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Report Date : |
17.12.2012 |
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 5252236 |
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Country : |
Israel |
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Date of Incorporation : |
1984 |
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Legal Form : |
Sole Proprietorship |
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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 : |
15 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
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 |
israel - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. It depends on imports
of crude oil, grains, raw materials, and military equipment. Cut diamonds,
high-technology equipment, and agricultural products (fruits and vegetables)
are the leading exports. Israel usually posts sizable trade deficits, which are
covered by tourism and other service exports, as well as significant foreign
investment inflows. The global financial crisis of 2008-09 spurred a brief
recession in Israel, but the country entered the crisis with solid fundamentals
- following years of prudent fiscal policy and a resilient banking sector. The
economy has recovered better than most advanced, comparably sized economies. In
2010, Israel formally acceded to the OECD. Natural gasfields discovered off
Israel's coast during the past two years have brightened Israel's energy
security outlook. The Leviathan field was one of the world's largest offshore
natural gas finds this past decade. In mid-2011, public protests arose around
income inequality and rising housing and commodity prices. The government
formed committees to address some of the grievances but has maintained that it
will not engage in deficit spending to satisfy populist demands.
|
Source : CIA |
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 5252236 ISRAEL
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.
1. Meir Anavi, 50%,
2. Abraham (Avi) Anavi,
50%, son of Meir.
1. Abraham (Avi) Anavi,
2. Meir Anavi.
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). Current export rate unavailable.
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.
Had 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).
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).
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.
ANAVI JEWELRY LTD.
The First International Bank of Israel Ltd., Diamond Exchange Branch
(No. 026), Ramat Gan.
A recent affair of an underground bank is 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.
On January 19th 2012, the Tax Authority reported that Meir
and Abraham Anavi, owners and managers of subject, are among the 4 suspects in
this affair, of omitting revenues of tens of US$ million, via the underground
bank. The two were arrested for interrogation and were released a day later,
under restrictions. The two are suspected in not reporting on income in volumes
of US$ 7.2 million between the years 2009-2011, by using the services of the
said underground bank. Meir and Abraham Anavi were released to their homes,
after depositing bails and restricting them from leaving the country.
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).
Despite our efforts, we were unable to speak with either of subject’s
joint general managers, as they were unavailable. We left messages. In the lat
interview with Mr. Meir Anavi in 2010 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.
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.
Considering a/m affair, and the lack of data from subject's officials, dealings
are recommended on secured basis.
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
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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.54.39 |
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|
1 |
Rs.87.78 |
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Euro |
1 |
Rs.71.29 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.