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MIRA INFORM REPORT
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Report No. : |
502832 |
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Report Date : |
13.04.2018 |
IDENTIFICATION DETAILS
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Name : |
E.L. DIAMONDS LTD |
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Registered Office : |
8 Shoham Street Ramat Gan
5251006 |
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Country : |
Israel |
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Date of Incorporation : |
17.02.2011 |
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Legal Form : |
Private limited company |
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Line of Business : |
Traders, importers, exporters
and marketers of white diamonds, in all types of cuts, from round to fantasy,
ranging in size from 20 points to 25 carats. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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 free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company
name and address
E.L. DIAMONDS LTD.
Telephone 972
54 453 90 05 (Eliezer Leybel)
Email: ronyarbib.el@gmail.com
Registered Address
8 Shoham Street
RAMAT GAN 5251006 ISRAEL
HISTORY
& LEGAL FORMATION
A private limited company,
incorporated as per file No. 51-457843-4 on the 17.02.2011.
According to the Israel Diamond
Institute, subject is continuing family activities which began in the 1960’s.
SHARE
CAPITAL
Authorized share capital NIS
50,000.00, divided into -
50,000
ordinary shares of NIS 1.00 each,
of which 100 shares amounting to
NIS 100 were issued.
SHAREHOLDERS
Subject is fully owned by
Eliezer Leybel.
SOLE
DIRECTOR
Eliezer Leybel, General Manager.
BUSINESS
Traders, importers, exporters and
marketers of white diamonds, in all types of cuts, from round to fantasy,
ranging in size from 20 points to 25 carats.
Above line of activity is based
to the Israel Diamond Institute database, as so fare we could not obtain any
information from subject’s officials (see below).
Subject’s registered address in
the Registrar of Companies is 8 Shoham Street, Ramat Gan.
The Israel Diamond Institute
office informed us that subject is operating from 21 Tuval Street, Diamond
Exchange, Yahalom Bldg., Ramat Gan.
Number of employees not
forthcoming.
MEANS
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 in 2012).
REVENUES
Sales figures not forthcoming.
BANKERS
According to our (since Eliezer
Leybel did not disclose any data, we are unable to confirm the u/m bank
details):
Mizrahi
Tefahot Bank Ltd., Diamond Business Branch (No. 466), Ramat Gan.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
We called Mr. Eliezer Leybel on
him mobile phone (in caption). He told us he is abroad and confirmed he is the
owner of subject. He did not provide any further data and disconnected.
We will attempt to speak with
Mr. Leybel later (we do not know when he returns to office), and update you
once, and if, we obtain fresh data.
Export
(net) of polished diamonds from Israel in the first 9 months of 2017 totaled
US$ 3,383 million, which represents 11.8% decrease compared to the parallel
period in 2016, while export of net rough diamonds fell 10.4% in this period,
reaching US$ 1,796 million. That is in contrast to the figures in 2016, which
showed signs of recovery for the Israeli diamond trade, coming after the export
of diamonds from Israel experienced a drastic fall by 20% in 2015 from 2014
(down 40% from 2011).
Net
export of polished diamonds in 2016 decreased by 6.4% from 2015, reaching US$
4,675 compared to US$ 4,993 million in 2014 (after 0.6% rise in 2014 and 11.6%
in 2013), however net rough diamonds exports jumped 23.1% to US$2,702 million
(in 2015 fell 28.3% from 2014, after 4.2% rise in 2014, and a mere rise in
2013). Yet the figures are well away from its peak on the eve of the crisis
with export of polished diamonds of US$ 7 billion.
In
total, diamonds export (polished and rough) in 2017 were expected to sum up to
US$ 7 billion, 7% lower than in 2016, from the Ministry of Economy forecast.
The
market has been volatile over the last years after experiencing its worst depression
due to the global economic crisis. According to Israel's Diamond Administration
(IDA) at the Ministry of Economics, profit margins have been decreasing due to
smaller gaps between rough (increasing) and polished (decreasing) diamond
prices.
In addition,
the local diamond sector has been negatively affected by other significant
factors: the production of counterfeit diamonds, whose quality keeps improving
(harming the raw diamonds market), the entrance of new rules by the local Tax
Authorities on the Diamond Exchange for enforcing money laundering, and the
"underground bank" affair – as below.
As a
result, local diamond dealers report on difficulties in executing transactions
and bad atmosphere in the branch. Signs of recovery appeared towards the last
quarter of 2016 – mainly due to the growing stability of the market and the
industry’s agreement with the Israel Tax Authority in December, yet the market
is still volatile, as witnessed with the endurance of the depression trend
during 2017.
Net
imports of polished diamonds totaled US$ 3,282 million in 2016, 5.7% decrease
from 2015, while net import of rough diamonds reached US$ 3,246 million, up
16.7% from 2015.
Net
imports of polished diamonds decrease by 15.1% in the first 9 months of 2017
and totaled US$ 2,015 million, compared to the parallel period in 2016, whereas
net import of rough diamonds reached US$ 2,089 million, down 11.6% from 2016.
The
United States continued to be Israel’s major market for polished diamonds,
accounting for 45% of the market in the first 9 months 2017 (was 39% in 2016).
Hong Kong is 2nd largest market with 30% of exports (26% in 2016),
followed by Switzerland 9% (7%), Belgium 8% (8%), and the rest of the world
account for the remaining 8% of Israel's polished diamond export.
In
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" (known as the "Check List" Affair)
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, and for a while to paralysis
(especially in raw diamonds purchase) due to uncertainty among local and
foreign dealers. Later in 2012 the Police decided to lower the profile of the
investigation for a while (pressure from the diamond branch due to the
continuing damage inflicted and the Government (losing US$ hundred millions
from decrease in tax collection), but resumed investigation in 2013.
In
mid-2014, based on the Police and Tax Authorities recommendations, the State
Attorney started the process of filing indictments against central defendants
in the affair, initially against dealers who provided foreign currency services
to the "bank" (in June 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, a fine and confiscation of assets in volume
of NIS millions, part of a plea bargain).
Since
late 2015 indictments for severe charges pressed against 11 diamond dealers and
their firms for tax felonies committed and issuing fictitious invoices in
volumes of millions US$ (latest indictments filed by the Tel Aviv District
Attorney in August 2016). Their cases are pending.
SUMMARY
Considering the lack of data
from Eliezer Leybel, dealings are recommended on secured basis.
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).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.35 |
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1 |
INR 92.70 |
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Euro |
1 |
INR 80.80 |
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ILS |
1 |
INR 18.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.