MIRA INFORM REPORT

 

 

Report Date :           

04.07.2011

 

IDENTIFICATION DETAILS

 

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 :

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 Bottom of Form

 

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 WDC Group’s Chairman,

2.  Ms. Mina Waldman.

 

 

BUSINESS

 

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

Over 95% of sales are for export.

 

Among foreign suppliers: RIO TINTO, ABER.

 

Subject is a direct sight holder of RIO TINTO, the only such company in Israel.

 

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, Vancouver, Hong Kong, Shanghai and buying offices in Europe and Asia.

 

Having 15 employees (same as in 2010). There are 25 employees serving both subject and sister company WALDMAN CUTTING WORKS LTD.

 

 

MEANS

 

Known to be of solid financial status.

 

Current consolidated inventory (for subject and WALDMAN CUTTING WORKS LTD.) is valued at US$ 10,000,000.

 

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

 

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

 

 

REVENUES

 

Consolidated sales (for subject and WALDMAN CUTTING WORKS LTD.):

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

2010 sales claimed to be US$ 40,000,000, of which 95% for export.

Sales for 2011 first half claimed to be US$ 30,000,000, of which 98% for export.

 

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

2006 - US$ 34,000,000.

2007 - US$ 34,000,000.

2008 - US$ 32,000,000.

2009 - US$ 27,000,000.

2010 - US$ 36,000,000.

 

 

OTHER COMPANIES

 

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

 

WALDMAN DIAMONDS COMPLETE LLC, USA.

WALDMAN DIAMOND CANADA

WDC HK LTD., Hong Kong.

WALDMAN DIAMOND RESOURCES LTD., 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 20th in the 2010 list of Israel's largest polished diamonds exporters. It is a higher ranking than 2009, when ranked 24th, same ranking as in 2008 and in 2007, after being ranked 23rd in 2006 and 26th in 2005.

 

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

 

Good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.59

UK Pound

1

Rs.71.75

Euro

1

Rs.64.80

 

 

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

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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%)

 

 

 

 

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