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Report Date : |
26.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ALON AVINOAM DIAM |
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Registered Office : |
P.O. Box 182, Ramat Gan (5210011) 54 Betzalel Street Diamond Exchange, Yahalom Bldg. Ramat Gan 5252138 |
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Country : |
Israel |
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Date of Incorporation : |
24.02.1991 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Traders, importers, processors, marketers and exporters of diamonds of all sorts. |
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No. of Employees : |
05 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Israel |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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
Source
: CIA
ALON AVINOAM DIAM
Telephone 972 3 751 67 55
Fax 972 3 751 21 27
P.O. Box 182, Ramat Gan (5210011)
54 Betzalel Street
Diamond Exchange, Yahalom Bldg.
Ramat Gan 5252138 Israel
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 in the late 1960's-early 1970's.
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.
1. Avinoam Alon, 74%,
2. Barak Alon, 24%
2. Ms. Lea Alon, 1%.
Avinoam Alon, General Manager,
Barak Alon.
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 previous years).
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. (last charge placed May 1998).
Sales figures not forthcoming.
AL - SI DIAM
DIAMLAND LTD., dealing in white and natural fancy color diamonds.
A.B.D.A. ALON GROUP LTD.
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062), Ramat Gan.
Nothing unfavorable learned.
Subject’s General Manager Avinoam Alon refused to update any data, claiming he has no interest in doing so.
Avinoam Alon & family are veteran diamond dealers.
In 2009 it was reported that subject, together with 2
diamond dealers initiated an enterprise to sell diamonds and jewelry directly
to the public, via a company called B
Jewellery Design.
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.
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.
In March 2012 the Police decided to lower the profile of the investigation for a while 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). 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.
Notwithstanding the refusal to update details, considered good for trade engagements.
Note: Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).
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.58.48 |
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1 |
Rs.98.67 |
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Euro |
1 |
Rs.79.80 |
INFORMATION DETAILS
|
Report
Prepared by : |
PDT |
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.