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MIRA INFORM REPORT
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Report No. : |
502483 |
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Report Date : |
13.04.2018 |
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, from diamonds 0.005 to 2ct rounds, of
very high quality. |
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No. of Employees : |
45 |
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 2.8% per year during the period 2014-17. 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 2018 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 & address
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
HISTORY
& LEGAL FORMATION
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).
SHARE
CAPITAL
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.
SHAREHOLDERS
Subject is fully owned by Abraham Fluk.
DIRECTORS
1. Abraham Fluk, Chairman,
2. Ori Tommy Fluk, CEO.
BUSINESS
Processors,
polishers, importers and exporters of diamonds, from diamonds 0.005 to 2ct
rounds, of very high quality.
60%-70% of sales
were for export in 2015 (similar to the previous last years), later export rate
data unavailable.
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 45 employees (same as in 2017, had 50 employees in 2016, similar to
the previous years).
MEANS
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 very highly valued (was valued
US$ 3 million
several years ago).
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).
REVENUES
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 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.
Sales for export in 2015 were US$ 74,000,000.
Sales for export in 2016 were US$ 79,000,000.
Sales for export in 2017 were US$ 82,000,000.
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.
2015 overall export
(polished and rough), as informed to us by subject’s General Manager, said to
be US$ 76,000,000. Since export comprises 60%-70% of sales, 2015 overall (local
and export, polished and rough) sales estimated between US$ 109,000,000 – US$
127,000,000.
2016 overall
export (polished and rough), as informed to us by subject’s General Manager,
said to be US$ 80,000,000. Since export estimated to comprise 60%-70% of sales,
2016 overall (local and export, polished and rough) sales estimated between US$
114,000,000 – US$ 133,000,000.
2017 overall
export (polished and rough), as informed to us by subject’s General Manager,
said to be US$ 82,000,000.
OTHER
COMPANIES
NORU DIAMONDS LTD.,
FLUK ACHZAKOT LTD., holdings,
YDI (USA) LTD., USA,
YDI (BELGIUM) BVBA, Belgium,
YDI HK LIMITED, Hong Kong,
YDI SHANGHAI
LIMITED, China,
LESHEM PRIMA DIAM
VOEGELI & WIRZ
AG/AS, of Switzerland.
BANKERS
Israel Discount Bank Ltd., Diamond Exchange
Branch (No. 80), Ramat Gan.
The First
International Bank of Israel Ltd., Diamond Exchange Branch (No. 26), Ramat Gan.
Mizrahi Tefahot
Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
According to the Israel
Supervisor on Diamonds in the Ministry of Industry & Trade, subject
was ranked 4th in the 2017 list of Israel’s largest polished diamond
exporters, 6th in the 2016 list, 7th in the 2015 list, 8th
in the 2014 list, 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).
Export (net) of
polished diamonds from Israel in the first 9 months of 2017 totaled US$ 3,383
million, which represents 11.8% decrease compared to the parallel period in
2016, while export of net rough diamonds fell 10.4% in this period, reaching
US$ 1,796 million. That is in contrast to the figures in 2016, which showed
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 diamonds exports jumped 23.1% to US$2,702 million (in
2015 fell 28.3% from 2014, after 4.2% rise in 2014, and a mere rise in 2013).
Yet the figures are well away from its peak on the eve of the crisis with
export of polished diamonds of US$ 7 billion.
In total, diamonds
export (polished and rough) in 2017 were expected to sum up to US$ 7 billion,
7% lower than in 2016, from the Ministry of Economy forecast.
The market has
been volatile over the last years after experiencing its worst depression due
to the global economic crisis. According to Israel's Diamond Administration
(IDA) at the Ministry of Economics, 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. 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, yet the market is still
volatile, as witnessed with the endurance of the depression trend during 2017.
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.
Net imports of
polished diamonds decrease by 15.1% in the first 9 months of 2017 and totaled
US$ 2,015 million, compared to the parallel period in 2016, whereas net import
of rough diamonds reached US$ 2,089 million, down 11.6% from 2016.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 45%
of the market in the first 9 months 2017 (was 39% in 2016). Hong Kong is 2nd
largest market with 30% of exports (26% in 2016), followed by Switzerland 9%
(7%), Belgium 8% (8%), and the rest of the world account for the remaining 8%
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.
Local diamond
sector employs some 20,000 persons.
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). Their cases are pending.
SUMMARY
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 65.35 |
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1 |
INR 92.70 |
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Euro |
1 |
INR 80.80 |
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ILS |
1 |
INR 18.58 |
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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PRI |
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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
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
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.