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Report No. : |
347540 |
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Report Date : |
29.10.2015 |
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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Date of Incorporation : |
16.03.1998 |
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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 Employee : |
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Israel |
B1 |
B1 |
|
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 2013, 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. 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 |
OFER MIZRAHI DIAM
(Also known as OM DIAMONDS)
Telephone 972
3 752 08 17; 600 58 11
Fax 972
3 575 90 35
Email: info@om-diamonds.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.
In 2012 we were informed that some 90% of sales were for export.
Among clients: LEO SCHACHTER DIAM
Both above clients are leading diamond firms and also serve as
suppliers.
Operating from rented office premises, on an area of 100 sq. meters, in
21 Tuval Street (also referred to as 54 Bezalel Street), Diamond
Exchange, Yahalom Building (21st Floor, rooms 61-65), Ramat Gan.
Group also operates 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 (not disclosed).
Financial data not forthcoming.
There
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 and 2014 sales were not disclosed, however we learnt that subject's
export rate is some 90% of overall sales and export figures are known – see
below.
Sales for export (net) of polished diamonds as published by
the Supervisor on Diamonds in the Israeli Ministry of Industry & Trade
(confirmed by subject):
2011 sales for export were US$ 96,000,000.
2012 sales for export were US$ 92,000,000.
2013 sales for export were around US$
103,000,000.
2014 sales for export were around 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.
OFER MIZRAHI DIAMONDS OF CANADA LTD., of
Canada.
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 General Manager, Mr. Ofer Mizrahi, refused to disclose data
without being informed of the exact supplier concerned.
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 6thin the
2014 list of Israel's largest polished diamonds exporters, after being ranked 5th
in 2013 list, 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 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.
The data published for the 1st half of 2015 (compared to 1stH
2014) points on a negative reverse trend in all parameters: Net export of
polished diamonds represents 17% decrease, reaching US$2,975 million, and net
rough diamond exports decreased by 22%, totaled US$ 1,361 million. Net imports
of polished diamonds fell by 17%, reaching US$ 1,793 million, while net import
of rough diamonds fell 21% totaling US$ 1,623 million.
The United States continued to be Israel’s major market for polished
diamonds, accounting for 44% of the market in the 1stH 2015 (some recovery from
39% in latest years). Hong Kong is 2nd largest market with 31% of
exports (30% in 2014), then Switzerland 10%, Belgium 6.5%, and U.K. accounting
for 2.4% 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. On June 15th 2015 the court made the first conviction in
the affair, sending a foreign currency dealer who pretended also to be a
diamond dealer, for 4 years prison and a fine (part of a plea bargain).
Notwithstanding the refusal to update
details, considered good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.04 |
|
|
1 |
Rs.99.58 |
|
Euro |
1 |
Rs.71.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
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|
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
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 |
|
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 |
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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 |
|
<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.