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MIRA INFORM REPORT
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Report No. : |
486193 |
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Report Date : |
18.01.2018 |
IDENTIFICATION DETAILS
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Name : |
OFER MIZRAHI DIAM |
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Registered Office : |
21
Tuval Street Diamond Exchange, Yahalom
Bldg. Ramat Gan 525223 |
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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 Employees : |
20 (2016) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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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 2.6% per year during the period 2014-16. 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 2017 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
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
HISTORY
& LEGAL FORMATION
A
private limited company, incorporated as per file No. 51-261259-9 on the
16.03.1998, continuing diamond business activities in late 1980s.
SHARE
CAPITAL
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.
SHAREHOLDERS
1. Ofer Mizrahi, 99%,
2. Mrs. Nava Mizrahi, wife of Ofer, 1%.
SOLE
DIRECTOR
Ofer Mizrahi
JOINT
GENERAL MANAGERS
1.
Ofer Mizrahi,
2.
Moshe Matsliah.
BUSINESS
Traders,
importers, marketers and exporters of all sorts of diamonds.
Circa
85% of sales are for export (as of 2016).
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,
Diamond Exchange, Yahalom Building (21st Floor, rooms 61-65), Ramat
Gan. The Group also operates from American headquarters in Chicago, and
branches in New York, Boston and San Francisco.
Having
20 employees in Israel as of end of 2016 (similar to the previous years), and
around 100 employees serving the Group (Israel + subsidiaries overseas).
Current
number of employees unavailable, believe to be similar.
MEANS
Financial
data not forthcoming.
There are 4 charges for
unlimited amounts, as well as 1 charge of US$ 330,000 registered on the
company's assets, in favor of Israel Discount Bank Ltd. and Mizrahi Tefahot
Bank Ltd. Charges placed in 2007 on all assets, in 2015 on real estate, in June
2016 on financial and other assets, and in January 2017 on financial assets.
REVENUES
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,
2014 and 2015 sales were not disclosed, however we learnt that subject's export
rate is around 90% of overall sales and export figures are known – see below.
2016 sales
claimed to be US$ 125,000,000, of which US$ 105,000,000 were for export.
Sales for export (net) of polished diamonds as
published by the Supervisor on Diamonds in the Israeli Ministry of Economy
& Industry:
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.
2015
sales for export were around US$ 102,000,000.
2016
sales for export were around US$ 101,000,000.
OTHER
COMPANIES
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.
BANKERS
Israel Discount Bank Ltd., Diamond Business Branch (No. 80),
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.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
Despite
our efforts, we have been unable to speak with subject’s joint General Manager,
Mr. Moshe Matsliah, the authorized person to disclose information, as he was
always too busy to take our calls. We left a message.
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
Economy & Industry, subject was ranked 4th in the 2016 list of
Israel's largest polished diamonds exporters, after being ranked 6th both
in the 2015 and 2014 lists, 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 (it should be
noted that there are several large diamond exporters which chose not to be
included in the list for confidentiality reasons).
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).
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 lack of updated data from
subject's officials, 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 63.98 |
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1 |
INR 88.13 |
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Euro |
1 |
INR 78.35 |
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ILS |
1 |
INR 18.62 |
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
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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.