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MIRA INFORM REPORT
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Report No. : |
504622 |
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Report Date : |
18.04.2018 |
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 of all types.
Manufacturing/ processing is carried out through sub-contractors. |
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No. of Employees : |
8 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC
OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.
Between 2004 and 2013, 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. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company
name and address
RONI
DUEK DIAM
Telephone 972 3
575 60 88
Fax 972
3 751 90 65
Email:
anat@proteadesign.com,
info@ronyduek.com
23
Tuval Street
Diamond
Exchange, Noam Bldg.
RAMAT GAN 5252238 ISRAEL
HISTORY
& LEGAL FORMATION
A
private limited company, incorporated as per file No. 51-121348-0 on the
27.07.1987.
SHARE
CAPITAL
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.
SHAREHOLDERS
1. Aharon (Roni)
Duek, 85%,
2. Moshe Duek, 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 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 (who held until then 70%).
At a later stage Roni Duek
assumed Dotan Duek's shares (15%).
Finally,
Roni Duek acquired the shares (15%) ofBernard
Jean-Claude Maimon, according to the Registrar of Companies in January 2017.
DIRECTORS
1. Aharon (Roni)
Duek, General Manager,
2. Dotan Duek.
BUSINESS
Traders,
processors, polishers, importers, exporters and marketers of diamonds of all
types.
Manufacturing/
processing is carried out through sub-contractors.
50% of
2013 sales are export (was around 30% in 2012 and 2011). Later export level not
forthcoming.
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, Diamond
Exchange, Noam Building (7th floor, Room #709), Ramat Gan.
Subject
shares premises with subsidiaries.
Having
8 employees (same as in previous years).
MEANS
Financial
data not forthcoming, known to be financially solid.
There are 3 charges for unlimited amounts registered on the
company’s assets (financial assets and fixed assets), in favor of Israel
Discount Bank Ltd. and a partnership
REVENUES
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.
OTHER
COMPANIES
K.D.D.
DIAM
R.G.E
DIAMONDS LTD., incorporated 1995, controlled by Duek family (according to our
records from December 2014, Roni Duek holds some 40%, Dotan Duek – some 20%),
traders, importers and marketers of polished diamonds.
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.
BANKERS
Israel
Discount Bank Ltd., Diamonds Exchange Branch (No. 80), Ramat Gan, account No.
820687.
A check with the Central Banks'
database did not reveal anything detrimental on subject’s a/m account.
CHARACTER
AND REPUTATION
Nothing
unfavorable learnt.
Subject’s officials refused to
update financial details.
Mr.
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 DIAM
2016
figures show signs of recovery for the Israeli diamond trade, coming after the
export of diamonds from Israel experienced a drastic fall by 20% in 2015 from
2014 (down 40% from 2011).
Net export
of polished diamonds in 2016 decreased by 6.4% from 2015, reaching US$ 4,675
compared to US$ 4,993 million in 2014 (after 0.6% rise in 2014 and 11.6% in
2013), however net rough diamond exports jumped 23.1% to US$2,702 million (in
2015 fell 28.3% from 2014, after 4.2% rise in 2014, and a mere rise in 2013).
The market has been volatile over the last years after experiencing its worst
depression due to the global economic crisis, then recovered in 2010 but fell
again in 2012. According to Israel's Diamond Administration (IDA) at the
Ministry of Economics, the recovery in 2013 and 2014 is positive news for the
local branch (still away from its peak on the eve of the crisis with export of
polished diamonds of US$ 7 billion), however it is reported that profit margins
have been decreasing due to smaller gaps between rough (increasing) and
polished (decreasing) diamond prices.
In
addition, the local diamond sector has been negatively affected by other
significant factors: the production of counterfeit diamonds, whose quality
keeps improving (harming the raw diamonds market), the entrance of new rules by
the local Tax Authorities on the Diamond Exchange for enforcing money
laundering, and the "underground bank" affair – as below.
As a
result, local diamond dealers report on difficulties in executing transactions
and bad atmosphere in the branch. The first signs of recovery appeared towards
the last quarter of 2016 – mainly due to the growing stability of the market
and the industry’s agreement with the Israel Tax Authority in December.
Net
imports of polished diamonds totaled US$ 3,282 million in 2016, 5.7% decrease
from 2015, while net import of rough diamonds reached US$ 3,246 million, up
16.7% from 2015.
The
United States continued to be Israel’s major market for polished diamonds,
accounting for 39% of the market in 2016 (was 40% in 2015). Hong Kong is 2nd
largest market with 26% of exports (27% in 2015), followed by Belgium 8% (9%),
Switzerland 7% (7%), U.K. 4% (was 3% in 2015), and the rest of the world
account for the remaining 16% of Israel's polished diamond export.
In
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" (known as the "Check List"
Affair) 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, and for a while to paralysis (especially in raw
diamonds purchase) due to uncertainty among local and foreign dealers. Later in
2012 the Police decided to lower the profile of the investigation for a while
(pressure from the diamond branch due to the continuing damage inflicted and
the Government (losing US$ hundred millions from decrease in tax collection),
but resumed investigation in 2013.
In
mid-2014, based on the Police and Tax Authorities recommendations, the State
Attorney started the process of filing indictments against central defendants
in the affair, initially against dealers who provided foreign currency services
to the "bank" (in June 2015 the court made the first conviction in
the affair, sending a foreign currency dealer who pretended also to be a
diamond dealer, for 4 years prison, a fine and confiscation of assets in volume
of NIS millions, part of a plea bargain). Since late 2015 indictments for
severe charges pressed against 11 diamond dealers and their firms for tax
felonies committed and issuing fictitious invoices in volumes of millions US$
(latest indictments filed by the Tel Aviv District Attorney in August 2016).
SUMMARY
Notwithstanding the refusal to
disclose financial 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).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.61 |
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1 |
INR 94.21 |
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Euro |
1 |
INR 81.32 |
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ILS |
1 |
INR 18.67 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.