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Report Date : |
30.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SHLOMO BICHACHI DIAM |
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Registered Office : |
21 Tuval Street Diamond Exchange, Yahalom Bldg.Ramat Gan 525223 |
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Country : |
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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 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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).
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.
Despite our continuous attempts, we were unable to speak with subject's General Manager, Mr. Shlomo Bichachi, in order to get updates, as he was always unavailable. We left messages and will update you in case he returns with data.
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% in value terms 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 fell again in 2012 (net export fell 23% in 2012 from 2011).
Net export of polished diamonds continued to grow in the 1st half of 2014 with 6% rise in value terms compared to 2013 (fell 6.7% in karat terms), reaching US$3.55 billion.
Net rough diamond exports totaled US$2.9 billion in 2013, a mere rise from 2012, and totaled US$1.75 billion in the 1stH 2014 (up 6% and 11.6% in value and in karat terms, respectively).
Net imports of polished diamonds remained in 2013 similar level as 2012 (after drop by 25% in value in 2012 from 2011), totaling US$4.3 billion, and in the 1stH 2014 reached US$2.05 billion (up 0.9% in value and 5.7% in karat). Net rough diamonds imports rose 4% in 2013 summing up at US$4 billion, and summed at US$ 2.2 billion in the 1stH of 2014 (3% rise in value, 10% fall in karat terms).
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.
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 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 said 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.
In July 2014 3 indictments were filed to the Tel Aviv District Court against central defendants in the affair, who provided foreign currency services to the "underground bank" (not against diamond dealers at this stage), for felonies of money laundering and tax evasion in volumes of US$ millions.
Notwithstanding the lack of updated data from subject's officials, considered good for trade engagements.
Note: The P.O. Box 290 you provided is an internal postal box in the Diamond Exchange and not relevant for normal outside post.
DIAMOND INDUSTRY – INDIA
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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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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
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and China.
India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.42 |
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1 |
Rs.99.72 |
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Euro |
1 |
Rs.77.93 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIS |
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 |
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.