MIRA INFORM REPORT
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Report Date : |
15.12.2011 |
IDENTIFICATION DETAILS
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Name : |
M.A. ANAVI DIAMOND GROUP |
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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 : |
29.06.2004 |
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Legal Form : |
General Partnership |
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Line of Business : |
Processors, Importers, Exporters and Marketers of diamonds (chiefly), as well as jewelry (relatively minor activity) |
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No. of Employees
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15 persons |
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 : |
No Complaints |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
M.A. ANAVI DIAM
Telephone 972 3 613 12 77
Fax 972 3 613 12 76
21 Tuval Street
Diamond Exchange, Yahalom Bldg.
RAMAT GAN -52522 -ISRAEL
HISTORY & LEGAL FORMATION
Originally
established as a sole proprietorship by Abraham (Avi) Anavi in 1984, under the name
AVI ANAVI DIAM
Converted into a
general partnership and registered as such as per file No. 54-021659-5 on the
29.06.2004.
PARTNERS
1. Abraham (Avi) Anavi, 50%,
2. Meir Anavi, 50%.
JOINT GENERAL MANAGERS
1. Abraham (Avi) Anavi,
2. Meir Anavi.
BUSINESS
Processors, importers, exporters and marketers of diamonds (chiefly), as well as jewelry (relatively minor activity).
Some 30% of sales were for export in 2008 (during 2009 rate of export fell due to market conditions).
Operating from office premises, owned by the partners, on an area of 120 sq. meters, in 21 Tuval Street (also referred to as 54 Bezalel Street), Diamond Exchange, Yahalom Building (29th floor, Room #92), Ramat Gan.
Also operating from office branches in Belgium, India and South Africa.
Having 15 employees in Israel as of 2009 (similar to the previous years), and 26 employees serving the Group, including all offices abroad (had 25 employees in 2008 and in 2007). Current number of employees unavailable, though believed to be similar to the previous years (in Israel).
MEANS
Current stock of
diamonds was valued at US$
Other and later
financial data not forthcoming.
Subject’s partners
own both the offices where subject is operating from in Yahalom Building, as
well as further 100 sq. meters in the Maccabi Building (leased to 3rd
parties). Those properties are highly valued (several US$ millions).
REVENUES
· 2005 sales claimed to be US$ 70,000,000, 20% of which were exports.
· 2006 sales claimed to be US$ 80,000,000, 25% of which were exports.
· 2007 sales claimed to be US$ 100,000,000, 30% of which were exports.
· 2008 sales claimed to be US$ 80,000,000, 30% of which were exports.
· Sales for the first 9 months of 2009 claimed to be US$ 60,000,000, small portion of which were for export.
· Later sales figures not forthcoming.
BANKERS
The First
International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat
Gan.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Despite our
efforts, we were unable to speak with either of subject’s joint general
managers, as they were unavailable. We left messages. In our previous interview
Meir Anavi told us that they stopped providing data on their company.
This is a long
established family business, which started as a non-registered business by Avi
Anavi and converted into a registered partnership following the entrance of
Meir Anavi.
Meir Anavi serves
as a member in the Israel Diamond Exchange (ISDE) Control Committee.
In 2007 list of
Israel's largest polished diamonds exporters, published by the Israel
Supervisor on Diamonds in the Ministry of Industry and Trade, subject was
ranked 28th largest diamond exporter with exports of US$ 30 million.
According to the President
of the Israeli Diamonds Association, local diamond sector in general managed to
cross the global economic crisis that erupted in September 2008, one of worst
depressions in the global diamond sector, 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.
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
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 first 9
months of 2011, 37.1% increase was noted comparing to the parallel period in
2010 with net export of polished diamonds of US$5.830 million. Export of
rough diamonds also climbed almost 32%, reaching US$ 2,980 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 35% in the first 9 months of 2011 (compared
to 2010) summing up to US$3,520 million. Import of polished diamonds (net) saw
68% rise in 2010 reaching US$ 4,218 million (39% rise in karat terms), and
almost 49% rise in 2011 first 9 months
(US$ 4,170 million).
In terms of target
export (polished diamonds) countries, overall in 2010 the USA returned to be
main destination, with 41% of total export (37% in 2011). 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
2011, export to Hong Kong comprised around 29% of sales. Other main target
countries include Belgium, Switzerland, India, Thailand 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 update data, considered good for trade engagements.
DIAMOND INDUSTRY –
INDIA
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.53.58 |
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UK Pound |
1 |
Rs.82.97 |
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Euro |
1 |
Rs.69.89 |
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.