MIRA INFORM REPORT

 

 

 

 

Report Date :

13.09.2013

 

IDENTIFICATION DETAILS

 

Correct Name :

PANFORD (ISRAEL) LTD.

 

 

Registered Office :

P.O. Box 3008, Ramat Gan (52130), 21 Tuval Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 52522         

 

 

Country :

Israel

 

 

Date of Incorporation :

02.07.1980

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, Importers, Exporters and Marketers of rough diamonds.

 

 

No. of Employees :

15

 


 

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 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

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. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. 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, and production from the Tama field is expected to meet all of Israel''s natural gas demand beginning mid-2013. 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


Company name & address 

 

PANFORD (ISRAEL) LTD.

Telephone      972 3 575 01 74

Fax                972 3 575 29 56

P.O. Box 3008, Ramat Gan (52130)

21 Tuval Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN  52522 ISRAEL

 

 

HISTORY & LEGAL FORMATION   

 

A private limited company, incorporated as per file No. 51-085590-1 on the 02.07.1980, as part of the Steinmetz Family diamond businesses founded years earlier.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 200,000.00, divided into -

200,000 ordinary shares of NIS 1.00 each,

of which 171,550 shares amounting to NIS 171,550.00 were issued.

 

 

SHAREHOLDERS     

 

1.   PANFORD (LONDON) LIMITED., registered in Isle of Man, known to be owned by Benny Steinmetz, Daniel Steinmetz and Steinmetz family, 84%,

2.   Daniel Steinmetz, 16%.

 

 

DIRECTORS

 

1.  Daniel Steinmetz,

2.  Itzhak Zissman.

 

 

GENERAL MANAGER

 

David Shiama.

 

BUSINESS    

 

Traders, importers, exporters and marketers of rough diamonds.

 

The main company handling the STEINMETZ Family diamond business in Israel.

 

Operating from office premises, owned by the Steinmetz Family, on a large area of several hundreds sq. meters, in 21 Tuval Street (also referred to as 54 Bezalel Street), Yahalom Building (28th Floor), Diamond Exchange, Ramat Gan (shares premises with sister companies of the Group).

 

We were informed that couple of years ago the Group sold the 500 sq. meters on the 17th Floor and purchased new offices, on an area of 1,000 sq. meters on the 28th Floor.

 

Having 15 employees (same as in 2010, had 20 employees in 2009).

 

 

MEANS    

 

Financial data not forthcoming, known to be financially solid.

 

There are 4 charges for unlimited amounts registered on the company's assets, in favor of The First International Bank of Israel Ltd. and Bank Leumi Le’Israel Ltd.

 

 

ANNUAL SALES

 

Sales figures not forthcoming, known to be in scales of over hundred US$ million and much more.

 

 

OTHER COMPANIES

 

There are many diamond companies in the STEINMETZ Group in Israel and abroad. In Israel also operating via:

 

STEINMETZ-ASCOT LTD., processors and polishers, traders, importers, exporters and marketers of cut diamonds. Operate on relatively very low level.

 

The Steinmetz family has numerous other holdings in other fields (see more below).

 

 

BANKERS

 

·         Israel Discount Bank Ltd., Ramat Gan Branch (040), Ramat Gan.

·         The First International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat Gan.

·         Bank Leumi Le’Israel Ltd., Diamond Exchange Branch (No. 629), Ramat Gan.

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

The CFO of the STEINMETZ Group said subject is operating on very high volumes, but refused to disclose financial information.

 

The STEINMETZ Group is one of the world’s largest diamond miners, with wide operations in South Africa, Sierra Leone, and other African countries.

 

It is known that the Group has suffered from the global economic crisis that adversely hurt the global diamond industry, and as such, subject’s Group was also harmed, though financial data is unavailable.

                                                       

Mr. Benny Steinmetz, born 1956, is a international wealthy businessman and entrepreneur (in March 2010 Forbes Magazine evaluated his capital at US$ 2 billion). The origin of the wealth comes from the worldwide family diamond business. The BENNY STEINMETZ Group (BSGR) is an International concern, based in London, with several holdings in public (traded in London Stock Exchange) and many private companies in natural resources (including diamonds, gold, copper, cobalt, steel, etc.), finance, real estate and energy, both in Israel and overseas in volume of US$ billions. Among companies are KATANGA MINING, BSG RESOURCES, NIKANOR, CUNICO, KOIDU, ODIMO, BAKU STEEL, etc.

 

During the period prior to the global crisis BSGR and BATEMAN Groups, as well as SCORPIO (Steinmetz real estate investment arm) raised many hundreds of millions of US$ from the public (in London and Tel Aviv) to finance their expansion, and when the crisis occurred, they were highly leveraged, with clear problem to finance future obligations. These companies were obliged to seek arrangements with their bonds holders and bankers to prevent collapse. In Israel, the companies have NIS hundreds million debts to the banks and bonds holders. During 2010 debts the sides reached debts arrangements, however the affairs has their negative impact on Mr. Steinmetz reputation in these respect.

 

In May 2010, as part of becoming more liquidate, Steinmetz sold 51% of BSGR GUINEA with steel lead mining to VALE of Brazil for US$ 2.5 billion.

 

It should be emphasized that the above mentioned public affairs do not have any impact on subject.

 

During 2010 local diamond companies have been recovering 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 diamond 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%. Only since mid 2009 a mild recovery has been felt (in some markets, such as the American, it is estimated that it will take long time till fully recovering) and continued throughout 2010.

According to the President of the Israeli Diamonds Association, local diamond sector in general managed to cross the crisis, despite the sheer difficulties, including the fact that local banks contracted credit given to local diamond firms. 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.

 

Overall in 2010, export (net) of polished diamonds was US$ 5,832 million, representing 48% increase from 2009 (when it noted 37% decrease from 2008, also much less than 2007, a record year in polished diamonds export, with sales of US$ 7,076 million). In karat terms, net export of polished diamonds rose by 32%. Rough diamonds export (net) reached US$ 3,060 million, 62% up from 2009 and 36% increase in karat terms.

 

Import of rough diamonds (net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat terms), compared with 2009, while import of polished diamonds (net) saw 68% rise reaching US$ 4,218 million (39% rise in karat terms).

 

In terms of target export (polished diamonds) countries, overall in 2010 the USA returned to be main destination, with 41% of total export. This comes after earlier in 2010, for the first time Far East markets became Israel’s diamond industry’s main target, with sales to Hong Kong being close to these of the USA, to whom sales decreased dramatically in view of the severe economic crisis (traditionally sales to the USA comprised some 60%-65% of total export). In all 2010, export to Hong Kong comprised 25.5% of sales. Other target countries included India (4.5%), Switzerland (4%) and China (3%).

 

In February 2009, Israel was ranked as the world’s largest exporter of cut diamonds, followed by India, Belgium and South Africa.

 

 

SUMMARY      

 

Notwithstanding the refusal to disclose financial data, considered 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.

-            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 –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.67

UK Pound

1

Rs.100.71

Euro

1

Rs.84.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

 

 

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