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Report Date : |
11.12.2014 |
IDENTIFICATION DETAILS
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Name : |
ESHED DIAM LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
26.02.1984 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
TRADERS, MANUFACTURERS, POLISHERS, IMPORTERS,
EXPORTERS AND MARKETERS OF LARGE POLISHED DIAMONDS (FIVE CARATS AND LARGER). |
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No. of Employees : |
40 Employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
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Source
: CIA |
ESHED DIAM LTD.
Telephone 972 3 575 11 37-40
Fax 972
3 575 14 75
Email: info@gems.net
Diamond Exchange, Yahalom Bldg.
A private limited
company, incorporated as per file No. 51-101605-7 on the 26.02.1984.
Subject is
continuing activities which began originally in 1969.
Authorized share
capital of
43,400 ordinary
shares of
1. Avraham Eshed, 99%,
2. Mrs. Ruth Eshed., 1%.
Avraham (Avi) Eshed.
Traders,
manufacturers, polishers, importers, exporters and marketers of large polished
diamonds (five carats and larger).
Subject's
activities are intertwined with sister company GEMSTAR LTD., which deals in
emeralds.
Some 80% of
consolidated sales are for export.
Operating from
office premises, in 54 Bezalel Street (street name is also referred to as 21
Tuval Street), Diamond Exchange, Yahalom Building (32nd Floor, Suite
No. 3270), Ramat Gan, from a nearby polishing workshop, and from office in Hong
Kong, New York, and Los Angeles.
Having 40
employees in subject and sister company GEMSTAR.
Financial data not
forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets (fall assets), in favor of Union Bank of Israel Ltd. and Bank Leumi
Le'Israel Ltd. (charges placed in 1984 and in 2007).
Sales for export (net) of polished diamonds as published by the Supervisor on Diamonds
in the Israeli Ministry of Industry & Trade:
2009 sales for
export were US$ 28,000,000.
2010 sales for
export were US$ 31,934,000.
2011 sales for
export were US$ 47,000,000.
2012 sales for
export were US$ 38,000,000.
2013 sales for
export were US$ 32,000,000.
Since we are
informed that sales for export comprise 80% of subject's sales, we conclude
that subject's sales are higher (export also do not include rough diamonds, if
subject actually exports rough diamonds).
ESHED DIAM INC., USA,
GEMSTAR LTD., fully owned by Avraham Eshed, dealing in emeralds.
Avraham Eshed is a founding shareholder of SARINE TECHNOLOGIES LTD.
(exact holding not forthcoming), developers, manufactures, exporters and
marketers of precision technology products based on automated three-dimensional
(3-D) geometric measurement for the processing of diamonds and gems. Publicly
traded on the Singapore Stock Exchange, current market value SGD 979.4 million.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Nothing
unfavorable learned.
Avraham Eshed is a
director of the Israel Diamond Manufacturers Association (IsDMA), a founding
member of the International Coloured Gemstone Association (ICA) and President
of the Israel Gemstone Manufacturers Association (IGMA).
In December 2011
The Israel-Asia Chamber of Commerce (IACC) has honored subject, for its
outstanding contribution to expanding Israel's exports to Asia in 2010.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 20th in the 2013 and 2012
lists of Israel's largest polished diamonds exporters, was ranked 21st
in 2011, 22nd in 2009 and 23rd in 2009.
Israel's diamond
industry remarked on impressive growth in almost all trade parameters in 2013,
from the data by Israel's Diamond Administration at the Ministry of Economics:
Net export of polished diamonds rose by 11.6% in value terms from 2012,
reaching US$6.2 billion. The market has been volatile in recent years: the
branch –in Israel as well as globally- experienced its worst depression in the
2nd half of 2008 and 2009 due to the global economic crisis (almost
an entire freeze and collapse in sales of about 70% in the peak of the crisis),
then recovered in 2010 and fell again in 2012 (net export fell 23% in 2012 from
2011).
Net export of
polished diamonds continued to grow in the 1st half of 2014 with 6% rise
in value terms compared to 2013 (fell 6.7% in karat terms), reaching US$3.55
billion.
Net rough diamond
exports totaled US$2.9 billion in 2013, a mere rise from 2012, and totaled
US$1.75 billion in the 1stH 2014 (up 6% and 11.6% in value and in karat terms,
respectively).
Net imports of
polished diamonds remained in 2013 similar level as 2012 (after drop by 25% in
value in 2012 from 2011), totaling US$4.3 billion, and in the 1stH 2014 reached
US$2.05 billion (up 0.9% in value and 5.7% in karat). Net rough diamonds
imports rose 4% in 2013 summing up at US$4 billion, and summed at US$ 2.2
billion in the 1stH of 2014 (3% rise in value, 10% fall in karat terms).
The United States
continued to be Israel’s major market for polished diamonds, accounting for 37%
of the market in 2013 (35% in 2013). Hong Kong is the next largest market with
27% of exports, with Switzerland accounting for 9.3%, Belgium 7.3%, and India
accounting for 2.3% of Israel's polished diamond export.
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
global crisis. The Ministry of Economics also assisted the local diamond
exporters by providing bank guarantees in total scope of NIS 1 billion.
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 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 said 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.
In July 2014 3
indictments were filed to the Tel Aviv District Court against central
defendants in the affair, who provided foreign currency services to the
"underground bank" (not against diamond dealers at this stage), for
felonies of money laundering and tax evasion in volumes of US$ millions.
Good for trade
engagements.
Note: Since 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).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.95 |
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1 |
Rs.97.16 |
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Euro |
1 |
Rs.76.75 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
NIT |
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.