MIRA
INFORM REPORT
|
Report Date : |
09.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
B. BRIZA COLORS LTD. |
|
|
|
|
Registered Office : |
P.O. Box 1061, Ramat Gan (52111) 54 Bezalel Street Diamond Exchange, Yahalom Bldg. Ramat Gan 52522 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
03.03.2003. |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Traders, importers, processors and exporters of diamonds |
|
|
|
|
No. of Employees : |
13 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
No Complaints |
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name and address
B. BRIZA COLORS LTD.
(Also trading as B. BRIZA COLOUR
DIAM
Telephone 972 3 612 79 35
Fax 972 3 612 79 36
P.O. Box 1061, Ramat Gan (52111)
54 Bezalel Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 52522-ISRAEL
HISTORY & LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-338731-6 on the 03.03.2003.
Prior to
establishing subject, its shareholders operated independently for about 20
years each separately in the diamond his business, until they decided to
establish a joint company.
SHARE CAPITAL
Authorized share
capital of NIS 50,000.00, divided into: -
50,000 ordinary shares of NIS
1.00 each,
of which 100 shares
amounting to NIS 100.00 were issued.
SHAREHOLDERS
1. A.S. BRISK LTD., 50%, owned
by Amnon Barak and his son Shai Barak,
2. KETSEF HAYAM LTD., 50%, owned
by Lior Izboutzky.
DIRECTORS
1. Amnon Barak, Joint General
Manager,
2. Lior Izboutzky, Joint General
Manager,
3. Shai Barak.
BUSINESS
Traders,
importers, processors and exporters of diamonds, specializing in treatment of
natural polished diamonds and manufacturing color enhanced diamonds.
Also supplying coloring
services and consultation for dealers and jewelry manufacturers in the Far
East, Japan, Europe and the U.S.A.
50% of sales are
for export.
Among clients:
OVADIA DIAM
Diamonds
purchasing is both from import (mainly from India) and from the local market.
Among local
suppliers: MOSHE NAMDAR & CO., LEO SHECHTER DIAM
Operating from
rented office premises, on an area of 60 sq. meters, in 54 Bezalel Street (also
referred to as 21 Tuval Street), Diamond Exchange, Yahalom Building (10th
floor, suit No. 1061), Ramat Gan. Premises are shared with sister company.
Having offices in
New York, Toronto and Antwerp.
Having 13
employees serving subject and 14 employees in subject and sister company BRIZON
(same as in the previous years).
MEANS
Financial data not
forthcoming.
There are 4
charges for unlimited amounts registered on the company’s assets (financial
assets and a switchboard), in favor of Bank Leumi Le’Israel Ltd. and a
telecommunications company (last charge placed May 2010).
REVENUES
Consolidated sales
by subject and sister company BRIZON COLOR SERVICES LTD.:
2006 sales claimed
to be US$ 8,000,000, 60% of which were for export.
2007 sales claimed
to be US$ 8,000,000, 60% of which were for export.
2008 sales claimed
to be US$ 8,800,000, 60% of which were for export.
2009 sales claimed
to be US$ 10,000,000, 50% of which were for export.
Since 2010, sales
provided for subject solo:
2010 sales claimed
to be US$ 10,000,000, 50% of which were for export.
2011 sales claimed
to be US$ 11,000,000, 50% of which were for export.
OTHER COMPANIES
BRIZON COLOR
SERVICES LTD., owned by subject's shareholders, operating from the same offices
as subject. Diamonds processors, specializing in color enhancing natural
polished diamonds.
BRIZA COLORS USA
INC.
BANKERS
Bank Leumi
Le’Israel Ltd., Diamonds Exchange Branch (No. 629), Ramat Gan, account No.
001395/86.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m account.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject’s
officials refused to disclose financial data on their company besides sales
figures.
Subject has
developed a method for coloring diamonds which does not involve radiation. The
process, which has FDA approval, is completely clean and produces color
enhanced diamonds for a tenth of the price of a naturally colored diamond.
Despite the
slow-down in activity in the global diamond branch during the last third of
2011, export by the local diamond sector in all 2011 recorded US$ 7,202 million
sales in cut diamonds, 23.5% higher than in 2010. This was thanks to the strong
first 2 thirds of 2011, which were stalled in the last third, reflecting the
current fragile global economy and fear of another recession wave in USA and
Europe. It should be noted that in karat terms, net export of cut diamonds rose
only by 4% from 2010.
Export of rough
diamonds in 2011 also climbed almost 15%, reaching US$ 3,515 million (fell
almost 29% in karat terms).
Import of cut
diamonds in 2011 summed up to US$ 5,682 million, representing 34.7% increase
comparing to 2010 (18% rise in karat terms), while import of rough diamonds
rose by 17.5% from 2010, totaling US$ 4,413 million (11% fall in karat terms).
In 2010, export
(net) of cut diamonds was US$ 5,832 million (up 48% from 2009, when it noted
37% decrease from 2008), rough diamonds export (net) reached US$ 3,060 million
(62% rise from 2009). Import of rough diamonds (net) in 2010 grew by 51% to US$
3,755 compared with 2009, and import of polished diamonds (net) saw 68% rise in
2010 reaching US$ 4,218 million.
In terms of target
export (polished diamonds) countries, in 2011 the USA continued to be the main
destination, with 39% of total export (41% in 2011). This comes after in early
2010, for the first time Far East markets became Israel’s diamond industry’s
main target (traditionally sales to the USA comprised some 60%-65% of total
export). Hong Kong is the 2nd largest target country, comprising 26%
of sales in 2011 (29% in 2010). Other main target countries included
Switzerland (6%), India (5%), UK (3%) and the rest of the World (21%).
According to the
President of the Israeli Diamonds Association, local diamond sector in general
managed to cross one of worst depressions in the global diamond sector caused
by the global economic crisis in 2008/9. The sector experienced almost an
entire freeze and collapse in sales of about 70% in the peak of the crisis and
2009 export diamonds shrank by some 40%. The President said that trade in the
sector rolls 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 crisis.
The Ministry for Industry & Trade also assisted the local diamond exporters
by providing bank guarantees in total scope of NIS 1 billion.
Local diamond
sector employs some 15,000 persons.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
SUMMARY
Good for trade
engagements.
DIAMOND INDUSTRY –
INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
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.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of losing
Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months
ago, they had not repaid these dues. Bankers believe many diamantaires
borrowed money during the economic downturn two years ago and diverted funds to
businesses like real estate and capital markets. Many of themselves made money
from these businesses but their diamond companies have gone sick and declared
insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.07 |
|
|
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.65.15 |
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.