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Report No. : |
356557 |
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Report Date : |
28.12.2015 |
IDENTIFICATION DETAILS
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Name : |
M.A. 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 : |
General Partnership |
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LINE OF BUSINESS : |
PROCESSORS, IMPORTERS, TRADERS, EXPORTERS
AND MARKETERS OF ROUGH AND POLISHED DIAMONDS. POLISHING IS CARRIED OUT VIA
SUBCONTRACTORS. |
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No. of Employee : |
18 - 20 employees |
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 : |
Slow but correct |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Israel |
B1 |
B1 |
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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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.
|
Source
: CIA |
M.A. ANAVI DIAM
Telephone972 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,
traders, exporters and marketers of rough and polished diamonds.
Polishing is
carried out via subcontractors.
Some 15% of sales
are for export.
Operating from
office premises, owned by the partners, on an area of 250 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 USA (New York), Belgium, India and South Africa.
Note: subject
occupies rooms from No. 61 to No. 92 (using for correspondence room 92).
Having 18 - 20
employees, as of mid-2014, current number of employees unavailable.
Financial data not
forthcoming, though has been known to be financially strong.
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).
2013 sales claimed
to be US$ 400,000,000, 15% of which were for export.
Later sales data
not forthcoming.
ANAVI JEWELRY
LTD., inactive.
The First
International Bank of Israel Ltd., Diamond Exchange Branch (No. 026), Ramat
Gan.
Mizrahi Tefahot Bank Ltd., Diamond Business Branch (No. 026), Ramat Gan.
An affair of an
"underground bank" (known as the "Check List" Affair)
shocked the local diamond branch, after in 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 led to
several of reported bankruptcies of local diamond firms, a decrease of up to 70%
in transactions in 2012, and for a while to paralysis (especially in raw
diamonds purchase) due to uncertainty among local and foreign dealers.
In January 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 said 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.
In the end of
December 2013 it was reported that Meir Anavi (together with other 4 diamond
dealers) were 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), in suspicion of severe felonies of violation of the Income Tax
Directive of receiving and issuing fictitious invoices in millions of dollars.
Since mid-2014 the
State Attorney started to file indictments against central defendants in the
affair, initially against dealers who provided foreign currency services to the
"underground bank", for felonies of money laundering and tax evasion
in volumes of US$ millions (in June 2015 the court made the first conviction in
the affair, sending a foreign currency dealer who pretended also to be a
diamond dealer, for 4 years prison, a fine and confiscation of assets in volume
of NIS millions, part of a plea bargain),
In October 2015
the State Attorney filed indictments against 5 diamond dealers, Meir
Anavi being one of them, for felonies of money laundering, fabricated
salary invoices and tax evasion in volumes of US$ millions.
We were informed
that Meir Anavi is currently abroad, and due back in a week's time. We shall
contact him upon his return and update you accordingly in case we manage to
obtain fresh details.
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.
Israel's diamond
industry continued the growth trend in all trade parameters in 2014, after the
impressive growth in 2013 in most parameters, based on the data by Israel's
Diamond Administration (IDA) at the Ministry of Economics: Net export of
polished diamonds rose by 0.6% from 2013, reaching US$6.269 billion (after
rising 11.6% in 2013), and net rough diamond exports totaled US$3.061 billion
in 2014, up 4.2% from 2013 (after a mere rise in 2013).
The market has
been volatile over the last years after experiencing its worst depression due
to the global economic crisis, then recovered in 2010 but fell again in 2012.
The recovery in 2013 and 2014 is positive news for the local branch (still away
from its peak on the eve of the crisis with export of polished diamonds of US$
7 billion), however it is reported that profit margins have been decreasing due
to smaller gaps between rough and polished diamond prices (leading the diamond
dealers to search for new rough sources in hope to decrease costs). Overall,
IDA reports that 2014 was tough year for the diamond industry in Israel and
globally.
In addition, the
local diamond sector has been negatively affected by 2 other significant factors:
the production of counterfeit diamonds, whose quality keeps improving (harming
the raw diamonds market) and the "underground bank" affair – see
below. As a result, local diamond dealers report on difficulties in executing
transactions and bad atmosphere in the branch.
The data published
for the 1st half of 2015 (compared to 1stH 2014) points on a
negative reverse trend in all parameters: Net export of polished diamonds
represents 17% decrease, reaching US$2,975 million, and net rough diamond exports
decreased by 22%, totaled US$ 1,361 million. Net imports of polished diamonds
fell by 17%, reaching US$ 1,793 million, while net import of rough diamonds
fell 21% totaling US$ 1,623 million.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 44%
of the market in the 1stH 2015 (some recovery from 39% in latest years). Hong
Kong is 2nd largest market with 31% of exports (30% in 2014), then
Switzerland 10%, Belgium 6.5%, and U.K. accounting for 2.4% of Israel's polished
diamond export.
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 stood on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the
global crisis.
In February 2009,
Israel was ranked as the world’s largest exporter of cut diamonds, followed by
India, Belgium and South Africa.
Local diamond
sector employs some 20,000 persons.
Considering the
indictment filed against Meir Anavi, dealings are recommended on secured basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
ILS |
1 |
Rs.17.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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Report Prepared
by : |
ANK |
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.