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Report Date : |
17.06.2014 |
IDENTIFICATION DETAILS
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Name : |
OFER MIZRAHI DIAMONDS LTD. |
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Registered Office : |
21 Tuval Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 5252236 |
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Country : |
Israel |
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Year of Establishments: |
1980 |
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Com. Reg. No.: |
51-261259-9 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, importers, marketers and exporters
of all sorts of diamonds. |
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No. of Employees : |
20 |
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 |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 |
OFER MIZRAHI DIAMONDS LTD.
(Also known as OM
DIAMONDS)
Telephone 972 3 752 08 17; 600 58 11
Fax 972 3 575 90 35
Email: ofer_diamond@walla.com
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
Ramat Gan 5252236
Israel
A private limited company,
incorporated as per file No. 51-261259-9 on the 16.03.1998, continuing diamond
business activities in late 1980s.
Authorized share
capital of NIS 22,900.00, divided into:
22,900 ordinary
shares of NIS 1.00 each,
of which 100 shares
amounting to NIS 100.00 were issued.
1. Ofer Mizrahi, 99%,
2. Mrs. Nava Mizrahi, wife of Ofer, 1%.
Ofer Mizrahi.
Traders,
importers, marketers and exporters of all sorts of diamonds.
Some 90% of sales
are for export.
Among clients: LEO
SCHACHTER DIAMONDS, A. DALUMI DIAMONDS, etc.
Both above clients
are leading diamond firms and also serve as suppliers of subject.
Operating from
rented office premises, on an area of 100 sq. meters, in 21 Tuval Street,
Diamond Exchange, Yahalom Building (7th Floor, rooms 94-96), Ramat
Gan. Group is operating from American headquarters in Chicago, and branches in
New York, Boston and San Francisco.
Having 20
employees in Israel as of mid 2013 (similar to the previous years), current
number unavailable.
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.
Charge placed in 2007 on all assets.
2006 sales claimed
to be US$ 30,000,000, 90% of which were for export.
2007 sales claimed
to be US$ 40,000,000, 90% of which were for export.
2008 sales claimed
to be US$ 40,000,000, 95% of which were for export.
2009 sales claimed
to be US$ 60,000,000, 83% of which were for export.
2010 sales claimed
to be US$ 80,000,000, of which US$ 75,000,000 were for export.
2011 sales claimed
to be US$ 97,000,000, of which 90% were for export.
2012 sales claimed
to be US$ 97,000,000, of which 90% were for export.
2013 sales were
not disclosed, however given subject's export in 2013 of US$ 103,000,000 we
figure overall sales at around US$ 110,000,000.
Sales for export (net) of polished diamonds as published by the Supervisor on Diamonds
in the Israeli Ministry of Industry & Trade:
2011 sales for
export were US$ 96,000,000.
2012 sales for
export were US$ 92,000,000.
2013 sales for
export were US$ 103,000,000.
Ofer Mizrahi owns/has holdings in other companies, among them
OFER MIZRAHI ASSETS LTD., a real estate company.
OFER MIZRAHI DIAMONDS INC., USA.
Israel Discount Bank Ltd., Diamond Business Branch (No. 080), Ramat Gan,
account No. 2943.
A check with the Central Banks’ database did not reveal any negative
information concerning subject’s a/m bank account.
Nothing
unfavorable learned.
Subject's
officials refused to update sales and employees data.
Subject is
well-known in the local diamond sector, among the largest in Israel.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 5thin the 2013 list of
Israel's largest polished diamonds exporters, 7th in 2012 list, 9th
in 2011, 7th in 2010, 10th in 2009, 20th in
2008 and 24th in 2007 list.
In May 2010 it was
reported that subject, purchased office space in the upcoming International Gem
Tower (IGT) facility in New York’s Diamond District (expected to be ready
during 2012).
Israel's diamond
industry remarked on impressive growth in almost all trade parameters in 2013,
from the data by Israel's Diamond Administration at the Ministry of Economics:
Net export of polished diamonds rose by 11.6% from 2012, reaching US$ 6.2
billion. The market has been volatile in recent years: the branch –in Israel as
well as globally- experienced its worst depression in the 2nd half
of 2008 and 2009 due to the global economic crisis (almost an entire freeze and
collapse in sales of about 70% in the peak of the crisis), then recovered in
2010 and mainly in and fell again in 2012 (net export fell by 23% in 2012 from
2011).
Net rough diamond
exports totaled US$2.9 billion in 2013, a mere rise from 2012.
Net imports of
polished diamonds remained in similar level as 2012 (after drop by 25% in 2012
from 2011), totaling US$4.3 billion, while net rough diamonds imports summed at
US$ 4 billion, 4% up from 2012 (when it fell 13% from 2011).
The United States
continued to be Israel’s major market for polished diamonds, accounting for 37%
of the market in 2013 (35% in 2013). Hong Kong is the next largest market with
27% of exports, with Switzerland accounting for 9.3%, Belgium 7.3%, and India
accounting for 2.3% of Israel's polished diamond export.
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 global
crisis. The Ministry of Economics also assisted the local diamond exporters by
providing bank guarantees in total scope of NIS 1 billion.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
Local diamond
sector employs some 20,000 persons.
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. The Attorney General is in process of
preparing indictments.
In the end of December
2013 it was reported that 5 diamond dealers were summoned to a hearing (not
mandatory) regarding the a/m affair, prior to filing an indictment, before the
Tel Aviv District Attorney (Tax and Finance sector).
Good for trade
engagements.
DIAMOND INDUSTRY – INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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Excerpts from Times of India dated 30th
October 2010 is as under –
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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.
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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.60.01 |
|
|
1 |
Rs.101.99 |
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Euro |
1 |
Rs.81.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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 |
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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 |
|
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 |
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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 |
|
-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.