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Report No. : |
324838 |
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Report Date : |
08.06.2015 |
IDENTIFICATION DETAILS
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Name : |
YERUSHALMI BROTHERS DIAM |
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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 : |
1975 |
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Legal Form : |
Private Limited Company |
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LINE OF BUSINESS : |
IMPORTERS, TRADERS, POLISHERS, PROCESSORS AND
EXPORTERS OF DIAMONDS OF VARIOUS KINDS. |
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No. of Employee : |
327 |
RATING & COMMENTS
|
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 : |
-- |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Israel |
A2 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
|
Off-credit |
D |
ISRAEL ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered 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 has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 this past decade. The massive Leviathan field is expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. 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. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.
|
Source
: CIA |
YERUSHALMI BROTHERS
DIAM
Telephone 972 3 575 01 51
Fax 972 3 575 01 52
Email: info@yerushalmi.com
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN 5252236 ISRAEL
Originally
established in 1975 as a non-registered business.
Converted into a
private limited company and registered as such as per file
No. 51-118058-0 on
the 26.02.1987.
Authorized share
capital NIS 2,640.00, divided into -
2,640 ordinary shares of NIS 1.00 each,
of which 100
shares amounting to NIS 100.00 were issued.
1. Aharon Yerushalmi, 34%,
2. Zion Yerushalmi, 33%,
3. Binyamin Yerushalmi, 33%.
1. Binyamin (Beni) Yerushalmi, General Manager,
2. Aharon Yerushalmi,
3. Zion Yerushalmi.
Importers, traders,
polishers, processors and exporters of diamonds of various kinds.
Most sales are for
export.
Operating from
offices premises, owned by the shareholders, in 21 Tuval Street (also referred
to as 54 Bezalel Street), Diamond Exchange, Yahalom Building (19th Fl., Room Nos. 73-74), Ramat Gan (subject's offices
capture half the floor). Also operating from a plant in Botswana. In addition
having facilities in India and international network of 7 offices in New York,
Los Angeles, Hong Kong, Shanghai, Shenzhen, Taiwan and Singapore.
Subject operates in
China under the brand name "Amorosso".
Had in all 327
employees, of which 27 in Israel, and the rest serving subject's plant in
Botswana, as of mid 2013. Current employee number not forthcoming, according to
our searches, having 291 employees (we figure the number of employees in Israel
is similar to 2013).
Financial data not forthcoming, however
known to be financially solid.
Subject is a DE
BEERS' DCT Sightholder.
There is 1 charge
for an unlimited amount registered on the company’s assets (fixed assets), in
favor of the First International Bank of Israel Ltd. (charges placed January
2011).
2007 sales were US$ 210,000,000 (of which 77% for export – see below).
According to the published by the Israel Supervisor on Diamonds in the
Ministry of Industry and Trade, subject sales for export of polished diamonds
were:
2007 export was US$ 161,000,000.
2008 export was US$ 150,000,000.
2009 export was US$ 136,000,000.
Subject's officials informed us that a/m
figures are only of polished diamonds, and that subject's 2009 turnover is well much higher than US$ 136,000,000.
Later figures not forthcoming.
YERUSHALMI BROS.
BOTSWANA LTD., Botswana.
YERUSHALMI BROS
DIAMONDS (HK) LTD., Hong Kong.
YERUSHALMI BROTHERS
DIAMONDS USA INC., USA.
The First International
Bank of Israel Ltd., Avney Hen Branch (No. 126), Ramat Gan.
In February 2005 it was reported that subject's
shareholders were released on bail regarding allegations of tax fraud of NIS
5.6 million. No further details were found on that matter, we believe
the matter was resolved (usually in compromise/ ransom payment).
Apart from that, nothing unfavorable learnt
(including not in any current affair).
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
In 2006 subject received a 'Superbrand' status
in China.
In July 2008 it was reported that subject won
the "Excellent Exporter" award fpr year 2007 from the Israeli Ministry
of
Industry & Trade.
Subject is considered one of Israel’s 10 leading
diamond companies.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Industry and Trade, subject was ranked 4th in the 2009 list of
Israel's largest polished diamonds exporters. This marks a higher ranking than
in earlier years, when subject was ranked as follows: 5th in 2008, 6th
in 2007 and 6th in 2006. Since 2010, subject refrained from being
reported in the Israel Supervisor on Diamonds top exporters lists (which is up
to the company's own discretion).
Israel's diamond
industry continued the growth trend in all trade parameters in 2014, after the
impressive growth in 2013 in most parameters, based on the data by Israel's
Diamond Administration (IDA) at the Ministry of Economics: Net export of
polished diamonds rose by 0.6% from 2013, reaching US$6.269 billion (after
rising 11.6% in 2013), and net rough diamond exports totaled US$3.061 billion
in 2014, up 4.2% from 2013 (after a mere rise in 2013). The market has been
volatile over the last years after experiencing its worst depression due to the
global economic crisis, then recovered in 2010 but fell again in 2012. The
recovery in 2013 and 2014 is positive news for the local branch (still away
from its peak on the eve of the crisis with export of polished diamonds of US$
7 billion), however it is reported that profit margins have been decreasing due
to smaller gaps between rough and polished diamond prices (leading the diamond dealers
to search for new rough sources in hope to decrease costs). Overall, IDA
reports that 2014 was tough year for the diamond industry in Israel and
globally.
The data published
for the first quarter of 2015 (compared to the parallel period in 2014) points
on a negative reverse trend in all parameters: Net export of polished diamonds
plunged by close to 30% from the 1stQ 2014, reaching US$1,610
million, and net rough diamond exports decreased by 23%, totaled US$ 694
million. Net imports of polished diamonds fell by 12%, reaching US$ 904
million, while net import of rough diamonds fell 18% totaling US$ 827 million.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 39%
of the market in the 1stQ 2015 (31% in 2014). Hong Kong is 2nd
largest market with 33% of exports (30% in 2014), then Switzerland 13%, Belgium
7%, and U.K. accounting for 2% 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 stood on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the
global crisis.
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 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.
1. P.O. Box 315 is subject's internal
postal box in Yahalom Bldg.
2. Since February 2013 Israel
Post has started using a new area code method of 7 digits (the old method of 5
digits is no longer valid).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
|
|
1 |
Rs.97.98 |
|
Euro |
1 |
Rs.71.82 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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|
|
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Report Prepared
by : |
ANK |
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
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.