MIRA INFORM REPORT
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Report Date : |
19.05.2011 |
IDENTIFICATION DETAILS
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Name : |
Y. & A. HAUSMAN DIAMONDS LTD. |
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Registered Office : |
21 Tuval Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 52522 |
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Country : |
Israel |
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Date of Incorporation : |
27.01.1986 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, Processors & Polishers, Importers, Exporters and
Marketers of diamonds |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment
Behaviour : |
Unknown |
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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
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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Israel |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
Y. & A. HAUSMAN DIAM
Telephone 972 3 575 34 57
Fax 972 3 613 17 22
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN-52522-ISRAEL
HISTORY & LEGAL FORMATION
A private limited
company, incorporated as per file No. 51-110214-7 on the 27.01.1986, continuing
a business originally established in 1979.
SHARE CAPITAL
Authorized share
capital of NIS 2,500.00 divided into:
2,500 ordinary shares of NIS
1.00 each,
of which 60 shares
amounting to NIS 60.00 were issued.
SHAREHOLDERS
Subject is fully owned by Ygal Hausman.
DIRECTORS
1. Ygal Hausman, General
Manager, born 1956,
2. Amnon Hausman (brother of
Ygal), born 1948.
BUSINESS
Traders,
processors & polishers, importers, exporters and marketers of diamonds.
Processing and
polishing is carried out via sub-contractors.
40% of sales are
for export.
Operating from
rented offices, on an area of 70 sq. meters, in 21 Tuval Street (also referred
to as 54 Bezalel Street), Diamond Exchange, Yahalom Building (20th
floor), Ramat Gan. Premises also serve sister companies.
Having 3 employees
(had 10 employees in 2007), though using many subcontractors.
MEANS
Subject's financial
data not forthcoming, however known to be financially solid.
There are 2
charges for unlimited amounts registered on the company’s assets, in favor of
Israel Discount Bank Ltd. and Mizrahi Tefahot Bank Ltd.
ANNUAL SALES
Sales figures not forthcoming.
OTHER COMPANIES
ONLINE DIAM
DIAM
Both a/m companies
operate from subject's premises.
HAUSMAN DIAM
BANKERS
Israel Discount
Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
Mizrahi Tefahot
Bank Ltd., Diamond Business Center Branch (No. 466), Ramat Gan.
Note: Banks data
is based on our past records, yet to be confirmed.
CHARACTER AND REPUTATION
Nothing
unfavorable learnt.
Subject's General Manager refused to disclose financial data.
In 2004 BANK LEUMI LE’ISRAEL LTD. (local large bank) filed a lawsuit
against Ygal Hausman claiming for a debt of some NIS 450,000, based on Hausman
being a guarantor for MAYA ELECTRONICS LTD., a local private company which
encountered financial difficulties in 2002.
In August 2007 Mr. Hausman filed a motion to the Court, where he denied
the plaintiffs arguments, adding the Bank spreads false information (claimed
among others, that he did not own MAYA) which caused him a great damage,
including hefty financial damage and a blow to his reputation (including
stopping credit line by one of his bankers and suppliers who ceased working
with him).
Ygal Hausman informed us that the case was closed 2 years ago and that BANK LEUMI
lost the case.
Subject, as well
as Ygal Hausman, are well-known in the branch.
Ygal Hausman was
the president of the IsDMA (International Association of Diamond Manufacturers
in Israel) from 1995 to 2001 (two terms) and currently serves as Honorary
President of the IsDMA. Mr. Hausman comes from a family of diamantaires. In
1979, together with his brother, Amnon, he established a company for
manufacturing and marketing diamonds. At a later, subject ceased its own
manufacturing activities.
In 1990 Hausman’s
firm was awarded the title of Outstanding Exporter.
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
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
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 data, considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.08 |
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UK Pound |
1 |
Rs.73.45 |
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Euro |
1 |
Rs.64.30 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.