MIRA INFORM REPORT

 

 

Report Date :

27.10.2008

 

IDENTIFICATION DETAILS

 

Name :

A. SCHWARTZ & SONS DIAMONDS LTD.

 

 

Formerly Known as :

DONDI DIAMONDS COMPANY LTD

 

 

Registered Office :

P.O. Box 3026 (52130), 3A Jabotinsky Street, Diamond Exchange, Yahalom Bldg., Ramat GAN 52520

 

 

Country :

Israel

 

 

Date of Incorporation :

1949.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers, Polishers, Exporters and Marketers of Diamonds.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

name of the company

 

A. SCHWARTZ & SONS

Correct Name: A. SCHWARTZ & SONS DIAMONDS LTD.

Telephone                972 3 613 08 90

Fax                         972 3 575 13 92

P.O. Box 3026 (52130)

3A Jabotinsky Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN 52520 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-058705-7 on the 24.10.1971, by the Late Aharon Schwartz, continuing diamond business activities founded in 1949.

 

Originally registered under the name DONDI DIAMONDS COMPANY LTD., which changed to AHARON SCHWARTZ & SONS DIAMONDS LTD. on 29.11.1980, which changed to the present name on 11.11.2003.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 20,000.00, divided into:

20,000 ordinary shares of NIS 1.00 each,

of which shares amounting to NIS 250.00 were issued.

 

 

SHAREHOLDERS

 

1.    Uri Schwartz, 84.8%,

2.    Itay Schwartz, 15.2%.

 

 

DIRECTORS

 

1.    Uri Schwartz, President,

2.    Itay Schwartz.

 

 

GENERAL MANAGER

 

Kobi Herzmann.

 

 

BUSINESS

 

Manufacturers, polishers, exporters and marketers of diamonds.

 

Most sales are for export.

 

Operating from owned premises, on an area of 300 sq. meters, in 3A Jabotinsky Street, Diamond Exchange, Yahalom Bldg. (13th floor, suit 1372), Ramat Gan, Also operating from branches in the U.S.A., Belgium, Germany, Japan, China and Hong Kong.

 

Having some 110 employees.

 

 

MEANS

 

Stock was valued at US$ 20,000,000 in 2006.

 

Later and other financial data not forthcoming, however known to be financially solid.

 

There are 6 charges for unlimited amounts registered on the company's assets, in favor of Israel Discount Bank Ltd., Union Bank of Israel Ltd. and Bank Leumi Le’Israel Ltd.

 

 

ANNUAL SALES

 

2005 sales claimed to be US$ 80,000,000, 85% for export.

2006 sales claimed to be circa US$ 80,000,000, 85% for export.

Present annual sales for export reported to be over US$ 100,000,000.

 

 

OTHER COMPANIES

 

A. SCHWARTZ & SONS LTD., Hong Kong

A. SCHWARTZ - RAMIS, Pforzheim, Germany

SCHWARTZ JAPAN CO., Tokyo, Japan

A. SCHWARTZ & SONS DIAMONDS BELGIUM BVBA, Antwerp, Belgium

NY - URI SCHWARTZ & SONS LTD., New York, U.S.A.

 

 

BANKERS

 

Israel Discount Bank Ltd., Diamonds Exchange Branch (No. 080), Ramat Gan, account No. 600888.

 

A check with the Central Banks’ database did not reveal anything detrimental on subject’s a/m account.

 

Also working with:

Bank Leumi Le’Israel Ltd., Diamonds Exchange Branch (No. 629), Ramat Gan.

 

 

                                                       

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's official refused to update any data on the company.

 

Subject among Israel’s leading diamond manufacturers.

 

This is a veteran family diamond business. Late Aharon Schwartz who founded subject as a lapidary factory, received in 1990 the local Diamond Industry honorary award of the industry’s notable person. In 1963 he received a Sight from CSO. He passed away in 2002 and business continued by his sons.

 

Uri Schwartz, son of Aharon, served 3 terms as the President of the Diamonds Industrialists’ Association (2 consecutive terms 1988-1994 and 2001-2004) and is still an honorary president. He started to deal in diamonds in 1969. Also was twice elected for the Diamond Exchange Board and contributed to the industry in various ways. To-date, he heads the new Gemological Institute at the local Diamond Institute (WGI).

 

Local diamond companies are facing a depression in business in general in recent months due to the recession in the U.S. markets. The American market has been the No. 1 export market and the crisis in the U.S. market affects directly many Israeli diamond companies, as purchasing has gone down dramatically. There are reports on delays in payments from clients, causing a cash flow problem to some companies.

 

Import of rough diamonds (net) rose 15% in the first half of 2008 (from 2007) to US$ 2.77 billion (though carat value fell by 11%), while import of cut diamonds (net) also increased in 2008 by 19.5% reaching US$ 2.35 billion (carat value rose by 2.3%).

 

Year 2007 marked a record in the export of cut diamonds from Israel, with net sales for export of US$ 7.076 billion, 7% rise from 2006 (US$ 6.611 billion). Total export of cut and rough diamonds crossed for the first time the US$ 12 billion line. Exports (net) of rough diamonds were US$ 3.386 billion, a 25.5% increase from 2006 (US$ 2.701 billion, which was a 23.2% decrease from 2005).

Import of rough diamonds (net) rose 8% in 2007 by (from 2006) to
US$ 5.084 billion, while import of cut diamonds (net) also increased in 2007 by 13.3% reaching US$ 4.558 billion.

 

The USA is the main market for Israel’s export of cut diamonds, although its portion has been decreasing in view of the economic situation – the export rate is circa 41%, comparing to 60%-65% in past years. The secondary markets are Hong Kong, Switzerland, Belgium, U.K, and India.

 

 

SUMMARY

 

Notwithstanding lack of updated data from subject’s officials, considered good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.77

UK Pound

1

Rs.79.78

Euro

1

Rs.63.36

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions