|
Report Date : |
03.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
GUY-ON DIAMONDS LTD. |
|
|
|
|
Formerly Known As: |
KELMER DIAMONDS LTD. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
04.09.1986 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
MANUFACTURERS,
POLISHERS, IMPORTERS, MARKETERS AND EXPORTERS OF DIAMONDS. |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
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, 2011
|
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 |
GUY-ON DIAMONDS LTD.
Telephone 972 3 575 28 34;
752 18 66
Fax 972 3 575 99
79
23 Tuval Street
Diamond Exchange, Noam Bldg.
RAMAT GAN 5252238 ISRAEL
A private limited company, incorporated as per file No. 51-114151-7 on
the 04.09.1986.
Originally registered under the name KELMER DIAMONDS LTD., which changed
to the present name on the 11.08.1992.
Authorized share capital NIS 2,908.00 divided into -
240 founders' shares each (4 shares issued),
2,400 ordinary shares (100 shares issued), all of NIS 1.00 each,
of which shares amounting to NIS 104.00 were issued.
Subject is fully owned by Guy Marshansky.
Guy Marshansky.
Manufacturers, polishers, importers, marketers and exporters of
diamonds.
Operating from office premises, in 23 Tuval
Street, Diamond Exchange, Noam Building (4th
Floor), Ramat Gan.
Note: Subject's officials refused to confirm their address, yet based on
the Diamond Exchange's secretariat, subject's website (www.guydiamonds.com) , as well as our records, they operate from the said caption
address. Subject's registered address according to the Registrar of Companies
is 52 Bezalel Street (also referred to as 21 Tuval Street), Ramat Gan.
Also from our record, subject and sister company occupy rooms #411-414
on Noam Building's 4th floor.
Number of employees not forthcoming.
Financial data not forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets (financial assets), in favor of Union Bank of Israel Ltd. (charges
placed in 1988 and 1993).
Sales data not forthcoming.
GE DIAMOND CUT LTD., 50% owned by Guy Marshansky,
established in 2009, dealers, manufactures, importers, exporters and marketers
of diamonds.
Bank data not forthcoming.
Nothing unfavorable learned.
Subject's owner /Manager and other officials refused to disclose any
details.
A recent affair of an underground bank is 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 couple of reported bankruptcies of local diamond firms,
significant decrease in transactions, even paralysis (especially in purchase of
raw diamonds) and a very bad general atmosphere which casts on the whole
branch, as dealers –local and foreign- face uncertainty.
Despite the slow-down in activity in the global diamond branch during
the last third of 2011, export by the local diamond sector in all 2011 recorded
US$ 7,202 million sales in 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 current 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.
Export of rough diamonds in 2011 also climbed almost 15%, reaching US$
3,515 million (fell almost 29% in karat terms).
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
import of rough diamonds rose by 17.5% from 2010, totaling US$ 4,413 million
(11% fall in karat terms).
In 2010, export (net) of cut diamonds was US$ 5,832 million (up 48% from
2009, when it noted 37% decrease from 2008), rough diamonds export (net)
reached US$ 3,060 million (62% rise from 2009). Import of rough diamonds (net)
in 2010 grew by 51% to US$ 3,755 compared with 2009, and import of polished
diamonds (net) saw 68% rise in 2010 reaching US$ 4,218 million.
In terms of target export (polished diamonds) countries, in 2011 the USA
continued to be the main destination, with 39% of total export (41% 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 26% of sales in 2011 (29% in 2010). Other
main target countries included Switzerland (6%), India (5%), UK (3%) and the
rest of the World (21%).
According to the President of the Israeli Diamonds Association, local
diamond sector in general managed to cross one of worst depressions in the
global diamond sector caused by the global economic crisis in 2008/9. 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%. 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.
Local diamond sector employs some 15,000 persons.
In February 2009, Israel was ranked as the world’s largest exporter of
cut diamonds, followed by India, Belgium and South Africa.
Considering the refusal to disclose data, dealings are recommended on
secured basis.
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.
-
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.
-
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 –
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.
-
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.52.93 |
|
|
1 |
Rs.85.85 |
|
Euro |
1 |
Rs.69.94 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.