|
Report Date : |
21.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
E.M.A. DIAMONDS LIMITED PARTNERSHIP |
|
|
|
|
Registered Office : |
54 Bezalel Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 5252138 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
11.12.2006 |
|
|
|
|
Legal Form : |
Limited Partnership |
|
|
|
|
Line of Business : |
Traders,
importers, processors, exporters and marketers of diamonds, handling both
rough and polished diamonds |
|
|
|
|
No. of Employees : |
Having 15
employees, as of 2012 (had 14 employees in 2011 and 13 in 2010) |
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 : |
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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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. Its major imports
include crude oil, grains, raw materials, and military equipment. Cut diamonds,
high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the Arab Spring
because strong trade ties outside the Middle East have insulated the economy
from spillover effects. 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, and production from the Tama field is expected to meet all of
Israel''s natural gas demand beginning mid-2013. 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. DIAMONDS
LIMITED PARTNERSHIP
(In short: E.M.A.
DIAMONDS LP)
Telephone 972 3 575 05 99
Fax 972 3 575 99 68
Email: ema@ema-diamonds.com
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.
DIAMOND MANUFACTURING LTD., a private limited company incorporated in December
1993 (itself continuing business activities founded years earlier by its
shareholders). During 2006 the shareholders decided to gradually split the
local and overseas diamond business over to firms owned by the shareholders,
following which at later stage E.M.A. DIAMOND MANUFACTURING LTD. became
inactive. Mr. Jeremy Medding, subject’s partner, was a 33.33% shareholder in
the company and moved to form subject.
1. E.M.A. DIAMOND MANUFACTURING
& EXPORT (2006) LTD., 50%, limited partner, owned by Jeremy Medding,
2. EDGA LTD., 50%, limited
partner, owned by LEO SCHACHTER DIAMONDS LTD., controlled by LEO SHACHTER &
CO. INC. of the USA (49.5%, owned by the heirs of Leo Schachter, Tenenbaum and
Greenberg families) and by FANCY DIAMOND LIMITED. (41.2%, a foreign company),
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 (2012).
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, believed to be financially solid (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
DIAMONDS LTD., owners of partner No. 2 (EDGA LTD.), diamond cutters, polishers,
traders, importers, marketers and exporters, managed by Eliot Tenenbaum and
David Greenberg. Having over 1,500 employees worldwide.
· 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. DIAMOND
MANUFACTURING LTD., who preceded subject, became a DTC Sight holder (special concession from DE BEERS) from 2004, and had reported consolidated
sales in 2004 of US$ 100 million.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, E.M.A. DIAMOND MANUFACTURING was ranked 13th in the 2005
list of Israel's largest polished diamonds exporters. In 2004 it was ranked 12th,
in 2003 – 11th, in 2002 – 10th, as in 2001. In 2000
E.M.A. DIAMOND MANUFACTURING was ranked 7th and received the
"Excellent Exporter" award from the Ministry of Industry and Trade.
Subject also won
the Israel-Japan Chamber of Commerce’s outstanding exporter award for 2008-2009.
LEO SCHACHTER
DIAMONDS is known world-wide for its impeccable reputation, with 2012 sales for
export (net) of US$ 317 million.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, LEO SCHACHTER DIAMONDS was ranked 1st in the
2012 list of Israel's largest polished diamonds exporters, as in 2011 (with
sales of US$ 407 million). In previous years (2005 till 2010) it was ranked 2nd
to LLD DIAMONDS LTD. (of Lev Lebiev) and by far larger than the 3rd ranked. In 2011 LLD chose not to be enlisted (which is the company's option no
to be included for its reasons), although LEO SCHACHTER DIAMONDS was already
closing the gap between them and LLD in recent years.
In February 2008
LEO SCHACHTER DIAMONDS and subject announced that they are merging their
Japanese sales and marketing departments.
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 economic crisis in global markets that erupted in
2008. The sector experienced almost an entire freeze and collapse in sales of
about 70% in the peak of the crisis. While the global diamond industry
experienced major declines during 2012, Israel saw a steady improvement in its
diamond trade in the third and fourth quarters of the year, according to the
Diamond Administration at the Ministry of Industry & Trade.
Israel’s net
polished diamond exports stood at US$5.6 billion in 2012, compared a decline of
23% from 2011. 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$3.8 billion, 13 % less than in 2011.
The diamond sector
has been keeping a steady trend in the first half of 2013.
Net polished diamond
exports in 2013 1st half witnessed a slight decrease (2%) comparing
to 2012 1stH, reaching US$ 3.233 billion, while export of rough diamonds saw a
8.1% rise. Net imports of rough diamonds in the 1st half of 2013
reached US$ 2.037 billion, 2.8% increase compared with the parallel period in
2012, whereas import of polished diamonds fell by 5.3% to US$ 2.084 billion.
Expectations in
the local diamond sector for 2013 2nd half is for further recovery.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 44%
of the market in 2013 1st half (36% in 2012). Hong Kong is the next
largest market with 29.7% of exports (28% in 2012), with Switzerland accounting
for 7.8%, Belgium 6.7%, and Thailand with 1.1%.
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.
An affair of an
underground bank shocked 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, and for a
while to paralysis (especially in purchase of raw diamonds) due to uncertainty
among local and foreign dealers.
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.
In June 2013 it
was reported that the Police resumed its raids on the diamonds branch, and
although names of suspects were not released, sources say that it is also
related to the above underground bank affair. In parallel, it is also reported
that the Tax Authorities and diamonds dealers' representatives are trying to
reach an arrangement for past debts.
Notwithstanding
the lack of updated data from subject's officials, considered 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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
UK Pound |
1 |
Rs.99.90 |
|
Euro |
1 |
Rs.84.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.