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Report Date : |
25.09.2014 |
IDENTIFICATION DETAILS
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Name : |
BRIZA LIOR LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
04.02.2003 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers of natural polished diamonds color enhancing technologies, and
traders, exporters and marketers of colored polished diamonds (Fancy Color
Diamonds). |
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No. of Employees : |
Not Available |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 since 2011 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
Tamar field started meeting all of Israel's natural gas demand in 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. In May 2013 the Israeli government, in a politically
difficult process, passed an austerity budget to reign in the deficit and
restore confidence in the government’s fiscal position.
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Source
: CIA |
BRIZA LIOR LTD.
Telephone 972 3 612 79 35
Fax 972 3 503 55 54
Email: info@brizalior.com
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252236 ISRAEL
A private limited company, incorporated as per file No. 51-337717-6 on
the 04.02.2003.
Originally registered under the name KETSEF HAYAM LTD., which changed to
the present name on the 10.01.2013.
Authorized share capital NIS 40,000.00, divided into -
40,000 ordinary shares
of NIS 1.00 each,
of which 100 shares amounting to NIS 100 were issued.
Subject is fully owned by Lior Izboutzky.
Lior Izboutzky.
Developers of natural polished diamonds color enhancing technologies, and
traders, exporters and marketers of colored polished diamonds (Fancy Color
Diamonds).
Operating from rented office premises, on an area of 60 sq. meters, in
21 Tuval Street (also referred to as54 Bezalel Street), Diamond Exchange,
Yahalom Building (10th floor, suit No. 1061), Ramat Gan. Premises
are shared with subsidiaries.
Number of employees not forthcoming.
Financial data not forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets (all assets), in favor of Mizrahi Tefahot Bank Ltd. (both charges placed
January 2014).
Sales figures not forthcoming.
B. BRIZA COLORS LTD., 50%, traders, importers, processors and exporters
of diamonds, specializing in treatment of natural polished diamonds and
manufacturing color enhanced diamonds. 2011 sales claimed to be US$ 11 million,
50% of which were for export.
BRIZON COLOR SERVICES LTD., 50%, diamonds processors, specializing in
color enhancing natural polished diamonds.
Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466),
Ramat Gan.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's General Manager,
as he was always unavailable. We left messages which so far remain unanswered.
Subject is among the world leaders in its field. 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.
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).
Notwithstanding the lack of data from subject's officials, considered
good for trade engagements.
Note: Since 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
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.02 |
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1 |
Rs.99.99 |
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Euro |
1 |
Rs.78.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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 |
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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.