|
Report No. : |
342862 |
|
Report Date : |
30.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
OFER MIZRAHI
DIAMONDS LTD. |
|
|
|
|
Registered Office : |
21 Tuval Street Diamond Exchange, Yahalom
Bldg. Ramat Gan 5252236 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Date of Incorporation : |
16.03.1998 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Traders, importers, marketers and
exporters of all sorts of diamonds. |
|
|
|
|
No. of Employee : |
20 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.66.18 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.