MIRA INFORM REPORT

 

 

Report Date :           

29.04.2011

 

IDENTIFICATION DETAILS

 

Name :

MASINGITA LTD. 

 

 

Registered Office :

21 Tuval Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 52522

 

 

Country :

Israel

 

 

Date of Incorporation :

16.04.2008

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, exporters and marketers of polished diamonds

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No Complaints

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, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

MASINGITA LTD.

Telephone  972 3 576 70 00

Fax           972 3 576 40 79

21 Tuval Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN-52522                  ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-412867-7 on the 16.04.2008.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 100,000.00, divided into:

                   100,000 ordinary shares of NIS 1.00 each,

fully issued.

 

 

SHAREHOLDERS

 

1.  SALANT GROUP LTD., 51%, owned by (brothers) Avner Salant and Igal Salant,

2.  Moshe Namdar, 44.1%,

3.  Ms. Yael Namdar, 4.67%,

4.  Haim Habif, 0.686%,

5.  Itzhak Levian, 0.147%.

 

 

DIRECTORS

 

1.  Ms. Yael Namdar, General Manager,

2.  Moshe Namdar,

3.  Avner Salant,

4.  Igal Salant,

5.  Reuven Salant,

6.  David Nmadar.

 

BUSINESS

 

Importers, exporters and marketers of polished diamonds.

 

Almost 100% of sales for export.

 

Among suppliers: STEINMETZ Group.

 

Operating from owned offices premises, on an area of over 550 sq. meters, in 21 Tuval Street (also referred to as 54 Betzalel Street), Diamond Exchange, Yahalom Building (30th floor), Ramat Gan. Subject also operates from offices in New York, Italy and Hong Kong (these offices may serve parent and affiliated companies).

 

Having 60 employees (same as in 2010 and 2009).

 

 

MEANS

 

Financial data not forthcoming, however subject is enjoying the solid financial backing of its shareholders, i.e. parent company SALANT GROUP and the Namdar family (see more below).

 

There is 1 fixed charge for an unlimited amount registered on the company's assets, in favor of Israel Discount Bank Ltd.

 

 

ANNUAL SALES

 

Subject began sales in June 2008. Almost all sales are for export.

2008 sales for export reported to be US$ 49,000,000 (net export).

Later sales figures not forthcoming.

 

SALANT GROUP 2008 sales for export were US$ 100,000,000, almost all for export.

 

MOSHE NAMDAR & CO. 2007 sales for export were US$ 199,000,000 (net export).

 

 

OTHER COMPANIES

 

SALANT GROUP LTD., importers of rough diamonds, polishers, international dealers, exporters, marketers in diamonds. Sight holders from DCT since 1990.

 

SALANT DIAMONDS LTD.

 

OVERSEAS DIRECT INC., USA.

 

MOSHE NAMDAR & CO. LTD., owned by Moshe Namdar, international traders in diamonds, dealing as cutters, processors, importers, exporters and marketers of diamonds. Ms. Yael Namdar is involved in this firm as well.

Namdar family has holdings in many other companies and assets, including in the diamonds branch (MOSHE NAMDAR GEMS LTD.), holdings & real estate assets (MOSHE NAMDAR HOLDINGS LTD., MOSHE NAMDAR & ASSOCIATES (2005) LTD.) and industrial companies (Moshe Namdar controls HABONIM INDUSTRIAL VALVES & ACTUATORS LTD., manufacturers, marketers and exporters of ball valves and pneumatic actuators).

                                                                                                                               

 

BANKERS

 

Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject’s officials refused to disclose financial details.

 

According to the report published by the Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject was ranked 19th in the list of Israel's largest polished diamonds exporters 2008.

 

Both the Salant and Namder families are veteran diamond dealers, both are at the top of Israel's diamond industry and trade, with worldwide renown reputation.

 

Salant family business for diamond polishing and trade was originally founded by the late Moshe Salant in 1952. In previous years, SALANT GOUP LTD. (formerly known as FABRIKANT & SALANT DIAMOND CO. LTD.) was ranked among Israel’s largest diamonds exporters (they do not appear in the 2008 and 2009 list, which is at the company’s own discretion to allow publishing its data and they preferred no to publish it).

 

Ms. Yael Namdar is the daughter of Moshe Namdar, owner of MOSHE NAMDAR & CO. She, as well as shareholders No. 4 & 5 also serve as directors in MOSHE NAMDAR & CO. Mr. Moshe Namdar is a well-known veteran diamond dealer, who was partner in the leading diamond firm SCHACHTER & NAMDAR (established in 1981 as partnership of Namdar family and LEO SCHACHTER DIAMONDS), until deciding to split in 2006/7.

 

In July 2010 it was reported that subject implemented MICROSOFT's Microsoft Online Services (BPOS) for its IT sector.

 

During 2010 and 2011 local diamond companies have been recovering from one of the worst depressions in the global diamond sector due to the severe economic crisis in global markets that erupted in September 2008. The diamond sector experienced almost an entire freeze and collapse in sales of about 70% in the peak of the crisis and 2009 export diamonds shrank by some 40%. Only since mid 2009 a mild recovery has been felt (in some markets, such as the American, it is estimated that it will take long time till fully recovering) and continued throughout 2010, into 2011. In 2011 first quarter, a significant improvement was recorded, although still well below 2007 and 2008 first 3 quarters levels.

                                                                                                                           

According to the President of the Israeli Diamonds Association, local diamond sector in general managed to cross the crisis, despite the sheer difficulties, including the fact that local banks contracted credit given to local diamond firms. The President said that trade in the sector rolls annual turnover of US$ 25 billion while total debt to the banks stands on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the crisis. The Ministry for Industry & Trade also assisted the local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.

 

Overall in 2010, export (net) of polished diamonds was US$ 5,832 million, representing 48% increase from 2009 (when it noted 37% decrease from 2008, also much less than 2007, a record year in polished diamonds export, with sales of US$ 7,076 million). In karat terms, net export of polished diamonds rose by 32%. Rough diamonds export (net) reached US$ 3,060 million, 62% up from 2009 and 36% increase in karat terms.

 

In the 1st quarter of 2011, 45.7% increase was noted comparing to the parallel period in 2010 with export of polished diamonds of US$2,123 million. Export of rough diamonds also noted 39.6% rise, reaching US$ 1,158 million.

 

Import of rough diamonds (net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat terms) compared with 2009, and by 24.9% in 2011 1stQ (compared to 2010 1stQ), summing up to US$1,144 million. Import of polished diamonds (net) saw 68% rise in 2010 reaching US$ 4,218 million (39% rise in karat terms), and 48.5% rise  in 2011 1stQ (US$ 1,234 million).

 

In terms of target export (polished diamonds) countries, overall in 2010 the USA returned to be main destination, with 41% of total export (45% in 2011 1stQ). This comes after earlier in 2010, for the first time Far East markets became Israel’s diamond industry’s main target, with sales to Hong Kong being close to these of the USA, to whom sales decreased dramatically in view of the severe economic crisis (traditionally sales to the USA comprised some 60%-65% of total export). In 2010 and early 2011, export to Hong Kong comprised around 26% of sales. Other main target countries include Belgium, India, Switzerland and China.

 

In February 2009, Israel was ranked as the world’s largest exporter of cut diamonds, followed by India, Belgium and South Africa.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial details, considered good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.33

UK Pound

1

Rs.74.14

Euro

1

Rs.65.78

 

 

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

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.