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Report Date : |
08.08.2013 |
IDENTIFICATION DETAILS
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Name : |
DIALIT LTD. |
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Registered Office : |
P. O. Box 1908 (5811801) 6 Hamachtesh Street Industrial Zone Holon 5881003 |
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Country : |
Israel |
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Year of Incorporation : |
1967. |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Developers, manufacturers, exporters and marketers of computerized automatic systems and machinery for the diamond industry. |
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No. of Employees : |
30 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among the
leading exports. Israel usually posts sizable trade deficits, which are covered
by tourism and other service exports, as well as significant foreign investment
inflows. The global financial crisis of 2008-09 spurred a brief recession in
Israel, but the country entered the crisis with solid fundamentals - following
years of prudent fiscal policy and a resilient banking sector. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel''s energy security outlook.
The Leviathan field was one of the world''s largest offshore natural gas finds
this past decade, and production from the Tama field is expected to meet all of
Israel''s natural gas demand beginning mid-2013. In mid-2011, public protests
arose around income inequality and rising housing and commodity prices. The
government formed committees to address some of the grievances but has
maintained that it will not engage in deficit spending to satisfy populist
demands.
Source
: CIA
DIALIT LTD.
Telephone 972 3 559 51 91
Fax 972
3 559 51 39
Email:
info@dialitsystems.com
P.
O. Box 1908 (5811801)
6 Hamachtesh Street
Industrial Zone
HOLON 5881003-ISRAEL
Originally established as a sole
proprietorship in 1967.
Converted into a private limited company and
registered as such as per file
No. 51-061322-7 on the 28.06.1972.
Authorized share capital NIS 30,000.00
divided into -
10
management shares (1 share issued),
2,999,990
ordinary shares (2,174 shares issued), all of NIS 0.01 each,
of which shares amounting to NIS 21.75 were
issued.
1. Zvi
Porat, 1 management share issued and 86% of ordinary shares,
2. ZITVAR
TRUSTEES LTD., 9.6% of ordinary shares, on behalf of an investor.
3. Yakov
Widovsky, CPA, 4.4%, on behalf of 2 individuals.
Zvi Porat, born 1944.
Developers, manufacturers, exporters and
marketers of computerized automatic systems and machinery for the diamond
industry.
95% of sales are export, to USA, China, India, Russia, South Africa,
Botswana, Namibia, Angola, Zimbabwe and more.
Operating from premises owned by Zvi Porat, on
an area of 4,500 sq. meters (1,500 sq. meters built), in 6 Hamachtesh Street,
Industrial Zone, Holon, and from branches in Mumbai and Surat in India.
Having 30 employees.
Property owned by Zvi Porat, in 6 Hamachtesh
Street, Industrial Zone, Holon (where subject is operating from), is valued at
US$ 4,000,000.
Other financial data not forthcoming.
There are 5 charges for unlimited amounts,
as well as 4 charges for the total sum of NIS 2,410,000.00 registered on the
company's assets (financial assets, fixed assets, equipment and a vehicle), in
favor of Bank Leumi Le'Israel Ltd., Bank Hapoalim Ltd., Mizrahi Tefahot Bank
Ltd., Bank of Jerusalem Ltd. and a company (last 2 charges placed January
2011).
Sales figures not forthcoming.
DIALIT SERVICES PVT., 100%, registered in
India.
Bank Leumi Le'Israel Ltd., Hacharoshet
Business Branch (No. 651), Holon.
Bank Hapoalim Ltd., Kiryat Arie Branch (No. 688), Petach Tikva.
Nothing unfavorable learned.
Subject's General Manager refused to
disclose financial data.
Subject is a very veteran business.
Central Bureau of Statistics data reveals
that investments by the local manufacturing industries -both from import and
domestic production- in machinery & equipment (M&E) in 2012 fell by 1%,
which comes after 41% rise in 2011. The investments originating from import,
which comprised 70% of overall investment in M&E, fell 3.8% (after 69% rise
in 2011), while investment originating from local production rose by 6.2% in
2012 (fell 5.3% in 2011).
Gross
Domestic Capital Formation (investment) in machinery & other equipment in 2012 reached (in current prices) NIS 47,540 million, of which
NIS 33,336 million was from imports and NIS 14,204 miilion from domestic
production.
According to the
Central Bureau of Statistics, investments by the local industrial branch
in imported machinery and other equipment in 2012 witnessed almost 20% (in
current prices) decrease from 2011, after climbing by 108% in 2011 from 2010.
The fall in 2012 in investment could be explained by the continuing unfavorable
business environment, which is also negatively affected by the slow-down in
overseas markets.
Notwithstanding the refusal to disclose
financial details, considered 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).
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.
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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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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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.39 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.81.70 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.