MIRA INFORM REPORT

 

 

Report Date :

31.01.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

WALDMAN DIAMONDS (W.D.C.) ISRAEL LTD. 

 

 

Formerly Known as :

WALDMAN DIAMOND MANUFACTURING & EXPORTING – ISRAEL (W.D.C.) LTD

 

 

Registered Office :

54 Bezalel Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 52521

 

 

Country :

Israel

 

 

Date of Incorporation :

09.01.1989

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, Manufacturers, Cutters, Importers, Exporters, 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

 

 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

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

 

WALDMAN DIAMONDS (W.D.C.) ISRAEL LTD.

(Trading as WDC ISRAEL)

Telephone                          972 3 613 15 34/ 5

Fax                                   972 3 575 67 69

54 Bezalel Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN                         52521         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-135475-5 on the 09.01.1989, continuing activities originally founded in 1978 in the USA.

 

Originally registered under the name WALDMAN DIAMOND MANUFACTURING & EXPORTING – ISRAEL (W.D.C.) LTD., which changed to the present name on the 06.02.1998.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 2,000.00, divided into:

                1,500 ordinary shares of NIS 1.00 each (200 shares issued),

                50 foundation shares, of NIS 10.00 each (42 shares issued),

of which shares amounting to NIS 620.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Alexander Waldman.

 

 

DIRECTORS

 

1. Alexander (Alex) Waldman, General Manager and Group’s Chairman,

2.  Ms. Mina Waldman.

 

BUSINESS

 

Traders, manufacturers, cutters, importers, exporters, marketers of diamonds.

 

95% of sales are for export.

 

Among foreign suppliers: RIO TINTO, ABER.

 

Operating from owned office premises, on an area of some 230 sq. meters, in 54 Bezalel Street (also known as 21 Tuval Street), Diamond Exchange, Yahalom Building (8th floor, units 874 - 883), Ramat Gan.

Having selling offices in New York, Tokyo and buying offices in Europe and Asia.

 

Having 15 employees.

 

 

MEANS

 

Premises owned by shareholders in 54 Bezalel Street, Diamond Exchange, Yahalom Building (where subject is operating from), Ramat Gan is highly valued.

 

Other financial data not forthcoming, known to be of solid status.

 

There are 2 charges for unlimited amounts registered on the company's assets, in favor of The State Bank of India Ltd.

 

 

ANNUAL SALES

 

2009 sales claimed to be US$ 35,000,000, of which 95% for export.

We are informed that 2010 sales are at the same pace as of 2009, 95% for export.

 

Sales for export (net) of polished diamonds as published by the Israeli Ministry of Industry & Trade:

2005 - US$ 33,000,000.

2006 - US$ 34,000,000.

2007 - US$ 34,000,000.

2008 - US$ 32,000,000.

2009 - US$ 27,000,000.

 

 

OTHER COMPANIES

 

WALDMAN CUTTING WORKS LTD., fully owned by Alex Waldman, importers of diamonds (rough and polished), processors, exporters and marketers of diamonds.

WALDMAN DIAMONDS COMPLETE LLC, USA.

WALDMAN DIAMOND CANADA

WALDMAN DIAMOND RESOURCES LTD., the rough diamond trading and marketing arm of the Group. This division controls an equity position acquired in the Magna Egoli Mine in Sierra Leone.

 

 

BANKERS

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

WDC Group has interests ranging from mining to complete jewelry.

 

This is a well-known veteran diamond firm.

 

According to the report published by the Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject was ranked 24th in the 2009 list of Israel's largest polished diamonds exporters, same ranking as in 2008 and in 2007, after being ranked 23rd in 2006, 26th in 2005 and 23rd in 2004.

 

During 2010 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 in sales and collapse of about 70% in sales later. 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). Further improvement witnessed during the first half of 2010.

Overall in 2009, export diamonds shrank by 40%. Export of cut diamonds (net) were US$ 3,922.6 million, representing 37% decrease compared to 2008. The depression in the diamond sector comes after year 2007 marked a record in the export of cut diamonds from Israel, with net sales for export of US$ 7.076 billion, while 2008 witnessed a decrease of 11.8% to US$ 6.240 billion.

 

Export of cut diamonds (net) in 2010 first half increased by 92% to US$ 3,002 million, and export of rough diamonds (net) reached US$ 1,624 million, representing 104% rise compared to the parallel period in 2009. Yet, in comparison to 2008 first half, export of cut diamonds in 2010 is 21% lower.

 

Import of rough diamonds (net) in 2010 first half grew by 113% to US$ 1,817 million, compared with the parallel period in 2009, while import of cut diamonds (net) saw a 105% rise reaching US$ 1,881 million.

 

The USA is still the main market for Israel’s export of cut diamonds, although its portion decreased significantly in view of the economic situation where the U.S. suffered the biggest hit – some 40% of total the export from Israel in 2010, comparing to 60%-65% in past years. In order to face the situation many companies have increased their marketing to Far Eastern markets. Secondary markets are Hong Kong (27%), Belgium (9%), India (4%) and China (3%).

 

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

 

According to the President of the Israeli Diamonds Association, local banks contracted credit given to local diamond firms in view of the global financial crisis, however, he believes the local diamond sector is healthy: 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. Israel Ministry for Industry & Trade also committed to support local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.

 

 

SUMMARY

 

Good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.74

UK Pound

1

Rs.72.73

Euro

1

Rs.62.73

 

 

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

 

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.