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Report Date : |
17.01.2014 |
IDENTIFICATION DETAILS
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Name : |
M.A. ANAVI DIAM |
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Formerly Known As : |
AVI ANAVI DIAM |
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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 : |
29.06.2004 |
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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 : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
-- |
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 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Israel
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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. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. 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, and production from the Tama field is expected to meet all of Israel''s natural gas demand beginning mid-2013. 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
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Source
: CIA |
M.A. ANAVI DIAM
Telephone 972 3 613 12 77
Fax 972 3 613 12 76
Email: mail@anavi.com
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.
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.
An affair of an underground bank shocked the local diamond branch, after in late January 2012 Police raided the Diamond Exchange (after a long undercover operation), arrested several individuals for investigation, caught diamonds and various assets worth NIS millions, and blocked several bank accounts. It is suspected that a group of people, including diamond dealers, run an illegal bank in the Diamond Exchange compound for loans, money transfer abroad based on fictitious transactions 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 in 2012, frozen bank accounts, and for a while to paralysis (especially in purchase of raw diamonds) due to uncertainty among local and foreign dealers
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.
Meir and Abraham Anavi 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. They were released to their homes, after depositing bails and restricting them from leaving the country.
In November 2012 the Police and Tax Authorities recommended on indictments against the 25 suspects in the affair, among them diamond dealers, for the said suspicions and obstruction of the investigation.
In June 2013 it was reported that the Police resumed its raids on the diamonds branch, and although names of suspects were not released, sources say that it is also related to the above underground bank affair. In parallel, it is also reported that the Tax Authorities and diamonds dealers' representatives are trying to reach an arrangement for past debts. The Attorney General is in process of preparing indictments.
In the end of December 2013 it was reported that Meir Anavi (together with other 4 diamond dealers) are summoned to a hearing (not mandatory) regarding the a/m affair, prior to filing an indictment, before the Tel Aviv District Attorney (Tax and Finance sector).
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 last 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 served 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.
Export of polished diamonds from Israel fell by 23% in 2012 from 2011, after the sector recovered in 2010 and mainly in 2011 from one of the worst depressions in the global diamond sector due to the economic crisis in global markets that erupted in 2008. The sector experienced almost an entire freeze and collapse in sales of about 70% in the peak of the crisis. While the global diamond industry experienced major declines during 2012, Israel saw a steady improvement in its diamond trade in the third and fourth quarters of the year, according to the Diamond Administration at the Ministry of Industry & Trade.
Israel’s net polished diamond exports stood at US$5.6
billion in 2012, compared a decline of 23% from 2011. Net rough diamond exports
totaled US$2.8 billion in
Net imports of polished diamonds dropped 25% from 2011, totaling US$4.27 billion, while net rough imports stood at US$3.8 billion, 13 % less than in 2011.
The diamond sector marked an improvement in almost all parameters in the first 9 months of 2013. Net export of polished diamond increased by 8.7% comparing to the parallel period in 2012, reaching US$ 4.7 billion, while export of rough diamonds marked 8.5% rise to US$ 2.2 billion. Net import of rough diamonds reached US$ 2.9 billion, an increase of 9.4%, whereas net import of polished diamonds fell slightly by 1.1% to US$ 3.06 billion.
The United States continued to be Israel’s major market for polished diamonds, accounting for 35% of the market in the first 9 months of 2013 (36% in 2012). Hong Kong is the next largest market with 28% of exports, with Switzerland accounting for 9.6%, and Belgium 7.6%.
According to the President of the Israeli Diamonds Association, in 2010 the trade in the local diamond sector rolled 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.
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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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 –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following prudent
risk management norms when lending money to gems and jewellery sector. This
follows the implementation of Basel III accord – a global voluntary regulatory
standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.53 |
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|
1 |
Rs.100.73 |
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Euro |
1 |
Rs.83.84 |
INFORMATION DETAILS
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Report Prepared
by : |
NIS |
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.