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Report Date : |
12.09.2013 |
IDENTIFICATION DETAILS
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Name : |
E.M.A. DIAM |
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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 : |
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 : |
15 |
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 (31.03.2011) |
Current Rating (30.06.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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 -5252138 ISRAEL
A limited
partnership, registered as per file No. 55-022569-2 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.
70% of sales are
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 15
employees, as of 2012 (had 14 employees in 2011 and 13 in 2010).
Financial data not
forthcoming, believed to be financially solid.
Financial data not
forthcoming (see also CHARACTER below).
E.M.A. JAPAN, 100%
subsidiary in Japan, a marketing company,
E.M.A. HONG KONG,
100% subsidiary in Hong Kong, a marketing company.
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.
Despite our
efforts we were unable to speak with subject’s General Manager, Mr. Jeremy
Medding, as he was always unavailable. We left a message and will update you in
case he returns to us with fresh data. In the past, he refused to disclose
financial data.
E.M.A. DIAM
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, E.M.A. DIAM
Subject also won
the Israel-Japan Chamber of Commerce’s outstanding exporter award for 2008-2009.
LEO SCHACHTER DIAM
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, LEO SCHACHTER DIAM
In February 2008
LEO SCHACHTER DIAM
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.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade engagements.
Note: Since the beginning of February 2013
Israel Post has started using a new area code method of 7 digits (the old
method of 5 digits is no longer valid).
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
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.90 |
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|
1 |
Rs.100.47 |
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Euro |
1 |
Rs.84.65 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.