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Report Date : |
11.09.2014 |
IDENTIFICATION DETAILS
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Name : |
A. DALUMI DIAM |
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|
|
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Registered Office : |
1 Jabotinsky
Street, Diamond Exchange, Maccabi Bldg., Ramat GAN 5252001 |
|
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Country : |
Israel |
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|
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Date of Incorporation : |
1965 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers,
cutters, polishers, importers, exporters and marketers of diamonds, rounds and
all fancy shapes, especially Princess cuts and emerald fine makes; from 0.10
ct to 10cts; White and Colored goods. Subject
manufactures and sells diamond brand "Swana". |
|
|
|
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No. of Employees : |
600 |
RATING & COMMENTS
|
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 : |
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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 |
A. DALUMI DIAM
Telephone 972 3 755 00 00
Fax 972 3 575 18 76; 613
19 32
Email: michalm@dalumi.com
1 Jabotinsky
Street
Diamond Exchange,
Maccabi Bldg.
RAMAT GAN 5252001 ISRAEL
A private limited company,
incorporated as per file No. 51-305297-7 on the 24.12.2000.
Subject is
continuing the activities of a sole proprietorship business originally founded
in 1965, under the name DALUMI ASHER DIAM
Authorized share
capital of NIS 6,000.00, divided into- : 6,000 ordinary shares, of NIS 1.00
each, fully issued.
1. Asher Dalumi, 30%,
2. Tomer Dalumi, 20%,
3. Meir Dalumi, 15%,
4. Refael Yerusahlmi, 10%,
5. Ms. Sigalit Yerusahlmi, 10%,
6. Ms. Sara Dalumi, 10%,
7. Ms. Inbal Dalumi, 5%.
1. Asher Dalumi, General
Manager,
2. Tomer Dalumi,
3. Meir Dalumi,
4. Refael (Rafi) Yerusahlmi,
5. Ms. Sigalit Yerusahlmi.
Manufacturers,
cutters, polishers, importers, exporters and marketers of diamonds, rounds and
all fancy shapes, especially Princess cuts and emerald fine makes; from 0.10 ct
to 10cts; White and Colored goods.
Subject
manufactures and sells diamond brand "Swana".
Among local
suppliers: OFER MIZRAHI DIAMONDS, etc.
Operating from
headquarters premises, in 1 Jabotinsky Street, Diamond Exchange, Maccabi
Building (10th Floor), Ramat Gan.
Also operating
from a factory in mainland China, manufacturing facility in Hong Kong, and
Botswana, as well as office and sales branches in New York (5th
Ave), Paris, Tokyo, Osaka, Antwerp, Barcelona, Bangkok, Mumbai and Hong Kong.
Having some 600
employees in DALUMI Group, of which some 120 employees in subject in Israel.
Financial data not
forthcoming, however has been known to be financially solid.
Subject (and in
its previous legal status) has been a sight holder from DCT (subsidiary of DE
BEERS) since 1993.
There are no
charges registered on the company's assets.
According to the data published by the Israel Supervisor on Diamonds in
the Ministry of Industry & Trade, export of polished diamonds by subject
(actual overall sales presumed to be higher, as there are local sales of
polished diamonds and may have sales of rough diamonds as well), were as
follows:
2005 sales for export (net) were US$ 149,000,000.
2006 sales for export (net) were US$ 158,000,000.
2007 sales for export (net) were US$ 170,000,000.
2008 sales for export (net) were US$ 182,000,000.
2009 sales for export (net) were US$ 138,000,000.
Later sales data
not forthcoming/ not published.
Also part of
DALUMI Group:
DALUMI DIAMOND
CORPORATION, USA,
DALUMI BOTSWANA
(PTY), Botswana,
DALUMI EUROPE
BVBA, Belgium,
DALUMI HONG KONG
LTD., Hong Kong.
Banker's data not
forthcoming, however known to all main local bankers.
Nothing
unfavorable learned.
Subject's officials refused to disclose any
data on their company, as a policy.
Subject is a veteran
business, well-known in the diamond branch, being one of the leading companies
in Israel, with worldwide reputation.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 3rd in the list of Israel's
largest polished diamonds exporters in 2009, same as in 2008, 5th in
2007, 4th in
In 2010 and 2011
subject refrained from being reported in the Israel Supervisor on Diamonds top
exporters lists (which is up to the company to decide if they want to be
included), though it is still considered as one of the largest diamond
companies in Israel.
In 1995, DALUMI
ASHER DIAM
In March 2006
subject was awarded the Outstanding Exporter in the diamond sector from the
Japan – Israel Chamber of Commerce. This is the second time within 5 years to
be awarded.
Rafi Yerusahlmi,
son-in-law of Asher Dalumi, is a member of the board of the Diamond Exchange
and vice-president of the Israeli Diamond Association.
In August 2006, it
was reported that subject will open a polishing factory in Botswana, after several
months earlier it gained a license through and jointly with DTC for
manufacturing in the country. The plant, in the capital, is expected to employ
200 workers. It was reported that as of the beginning of 2007, subject is one
of 3 Israeli diamond companies that received concessions for polishing rough
diamonds in Botswana.
In January 2009 it
was reported that subject is one of the creditors of "Christian
Bernard" jewelry chain store which filed for bankruptcy (under Chapter 7)
in the USA.
Subject is a
member of the Council for Responsible Jewellery Practices (CRJP), which
promotes responsible business practices in a transparent and accountable manner
throughout the diamond industry.
In 2011 subject
opened an office in Mumbai, India.
In 2012 subject received
the "Exceptional Exporter Award" from the Israel-Asia Chamber of
Commerce, in the field of diamond exports to Asia
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 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 July 2014 3
indictments were filed to the Tel Aviv District Court against central
defendants in the affair, for felonies of money laundering and tax evasion in
volumes of US$ millions.
Notwithstanding
the refusal to disclose any data, 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.82 |
|
|
1 |
Rs.98.14 |
|
Euro |
1 |
Rs.78.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
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Report Prepared
by : |
PDT |
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 |
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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 |
|
|
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 |
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|
-- |
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.