MIRA INFORM REPORT

 

 

Report Date :

04.03.2011

 

IDENTIFICATION DETAILS

 

Name :

ERAN DIAMONDS – YEHUDA SAYAG

 

 

Registered Office :

1 Jabotinsky Street Diamond Exchange, Maccabi Bldg.Ramat Gan 52520

 

 

Country :

Israel

 

 

Date of Incorporation :

17.01.1977

 

 

Legal Form :

General Partnership

 

 

Line of Business :

Polishers, manufacturers, importers, marketers and exporters 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 :

Unknown

 

 

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

 

Name and address        

 

ERAN DIAMONDS – YEHUDA SAYAG

(Also using trade name: ALITO)

Telephone      972 3 575 26 40

Fax                972 3 575 00 93; 752 31 71

1 Jabotinsky Street

Diamond Exchange, Maccabi Bldg.

RAMAT GAN  52520-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A General Partnership established as per file No. 54-012035-9 on the 17.01.1977, continuing activities originally founded in 1972.

 

 

PARTNERS

 

1.     Yehuda Sayag, General Partner,

2.     Mrs. Varda Sayag, General Partner.

 

 

GENERAL MANAGER

 

Yehuda Siyag, born 1946.

 

 

BUSINESS

 

Polishers, manufacturers, importers, marketers and exporters of diamonds.

Subject manufactures and distributes loose stones from 0.10 carats up to 10 carats in any shape, color and clarity.

 

Operating from owned premises, in 1 Jabotinsky Street, Diamond Exchange, Maccabi Building (19th floor, room #42 -46), Ramat Gan.

Also operating from branches in the USA, Australia and U.K.

 

Having some 20 employees (exact number not forthcoming).

 

MEANS

 

Financial data not forthcoming, however known to be financially solid.

 

 

ANNUAL SALES

 

According to the data published by the Israel Supervisor on Diamonds in the Ministry of Industry & Trade, export of polished diamonds by subject (actual overall sales presumed to be higher, as there are local sales of polished diamonds and may have sales of rough diamonds as well), were as follows:

2005 sales for export (net) were US$ 45,000,000.

2006 sales for export (net) were US$ 39,000,000.

2007 sales for export (net) were US$ 48,000,000.

2008 sales for export (net) were US$ 37,000,000.

2009 sales for export (net) were US$ 31,000,000.

2010 sales for export (net) were US$ 44,000,000.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

We tried to speak with subject’s General Manager and partner Yehuda Sayag. We were asked to send him a fax stating our request, which we did, and will consider it. In our previous attempts in recent years, Yehuda Sayag refused to disclose any details.

 

This is a veteran and well-known diamond company. Yehuda Sayag serves as the Vice-President of the Israeli Diamond Exchange.

According to our, Yehuda Sayag has holdings in other companies in Israel and abroad.

According to the report published by the Israel Supervisor on Diamonds in the Ministry of Industry & Trade, subject was ranked 17th in the 2010 list of Israel's largest polished diamonds exporters, same rank as in 2009. Subject was 22nd ranked in the 2008 list, after ranking 21st in 2007 and 22nd in 2006 and 2005.

 

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 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.

 

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.

 

Import of rough diamonds (net) in 2010 grew by 51% to US$ 3,755 million (30% rise in karat terms), compared with 2009, while import of polished diamonds (net) saw 68% rise reaching US$ 4,218 million (39% rise in karat terms).

 

In terms of target export (polished diamonds) countries, overall in 2010 the USA returned to be main destination, with 41% of total export. 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 all 2010, export to Hong Kong comprised 25.5% of sales. Other target countries included India (4.5%), Switzerland (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.

 

 

SUMMARY

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.96

UK Pound

1

Rs.73.37

Euro

1

Rs.62.33

 

 

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%)

 

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