MIRA INFORM REPORT

 

 

Report Date :

07.01.2011

 

IDENTIFICATION DETAILS

 

Name :

RONI DUEK DIAMONDS LTD.

 

 

Registered Office :

23 Tuval Street Diamond Exchange, Noam Building Ramat Gan 52522

 

 

Country :

Israel

 

 

Date of Incorporation :

27.07.1987

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, processors, polishers, importers, exporters and marketers of diamonds.

 

 

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 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

company Name and address

 

RONI DUEK DIAMONDS LTD.

Telephone      972 3 575 60 88

Fax                972 3 751 90 65

23 Tuval Street

Diamond Exchange, Noam Building

RAMAT GAN  52522-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-121348-0 on the 27.07.1987.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 2,640.00, divided into:

                   2,640 ordinary shares of NIS 1.00 each,

of which shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1.    Aharon (Roni) Duek, 70%,

2.    Moshe Duek, 15%,

3.    Eyal Yadid, 15%.

 

According to our, shareholder No. 3, Mr. Eyal Yadid entered as a shareholder in subject in mid 2007.

 

During the first half of 2009 Ms. Mor Shmuelov, who used to hold 15% in subject, sold her shares to the other 3 shareholders.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Aharon (Roni) Duek.

 

BUSINESS

 

Traders, processors, polishers, importers, exporters and marketers of diamonds.

 

Manufacturing/ processing is carried out through sub-contractors.

 

50% of sales are export.

 

Among local clients: M. SCHNITZER & CO., PROTEA DIAMONDS, etc.

 

Diamonds purchasing is both from import and local suppliers.

 

Among local suppliers: ITZHAK LEVAVI DIAMONDS, M. SCHNITZER & CO., LUSTIG & SAMUELS DIAMOND MANUFACTURERS, etc.

 

Operating from owned offices, on an area of 50 sq. meters, in 23 Tuval Street (also known as 52 Bezalel Street), Diamond Exchange, Noam Tower (7th floor, Room #709), Ramat Gan.

 

Subject shares premises with subsidiaries.

 

Having 8 employees (same as in 2009).

 

 

MEANS

 

Financial data not forthcoming.

 

There are 3 charges for unlimited amounts registered on the company’s assets (financial and fixed assets), in favor of Israel Discount Bank Ltd. and a partnership ISNAL ASSETS & HOLDINGS LP.

 

 

ANNUAL SALES

 

2008 sales claimed to be US$ 2,690,000, of which 50% were for export.

2009 sales claimed to be US$ 2,300,000, of which 50% were for export.

Projected 2010 sales are US$ 4,500,000, 50% for export.

 

 

OTHER COMPANIES

 

K.D.D. DIAMONDS LTD., 50%, established 2007, traders, importers, exporters and marketers of diamonds.

KERN-CHEN DIAMONDS LTD., 50%, non-active.

 

PROTEA DIAMONDS CO. (1984) LTD., established in 1984, owned by the Duek family and controlled by Nissim and Moshe Duek; traders, importers, processors, exporters and marketers of diamonds.

 

BANKERS

 

Israel Discount Bank Ltd., Diamonds Exchange Branch (No. 080), Ramat Gan, account No. 820687.

 

A check with the Central Banks' database did not reveal anything detrimental on subject’s a/m account.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

Subject’s officials refused to disclose financial details, besides sales figures.

 

Mr. Roni Duek is a well known local diamond dealer and businessman.

 

The Duek family is wealthy and veteran in the diamonds business. Subject is part of the international PROTEA DIAMONDS Group, based in South Africa, founded by Moshe Duek and later his sons Nissim, Roni and Moti Duek joined. The Group manufactures and exports raw diamonds has offices also in Belgium, U.S.A. and Australia.

 

During 2010 local diamond companies have been recovering 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 diamond sector experienced almost an entire freeze in sales and collapse of about 70% in sales later. Only since mid 2009 a mild recovery has been felt (in some markets, such as the American, it is estimated that it will take long time till fully recovering). Further improvement witnessed during the first half of 2010.

 

Overall in 2009, export diamonds shrank by 40%. Export of cut diamonds (net) were US$ 3,922.6 million, representing 37% decrease compared to 2008. The depression in the diamond sector comes after year 2007 marked a record in the export of cut diamonds from Israel, with net sales for export of US$ 7.076 billion, while 2008 witnessed a decrease of 11.8% to US$ 6.240 billion.

 

In comparison to the parallel period in 2009, export of cut diamonds (net) in 2010 first 3 quarters increased by 62.5% to US$ 4,244 million, and export of rough diamonds (net) reached US$ 2,263 million, representing 80% rise. Yet, in comparison to previous years, export is still well lower.

 

Import of rough diamonds (net) in the first 3 quarters of 2010 grew by 64% to US$ 2,609 million, compared with the parallel period in 2009, while import of cut diamonds (net) saw 84% rise reaching US$ 2,803 million.

 

For the first time, Far East markets have become Israel’s diamond industry’s main target. Sales to Hong Kong in the first 9 months of 2010 are close to these of the USA, traditionally all the years the main market for Israel’s export of cut diamonds but decreased dramatically in view of the economic situation where the U.S. suffered the biggest hit. Some 35%-40% of total the export in 2010 was to the USA, comparing to 60%-65% in past years. Hong Kong (27%-38%), Belgium (5%-9%), India (4%), Switzerland (4%) and China (3%).

 

In February 2009, Israel was ranked as the world’s largest exporter of cut diamonds, followed by India, Belgium and South Africa.

 

According to the President of the Israeli Diamonds Association, local banks contracted credit given to local diamond firms in view of the global financial crisis, however, he believes the local diamond sector is healthy: 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. Israel Ministry for Industry & Trade also committed to support local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.

 

 

SUMMARY

 

Good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.31

UK Pound

1

Rs.70.26

Euro

1

Rs.59.56

 

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

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.