INTERMEDIATE REPORT
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Report No. : |
315162 |
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Report Date : |
04.04.2015 |
IDENTIFICATION DETAILS
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Name : |
EL-RAN DIAMONDS LTD. |
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Registered Office : |
3 Jabotinsky Street Diamond Exchange,
Shimshon Bldg. Ramat Gan 5252005 |
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Country : |
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Date of Incorporation : |
26.10.1989 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Processor, dealers, importers, exporters
and marketers of diamonds. |
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No. of Employee : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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. Cut
diamonds, high-technology equipment, and pharmaceuticals are among the leading
exports. Its major imports include crude oil, grains, raw materials, and
military equipment. Israel usually posts sizable trade deficits, which are
covered by tourism and other service exports, as well as significant foreign
investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year,
led by exports. 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. 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. The economy has recovered better
than most advanced, comparably sized economies, but slowing demand domestically
and internationally, and a strong shekel, have reduced forecasts for the next
decade to the 3% level. Natural gas fields discovered off Israel's coast since
2009 have brightened Israel's energy security outlook. The Tamar and Leviathan
fields were some of the world's largest offshore natural gas finds this past
decade. The massive Leviathan field is not due to come online until 2018, but
production from Tamar provided a one percentage point boost to Israel's GDP in
2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. Israel's income inequality and poverty rates are among the highest of
OECD countries and there is a broad perception among the public that a small
number of "tycoons" have a cartel-like grip over the major parts of
the economy. 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. Over the long term, Israel
faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
|
Source
: CIA |
EL RAN DIAMONDS ISRAEL
Correct Name: EL-RAN DIAMONDS LTD.
Telephone 972
3 575 17 52
Fax 972
3 575 16 26
Email: el-ran1@zahav.net.il
3 Jabotinsky Street Diamond Exchange,
Shimshon Bldg. Ramat Gan 5252005 Israel
A private limited company, incorporated as
per file No. 51-141967-3 on the 26.10.1989.
Authorized share capital of NIS 2,640.00,
divided into:-
2,640 ordinary shares of NIS 1.00 each,
of which 100 shares amounting to NIS 100.00
were issued.
1. EL-RAN
B.V.B.A., 80%, of Belgium, owned by Eyal Atzmon (and maybe Ran Atzmon),
2. Ran
Atzmon, 15%,
3. Eyal
Atzmon, 5%.
Ran Atzmon.
1. Ran
Atzmon,
2. Eyal
Atzmon.
Processor, dealers, importers, exporters and
marketers of diamonds.
Operating from premises, in 3 Jabotinsky Street,
Diamond Exchange, Shimshon Building (17th Floor, Rooms 1703-1704),
Ramat Gan.
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. (charges placed January 2013).
Sales data not forthcoming.
EL-RAN B.V.B.A., dealing in diamonds.
Mizrahi Tefahot Bank Ltd., Diamond Business Center
Branch (No. 466), Ramat Gan.
Nothing unfavorable learned.
We were informed that Ran Atzmon is
currently abroad and were asked to call again in two week's time (it is a
holiday period in Israel). Upon contacting him we shall update you accordingly.
Eyal Atzmon, is a veteran diamond dealer
(since 1981), and a second generation of a reputable diamond trading family. He
is an active member of the Antwerp Diamond Bourse, as well as the founder of
the European Quality Circle for diamond and jewelry membership club.
Israel's diamond industry continued the
growth trend in all trade parameters in 2014, after the impressive growth in
2013 in most parameters, based on the data by Israel's Diamond Administration
(IDA) at the Ministry of Economics: Net export of polished diamonds rose by
0.6% from 2013, reaching US$6.269 billion (after rising 11.6% in 2013), and net
rough diamond exports totaled US$3.061 billion in 2014, up 4.2% from 2013
(after a mere rise in 2013). The market has been volatile over the last years
after experiencing its worst depression due to the global economic crisis, then
recovered in 2010 but fell again in 2012.
The recovery in 2013 and 2014 is positive
news for the local branch (still away from its peak on the eve of the crisis
with export of polished diamonds of US$ 7 billion), however it is reported that
profit margins have been decreasing due to smaller gaps between rough and
polished diamond prices (leading the diamond dealers to search for new rough
sources in hope to decrease costs). Overall, IDA reports that 2014 was tough
year for the diamond industry in Israel and globally.
Net imports of polished diamonds in 2014
totaled US$4.514 billion, and net import of rough diamonds totaled US$ 4.022
billion, marking 4.8% and 0.8% increase from 2013, respectively (in 2013 import
was in similar levels to 2012).
The United States continued to be Israel’s
major market for polished diamonds, accounting for 30.8% of the market in 2014
(37% in 2013). Hong Kong is the next largest market with 29.7% of exports (27%
in 2013), with Belgium 8.5%, Switzerland 6.5%, and U.K. accounting for 3.7% 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 stood on US$
1.5 billion, down from US$ 2.4 billion in the eve of the global crisis.
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 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 said 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.
In July 2014 3 indictments were filed to the
Tel Aviv District Court against central defendants in the affair, who provided
foreign currency services to the "underground bank" (not against
diamond dealers at this stage), for felonies of money laundering and tax
evasion in volumes of US$ millions.
Lacking data on subject, for the time being,
dealings are recommended on secured basis.
Note: Subject's correct telephone No. is
(+972-3) 5751752. We called the cellular phone No. you provided (+972-54) 3455344,
but received no answer.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.59 |
|
|
1 |
Rs.92.46 |
|
Euro |
1 |
Rs.67.51 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
SDA |
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 |
|
-- |
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.