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MIRA INFORM REPORT
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Report No. : |
505621 |
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Report Date : |
30.04.2018 |
IDENTIFICATION DETAILS
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Name : |
SHLOMO BICHACHI 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 : |
26.08.2002 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Importers,
manufacturers, polishers, exporters and marketers of wide range of diamonds, specializing
in small fancy cut diamonds. |
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No. of Employees : |
Not Available |
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 and address
SHLOMO BICHACHI
DIAM
(Also known as BICHACHI
DIAMONDS, or SB DIAMONDS)
Telephone
972 3 613 36 20 /1
Mobile 972 54 397 78 23 (Shlomo
Bichachi)
Fax
972 3 613 13 42
Email:
info@bichachi.com
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT
GAN 5252236 ISRAEL
HISTORY
& LEGAL FORMATION
A private limited
liability company, incorporated as per file No. 51-329000-7 on the 26.08.2002,
continuing a business founded in 1993.
SHARE
CAPITAL
Authorized share
capital NIS 39,100.00, divided into -
39,100 ordinary
shares of NIS 1.00 each, of which 100 shares amounting to NIS 100.00 were
issued.
SHAREHOLDERS
Subject is fully
owned by Shlomo Bichachi.
SOLE
DIRECTOR
Shlomo Bichachi,
General Manager.
BUSINESS
Importers,
manufacturers, polishers, exporters and marketers of wide range of diamonds,
specializing in small fancy cut diamonds.
Exports are to
large jewelry businesses and chains in the USA, Hong Kong, etc.
According to our,
80% of sales are export.
Operating from
rented office premises, on an area of 200 sq. meters, in 21 Tuval Street,
Diamond Exchange, 30th floor, Yahalom Bldg., Ramat Gan, and
(according to our records) from 6 branches worldwide: Mumbai, Hong Kong, Los
Angeles, New York, Antwerp and Milan.
Also was known to
be operating from 3 plants in Israel: Netanya, Tel Aviv and Petach Tikva, as
well as from subsidiary a plant in Thailand.
Note: since we could not speak to Shlomo
Bichachi, we were unable to verify thea/m branch/subsidiary details.
Website: www.bichachi.com
Having 80-90
employees, as of 2014 (similar to 2013). Current number of employees not forthcoming.
According to a report from March 2011 there were some 200 employees in the
plant in Taiwan.
MEANS
Financial data not forthcoming, however said to be of high volumes.
There are 4 charges registered on the company's assets (financial
assets, in favor of Mizrahi Tefahot Bank Ltd. 2 charges are for unlimited
amounts (placed 2003 and 2012), ad 2 charges for total sum of NIS 706,000
(placed 2017-8).
REVENUES
Sales figures as given to us by the
company’s officials:
2011 sales claimed to be US$ 40,000,000, of
which 60%-70% for export.
2012 sales claimed to be US$ 40,000,000, of
which 60%-70% for export.
2013 sales claimed to be US$ 50,000,000, of
which 80% for export.
According to the data published by the
Israel Supervisor on Diamonds in the Ministry of Economy, export of polished
diamonds by subject were as follows (figures do not include local sales,
sales/export of rough diamonds):
2012 sales for export (net) were US$ 40,000,000.
2013 sales for export (net) were US$ 39,919,000.
2014 sales for export (net) were US$ 46,016,000.
2015 sales data not forthcoming.
2016 sales for export (net) were US$ 22,000,000.
OTHER
COMPANIES
SHLOMO BICHACHI DIAMONDS ASIA LTD., Hong
Kong,
SHLOMO BICHACHI DIAMONDS CORP., L.A., USA,
S. BICHACHI BLUMENFELD DIAMONDS CORP., N.Y.,
USA,
BICHACHI DIAMONDS B.V.B.A, Belgium,
OCTAGON DIAMONDS CO., LTD., a subsidiary in
Thailand, diamond dealers, manufacturers, polishers and marketers.
BANKERS
Mizrahi Tefahot Bank Ltd., Diamond Exchange Business Center Branch (No.
466), Ramat Gan, account No. 157765.
A check with the Central Banks' database did
not reveal any negative information regarding subject's a/m account.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
Mr. Shlomo
Bichachi, subject's General Manager and the only authorized person to disclose
data on subject, was always unavailable We were referred to his mobile, we
called, but there is no answer, nor did he return to us.
Shlomo Bichachi is
veteran in the diamond business and enjoys good reputation in the branch.
According to the
report published by the Israel Supervisor on Diamonds in the Ministry of
Economy, subject was ranked 19th in the 2016 list of Israel's
largest polished diamonds exporters, 2015 data not forthcoming, 15th
in the 2014, 18th in 2013 list, same ranking as in 2012 List.
Subject does not appear in the 2015 and 2017 lists (showing only top 10
exporters), which could be either that it ranked lower than 10, or alternatively
is that subject chose not to be included in the list (which is its right).
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
Notwithstanding the lack of updated data from subject's General Manager,
considered good for trade engagements.
Note: The P.O. Box 290
you provided is an internal postal box in the Diamond Exchange and not relevant
for normal outside post.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.78 |
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1 |
INR 92.89 |
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Euro |
1 |
INR 80.74 |
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ILS |
1 |
INR 18.57 |
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 : |
NIT |
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
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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.