MIRA INFORM REPORT

 

 

Report Date :

17.09.2013

 

IDENTIFICATION DETAILS

 

Name :

WINDIAM ISRAEL LTD.

 

 

Registered Office :

P.O. Box 3079 (5213002), 21 Tuval Street, Diamond Exchange, Yahalom Bldg.

Ramat Gan 5252236

 

 

Country :

Israel

 

 

Date of Incorporation :

05.07.2004

 

 

Legal Form :

Private Limited Company

 

 

LINE OF BUSINESS :

IMPORTERS, PROCESSORS, EXPORTERS AND MARKETERS OF ROUGH AND POLISHED DIAMONDS.

 

 

No. of Employees :

100 (In Group)

 

 

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 :

Unknown

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 and address

 

WINDIAM ISRAEL LTD.

Telephone  972 3 751 94 92

Fax           972 3 752 39 18

Email:       stella@windiam.co.il

P.O. Box 3079 (5213002)

21 Tuval Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN 5252236 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-356340-3 on the 05.07.2004.

Originally registered under the name W.G.A.G. DIAMONDS LTD., which changed to the present name on the 24.07.2011.

 

 

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

 

Subject is fully owned by Amos Raz.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Amos Raz.

 

 

BUSINESS

 

Importers, processors, exporters and marketers of rough and polished diamonds.

 

Several years ago we were informed that 90% of sales are for export (current export rate unavailable).

 

Among local clients: GALKO DIAMONDS, G.S. DIAMONDS, AVI PAZ FANCY, M. SCHNITZER & CO., STEINMETZ, etc.

 

Among local suppliers: LLD DIAMONDS, AVI PAZ FANCY, SHUMEL FISCHER DIAMONDS, ROBERT BABAYEV, etc.

 

Operating from office premises, in 21 Tuval Street, Diamond Exchange (office 2678), Yahalom Building, Ramat Gan. Group also operates from overseas locations.

                                                                                                                            

Number of employees in subject not forthcoming (used to have 4 employees several years ago).

There are over 100 employees serving WINDIAM Group globally (according to the Group's website).

 

 

MEANS

 

Current stock was valued at US$ 1,000,000 several years ago.

Other/ later financial data not forthcoming.

 

There are 2 charges for unlimited amounts registered on the company's assets, in favor of Union Bank of Israel Ltd. (both charges placed in 2007).

 

 

REVENUES

 

2005 sales claimed to be US$ 50,000,000, of which 90% were for export.

2006 sales claimed to be US$ 50,000,000, of which 90% were for export.

Later sales figures not forthcoming.

 

 

OTHER COMPANIES

 

WINDIAM BVBA, Belgium.

 

 

BANKERS

 

The First International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat Gan, account No. 379000/64.

Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan,
account No. 93790/76.

 

A check with the Central Banks' database did not reveal anything detrimental on subject’s a/m accounts.

 

 


CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

We spoke to subject's General Manager, Mr. Amos Raz, who refused to update information, but asked for a fax with our request which they are to consider. We sent a fax, which remains unanswered. We shall update you in case they return to us with fresh data.

 

Mr. Amos Raz, owner and General Manager of subject is veteran in the diamonds business with experience of over 30 years.  Prior to establishing subject he used to be a partner in several diamond companies.

 

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 economic crisis in global markets that erupted in 2008. The sector experienced almost an entire freeze and collapse in sales of about 70% in the peak of the crisis. While the global diamond industry experienced major declines during 2012, Israel saw a steady improvement in its diamond trade in the third and fourth quarters of the year, according to the Diamond Administration at the Ministry of Industry & Trade.

 

Israel’s net polished diamond exports stood at US$5.6 billion in 2012, compared a decline of 23% from 2011. 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 diamond sector has been keeping a steady trend in the first half of 2013.

Net polished diamond exports in 2013 1st half witnessed a slight decrease (2%) comparing to 2012 1stH, reaching US$ 3.233 billion, while export of rough diamonds saw a 8.1% rise. Net imports of rough diamonds in the 1st half of 2013 reached US$ 2.037 billion, 2.8% increase compared with the parallel period in 2012, whereas import of polished diamonds fell by 5.3% to US$ 2.084 billion.

Expectations in the local diamond sector for 2013 2nd half is for further recovery.

 

The United States continued to be Israel’s major market for polished diamonds, accounting for 44% of the market in 2013 1st half (36% in 2012). Hong Kong is the next largest market with 29.7% of exports (28% in 2012), with Switzerland accounting for 7.8%, Belgium 6.7%, and Thailand with 1.1%.

 

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.

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

 

An affair of an underground bank 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 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, and for a while to paralysis (especially in purchase of raw diamonds) due to uncertainty among local and foreign dealers.

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.

In June 2013 it was reported that the Police resumed its raids on the diamonds branch, and although names of suspects were not released, sources say that it is also related to the above underground bank affair. In parallel, it is also reported that the Tax Authorities and diamonds dealers' representatives are trying to reach an arrangement for past debts.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose update details, considered good for trade engagements.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.99.66

Euro

1

Rs.83.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.