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MIRA INFORM REPORT
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Report No. : |
490960 |
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Report Date : |
15.02.2018 |
IDENTIFICATION DETAILS
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Name : |
E.Z. DIAM |
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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 : |
25.05.2009 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers,
processors, polishers, traders, importers and exporters of diamonds (raw and polished)
of various size and colors, supplying jewelers, watchmakers, and diamond
dealers around the world. |
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No. of Employees : |
50 |
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 (30.06.2017) |
Current Rating (30.09.2017) |
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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
RE: E.Z. DIAM
Telephone 972 3 753 10 00
Fax 972 3 751 53 95
Email: Main@ezdiam.co.il
21 Tuval Street*
Diamond Exchange, Yahalom Bldg.
Ramat
Gan, 5252236, Israel
HISTORY
& LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-427532-0 on the 25.05.2009.
Subject was
established in view of the split of the local activities of YAHALOMEI ESPEKA INTERNATIONAL LTD. (YEI), a private limited company
incorporated in 1982, originally founded in the 1960's.
We were informed
that YEI shareholders decided to brake-up their partnership, therefore one partner
- Abraham Fluk formed his own company (YOSHFE DIAM
SHARE
CAPITAL
Authorized share capital NIS 30,001.00, divided into –
1 management share,
1,000 deferred shares,
29,000 ordinary shares (219 shares issued), all of NIS 1.00 each,
of which shares amounting to NIS 219.00 were issued.
SHAREHOLDERS
Subject is fully owned by Philippe Itschak Zivan-Sussholz.
In November 2012 GOLDENWEST DIAMONDS INTERNATIONAL, a US company owned by William (Bill) Doddridge, acquired 25% of
subject.
During 2015 GOLDENWEST realized their holdings.
DIRECTORS
1. Philippe Itzchak Zivan-Sussholz (known as
Itschak Zivan), Chairman,
2. Ms. Ronit Zivan-Sussholz,
3. Amihai Zivan-Sussholz.
GENERAL
MANAGER
Ms. Orit Smat.
BUSINESS
Manufacturers,
processors, polishers, traders, importers and exporters of diamonds (raw and
polished) of various size and colors, supplying jewelers, watchmakers, and
diamond dealers around the world.
Most of sales are
for export.
Processing is also
carried out in China.
Among clientele: R.E.S. DIAMONDS.
Operating from offices premises in the
Diamond Exchange, Ramat Gan.
According to our
records, also from subject’s website, operating from offices in 21
Tuval Street, Diamond Exchange, Yahalom Building (Room No. 501), Ramat Gan
(premises known to be owned by subject and Philippe Itschak).
*Note:
According to the Registrar of Companies, subject’s address changed to 1
Jabotinsky Street, Ramat Gan. We spoke with subject’s secretary, who confirmed
the address of 1 Jabotinsky Street, Diamond Exchange, Maccabi Building, Ramat Gan, but did not confirm they left the other above address.
Therefore, we could
not determine which is the actual current main premises.
The Group also operates diamond plants (manufacturing and polishing) in 2
sites in China (Shanghai) and maintains branches in New York, Switzerland, Hong
Kong and Antwerp.
Website: www.ezdiam.ci.il
Had 50 employees in Israel in 2014. Current number of employees not
forthcoming, 59 employees according to publications.
MEANS
Financial data not
forthcoming, however known to be of a solid financial status (as YEI had been
along the years it operated), also being a DTC (Diamond Trading Company) Sightholder.
There are 2 charges for unlimited amounts
registered on the company's assets (1 on all assets and 1 on real estate asset,
both placed in 2009), in favor of Israel Discount Bank Ltd.
REVENUES
Subject’s sales begun in August 2009, after
the split in YEI.
Sales for export (net) of polished diamonds as published by the Supervisor on Diamonds
in the Israeli Ministry of Industry & Trade:
Note: Overall sales are higher as there are sales to the local market as
well.
2009 sales for
export were US$ 34,000,000.
2010 sales for
export were US$ 96,683,924.
2011 sales for
export were US$ 140,000,000.
2012 sales for
export were US$ 95,000,000.
It is possible that
in later years subject refrained from being reported in the Israel Supervisor
on Diamonds top exporters lists (which is up to the company's own discretion).
OTHER
COMPANIES
EZD SHANGHAI LTD, a subsidiary in China,
E.Z. DIAMONDS (BELGIUM) EVBA, a subsidiary in Belgium,
EZ DIAMONDS USA INC., a subsidiary in the USA,
E. Z. DIAMONDS (HK) LIMITED, a subsidiary in Hong Kong,
VOEGELI & WIRT AG / SA, a subsidiary in Switzerland.
YAHALOMEI ESPEKA INTERNATIONAL LTD., equally owned by Itschak Zivan and
Abraham Fluk, presently mainly a holding company (or inactive). In the past
were dealt in diamonds.
LESHEM PRIMA DIAM
ITSHAK ZIVAN LTD.
BANKERS
According to our records (since subject's officials refused to
cooperate, we are unable to verify the u/m bank details):
Israel Discount Bank Ltd., Diamond Exchange
Branch (No. 080), Ramat Gan.
Mizrahi Tefahot
Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
So far subject's
officials refused to update any data, including address and general manager’s
name. We were asked to send an email to Ms. Orit Samet, which we did, but did
not receive any response.
Subject is among
the leading diamond companies in Israel, also known as one of the major diamond
suppliers to the watch industry.
According to the
Israel Supervisor on Diamonds, subject was ranked 6th in the
Israel’s largest polished diamond exporters List in 2012, 4th in
2011, 5th in 2010 and 15th in 2009 (subject possibly
chose to refrain from being listed in later years’ ranking, as it is to the
company’s discretion).
YAHALOMEI ESPAKA INTERNATIONAL LTD., known in short as YEI, was one of the
largest and leading diamond dealers in the local diamond market. It was a sight
holder since 1971 and operating from manufacturing and processing facilities in
Israel, China and branches worldwide. In 1999 YEI was awarded the
"Excellent Exporter" Award from the Ministry of Industry & Trade.
YEI was ranked as
Israel’s 4th largest diamond exporter in 2008, according to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade same as in 2007.
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.
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
Notwithstanding
the refusal to update details, considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.13 |
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1 |
INR 89.17 |
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Euro |
1 |
INR 79.39 |
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ILS |
1 |
INR 18.18 |
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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VAR |
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Report Prepared
by : |
SYL |
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.