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Report Date : |
31.05.2014 |
IDENTIFICATION DETAILS
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Name : |
RONI DUEK 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 : |
27.07.1987 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, processors, polishers, importers, exporters and marketers of
diamonds. |
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No. of Employees |
8 employees |
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, 2014
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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. Cut
diamonds, high-technology equipment, and pharmaceuticals are among the leading
exports. Its major imports include crude oil, grains, raw materials, and
military equipment. Israel usually posts sizable trade deficits, which are
covered by tourism and other service exports, as well as significant foreign
investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year,
led by exports. 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. 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. The economy has recovered better
than most advanced, comparably sized economies, but slowing demand domestically
and internationally, and a strong shekel, have reduced forecasts for the next
decade to the 3% level. Natural gas fields discovered off Israel's coast since
2009 have brightened Israel's energy security outlook. The Tamar and Leviathan
fields were some of the world's largest offshore natural gas finds this past
decade. The massive Leviathan field is not due to come online until 2018, but
production from Tamar provided a one percentage point boost to Israel's GDP in
2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. Israel's income inequality and poverty rates are among the highest of
OECD countries and there is a broad perception among the public that a small
number of "tycoons" have a cartel-like grip over the major parts of
the economy. 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. Over the long term, Israel
faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
|
Source
: CIA |
RONI DUEK DIAM
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. 51-121348-0 on
the 27.07.1987.
Authorized share capital of NIS 2,640.00, divided into:
2,640 ordinary shares
of NIS 1.00 each,
of which 100 shares amounting to NIS 100.00 were issued.
1. Aharon (Roni) Duek, 55%,
2. Moshe Duek, 15%,
3. Dotan Duek, 15%,
4. Bernard Jean-Claude Maimon, 15%.
During the first half of 2009 Ms. Mor Shmuelov,
who used to hold 15% in subject, sold her shares to the other shareholders.
According to the, Mr. Eyal Yadid entered as a
15% shareholder in subject in mid 2007 and left during the 2nd half
of 2011 (replaced by Dotan Duek).
In June 2013 Bernard Jean-Claude Maimon entered
as a shareholder, assuming 15% of Roni Duek's 70% (now 55%).
1. Aharon (Roni) Duek,
General Manager,
2. Dotan Duek.
Traders, processors, polishers, importers, exporters and marketers of
diamonds.
Manufacturing/ processing is carried out through sub-contractors.
50% of sales are export (was around 30% in 2012 and 2011).
Among local clients: M. SCHNITZER & CO., PROTEA DIAM
Diamonds purchasing is both from import and local suppliers.
Among local suppliers: ITZHAK LEVAVI DIAM
Operating from owned offices, on an area of 50 sq. meters, in 23 Tuval
Street (also referred to as 52 Bezalel Street), Diamond Exchange, Noam Building
(7th floor, Room #709), Ramat Gan.
Subject shares premises with subsidiaries.
Having 8 employees (same as in previous years).
Financial data not forthcoming, known to be financially solid.
There are 3 charges for unlimited amounts registered on the company’s
assets (financial and fixed assets), in favor of Israel Discount Bank Ltd. and
a partnership
2008 sales claimed to be US$ 2,690,000, of which 50% were for export.
2009 sales claimed to be US$ 2,300,000, of which 50% were for export.
2010 sales claimed to be US$ 4,500,000, of which 50% were for export.
A growth in sales has been noticed in over the first half of 2011,
comparing to the 2010 trend.
Later sales data not disclosed, only that 50% of sales in 2013 were for
export.
K.D.D. DIAM
BLUE MOON DIAMONDS LTD., 50% owned by Roni Duek, incorporated in 2013,
traders, importers, exporters and marketers of diamonds of all sorts.
PROTEA DIAM
PROTEA DIAMONDS PTY, South Africa,
PROTEA DIAMONDS CO. (1984) LTD.
TAL-LIRON DIAMONDS LTD., 60%, established in 2005, traders, importers,
exporters and marketers of diamonds.
DUEK ET SASSON DIAMONDS LTD., partially owned, diamond dealers.
Israel Discount Bank Ltd., Diamonds Exchange Branch (No. 080), Ramat Gan,
account No. 820687.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m account.
Nothing unfavorable learnt.
Subject’s officials refused to update financial details.
Roni Duek is a well-known local diamond dealer, enjoying good
reputation.
Duek family is wealthy and veteran in the diamonds business. Subject is
part of the well-known international PROTEA DIAMONDS Group, based in South
Africa, founded by Moshe Duek and later his sons Nissim, Roni and Moti Duek
joined. The Group manufactures and exports raw diamonds 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.
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 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.59.03 |
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UK Pound |
1 |
Rs.98.91 |
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Euro |
1 |
Rs.80.34 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SDA |
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.