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MIRA
INFORM REPORT
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Report No. : |
502789 |
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Report Date : |
06.04.2018 |
IDENTIFICATION DETAILS
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Name : |
SAHAR - ATID DIAMONDS LTD. |
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Registered Office : |
P.O. Box 3005, 1 Jabotinski Street, Diamond Exchange, Maccabi
Building, Ramat Gan 5252001 |
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Country : |
Israel |
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Date of Incorporation : |
24.05.2000 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Dealers, importers, exporters, polishers and marketers diamonds,
specializing in Rounds and Fancies, predominately straight-edged, 30 pointers
and larger, in all colors, medium and better qualities from 0.18 up to 15+
carats. |
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No. of Employees : |
5 [2016] |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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 free market economy. Cut diamonds,
high-technology equipment, and pharmaceuticals are among its leading exports.
Its major imports include crude oil, grains, raw materials, and military
equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the
Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment
resulting from Israel’s uncertain security situation reduced GDP growth to an
average of roughly 2.6% per year during the period 2014-16. 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 in the last decade. Political and regulatory
issues have delayed the development of the massive Leviathan field, but
production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3%
boost in 2014. One of the most carbon intense OECD countries, Israel generates
about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a
concern for many Israelis. 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. Government officials have called for reforms to
boost the housing supply and to increase competition in the banking sector to
address these public grievances. Despite calls for reforms, the restricted
housing supply continues to impact the well-being of younger Israelis seeking
to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed
prices and customs tariffs for farmers kept food prices high in 2016. Private
consumption is expected to drive growth through 2017 with consumers benefitting
from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor
participation rates for its fastest growing social segments - the ultraorthodox
and Arab-Israeli communities. Also, Israel's progressive, globally competitive,
knowledge-based technology sector employs only about 8% of the workforce, with
the rest mostly employed in manufacturing and services - sectors which face
downward wage pressures from global competition. Expenditures on educational
institutions remain low compared to most other OECD countries with similar GDP
per capita.
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Source
: CIA |
COMPANY NAME AND ADDRESS
SAHAR - ATID DIAM
Telephone 972 3 575 75 00
Fax 972 3 575 73 00
Email: sa@saharatid.com
P.O. Box 3005
1 Jabotinski Street
Diamond Exchange, Maccabi Building
Ramat Gan 5252001 Israel
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per file No. 51-295800-0 on
the 24.05.2000.
SHARE CAPITAL
Authorized share capital of NIS 39,100.00 divided into:-
39,100 ordinary shares of NIS 1.00 each, of which 1,000 shares amounting
to NIS 1,000.00 were issued.
SHAREHOLDERS
1. ATID DIAM
2. SAHAR DIAM
DIRECTORS
1. Mordechai (Moti) Abo,
Joint General Manager,
2. Yair Sahar, Joint
General Manager.
BUSINESS
Dealers, importers, exporters, polishers and marketers diamonds,
specializing in Rounds and Fancies, predominately straight-edged, 30 pointers
and larger, in all colors, medium and better qualities from 0.18 up to 15+
carats.
Among diamond suppliers: HARRY WINSTON.
Operating from owned premises, 1 Jabotinski Street, Diamond Exchange,
Maccabi Building (14th Floor, Suite 1442-6), Ramat Gan. Also
operating a plant in Russia, and representative offices in New York and Hong
Kong.
Website: www.saharatid.com
Having 5 employees, as of 2016 (current exact number unavailable, we
believe similar, 6 employees based on our findings).
MEANS
Financial data not forthcoming, known to be
financially solid.
Subject is a Diamond Trading Company (DTC) Sightholder.
There are 7 charges for unlimited amounts registered on the company's
assets (financial assets and fixed assets) in favor of Union Bank of Israel
Ltd. (last 2 charges placed February 2014).
REVENUES
Sales for export (net) of polished diamonds as published by
the Supervisor on Diamonds in the Israeli Ministry of Industry & Trade:
2009 sales for export (net) were US$ 64,000,000.
2010 sales for export (net) were US$ 70,584,000.
Later sales data not forthcoming.
OTHER COMPANIES
ATID DIAM
SAHAR DIAM
SAHAR ATID DIAMOND MANUFACTURERS 2004 LTD.
SAHAR ATID REAL ESTATE LTD.
Y. SAHAR DIAMONDS (2015) LTD.
KEOLA LTD.
Subject’s shareholders are also involved in other real estate companies.
