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Report Date : |
30.10.2013 |
IDENTIFICATION DETAILS
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Name : |
DOV DIAM |
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Formerly Known As : |
DOV DIAMONDS (1999) CO. LTD |
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Registered Office : |
1 Jabotinsky Street
Diamond Exchange, Maccabi Bldg.
Ramat Gan 5252001 |
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Country : |
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Date of Incorporation : |
23.09.1999 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers, polishers, exporters and marketers of diamonds (rough and polished), dealing in diamond processing and setting. |
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No. of Employees : |
13 |
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, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 |
Source
: CIA
DOV DIAM
Telephone 972 3 575 23 27
Fax 972 3 575 08 48
Email: office@dovdiamonds.co.il
Diamond Exchange, Maccabi Bldg.
A private limited company, incorporated as per file No.
51-283362-5 on the 23.09.1999, continuing the activities of a general
partnership established in 1984, under the name DOV DIAM
Originally established under the name DOV DIAMONDS (1999) CO. LTD., which changed to the present one on the 17.01.2011.
Authorized share capital of NIS 38,000.00, divided into:
37,990 ordinary shares (110 shares issued),
10 management shares (issued), all of NIS 1.00 each,
of which shares amounting to NIS 120.00 were issued.
1. Shlomo Dov Shimshowitz,
2. Mrs. Ilana Shimshowitz, holding 1 single ordinary share.
Shlomo (Shizo) Shimshowitz (full name is Shlomo Dov Shimshowitz), born 1952, of 24 Havatzelet Hasharon Street, Herzliya.
Importers, polishers, exporters and marketers of diamonds (rough and polished), dealing in diamond processing and setting.
Operating from office premises, in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (9th Floor), Ramat Gan.
Having 13 employees (same as in 2012).
Financial data not forthcoming, however has been known to be financially solid.
There are 4 charges for unlimited amounts registered on the company's assets, in favor of Israel Union Bank Ltd., Israel Discount Bank Ltd. and The First International Bank of Israel Ltd. (last charge placed in year 2000).
2004 sales for export reported to be US$ 40,000,000.
2005 sales for export reported to be US$ 35,000,000.
2006 sales for export reported to be US$ 28,000,000.
Later sales figures not forthcoming.
Israel Union Bank Ltd., Diamond Exchange Branch (No. 062), Ramat Gan.
The First International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat Gan.
Nothing unfavorable learnt.
Subject's owner and
General Manager, Mr. Shlomo (Shizo) Shimshowitz, refused to disclose financial data.
Subject is a veteran business and well-known in the branch, considered relatively large in scope of activities. In 2011 Shlomo Shimshowitz was re-elected as a member of the Israel Diamond Exchange directorate (which has 16 members).
According to the report published by the Israel Supervisor
on Diamonds in the Ministry of Industry and Trade, subject was ranked 29th
in the 2006 list of Israel's largest polished diamonds exporters (exporting in
value of US$ 28 million). It was ranked 25th in the 2005 list (exporting in
value of US$ 35 million). In 2004 subject was ranked 24th (exporting
in value of US$ 40 million), in 2003 – 22nd, in 2002 – 25th,
and 24th in
Shlomo (Shizo) Shimshowitz is the son-in-law of Ben-Zion
Pozaylov, a leading diamond dealer and among the pioneers in the local diamonds
industry. The Pozaylov family own PAZ ISRAEL DIAMONSDS, founded in 1946 (who
until 2008 held 6% in subject directly) and involved in ELUL DIAM
Export of polished diamonds from Israel fell by 23% in 2012 from 2011, after the sector recovered in 2010 and mainly in 2011 from one of the worst depressions in the global diamond sector due to the economic crisis in global markets that erupted in 2008. The sector experienced almost an entire freeze and collapse in sales of about 70% in the peak of the crisis. While the global diamond industry experienced major declines during 2012, Israel saw a steady improvement in its diamond trade in the third and fourth quarters of the year, according to the Diamond Administration at the Ministry of Industry & Trade.
Israel’s net polished diamond exports stood at US$5.6
billion in 2012, compared a decline of 23% from 2011. Net rough diamond exports
totaled US$2.8 billion in
Net imports of polished diamonds dropped 25% from 2011, totaling US$4.27 billion, while net rough imports stood at US$3.8 billion, 13 % less than in 2011.
The diamond sector has been keeping a steady trend in the first half of 2013.
Net polished diamond exports in 2013 1st half witnessed a slight decrease (2%) comparing to 2012 1stH, reaching US$ 3.233 billion, while export of rough diamonds saw a 8.1% rise. Net imports of rough diamonds in the 1st half of 2013 reached US$ 2.037 billion, 2.8% increase compared with the parallel period in 2012, whereas import of polished diamonds fell by 5.3% to US$ 2.084 billion.
Expectations in the local diamond sector for 2013 2nd half is for further recovery.
The United States continued to be Israel’s major market for polished diamonds, accounting for 44% of the market in 2013 1st half (36% in 2012). Hong Kong is the next largest market with 29.7% of exports (28% in 2012), with Switzerland accounting for 7.8%, Belgium 6.7%, and Thailand with 1.1%.
According to the President of the Israeli Diamonds Association, in 2010 the trade in the local diamond sector rolled 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.
An affair of an underground bank shocked the local diamond branch, after in late January 2012 Police raided the Diamond Exchange (after a long undercover operation), arrested several individuals for investigation, caught diamonds and various assets worth NIS millions, and blocked several bank accounts. It is suspected that a group of people, including diamond dealers, run an illegal bank in the Diamond Exchange compound for loans, money transfer abroad based on fictitious transactions 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 in 2012, frozen bank accounts, and for a while to paralysis (especially in purchase of raw diamonds) due to uncertainty among local and foreign dealers.
In March 2012 the Police decided to lower the profile of the investigation for a while 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). In November 2012 the Police and Tax Authorities recommended on indictments against the 25 suspects in the affair, among them diamond dealers, for the said suspicions and obstruction of the investigation.
In June 2013 it was reported that the Police resumed its raids on the diamonds branch, and although names of suspects were not released, sources say that it is also related to the above underground bank affair. In parallel, it is also reported that the Tax Authorities and diamonds dealers' representatives are trying to reach an arrangement for past debts.
Notwithstanding the refusal to disclose financial details,
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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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 –
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.46 |
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1 |
Rs.98.99 |
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Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.