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Report No. : |
323759 |
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Report Date : |
29.05.2015 |
IDENTIFICATION DETAILS
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Name : |
YOSHFE DIAM |
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Registered Office : |
23 Tuval Street
Diamond Exchange, Noam Bldg. Ramat Gan 5252238 |
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Country : |
Israel |
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Date of Incorporation : |
05.03.2009 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Processors, polishers, importers and exporters of diamonds. |
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No. of Employee : |
50 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 : |
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
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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 |
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. 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.
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Source
: CIA |
YOSHFE DIAM
(Also known in short as YDI)
Telephone 972 73 227 72 00
Fax 972 3 613 46 13; 613 43 70
Email: info@ydiltd.com
23 Tuval Street
Diamond Exchange,
Noam Bldg.
RAMAT GAN 5252238 ISRAEL
A private limited
company, incorporated as per file No. 51-425023-2 on the 05.03.2009. Actual
activities began in August 2009.
Subject was
established in view of the split of the local activities of YAHALOMEI ESPEKA INTERNATIONAL LTD. (YEI), a private limited company
incorporated in 1982, originally founded in the 1960's.
We are informed
that YEI shareholders decided to brake-up their partnership, therefore one
partner -Itzhak Phillip Zivan-Sussholz formed his own company, while the other
partner - Abraham Fluk, formed subject.
Also as part of
the split, subject assumed most activities of YEI's 60% subsidiary LESHEM PRIMA
DIAM
Diamond activities
of Fluk family, now 3rd generation, were founded in 1946 by The Late
Zorach Fluk (which then co-founded YEI).
Authorized share capital NIS 100,001.00, divided into –
1 management share (issued),
100,000 ordinary shares (100 shares issued), all of NIS 1.00 each,
of which shares amounting to NIS 101.00 were issued.
Subject is fully owned by Abraham Fluk.
1. Abraham Fluk, Chairman,
2. Ori Tommy Fluk, CEO.
Processors, polishers,
importers and exporters of diamonds, from diamonds 0.005 to 2ct rounds.
60%-70%of sales
are for export.
Operating from
owned offices premises, on an area of 500 sq. meters, in 23 Tuval Street (also
known as 52 Bezalel Street), Diamond Exchange, Noam Building (Room No. 501),
Ramat Gan.
Having branches in New York, Hong Kong, Belgium (Antwerp) and China
(Shanghai). Group has 3 manufacturing facilities, including in China.
Having 50 employees (similar to the previous years).
Financial data not
forthcoming, known to be of a solid financial standing.
Subject (and in
the past YEI LTD.) has been a DTC Sightholder and is a longstanding key
purchaser from all the major rough producers.
Owned property in
23 Tuval Street, Diamond Exchange, Noam Bldg., Ramat Gan (where subject is
operating from), is valued at US$ 3 million.
There are 5 charges for unlimited amounts registered on the company's
assets (financial assets and fixed assets), in favor of Israel Discount Bank
Ltd., The First International Bank of Israel Ltd. and Mizrahi Tefahot Bank Ltd.
(last charge placed on real estate assets in April 2014).
Sales for export (net) of polished diamonds as published by the Supervisor on Diamonds
in the Israeli Ministry of Industry & Trade (Note: Overall sales
are higher as there are sales to the local market as well):
Sales for export in 2009 were US$ 29,000,000.
Sales for export in 2010 were US$ 91,000,000.
Sales for export in 2011 were US$ 130,000,000.
Sales for export in 2012 were US$ 84,000,000.
Sales for export in 2013 were US$ 89,112,797.
Sales for export in 2014 were US$ 96,366,207.
2014 overall
export (polished and rough), as informed to us by subject’s General Manager, said
to be US$ 109,000,000. Since export comprises 60%-70% of sales, 2014 overall
(local and export, polished and rough) sales estimated between US$ 155,000,000
– US$ 180,000,000.
NORU DIAMONDS LTD.,
FLUK ACHZAKOT LTD., holdings,
YDI LTD., USA,
YDI (BELGIUM) BVBA, Belgium,
YDI HK LIMITED, Hong Kong,
YDI SHANGHAI
LIMITED, China,
LESHEM PRIMA DIAM
VOEGELI & WIRZ
AG/AS, of Switzerland.
Israel Discount Bank Ltd., Diamond Exchange
Branch (No. 080), Ramat Gan.
The First
International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat
Gan.
Mizrahi Tefahot
Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.
Nothing
unfavorable learned.
According to the
Israel Supervisor on Diamonds in the Ministry of Industry & Trade, subject
was ranked 8th in the 2014 list of Israel’s largest polished diamond
exporters, same as in 2013, 9th in the for 2012 list, 5th
in 2011, 6th 2010 and 21st in 2009.
YAHALOMEI ESPAKA INTERNATIONAL LTD., known in short as YEI, was 50% owned by
Abraham Fluk. YEI was one of the largest and leading diamond manufacturers,
traders and dealers in the local diamond market. It was a sight holder since
1971 and operating from manufacturing and processing facilities in Israel,
China and branches worldwide. In 1999 YEI was awarded the "Excellent
Exporter" Award from the Ministry of Industry & Trade. YEI was ranked
as Israel’s 4th largest cut diamond exporter in 2008, same as in 2007.
Mr. Fluk no longer involved in YEI (which is inactive anyway).
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.
Good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.90 |
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1 |
Rs.98.16 |
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Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ANK |
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.