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MIRA
INFORM REPORT
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Report No. : |
505562 |
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Report Date : |
28.04.2018 |
IDENTIFICATION DETAILS
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Name : |
A. DALUMI DIAM |
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Formerly Known As : |
DALUMI ASHER DIAM |
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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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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. |
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No. of Employees : |
500 [Dalumi Group] |
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 : |
Slow but Correct |
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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
RE: 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
HISTORY & LEGAL FORMATION
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
SHARE CAPITAL
Authorized share
capital of NIS 6,000.00, divided into: -
6,000 ordinary
shares, of NIS 1.00 each,
fully issued.
SHAREHOLDERS
1. Tomer Dalumi, 20%,
2. Meir Dalumi, 15%,
3. Asher Dalumi 10%,
4. Refael Yerusahlmi, 10%,
5. Ms. Sigalit Yerusahlmi, 10%,
6. Ms. Sara Dalumi, 10%,
7. Ms. Vered Dalumi Itzhaki,
10%,
8. Yaakov Itzhaki, 10%,
9. Ms. Inbal Dalumi, 5%.
DIRECTORS
1. Asher Dalumi, General
Manager,
2. Tomer Dalumi,
3. Meir Dalumi,
4. Refael (Rafi) Yerusahlmi,
5. Ms. Sigalit Yerusahlmi.
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 under brand names "Swana" and "Golden
Diamonds".
Among local
suppliers: OFER MIZRAHI DIAMONDS, etc.
Operating from
owned 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), Los Angeles, Antwerp and Botswana, as well as in Hong Kong.
Website: www.dalumi.com
Had 500 employees
in DALUMI Group (Israel and overseas) in 2016 (as informed by subject’s
officials). We could not obtain the current number of employees from the
officials so far, we assume to be similar (according to DE-BEERS Sightholders
publication, having 550 employees).
MEANS
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.
REVENUES
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.
According to a
report from July 2016, subject exports in volume of US$ 200 million, and may be
even higher.
OTHER COMPANIES
Also part of
DALUMI Group:
DALUMI DIAMOND
CORPORATION, USA,
DALUMI BOTSWANA
(PTY), Botswana,
DALUMI EUROPE
BVBA, Belgium,
DALUMI HONG KONG
LTD., Hong Kong.
BANKERS
The First International
Bank of Israel Ltd., Diamond Exchange Branch (No. 26), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Despite our
efforts, we were unable to speak with subject's CFO, being told he is abroad
and due back in a weeks’ time. We shall contact him upon his return and in case
we receive further data, we shall update.
Subject is a
veteran business, well-known in the diamond branch, being one of the leading
diamond companies in Israel, with worldwide reputation.
Mr. Meir Dalumi
comes from a veteran diamond dealers family. He served as the Chairman of the
Diamond Exchange's Legal Committee, currently Chairman of the Strategic
Planning Committee and the International Relations Committee, as well as being
a member of the Diamond Exchange's arbitrator team.
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
Export (net) of
polished diamonds from Israel in the first 9 months of 2017 totaled US$ 3,383
million, which represents 11.8% decrease compared to the parallel period in
2016, while export of net rough diamonds fell 10.4% in this period, reaching
US$ 1,796 million. That is in contrast to the figures in 2016, which showed
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 diamonds exports jumped 23.1% to US$2,702 million (in
2015 fell 28.3% from 2014, after 4.2% rise in 2014, and a mere rise in 2013).
Yet the figures are well away from its peak on the eve of the crisis with
export of polished diamonds of US$ 7 billion.
In total, diamonds
export (polished and rough) in 2017 were expected to sum up to US$ 7 billion,
7% lower than in 2016, from the Ministry of Economy forecast.
The market has
been volatile over the last years after experiencing its worst depression due
to the global economic crisis. According to Israel's Diamond Administration
(IDA) at the Ministry of Economics, 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. 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, yet the market is still
volatile, as witnessed with the endurance of the depression trend during 2017.
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.
Net imports of
polished diamonds decrease by 15.1% in the first 9 months of 2017 and totaled
US$ 2,015 million, compared to the parallel period in 2016, whereas net import
of rough diamonds reached US$ 2,089 million, down 11.6% from 2016.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 45%
of the market in the first 9 months 2017 (was 39% in 2016). Hong Kong is 2nd
largest market with 30% of exports (26% in 2016), followed by Switzerland 9%
(7%), Belgium 8% (8%), and the rest of the world account for the remaining 8%
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). Their
cases are pending.
SUMMARY
Notwithstanding
the lack of updated data from subject's CFO, considered good for trade
engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.78 |
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1 |
INR 92.89 |
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Euro |
1 |
INR 80.74 |
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ILS |
1 |
INR 18.57 |
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 : |
SYL |
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
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
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.