MIRA INFORM REPORT
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Report Date : |
03.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHLOMO BICHACI DIAMONDS LTD. |
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Registered Office : |
21 Tuval
Street, Diamond Exchange, Yahalom Bldg, Ramat Gan 52521 |
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Country : |
Israel |
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Date of Incorporation : |
26.08.2002 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Importers, Manufacturers, Polishers,
Exporters and Marketers of wide range of Diamonds. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
SHLOMO BICHACI DIAMONDS LTD.
Telephone 972 3 613 36 21
Fax 972 3 613 13 42
21 Tuval Street
Diamond Exchange,
Yahalom Bldg.
RAMAT GAN 52521 ISRAEL
HISTORY & LEGAL FORMATION
A private limited
liability company, incorporated as per file No. 51-329000-7 on the 26.8.2002,
continuing a business founded years earlier.
SHARE CAPITAL
Authorized share
capital NIS 39,100.00, divided into -
39,100 ordinary shares of NIS
1.00 each,
of which shares
amounting to NIS 100.00 were issued.
SHAREHOLDERS
Subject is fully owned by Shlomo Bichaci.
SOLE DIRECTOR & GENERAL
MANAGER
Shlomo Bichaci
BUSINESS
Importers, manufacturers, polishers, exporters
and marketers of wide range of diamonds.
Exports are to large jewelry businesses and
chains in the USA, Hong Kong, etc.
Operating from owned office premises, in 21
Tuval Street (formerly 54 Bezalel Street), Diamond Exchange, 17th floor,
Yahalom Bldg., Ramat Gan, and from an office in L.A., U.S.A.
Also operating from 3 plants in Israel:
Netanya, Tel Aviv and Petach Tikva, as well as from a plant in Thailand
(subsidiary).
Note: The postal box number 290 you
provided is an internal Diamond Exchange postal box, not one provided by the
post office.
Having 120 employees in Israel (same as in
2007) and further many employees serving Thai subsidiary.
MEANS
Financial data not forthcoming, however said to be of high volumes.
There are 2 charges for unlimited amounts registered on the company's assets, in favor of Mizrahi Tefahot
Bank Ltd. and a vehicles leasing company.
ANNUAL SALES
2005 sales claimed to be US$ 20,000,000, of which US$ 14,000,000 were
for export.
2006 sales claimed to be US$ 20,000,000, of which US$ 14,000,000 were
for export.
2007 sales claimed to be US$ 35,000,000, of which US$ 28,000,000 were
for export.
Projected 2008 sales are US$ 35,000,000, of which US$ 28,000,000 for
export.
OTHER COMPANIES
OCTAGON, a subsidiary in Thailand, diamond dealers, manufacturers,
polishers and marketers.
BANKERS
Mizrahi Tefahot Bank Ltd., Diamond Exchange
Business Center Branch
(No. 466), Ramat Gan.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Mr. Bichachi,
subject's owner and General Manager, is veteran in the diamond business.
Local diamond
companies have been facing depression in business in general in recent period
due to the recession in the U.S. markets, which worsened with the collapse in
the financial markets in the U.S.A. and spread over the world during
September-October-November 2008. The American market has been the No. 1 export
market and the crisis in the U.S. market affects directly many Israeli diamond
companies, as purchasing has gone down dramatically. There have been reports on
delays in payments from clients, causing a cash flow problem to some local
companies. Some diamond dealer report sales are stagnant.
The crisis in the
world financial markets affected the diamond industry: Export of cut diamonds
(net) during
the first 10 months of 2008 summed up to US$ 5.8 billion, representing a 2.2%
decrease comparing to parallel period in 2007. That after in October 2008, cut
diamonds export fell by 46% comparing to October 2007. Export of rough
diamonds (net) from Israel in October fell even sharper – by 58.5% comparing
to October 2007.
Import of rough
diamonds (net) rose 1.7% in the first 10 months of 2008 (from 2007) to US$ 4.07 billion,
while in October alone import fell by 52.6%. Import of cut diamonds (net) also
fell sharply in October 2008 by 44.4% reaching total of US$ 3.79 billion for
the whole first 10 months of 2008.
Year 2007 marked a
record in the export of cut diamonds from Israel, with net sales for export of
US$ 7.076 billion, 7% rise from 2006 (US$ 6.611 billion). Exports (net) of
rough diamonds were US$ 3.386 billion, a 25.5% increase from 2006 (US$ 2.701
billion, which was a 23.2% decrease from 2005).
Import of rough diamonds (net) rose 8% in 2007 by (from 2006) to US$
5.084 billion, while import of cut diamonds (net) also increased in 2007 by
13.3% reaching US$ 4.558 billion.
The USA is the
main market for Israel’s export of cut diamonds, although its portion has been
decreasing in view of the economic situation – the export rate is currently
43%, comparing to 60%-65% in past years. The secondary markets are Hong Kong
(24%), Belgium (9%), U.K (3%), followed by China, Switzerland and India.
According to the
President of the Israeli Diamonds Association, local banks are expected to
contract credit given to local diamond firms, in view of the global financial
crisis. However, he believes the local diamond sector is healthy, as trade in
the sector rolls annual turnover of US$ 25 billion whereas total debt to the
banks stands on US$ 2.5 billion.
SUMMARY
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 |
Rs.49.90 |
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UK Pound |
1 |
Rs.74.30 |
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Euro |
1 |
Rs.63.42 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)