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Report Date : |
20.07.2012 |
IDENTIFICATION DETAILS
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Name : |
J.K.D. TRADING LTD. |
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Registered Office : |
54 Bezalel Street Diamond Exchange, Yahalom Bldg. Ramat Gan 5252138 |
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Country : |
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Date of Incorporation : |
04.03.1996 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Processors, international
traders, importers and exporters of diamonds. |
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No. of Employees : |
10 |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Israel |
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 |
J.K.D. TRADING LTD.
(Also trading as:
“KATAN DIAM
Telephone 972 3 575 09 39
Fax 972 3 575 29 14
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252138 ISRAEL
A private limited company,
incorporated as per file No. 51-229450-5 on the 04.03.1996, continuing
activities of a business founded many years earlier.
Authorized share
capital of NIS 29,400.00, divided into:
29,400 ordinary shares of NIS
1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
1.
Jacob Kattan, 99%,
2.
Ron Kattan, 1%, son of Jacob.
Jacob Kattan
Processors,
international traders, importers and exporters of diamonds.
Subject deals
offers rounds, princess-cut and fancy cut diamonds from 0.50 and upwards.
Some 40% of sales
are for export.
Among service
suppliers: KOREN DIAM
Operating from
office premises, owned by the shareholders, on an area of 70 sq. meters, in 54
Bezalel Street, Diamond Exchange, Yahalom Building (12th floor, room
No. 1271/2), Ramat Gan.
Also operating
from a branch in the U.S.A.
Having 10
employees (had 13 employees in 2009).
Property (office) in
the Diamond Exchange Yahalom Bldg., owned by the shareholders, was valued at
US$
Other financial
data not forthcoming.
There no charges
registered on the company's assets.
2005 sales claimed
to be US$ 14,000,000, of which 80% were for export.
2006 sales claimed
to be US$ 14,000,000, of which 80% were for export.
2007 sales claimed
to be US$ 21,000,000, of which 70% were for export.
2008 sales claimed
to be US$ 21,000,000, of which 70% were for export.
We were informed
that there was a 25% decline in sales in the first 9 months of 2009. 50% of
sales were for export. Whole 2009 sales not forthcoming.
2010 sales claimed
to be US$ 19,000,000, of which 40% were for export.
2011 sales claimed
to be US$ 27,000,000, of which 40% were for export.
J.K. DYNAMO LTD.,
sister company, a real estate company.
Mizrahi Tefahot
Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.
Nothing
unfavorable learnt.
Subject's owner and General Manager, Jacob
Kattan, serves as member of the Tel Aviv Diamond Exchange Board, member of the
Executive Committee of the Diamond The Israel Diamond Manufacturers
Association, member of the Israel – Asia Chamber of Commerce and other
organizations. He is a well-known figure in the branch and active in the
promotion of Israel's diamond activities worldwide.
In August 2005, it
was reported that the Jacob Kattan is first Israeli diamantaire to receive a
special award for his role in promoting trade relations between Israel and
Australia.
An affair of an
underground bank has been shocking the local diamond branch in these days,
after in late January 2012 Police raided the Diamond Exchange (after a long
undercover operation, in cooperation with the Exchange officials), arrested
several individuals for investigation and blocked several bank accounts (which
led to a chain reaction of not respecting checks of dealers). The Police
suspect that a group of people, including diamond dealers, run an illegal bank
in the Diamond Exchange compound for loans, money transfer abroad 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, frozen bank accounts, a paralysis (especially in purchase of
raw diamonds) with substantial fear of the a collapse of the sector, while
dealers –local and foreign- face uncertainty.
In early March
2012 the Police announced it suspends the investigation of further suspects for
the time being. This move is 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).
The Supervisor of
Diamonds at the Ministry of Industry, Trade & Labor published the diamond's
sector import-export data for the 1st half of 2012, which reveals a
19% fall in net sale of cut diamonds, and a fear of another deep crisis in the
branch. 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%.
In 2011 the local
diamond sector recorded US$ 7,202 million in net sales of cut diamonds, 23.5%
higher than in 2010. This was thanks to the strong first 2 thirds of 2011, which
were stalled in the last third, reflecting the fragile global economy and fear
of another recession wave in USA and Europe. It should be noted that in karat
terms, net export of cut diamonds rose only by 4% from 2010.
Net export of
rough diamonds in 2011 also climbed almost 15%, reaching US$ 3,515 million
(fell almost 29% in karat terms).
Net import of cut
diamonds in 2011 summed up to US$ 5,682 million, representing 34.7% increase
comparing to 2010 (18% rise in karat terms), while net import of rough diamonds
rose by 17.5% from 2010, totaling US$ 4,413 million (11% fall in karat terms).
In the 1st half of 2012, export (net) of cut diamonds was US$
3,264 million, down 18.9% from the 1st half of 2011, and rough
diamonds export (net) reached
US$ 1,516 million, a 33% decrease. Import of rough diamonds (net) in the 1st
half of 2012 were down 19.3% to US$ 1,993 million compared with the parallel
period in 2011, while import of polished diamonds (net) saw 21.7% fall reaching
US$ 2,201 million.
In terms of target
export (polished diamonds) countries, in 2011 the USA continued to be the main
destination, with 47% of total export (39% in 2011). This comes after in early
2010, for the first time Far East markets became Israel’s diamond industry’s main
target (traditionally sales to the USA comprised some 60%-65% of total export).
Hong Kong is the 2nd largest target country, comprising 29% of sales
in 2011 (26% in 2010). Other main target countries included Belgium (7%),
Switzerland (6%), UK (2%) and the rest of the World (9%).
According to the
President of the Israeli Diamonds Association, in 2010 the trade in the local
diamond 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.
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.
Good for trade
engagements.
Note: Since the beginning of 2012 Israel Post
started using a new area code method of 7 digits (the old method of 5 digits
will still be valid till end of 2012).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.38 |
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|
1 |
Rs.86.75 |
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Euro |
1 |
Rs.68.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.