|
Report Date : |
08.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
MIKE ZEEVI & SONS DIAMONDS LTD. |
|
|
|
|
Registered Office : |
54 Betzalel Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 5252138 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
16.12.2003 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Traders, importers, polishers, exporters and marketers of diamonds specialize in bigger size diamonds in the round
shape cut |
|
|
|
|
No. of Employees : |
08 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
israel - ECONOMIC OVERVIEW
Israel has a
technologically advanced market economy. It depends on imports of crude oil,
grains, raw materials, and military equipment. Cut diamonds, high-technology
equipment, and agricultural products (fruits and vegetables) are the leading
exports. Israel usually posts sizable trade deficits, which are covered by
tourism and other service exports, as well as significant foreign investment
inflows. 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. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel's energy security
outlook. The Leviathan field was one of the world's largest offshore natural
gas finds this past decade. In mid-2011, public protests arose around income
inequality and rising housing and commodity prices. The government formed
committees to address some of the grievances but has maintained that it will
not engage in deficit spending to satisfy populist demands.
|
Source : CIA |
MIKE ZEEVI & SONS DIAMONDS LTD.
Telephone 972 3 613 00 36
Fax 972 3 613
00 26
Email: mikediam@mikezeevi.com
54 Betzalel Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252138-ISRAEL
A private limited
company, incorporated as per file No. 51-347875-0 on the 16.12.2003, continuing
activities which began in the early 1970's.
Authorized share
capital of NIS 37,000.00, divided into:
37,000 ordinary shares of NIS
1.00 each,
of which 1,000
shares amounting to NIS 1,000.00 were issued.
1.
Michael (Mike) Zeevi,
27.5%,
2.
Mrs. Hedva Zeevi, 27.5%,
wife of Mike,
3.
Ronen Zeevi, 15%,
4.
Itai Zeevi, 15%,
5.
Aviv Zeevi, 15%, latter 3
are sons of Mike & Hedva.
Ronen Zeevi.
1. Michael
(Mike) Zeevi,
2. Ronen
Zeevi.
Traders,
importers, polishers, exporters and marketers of diamonds specialize in bigger size diamonds in the round
shape cut.
Operating from rented
office premises, in 54 Bezalel Street (also 3A Jabotinsky Street which is
another entrance to the building), Diamond Exchange, Yahalom Building (18th
floor), Ramat Gan.
Having 8 employees
as of mid 2010, current number not forthcoming.
Financial data not
forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets (all assets), in favor of Union Bank of Israel Ltd. (charges placed
December 2003).
Sales figures not
forthcoming.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Nothing
unfavorable learned.
Subject’s shareholder, Mr. Aviv Zeevi, informed us that they decided to cease with disclosing business
details.
Mr. Mike Zeevi, founder of subject, has over 40 years experience in the
diamond branch.
An affair of an
underground bank has been shocking 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 has already led to several of reported bankruptcies of local
diamond firms, a decrease of up to 70% in transactions in 2012, frozen bank
accounts, a paralysis (especially in purchase of raw diamonds) even with fear
of the a collapse of the sector, while dealers –local and foreign- face
uncertainty.
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.
Export of polished
diamonds from Israel fell by 23% in 2012 from 2011, after the sector recovered in
2010 and mainly in 2011 from one of the worst depressions in the global diamond
sector due to the severe economic crisis in global markets that erupted in
September 2008. 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%.
While the global
diamond industry experienced major declines during the year, Israel saw a
steady improvement in its diamond trade in the third and fourth quarters of the
year, according to Ministry of Industry, Trade and Labor Diamond Controller
Shmuel Mordechai, who published figures for Israel’s diamond imports and
exports during 2012.
Israel’s net
polished diamond exports stood at US$5.6 billion in 2012, compared a decline of
23% from 2011. Mr. Mordechai said that Israel’s diamond trade seems likely to
continue to improve in 2013 and return to levels of 2011, which was a record
year.
Israel’s net rough
diamond exports totaled US$2.8 billion in 2012, a 20% decrease from 2011.
Net imports of
polished diamonds dropped 25% from 2011, totaling US$4.27 billion, while net
rough imports stood at US$3.8 billion, 13 % less than in 2011.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 36%
of the market. Hong Kong was the next largest market with 28% of exports, with
Belgium accounting for 8%, Switzerland 5%, U.K. 5% and the rest of the world
18%.
According to the
President of the Israeli Diamonds Association, in 2010 the trade in the local
diamond sector rolled annual turnover of US$ 25 billion while total debt to the
banks 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 20,000 persons.
Notwithstanding
the refusal to disclose data, considered good for trade engagements.
Note: Since the beginning of 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
-
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.54.74 |
|
UK Pound |
1 |
Rs.82.14 |
|
Euro |
1 |
Rs.71.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.