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Report Date : |
19.11.2014 |
IDENTIFICATION DETAILS
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Name : |
SHLOMO BICHACHI DIAMONDS LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
26.08.2002 |
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Com. Reg. No.: |
51-329000-7 |
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Legal Form : |
Private Limited Liability Company |
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LINE OF BUSINESS : |
IMPORTERS, MANUFACTURERS, POLISHERS, EXPORTERS
AND MARKETERS OF |
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No of Employees : |
80-90 |
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 |
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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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Source
: CIA |
SHLOMO BICHACHI
DIAM
(Also known as
BICHACHI DIAMONDS, or SB DIAMONDS)
Telephone 972 3 613 36 20 /1
Fax 972 3 613 13 42
Email: info@bichachi.com
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.
80% 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 6 branches
worldwide: Mumbai, Hong Kong, Los Angeles, New York, Antwerp and Milan.
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 (similar to 2013).
According to a
report from March 2011 there were 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.
2012 sales claimed to be US$ 40,000,000, of which 60%-70% for export.
2013 sales claimed to be US$ 50,000,000, of which 80% 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 and in 2013 subject exported (polished diamonds) in volume of US$ 40,000,000.
SHLOMO BICHACHI DIAMONDS ASIA LTD., Hong
Kong,
SHLOMO BICHACHI DIAMONDS CORP., L.A., USA,
S. BICHACHI BLUMENFELD DIAMONDS CORP., N.Y.,
USA,
BICHACHI DIAMONDS B.V.B.A, Belgium,
OCTAGON DIAMONDS CO.,LTD., 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 18th in the 2013 list of Israel's
largest polished diamonds exporters, same ranking as in 2012 List. Subject was
ranked 25th in the 2010 but did not appear in 2011 list, which could
be either that it ranked lower than 25, or alternatively is that subject chose
not to be included in the list (which is its right).
Israel's diamond
industry remarked on impressive growth in almost all trade parameters in 2013,
from the data by Israel's Diamond Administration at the Ministry of Economics:
Net export of polished diamonds rose by 11.6% from 2012, reaching US$ 6.2
billion. The market has been volatile in recent years: the branch –in Israel as
well as globally- experienced its worst depression in the 2nd half
of 2008 and 2009 due to the global economic crisis (almost an entire freeze and
collapse in sales of about 70% in the peak of the crisis), then recovered in
2010 and mainly in and fell again in 2012 (net export fell by 23% in 2012 from
2011).
Net rough diamond
exports totaled US$2.9 billion in 2013, a mere rise from 2012.
Net imports of
polished diamonds remained in similar level as 2012 (after drop by 25% in 2012
from 2011), totaling US$4.3 billion, while net rough diamonds imports summed at
US$ 4 billion, 4% up from 2012 (when it fell 13% from 2011).
The United States
continued to be Israel’s major market for polished diamonds, accounting for 37%
of the market in 2013 (35% in 2013). Hong Kong is the next largest market with
27% of exports, with Switzerland accounting for 9.3%, Belgium 7.3%, and India
accounting for 2.3% of Israel's polished diamond export.
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
global crisis. The Ministry of Economics also assisted the local diamond
exporters by providing bank guarantees in total scope of NIS 1 billion.
In February 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 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 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, and for a
while to paralysis (especially in purchase of raw diamonds) due to uncertainty
among local and foreign dealers.
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.
In June 2013 it
was reported that the Police resumed its raids on the diamonds branch, and
although names of suspects were not released, sources say that it is also
related to the above underground bank affair. In parallel, it is also reported
that the Tax Authorities and diamonds dealers' representatives are trying to
reach an arrangement for past debts. The Attorney General is in process of
preparing indictments.
In the end of
December 2013 it was reported that 5 diamond dealers were summoned to a hearing
(not mandatory) regarding the a/m affair, prior to filing an indictment, before
the Tel Aviv District Attorney (Tax and Finance sector).
Good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.81 |
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|
1 |
Rs.96.77 |
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Euro |
1 |
Rs.77.09 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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 |
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 |
-- |
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.