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Report Date : |
25.04.2012 |
IDENTIFICATION DETAILS
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Name : |
LUKHI DIAM (ISRAEL) LTD. |
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Registered Office : |
3 Jabotinsky Street Diamond Exchange, Shimshon Bldg. Ramat Gan 52520 |
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Country : |
Israel |
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Date of Incorporation : |
21.06.2007 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders,
Importers, Exporters and marketers
of diamonds |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LUKHI DIAM (ISRAEL) LTD.
Telephone 972 3 752 34 69
Cellular 972 54 345 07 88
Fax 972 3 752 34 69
3 Jabotinsky Street
Diamond Exchange, Shimshon Bldg.
RAMAT GAN 52520 ISRAEL
A private limited company,
incorporated as per file No. 51-399442-6 on the 21.06.2007.
Subject was
established in the framework of the international operations of the Group of
businesses of Ashuk Lukhi, subject's main shareholder and
General Manager, founded over 10 years ago.
Authorized share
capital of NIS 50,000.00, divided into:
50,000 ordinary shares of NIS
1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
1. Ashuk Lukhi, 85%,
2. Navesh Lukhi, 15%, brother of Ashuk.
Tajani Minishkhomar,
who until 2009 held 15% in subject, exited the company and his shares are
presently held by Navesh Lukhi.
Ashuk Lukhi.
Traders,
importers, exporters and marketers of diamonds.
50% of sales are
for export (was around 70% in 2010).
Operating from
rented office premises, in 3 Jabotinsky Street, Diamond Exchange, Shimshon
Building (6th floor, Suit #604), Ramat Gan.
Subject is part of
a family Group dealing in diamonds with operations and offices around the
world, including India, Antwerp (Belgium), Hong Kong, Singapore and Dubai.
Subject’s General
Manager, Ashuk Lukhi, is the only one working at the
company (same as in 2009 and 2010).
Financial data not
forthcoming.
There are 2 charge for unlimited amount registered on the company's assets,
in favor of Union Bank of Israel Ltd.
We are informed by
subject’s General Manager on a rise in sales in 2011 from 2010.
Sales figures were
not disclosed.
Mr. Ashuk Lukhi and his family own several diamond companies, as part of the
LUKHI Group, in India, Hong Kong, Belgium, Singapore and Dubai.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Nothing
unfavorable learned.
Subject’s General Manager, Mr. Ashuk Lukhi, refused to disclose financial data.
According to the
President of the Israeli Diamonds Association, local diamond sector in general
managed to cross the global economic crisis that erupted in September 2008, one
of worst depressions in the global diamond sector, despite the sheer
difficulties, including the fact that local banks contracted credit given to
local diamond firms. The President said that 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. The Ministry for
Industry & Trade also assisted the local diamond exporters by providing
bank guarantees in total scope of NIS 1 billion.
The diamond 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%. Only since mid
Overall in 2010,
export (net) of polished diamonds was US$ 5,832 million, representing 48%
increase from 2009 (when it noted 37% decrease from 2008, also much less than
In the first 9
months of 2011, 37.1% increase was noted comparing to the parallel period in
2010 with net export of polished diamonds of US$5.830 million. Export of
rough diamonds also climbed almost 32%, reaching US$ 2,980 million.
Import of rough diamonds
(net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat terms)
compared with 2009, and by 35% in the first 9 months of 2011 (compared to 2010)
summing up to US$3,520 million. Import of polished diamonds (net) saw 68% rise
in 2010 reaching US$ 4,218 million (39% rise in karat terms), and almost 49%
rise in 2011 first 9 months (US$ 4,170
million).
In terms of target
export (polished diamonds) countries, overall in 2010 the USA returned to be
main destination, with 41% of total export (37% in 2011). This comes after
earlier in 2010, for the first time Far East markets became Israel’s diamond
industry’s main target, with sales to Hong Kong being close to these of the
USA, to whom sales decreased dramatically in view of the severe economic crisis
(traditionally sales to the USA comprised some 60%-65% of total export). In
2011, export to Hong Kong comprised around 29% of sales. Other main target
countries include Belgium, Switzerland, India, Thailand and China.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
Notwithstanding
the refusal to disclose financial data, considered good for trade engagements.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.79 |
|
|
1 |
Rs.85.17 |
|
Euro |
1 |
Rs.69.53 |
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.