MIRA INFORM REPORT

 

 

 

 

Report Date :

08.05.2013

 

IDENTIFICATION DETAILS

 

Name :

ALON AVINOAM DIAMONDS LTD. 

 

 

Registered Office :

P.O. Box 182, Ramat Gan (52101), 54 Betzalel Street, Diamond Exchange, Yahalom Bldg., Ramat Gan 52521         

 

 

Country :

Israel

 

 

Date of Incorporation :

24.02.1991

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, Importers, Processors, Marketers and Exporters of diamonds of all sorts

 

 

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 :

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 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name & address  

 

ALON AVINOAM DIAMONDS LTD.

Telephone      972 3 751 67 55

Fax                972 3 751 21 27

P.O. Box 182, Ramat Gan (52101)

54 Betzalel Street

Diamond Exchange, Yahalom Bldg.

RAMAT GAN  52521                   ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-154880-2 on the 24.02.1991.

 

Subject is continuing family business activities which started some 40 years ago.

 

 

SHARE CAPITAL

 

Authorized share capital of NIS 10,000.00, divided into -

                10,000 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1. Avinoam Alon, 99%,

2.  Ms. Lea Alon, 1%.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Avinoam Alon

 

 

BUSINESS

 

Traders, importers, processors, marketers and exporters of diamonds of all sorts.

 

Diamond size varies between 0.10ct to 5.00ct+

 

Most  sales are for export (was 90% in 2009).

Operating from rented office premises, on an area of 40 sq. meters, in 54 Betzalel Street (also referred to as 21 Tuval Street), Diamond Exchange, Yahalom Building (4th floor, room #475), Ramat Gan. Also operating from branches in the U.S.A. and other countries.

 

Having 5 employees (same as in 2009).

 

 

MEANS

 

Financial data not forthcoming.

 

There are 3 charges for unlimited amounts registered on the company's assets, in favor of Union Bank of Israel Ltd.

 

 

ANNUAL SALES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

AL - SI DIAMONDS LTD., 50% owned by Avinoam Alon (other partner is Meir Sidi), manufacturers, importers, marketers and exporters of diamonds and fancy jewelry.

 

B Jewellery Design., a company intended to sell jewelry directly to clients.

 

DIAMLAND LTD., dealing in white and natural fancy color diamonds.

 

 

BANKERS

 

Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject’s General Manager Avinoam Alon refused to disclose financial and financial-related details.

 

Avinoam Alon & family are veteran diamond dealers.

 

Subject, together with 2 diamond dealers have initiated an enterprise to sell diamonds and jewelry directly to the public, via B Jewellery Design.

 

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 financial details, considered good for trade engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.27

UK Pound

1

Rs.84.32

Euro

1

Rs.70.99

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.