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Report Date : |
20.02.2013 |
IDENTIFICATION DETAILS
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Name : |
SHLOMO BICHACI DIAMONDS LTD. |
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Registered Office : |
Diamond Exchange,
Yahalom Bldg.,Ramat Gan 5252236 |
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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, specializing in
small fancy cut diamonds. |
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No. of Employees : |
80-90 Employees |
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 : |
-- |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
israel - ECONOMIC OVERVIEW
Israel has a
technologically advanced market economy. It depends on imports of crude oil,
grains, raw materials, and military equipment. Cut diamonds, high-technology
equipment, and agricultural products (fruits and vegetables) are the leading
exports. Israel usually posts sizable trade deficits, which are covered by
tourism and other service exports, as well as significant foreign investment
inflows. 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. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel's energy security
outlook. The Leviathan field was one of the world's largest offshore natural
gas finds this past decade. In mid-2011, public protests arose around income
inequality and rising housing and commodity prices. The government formed
committees to address some of the grievances but has maintained that it will
not engage in deficit spending to satisfy populist demands.
|
Source : CIA |
SHLOMO BICHACI
DIAM
Telephone 972 3 613 36 20/ 1
Fax 972
3 613 13 42
21 Tuval Street
Diamond Exchange,
Yahalom Bldg.
RAMAT GAN 5252236 ISRAEL
A private limited liability company, incorporated as per file No.
51-329000-7 on the 26.08.2002, continuing a business founded in 1993.
Authorized share capital NIS 39,100.00, divided into -
39,100 ordinary shares of NIS
1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
Subject is fully
owned by Shlomo Bichachi.
Shlomo Bichachi
Importers,
manufacturers, polishers, exporters and marketers of wide range of diamonds,
specializing in small fancy cut diamonds.
Exports are to
large jewelry businesses and chains in the USA, Hong Kong, etc.
60%-70% of sales
are export.
Operating from
rented office premises, on an area of 200 sq. meters, in 21 Tuval Street (also known
as 54 Bezalel Street), Diamond Exchange, 30th floor (moved from
the 17th Floor), Yahalom Bldg., Ramat Gan, and from offices in
L.A. and New York, U.S.A., Belgium and in Hong Kong.
Also was known to be
operating from 3 plants in Israel: Netanya, Tel Aviv and Petach Tikva, as well
as from subsidiary a plant in Thailand.
Having 80-90
employees.
According to a
report from March 2011 there are some 200 employees in the plant in Taiwan.
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. (last charge placed December
2012, prior charge placed January 2003).
2007 sales claimed to be US$ 35,000,000, of
which US$ 28,000,000 were for export.
2008 sales claimed to be circa US$
35,000,000, of which US$ 28,000,000 for export.
2009, 2010 sales not forthcoming.
2011sales claimed to be US$ 40,000,000, of
which 60%-70% for export.
2011sales claimed to be US$ 40,000,000, of
which 60%-70% for export.
According to the report published by the
Israel Supervisor on Diamonds in the Ministry of Industry and Trade, in 2010
subject exported (polished diamonds) in volume of US$ 27,000,000 (actual
overall sales presumed to be higher, as there are local sales of polished
diamonds and may have sales of rough diamonds as well), 2011 export not
forthcoming, in 2012 subject exported (polished diamonds) in volume of US$
40,000,000.
OCTAGON, a subsidiary in Thailand, diamond
dealers, manufacturers, polishers and marketers.
Mizrahi Tefahot Bank Ltd., Diamond Exchange
Business Center Branch
(No. 466), Ramat Gan.
Nothing
unfavorable learned.
Shlomo Bichachi is
veteran in the diamond business and enjoys good reputation in the branch.
According to the report published by the Israel
Supervisor on Diamonds in the Ministry of Industry and Trade, subject was
ranked 25th in the 2010 list of Israel's largest polished diamonds
exporters (the list publishes the top 25 diamond firms; subject does not appear
in 2011 list, which could be either that it ranks lower, or alternatively is
that subject chose not to be included in the list, which is its right). In 2012
subject was ranked 18th.
An affair of an
underground bank has been shocking 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 has already led to several of reported bankruptcies of local
diamond firms, a decrease of up to 70% in transactions in 2012, frozen bank
accounts, a paralysis (especially in purchase of raw diamonds) even with fear
of the a collapse of the sector, while dealers –local and foreign- face
uncertainty.
In March 2012 the
Police decided to lower the profile of the investigation for a while a result of
the big pressure from the diamond branch (to stop the continuing damage
inflicted) and the Government (who is losing US$ hundred millions from decrease
in tax collection). In November 2012 the Police and Tax Authorities recommended
on indictments against the 25 suspects in the affair, among them diamond
dealers, for the said suspicions and obstruction of the investigation.
Export of polished
diamonds from Israel fell by 23% in 2012 from 2011, after the sector recovered
in 2010 and mainly in 2011 from one of the worst depressions in the global
diamond sector due to the severe economic crisis in global markets that erupted
in September 2008. The sector experienced almost an entire freeze and collapse
in sales of about 70% in the peak of the crisis and 2009 export diamonds shrank
by some 40%.
While the global
diamond industry experienced major declines during the year, Israel saw a
steady improvement in its diamond trade in the third and fourth quarters of the
year, according to Ministry of Industry, Trade and Labor Diamond Controller
Shmuel Mordechai, who published figures for Israel’s diamond imports and
exports during 2012.
Israel’s net
polished diamond exports stood at US$5.6 billion in 2012, compared a decline of
23% from 2011. Mr. Mordechai said that Israel’s diamond trade seems likely to
continue to improve in 2013 and return to levels of 2011, which was a record
year.
Israel’s net rough
diamond exports totaled US$2.8 billion in 2012, a 20% decrease from 2011.
Net imports of
polished diamonds dropped 25% from 2011, totaling US$4.27 billion, while net
rough imports stood at US$3.8 billion, 13 % less than in 2011.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 36%
of the market. Hong Kong was the next largest market with 28% of exports, with
Belgium accounting for 8%, Switzerland 5%, U.K. 5% and the rest of the world
18%.
According to the
President of the Israeli Diamonds Association, in 2010 the trade in the local
diamond sector rolled annual turnover of US$ 25 billion while total debt to the
banks stands on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the
crisis. The Ministry for Industry & Trade also assisted the local diamond
exporters by providing bank guarantees in total scope of NIS 1 billion.
Local diamond
sector employs some 20,000 persons.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
Good for trade engagements.
Note: Subject does not have a P. O. Box.
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
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The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
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Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
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Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
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The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
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Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
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Excerpts from Times of India dated 30th October 2010 is as
under –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
UK Pound |
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
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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NB |
New
Business |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.