|
Report Date : |
06.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
WALDMAN DIAMONDS (W.D.C.) ISRAEL LTD. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
09.01.1989 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Traders, manufacturers, cutters, importers, exporters, marketers of
diamonds. |
|
|
|
|
No. of Employees : |
15 |
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 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
|
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
|
Source : CIA |
WALDMAN DIAM
(Trading as WDC
Telephone 972 3 613 15 34/
5
Fax 972 3 575 67
69
Diamond Exchange, Yahalom Bldg.
A private limited company, incorporated as per file No. 51-135475-5 on
the 09.01.1989, continuing activities originally founded in
Originally registered under the name WALDMAN DIAM
Authorized share capital of NIS 2,000.00, divided into:
1,500 ordinary shares of
50 foundation shares, of
of which shares amounting to
Subject is fully owned by Alexander Waldman.
Alexander (Alex) Waldman, WDC Group’s Chairman,
Traders, manufacturers, cutters, importers, exporters, marketers of
diamonds.
Over 95% of sales are for export.
Among foreign suppliers:
Subject is a direct sight holder of RIO TINTO, the only such company in
Operating from owned office premises, on an area of some 230 sq. meters,
in
Having selling offices in
Having 15 employees as of 2011 (same as in 2010). There are 25 employees
serving both subject and sister company WALDMAN CUTTING WORKS LTD. as of 2011.
Current employee numbers not forthcoming, believed to be similar.
Known to be of solid financial status.
Current consolidated inventory (for subject and WALDMAN CUTTING WORKS
LTD.) was valued at US$ 10,000,000 in mid 2011.
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 Israel Discount Bank Ltd. (charges placed July-August
2008).
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.
2011 - US$ 45,000,000.
WALDMAN CUTTING WORKS LTD., fully owned by Alex Waldman, importers,
processors, exporters and marketers of rough diamonds.
WALDMAN DIAM
WALDMAN DIAM
WDC HK LTD., Hong Kong
WALDMAN DIAM
Israel Discount Bank Ltd., Diamond Exchange Branch (No. 080), Ramat Gan.
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
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 23rd in the
2010 list of Israel's largest polished diamonds exporters. It was ranked 20th
in the 2010 list, 24th in 2009, same ranking as in 2008 and in 2007,
after being ranked 23rd in 2006 and 26th in 2005.
An affair of an underground bank has been shocking the local diamond
branch in these days, after in late January 2012 Police raided the Diamond
Exchange (after a long undercover operation, in cooperation with the Exchange
officials), arrested several individuals for investigation and blocked several
bank accounts (which led to a chain reaction of not respecting checks of
dealers). The Police suspect that a group of people, including diamond dealers,
run an illegal bank in the Diamond Exchange compound for loans, money transfer
abroad and exchange in volume of NIS 1 billion for several years. The affair
has already led to several of reported bankruptcies of local diamond firms, a
decrease of up to 70% in transactions, frozen bank accounts, a paralysis
(especially in purchase of raw diamonds) with substantial fear of the a
collapse of the sector, while dealers –local and foreign- face uncertainty.
In early March 2012 the Police announced it suspends the investigation
of further suspects for the time being. This move is a result of the big
pressure from the diamond branch (to stop the continuing damage inflicted) and
the Government (who is losing US$ hundred millions from decrease in tax
collection).
The Supervisor of Diamonds at the Ministry of Industry, Trade &
Labor published the diamond's sector import-export data for the 1st
half of 2012, which reveals a 19% fall in net sale of cut diamonds, and a fear
of another deep crisis in the branch. The sector recovered in 2010 and mainly
in 2011 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 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%.
In 2011 the local diamond sector recorded US$ 7,202 million in net sales
of cut diamonds, 23.5% higher than in 2010. This was thanks to the strong first
2 thirds of 2011, which were stalled in the last third, reflecting the fragile
global economy and fear of another recession wave in USA and Europe. It should
be noted that in karat terms, net export of cut diamonds rose only by 4% from
2010.
Net export of rough diamonds in 2011 also climbed almost 15%, reaching
US$ 3,515 million (fell almost 29% in karat terms).
Net import of cut diamonds in 2011 summed up to US$ 5,682 million,
representing 34.7% increase comparing to 2010 (18% rise in karat terms), while
net import of rough diamonds rose by 17.5% from 2010, totaling US$ 4,413
million (11% fall in karat terms).
The positive trend reversed in 2012 and in the first 9 months, export
(net) of cut diamonds was US$ 4,262 million, down 27% from the parallel period
in 2011, and rough diamonds export (net) reached US$ 2,068 million, a 30.5%
decrease. Import of rough diamonds (net) in the first 9 months of 2012 were
down 25% to US$ 2,646 million compared with the parallel period in 2011 (53%
down in karat terms), while import of polished diamonds (net) witnessed a 26%
fall reaching US$ 3,083 million.
In terms of target export (polished diamonds) countries, in 2012 the USA
was the main destination, with 35% of total export, while Hong Kong being the 2nd
largest target country, with 31%. Traditionally, the USA has been by far the largest
export market for the local export (60%-65% of total export), though the
continuing economic crisis in the USA brought a change in the trend, where the
Far Eastern markets have been growing on America and Europe's account (in early
2010, for the first time Far East markets even became Israel’s diamond
industry’s main target).
Other main target countries included Belgium (9%) and Switzerland (5%).
According to the President of the Israeli Diamonds Association, in 2010
the trade in the local diamond 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.
Local diamond sector employs some 20,000 persons.
In February 2009, Israel was ranked as the world’s largest exporter of
cut diamonds, followed by India, Belgium and South Africa.
Notwithstanding the lack of updated data from subject's officials,
considered good for trade engagements.
Note: Since the beginning of 2012 Israel Post started using a new area code
method of 7 digits (the old method of 5 digits will still be valid till end of
2012).
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.57 |
|
|
1 |
Rs.87.90 |
|
Euro |
1 |
Rs.71.53 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.