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Report Date : |
11.04.2014 |
IDENTIFICATION DETAILS
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Name : |
K.D.D. DIAMONDS LTD. |
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Registered Office : |
23 Tuval Street, Diamond Exchange, Noam Bldg., Ramat Gan 5252238 |
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Country : |
Israel |
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Date of Incorporation : |
28.08.2007 |
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Com. Reg. No.: |
51-402292-0 |
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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 |
03 employees
(including General Manager (same as in 2013 and 2012, had 2 employees in mid
2011, same as in 2010 and in 2009). |
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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 |
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 since 2011 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 Tamar field started meeting all of Israel's natural gas demand in 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. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government’s fiscal position.
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Source
: CIA |
K.D.D. DIAMONDS LTD.
Telephone 972 3 575 60 88
Fax 972 3 751 90 65
23 Tuval Street
Diamond Exchange, Noam Bldg.
RAMAT GAN 5252238 ISRAEL
A private limited
company, incorporated as per file No. 51-402292-0 on the 28.08.2007.
Authorized share
capital of NIS 100,000.00, divided into:
100,000 ordinary shares of
NIS 1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
1. Yoni Katester,
50%,
2. RONI DUEK DIAMONDS LTD., 25%,
owned by Aharon (Roni) Duek (70%), Moshe Duek (15%) and Dotan Duek (15%),
3. Ms. Dikla
Duek, daughter of Roni Duek, 25%.
Roni Duek used to hold 75% in subject and Yoni Katester 25%.
In February 2010 Yoni Katester
gained 25% in subject and ownership was equally divided between above
shareholders 1 & 2.
Another change in shareholding structure
took place in mid 2012, and later Ms. Dikla Duek became shareholder (taking Guy Duek's
shares) resulting in the present shareholding structure.
1. Yoni Katester,
General Manager,
2. Aharon
(Roni) Duek.
Traders, importers,
exporters and marketers of diamonds.
Some 5%-10% of
sales are for export (sales for export comprised 20% of total sales in 2010 and
40% in 2008).
Among clients: M.
SCHNITZER & CO., RACHMINOV DIAMONDS, BABAYOFF DIAMONDS, etc.
Operating from offices,
owned by parent company (RONI DUEK DIAMONDS LTD.), on an area of 50 sq. meters,
in 23 Tuval Street (also known as 52 Bezalel Street), Diamond Exchange, Noam
Building (7th floor), Ramat Gan.
Subject shares
premises with affiliated companies.
Having 3
employees, including General Manager (same as in 2013 and 2012, had 2 employees
in mid 2011, same as in 2010 and in 2009).
Financial data not
forthcoming, yet RONI DUEK DIAMONDS's Group is known
to be financially solid.
There is 1 charge for an unlimited amount registered on
the company's assets (financial and other assets), in favor of Israel Discount
Bank Ltd. Charge placed in December
2007.
Sales figures not
forthcoming.
RONI DUEK DIAMONDS
LTD., parent company, established 1987, traders, processors, importers,
exporters and marketers of diamonds. Having 8 employees, 2010 sales around US$
4.5 million.
PROTEA DIAMONDS
CO. (1984) LTD., established in 1984, owned by the Duek
family and controlled by Nissim and Moshe Duek; traders, importers, processors, exporters and
marketers of diamonds. Having several subsidiaries in Israel and abroad.
Israel Discount
Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
Nothing
unfavorable learnt.
Subject’s officials refused to disclose
financial details on their company.
Mr. Roni Duek is a well-known local
diamond dealer.
Duek family is wealthy
and veteran in the diamond business. They control the international South
Africa-based PROTEA DIAMONDS, manufactures and exports raw diamonds, operating
among others, from Israel, including via PROTEA DIAMONDS CO. (1984) LTD.
PROTEA DIAMONDS
Group was founded by Moshe Duek and later his sons Nissim, Roni and Moti Duek joined. The Group has
offices also in Belgium, U.S.A. and Australia.
Israel's diamond
industry remarked on impressive growth in almost all trade parameters in 2013,
from the data by Israel's Diamond Administration at the Ministry of Economics: Net
export of polished diamonds rose by 11.6% from 2012, reaching US$ 6.2 billion.
The market has been volatile in recent years: the branch –in Israel as well as
globally- experienced its worst depression in the 2nd half of 2008
and 2009 due to the global economic crisis (almost an entire freeze and
collapse in sales of about 70% in the peak of the crisis), then recovered in
2010 and mainly in and fell again in 2012 (net export fell by 23% in 2012 from
2011).
Net rough diamond
exports totaled US$2.9 billion in 2013, a mere rise from 2012.
Net imports of
polished diamonds remained in similar level as 2012 (after drop by 25% in 2012
from 2011), totaling US$4.3 billion, while net rough diamonds imports summed at
US$ 4 billion, 4% up from 2012 (when it fell 13% from 2011).
The United States
continued to be Israel’s major market for polished diamonds, accounting for 37%
of the market in 2013 (35% in 2013). Hong Kong is the next largest market with
27% of exports, with Switzerland accounting for 9.3%, Belgium 7.3%, and India
accounting for 2.3% of Israel's polished diamond export.
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
global crisis. The Ministry of Economics also assisted the local diamond
exporters by providing bank guarantees in total scope of NIS 1 billion.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
Local diamond
sector employs some 20,000 persons.
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. The Attorney General is in process of
preparing indictments.
In the end of
December 2013 it was reported that 5 diamond dealers were summoned to a hearing
(not mandatory) regarding the a/m affair, prior to filing an indictment, before
the Tel Aviv District Attorney (Tax and Finance sector).
Notwithstanding
the refusal to disclose financial information, 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.60.21 |
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1 |
Rs.101.05 |
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Euro |
1 |
Rs.83.33 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIS |
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.