MIRA
INFORM REPORT
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Report Date : |
27.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
JULIUS KLEIN - ELIAZ DIAMONDS LTD. |
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Registered Office : |
P.O. Box 3264, Ramat Gan (52132), 1 Jabotinsky Street, Diamond Exchange,
Maccabi Bldg.RAMAT GAN 52520 |
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Country : |
Israel |
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Date of Incorporation : |
29.12.2005 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, Processors, Marketers and Exporters of Diamonds |
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 |
name & address
JULIUS KLEIN -
ELIAZ DIAMONDS LTD.
Telephone 972 3 575
33 47
Fax 972 3
575 35 67
P.O. Box 3264, Ramat Gan (52132)
1 Jabotinsky
Street
Diamond Exchange, Maccabi
Bldg.
RAMAT GAN 52520
ISRAEL
HISTORY & LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-376917-4 on the 29.12.2005.
Subject was
incorporated in view of the change in ownership, taking over all activities of
ELIAZ DIAMONDS LTD., established 1999, which continued the activities of a
general partnership established in 1980 by Azriel Garty.
Following this,
ELIAZ DIAMONDS LTD. became non active.
SHARE CAPITAL
Authorized share
capital of NIS 100.00 divided into:-
100 ordinary shares of NIS 1.00 each, fully
issued.
SHAREHOLDERS
Subject is fully owned by JULIUS KLEIN
DIAMONDS LLC, of the USA, owned by Julius Klein.
SOLE DIRECTOR & GENERAL
MANAGER
Azriel (Azri) Garty.
BUSINESS
Traders,
processors, marketers and exporters of diamonds.
80% of sales are
for export.
Among local
clients: INFINITY GEMS, DOV DIAMONDS, UNIVERSAL DIAMONDS, PLUCZENIK, DENIR
INTERNATIONAL, ARIE RIEGER DIAMONDS, AMI KANER, etc.
Among local suppliers:
ASHISH DIAMONDS, ELUL DIAMONDS CO., PRIMEDIAM, YAKOBOV SAN DIAMOND, etc.
Operating from
rented office premises, on an area of 188 sq. meters, in 1 Jabotinsky Street,
Diamond Exchange, Maccabi Building (14th floor, Room 1440), Ramat
Gan, from an owned plant, on an area of 110 sq. meters, in 25 Tuval Street,
Ramat Gan, and from offices in Belgium and Hong Kong.
Having 25
employees (same as in 2006 and 2007).
MEANS
Current stock was
valued at US$ 10,000,000.
Other financial
data not forthcoming.
There is 1 charge
for an unlimited amount registered on the company's assets, in favor of Israel
Discount Bank Ltd.
ANNUAL SALES
2006 sales claimed
to be US$ 65,000,000, 80% of which were for export.
2007 sales claimed
to be US$ 69,000,000, 80% of which were for export.
First half of 2008 sales claimed to be US$ 48,000,000, 80% of which were
for export.
OTHER COMPANIES
JULIUS KLEIN ELIAZ DIAMONDS ASIA LTD., 100%, Hong Kong,
JULIUS KLEIN ELIAZ DIAMONDS EUROPE BVBA, 100%, Antwerp, Belgium.
ELIAZ DIAMONDS,
non active,
ELIAZ DIAMONDS
LTD., non active.
BANKERS
Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan,
account No. 816140.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m account.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject is part of
the American JULIUS KLEIN GROUP (JKG), a veteran (over 50 years) group in the
diamond and jewelry industry, a sightholder with offices in the U.S.A., South
Africa, Belgium and Hong Kong.
Azriel Garty is a
veteran well-known local diamantaire.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, ELIAZ DIAMONDS was ranked 26th in the 2003 list of
Israel's largest polished diamonds exporters and 18th ranked in the
2004 list.
Local diamond
companies are facing a depression in business in general in recent months due
to the recession in the U.S. markets. The American market has been the No. 1
export market and the crisis in the U.S. market affects directly many Israeli
diamond companies, as purchasing has gone down dramatically. There are reports
on delays in payments from clients, causing a cash flow problem to some
companies.
In the first half
of 2008, there was an increase trend in all money parameters of import and
export: export of cut diamonds (net) from Israel rose by 6% comparing to
parallel period in 2007, reaching US$ 3.8 billion (though carat value fell by
17%). Export of rough diamonds (net) from Israel also increased by 26% to US$
2.19 billion (2.5% fall in carat value).
Import of rough
diamonds (net) rose 15% in the first half of 2008 (from 2007) to US$ 2.77
billion (though carat value fell by 11%), while import of cut diamonds (net) also
increased in 2008 by 19.5% reaching US$ 2.35 billion (carat value rose by
2.3%).
Year 2007 marked a record in the export of cut diamonds from Israel,
with net sales for export of US$ 7.076 billion, 7% rise from 2006 (US$ 6.611
billion). Total export of cut and rough diamonds crossed for the first time the
US$ 12 billion line. Exports (net) of rough diamonds were US$ 3.386 billion, a
25.5% increase from 2006 (US$ 2.701 billion, which was a 23.2% decrease from
2005).
Import of rough diamonds (net) rose 8% in 2007 by (from 2006) to
US$ 5.084 billion, while import of cut diamonds (net) also increased in 2007 by
13.3% reaching US$ 4.558 billion.
The USA is the
main market for Israel’s export of cut diamonds, although its portion has been
decreasing in view of the economic situation – the export rate is circa 41%,
comparing to 60%-65% in past years. The secondary markets are Hong Kong,
Switzerland, Belgium, U.K, and India.
SUMMARY
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 |
Rs.43.73 |
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UK Pound |
1 |
Rs.80.31 |
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Euro |
1 |
Rs.64.61 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)