond exports totaled US$2.8 billion in 2012, a 20% decrease from 2011.
Net imports of
polished diamonds dropped 25% from 2011, totaling US$4.27 billion, while net
rough imports stood at US$3.8 billion, 13 % less than in 2011.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 36%
of the market. Hong Kong was the next largest market with 28% of exports, with
Belgium accounting for 8%, Switzerland 5%, U.K. 5% and the rest of the world
18%.
According to the
President of the Israeli Diamonds Association, in 2010 the trade in the local
diamond sector rolled annual turnover of US$ 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.
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.54.16 |
|
UK Pound |
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.