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Report No. : |
313812 |
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Report Date : |
02.05.2015 |
IDENTIFICATION DETAILS
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Name : |
YAHLI DIAMONDS LTD. |
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Registered Office : |
1 Jabotinsky Street, Diamond Exchange, Maccabi Bldg., Ramat Gan 5252001 |
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Country : |
Israel |
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Date of Incorporation : |
08.02.2011 |
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Com. Reg. No.: |
51-457276-7 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, importers and marketers of diamonds of all sorts. |
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No of Employees : |
Not Available |
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 : |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Israel |
A2 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 |
YAHLI DIAMONDS LTD.
Telephone 972 3 575 66 18
Fax 972 3 575 66 17
Email: rdm@barak.net.il
1 Jabotinsky Street
Diamond Exchange, Maccabi Bldg.
RAMAT GAN 5252001 ISRAEL
A private limited company, incorporated as per file No. 51-457276-7 on
the 08.02.2011.
Authorized share capital of NIS 10,000.00, divided into:-
10,000 ordinary shares
of NIS 1.00 each,
of which 100 shares amounting to NIS 100.00 were issued.
Subject is fully owned by Rafael (Rafi) Chen.
Rafi Chen.
Traders, importers and marketers of diamonds of all sorts.
Subject also exports in very low volume.
Operating from premises, owned by shareholder, on an area of 30 sq.
meters, in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (21st
Floor), Ramat Gan.
Rafi Chen is subject's sole employee.
Financial data not forthcoming.
There is 1 charge for an unlimited amount registered on the company's
assets (all assets), in favor of The First International Bank of Israel Ltd.
(charge placed November 2011).
2013 sales claimed to be US$ 1,250,000.
2014 sales claimed to be US$ 1,250,000.
The First International Bank of Israel Ltd., Diamond Exchange Branch
(No. 026), Ramat Gan
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 January 2012, Rafi Chen was detained (and latter released on bail)
and questioned by the Tax Authorities. According to a report, Rafi Chen, as
well as subject and OPAL DIAMONDS LTD., were major clients of the illegal bank,
using fictitious tax invoices in volume of NIS million between the years
2008-2011.
In the end of December 2013 it was reported that Rafi Chen and subject
(together with other 4 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), in suspicion of severe
felonies of violation of the Income Tax Directive of receiving and issuing
fictitious invoices in millions of dollars.
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.
Prior to establishing subject, Rafi Chen was a shareholder in OPAL
DIAMONDS LTD. (incorporated in 2006) for 5 years, and prior that he was a
salaried employee in the diamond field.
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.
Net imports of polished diamonds in 2014 totaled US$4.514 billion, and
net import of rough diamonds totaled US$ 4.022 billion, marking 4.8% and 0.8%
increase from 2013, respectively (in 2013 import was in similar levels to
2012).
The United States continued to be Israel’s major market for polished
diamonds, accounting for 30.8% of the market in 2014 (37% in 2013). Hong Kong
is the next largest market with 29.7% of exports (27% in 2013), with Belgium
8.5%, Switzerland 6.5%, and U.K. accounting for 3.7% 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.
Considering the involvement in the above mentioned affair, dealings are
recommended on secured basis.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs. 63.57 |
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|
1 |
Rs. 97.98 |
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Euro |
1 |
Rs. 70.53 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
DPT |
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 |
-- |
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.