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Report Date : |
30.09.2014 |
IDENTIFICATION DETAILS
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Name : |
REGENT DIAMONDS LTD. |
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Registered Office : |
3A |
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Country : |
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Date of Incorporation : |
1980 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
DEALERS, MANUFACTURERS, IMPORTERS, EXPORTERS
AND MARKETERS OF DIAMONDS OF VARIOUS SIZES AND COLORS, SPECIALIZING IN FANCY
YELLOW COLOR DIAMONDS. |
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No of Employees : |
Not Available |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
Name: REGENT DIAMONDS INTERNATIONAL LIMITED
Correct Name: REGENT DIAMONDS LTD.
REGENT DIAMONDS LTD.
Telephone 972
3 575 41 36
Fax 972
3 575 08 01
Email: rony@regentdiam.com
3A Jabotinsky Street
Diamond Exchange, Yahalom Bldg.
Ramat Gan 5252005 Israel
Originally
established as a non-registered business in 1980.
Converted into a
private limited company and registered as such as per file
No. 51-143184-3 on
the 13.12.1989.
Authorized share
capital of NIS 11,600.00 divided into:-
1,600 management
shares (10 shares issued),
10,000 ordinary shares
(100 shares issued), all of NIS 1.00 each, of which shares amounting to NIS
110.00 were issued.
1. Rony Eitani, 90%,
2. Mrs. Sarit Eitani, 10%.
1. Rony Eitani, General Manager,
2. Mrs. Sarit Eitani, wife of Rony.
Dealers,
manufacturers, importers, exporters and marketers of diamonds of various sizes
and colors, specializing in fancy yellow color diamonds.
Operating from
rented office premises, in 3A Jabotinsky Street (main entrance is in 21 Tuval
Street), Diamond Exchange, 12th Floor, Suite # 1294, Yahalom
Building (or 'Diamond Tower'), Ramat Gan.
Number of
employees not forthcoming.
Financial data not
forthcoming.
There is 1 charge for
an unlimited amount registered on the company's assets (financial assets), in
favor of The First International Bank of Israel Ltd. (charge placed in
September 2014).
Sales figures not forthcoming.
The First International
Bank of Israel Ltd., Diamonds Exchange Branch (No. 026), Ramat Gan.
Nothing
unfavorable learned.
Despite our efforts, we were unable to speak with either of subject's
shareholders and directors (Mr. Roni Eitani or Mrs. Sarit Eitani), as they were
always very busy and could not attend our calls. We left a message with the
secretary. In the previous interviews, Mrs. Eitani refused to disclose any
detail.
This is a veteran
business.
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.
On one hand, subject
is veteran and no detrimental data found and appears to be suitable for trade
relations. On the other hand, we do not have information on the company besides
the data from the Registrar of Companies, little from subject's web-site and
other directories (including Diamond Exchange Directory). Considering the
refusal to disclose any data, dealings are recommended on a secure basis.
Note: We could not
confirm the bank data you provided (HSBC Bank), as subject's officials so far
did not cooperate with us, and we did not find any indication related to
subject and this bank.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.43 |
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|
1 |
Rs.99.73 |
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Euro |
1 |
Rs.77.93 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
TPT |
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 |
|
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 |
|
-- |
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.