BANKERS
Union Bank of Israel Ltd., Ramat Gan Branch (No. 62), Ramat Gan.
Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466),
Ramat Gan.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
We were unable to speak with subject’s co-General Manager, Mr. Yair
Sahar (the authorized person to disclose data), as he is currently abroad. In
the past interviews he refused to disclose financial data.
Subject is well-known in the diamond industry. In January 2010 subject
was awarded as "Excelling Exporter".
Subject's General Managers Yair Sahar and Moti Abo, are veterans in the
diamond field, starting in the early 1980's and joining forces in subject in
year 2000.
Yair Sahar served as President of the Israeli Diamond Exchange (IDE)
between July 2011-July 2013, and he was awarded IDE Honorary President in
December 2015.
According to the report published by the Israel Supervisor on Diamonds
in the Ministry of Industry and Trade, subject was ranked 8th in the
2010 list of Israel's 25 largest polished diamonds exporters, and 7th
in the 2009 list. Subject does not appear in later published lists, however it
should be noted that some companies choose to remain confidential and not be
included for their own motives.
2016 figures show signs of recovery for the Israeli diamond trade,
coming after the export of diamonds from Israel experienced a drastic fall by
20% in 2015 from 2014 (down 40% from 2011).
Net export of polished diamonds in 2016 decreased by 6.4% from 2015,
reaching US$ 4,675 compared to US$ 4,993 million in 2014 (after 0.6% rise in
2014 and 11.6% in 2013), however net rough diamond exports jumped 23.1% to
US$2,702 million (in 2015 fell 28.3% from 2014, after 4.2% rise in 2014, and a
mere rise in 2013). The market has been volatile over the last years after
experiencing its worst depression due to the global economic crisis, then
recovered in 2010 but fell again in 2012.
According to Israel's Diamond Administration (IDA) at the Ministry of
Economics, the recovery in 2013 and 2014 is positive news for the local branch
(still away from its peak on the eve of the crisis with export of polished
diamonds of US$ 7 billion), however it is reported that profit margins have
been decreasing due to smaller gaps between rough (increasing) and polished
(decreasing) diamond prices.
In addition, the local diamond sector has been negatively affected by
other significant factors: the production of counterfeit diamonds, whose
quality keeps improving (harming the raw diamonds market), the entrance of new
rules by the local Tax Authorities on the Diamond Exchange for enforcing money
laundering, and the "underground bank" affair – as below. As a
result, local diamond dealers report on difficulties in executing transactions
and bad atmosphere in the branch. The first signs of recovery appeared towards
the last quarter of 2016 – mainly due to the growing stability of the market
and the industry’s agreement with the Israel Tax Authority in December.
Net imports of polished diamonds totaled US$ 3,282 million in 2016, 5.7%
decrease from 2015, while net import of rough diamonds reached US$ 3,246
million, up 16.7% from 2015.
The United States continued to be Israel’s major market for polished
diamonds, accounting for 39% of the market in 2016 (was 40% in 2015). Hong Kong
is 2nd largest market with 26% of exports (27% in 2015), followed by
Belgium 8% (9%), Switzerland 7% (7%), U.K. 4% (was 3% in 2015), and the rest of
the world account for the remaining 16% of Israel's polished diamond export.
In 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" (known as the "Check
List" Affair) 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, and for a while to paralysis
(especially in raw diamonds purchase) due to uncertainty among local and
foreign dealers. Later in 2012 the Police decided to lower the profile of the
investigation for a while (pressure from the diamond branch due to the
continuing damage inflicted and the Government (losing US$ hundred millions
from decrease in tax collection), but resumed investigation in 2013.
In mid-2014, based on the Police and Tax Authorities recommendations,
the State Attorney started the process of filing indictments against central
defendants in the affair, initially against dealers who provided foreign
currency services to the "bank" (in June 2015 the court made the
first conviction in the affair, sending a foreign currency dealer who pretended
also to be a diamond dealer, for 4 years prison, a fine and confiscation of
assets in volume of NIS millions, part of a plea bargain). Since late 2015
indictments for severe charges pressed against 11 diamond dealers and their
firms for tax felonies committed and issuing fictitious invoices in volumes of
millions US$ (latest indictments filed by the Tel Aviv District Attorney in
August 2016).
SUMMARY
Notwithstanding the lack of updated data from subject’s officials,
considered good for trade engagements.
Note: 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.06 |
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1 |
INR 91.50 |
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Euro |
1 |
INR 79.77 |
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ILS |
1 |
INR 18.36 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.