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MIRA INFORM REPORT
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Report No. : |
494052 |
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Report Date : |
05.03.2018 |
IDENTIFICATION DETAILS
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Name : |
BRIZA LIOR 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 : |
04.02.2003 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
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No. of Employees : |
7 employees 7 employees |
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 : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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
BRIZA LIOR LTD.
Telephone 972 3 503 55 52
Mobile 972 54 397 26
71
Fax 972 3 503 55
54
Email: lior@brizalior.com
21 Tuval Street Diamond Exchange, Yahalom Bldg.RAMAT GAN 5252236 ISRAEL
HISTORY
& LEGAL FORMATION
A Private Limited Company, incorporated as per file No. 51-337717-6 on
the 04.02.2003.
Originally registered under the name KETSEF HAYAM LTD., which changed to
the present name on the 10.01.2013.
SHARE
CAPITAL
Authorized share capital NIS 40,000.00, divided into -
40,000 ordinary shares
of NIS 1.00 each,
of which 100 shares amounting to NIS 100 were issued.
SHAREHOLDERS
Subject is fully owned by Lior Izboutzky.
SOLE
DIRECTOR
Lior Izboutzky, General Manager.
BUSINESS
Traders, exporters and marketers of colored polished diamonds (Fancy
Color Diamonds), mainly small sizes.
Also developers of natural polished diamonds color enhancing
technologies, and
10% of sales are export (as of 2016).
Operating from rented office premises, on an area of 60 sq. meters, in
21 Tuval Street, Diamond Exchange, Yahalom Building (10th floor, suit
No. 1061), Ramat Gan.
Website: www.brizalior.com
Had 7 employees in the beginning of 2016. Current 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. (both charges placed
in 2014).
REVENUES
2014 sales claimed to be US$ 8,000,000, 10% were for export.
2015 sales claimed to be US$ 8,000,000, 10% were for export.
Later sales figures not forthcoming.
OTHER
COMPANIES
B. BRIZA COLORS LTD., 50%, inactive.
BRIZON COLOR SERVICES LTD., 50%, diamonds processors, specializing in
color enhancing natural polished diamonds.
BANKERS
Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466),
Ramat Gan.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Mr. Lior Izboutzky, subject’s General Manager and only authorized person
to disclose data on subject, is presently abroad. We shall contact him at a
later date upon his return and update you accordingly.
Subject has developed a method for coloring diamonds which does not
involve radiation. The process, which has FDA approval, is completely clean and
produces color enhanced diamonds for a tenth of the price of a naturally
colored diamond.
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 65.22 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 79.50 |
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ILS |
1 |
INR 18.79 |
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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PRI |
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Report Prepared
by : |
SDA |
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
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.