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Report No. : |
307411 |
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Report Date : |
13.02.2015 |
IDENTIFICATION DETAILS
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Name : |
A.G. DIAMOND DIRECT LTD. |
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Formerly Known As : |
A.G.D. DIAMONDS LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
20.07.2006 |
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Com. Reg. No.: |
51-385726-8 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is dealer, processor, importer, exporter and marketer of
diamonds, specializing in round diamonds |
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No. of Employee : |
10 (2014) |
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 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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B1 |
B1 |
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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 |
A.G. DIAM
Telephone 972 3 613 88 17
Fax 972
3 613 88 16
Email: sales@diamondirect.net
1 Jabotinsky
Street
Diamond Exchange, Macabbi Building
RAMAT GAN 5252001 ISRAEL
A private limited
company, incorporated as per file No. 51-385726-8 on the 20.07.2006 under the
name A.G.D. DIAM
Authorized share
capital of NIS 100,000.00, divided into:-
50,000 capital shares (102 shares
issued),
50,000 ordinary shares (104 shares
issued), all of NIS 1.00 each,
of which shares amounting to NIS 206.00 were
issued.
1. A. GRANOT HOLDINGS LTD.,
holding 100% of ordinary shares issued, owned by Asaf Granot,
2. Ms. Iris Rachminov, holding
100% of capital shares issued.
According to our, shares are
held on behalf of Ms. Rachminov's father, Armand Goldberg.
In practice, each shareholder holds 50% of
subject. In the beginning of 2013 subject's General Manager informed us that
Ms. Iris Rachminov is not active in subject.
Asaf Granot.
Dealers,
processors, importers, exporters and marketers of diamonds, specializing in
round diamonds, ranging 0.01-0.99 and 1.00-10.00 carats, colors D to L, in the
IF to SI clarity range.
All sales are for
export.
Operating from
rented office premises, on an area of 60 sq. meters, in 1 Jabotinsky Street,
Diamond Exchange, Macabbi Building, (18th Floor, Suite No. 1834).,
Ramat Gan.
Note: P. O. Box
179 is Macabbi Building's internal P. O. Box.
Having 10 employees
as of beginning of 2014 (same as in the beginning of 2013).
Stock was valued
at US$ 3,000,000 in the beginning of 2013 (In the beginning of 2014 subject's
General Manager informed us that there is no significant change in stock level
from the beginning of 2013). Current value not forthcoming.
There is 1 floating charge for an unlimited amount registered on all of
the company's assets (all assets), in favor of The First International Bank of
Israel Ltd. (charge placed December 2007).
2010 sales claimed
to be US$ 18,000,000.
2011 sales claimed
to be US$ 28,000,000.
2012 sales claimed
to be US$ 20,000,000.
Subject's general
Manager informed us that there is no significant change in sales in 2013
compared to 2012.
Later sales data
not forthcoming.
Mr. Armand Goldberg holds several diamond companies.
The First International Bank of Israel Ltd., Diamond Exchange Branch
(No. 026), Ramat Gan.
Nothing
unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Both Asaf Granot
and Armond Goldberg are veterans in the diamond field.
Mr. Goldberg is a
well-known diamond dealer, enjoying very good reputation and known to be
financially solid. Besides his involvement in subject, he operated a
non-registered diamond business founded in 1987 under his name and also via
GOLDBERG ARM
Israel's diamond
industry continued the growth trend in all trade parameters in 2014, after the
impressive growth in 2013 in most parameters, based on the data by Israel's Diamond
Administration (IDA) at the Ministry of Economics: Net export of polished
diamonds rose by 0.6% from 2013, reaching US$6.269 billion (after rising 11.6%
in 2013), and net rough diamond exports totaled US$3.061 billion in 2014, up
4.2% from 2013 (after a mere rise in 2013). The market has been volatile over
the last years after experiencing its worst depression due to the global
economic crisis, then recovered in 2010 but fell again in 2012. The recovery in
2013 and 2014 is positive news for the local branch (still away from its peak
on the eve of the crisis with export of polished diamonds of US$ 7 billion),
however it is reported that profit margins have been decreasing due to smaller
gaps between rough and polished diamond prices (leading the diamond dealers to
search for new rough sources in hope to decrease costs). Overall, IDA reports
that 2014 was tough year for the diamond industry in Israel and globally.
Net imports of
polished diamonds totaled US$4.514 billion, and net import of rough diamonds
totaled US$ 4.022 billion, marking 4.8% and 0.8% increase from 2013,
respectively (in 2013 import was in similar levels to 2012).
The United States
continued to be Israel’s major market for polished diamonds, accounting for
30.8% of the market in 2014 (37% in 2013). Hong Kong is the next largest market
with 29.7% of exports (27% in 2013), with Belgium 8.5%, Switzerland 6.5%, and
U.K. accounting for 3.7% 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 stood on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the
global crisis.
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 lack of updated data from subject's officials, 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.62.43 |
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1 |
Rs.95.01 |
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Euro |
1 |
Rs.70.63 |
INFORMATION DETAILS
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Analysis Done by
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RAS |
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Report Prepared
by : |
ASH |
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.