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Report Date : |
10.12.2014 |
IDENTIFICATION DETAILS
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Name : |
DOV DIAM |
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Registered Office : |
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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 (As of 2013) |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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 |
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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
registered under the name DOV DIAMONDS (1999) CO. LTD., which changed to the
present one on the 17.01.2011.
Authorized share
capital of
37,990 ordinary shares (110
shares issued),
10 management shares (issued),
all of
of which shares
amounting to
1. Shlomo Dov Shimshowitz,
2. Mrs. Ilana
Shimshowitz, holding 1 single ordinary share.
Shlomo (Shitzo)
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.
Among clients:
ASISH DIAMONDS.
Operating from
office premises, in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (9th
Floor, room #955), Ramat Gan.
Having 13
employees, as of 2013 (same as in 2012). According to subject's website, having
to-date over 20 employees.
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 (Shitzo) Shimshowitz, refused to update any business data, only general details.
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 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
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% in value terms 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 fell again in 2012 (net export fell 23% in 2012 from
2011).
Net export of
polished diamonds continued to grow in the 1st half of 2014 with 6%
rise in value terms compared to 2013 (fell 6.7% in karat terms), reaching
US$3.55 billion.
Net rough diamond
exports totaled US$2.9 billion in 2013, a mere rise from 2012, and totaled
US$1.75 billion in the 1stH 2014 (up 6% and 11.6% in value and in karat terms,
respectively).
Net imports of
polished diamonds remained in 2013 similar level as 2012 (after drop by 25% in
value in 2012 from 2011), totaling US$4.3 billion, and in the 1stH 2014 reached
US$2.05 billion (up 0.9% in value and 5.7% in karat). Net rough diamonds
imports rose 4% in 2013 summing up at US$4 billion, and summed at US$ 2.2
billion in the 1stH of 2014 (3% rise in value, 10% fall in karat terms).
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 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 said 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.
In July 2014 3
indictments were filed to the Tel Aviv District Court against central
defendants in the affair, who provided foreign currency services to the
"underground bank" (not against diamond dealers at this stage), for
felonies of money laundering and tax evasion in volumes of US$ millions.
Notwithstanding the refusal to update
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
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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.61.88 |
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1 |
Rs.96.90 |
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Euro |
1 |
Rs.76.29 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
SMN |
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.