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Report No. : |
324311 |
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Report Date : |
29.05.2015 |
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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Year of Establishment : |
1984 |
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Com. Reg. No.: |
54-021659-5 |
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Legal Form : |
General Partnership |
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Line of Business : |
Subject is processors, importers, traders, exporters and marketers of
rough and polished diamonds |
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No. of Employee : |
18 – 20 (Mid 2014) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
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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.
Having 18 - 20 employees, as of mid 2014, current number of employees
unavailable.
Stock of diamonds was valued at US$
Other and later financial data not forthcoming, though 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" 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 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.
In July 2014 3 indictments were filed to the Tel Aviv District Court
against central defendants in the affair, who provided foreign currency
services to the "underground bank" (not against diamond dealers at
this stage), for felonies of money laundering and tax evasion in volumes of US$
millions.
Meir Anavi refused to disclose any data on the telephone, requesting we
come to his office, and then he will consider whether he will provide
information.
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.
The data published for the first quarter of 2015 (compared to the
parallel period in 2014) points on a negative reverse trend in all parameters:
Net export of polished diamonds plunged by close to 30% from the 1stQ
2014, reaching US$1,610 million, and net rough diamond exports decreased by
23%, totaled US$ 694 million. Net imports of polished diamonds fell by 12%,
reaching US$ 904 million, while net import of rough diamonds fell 18% totaling
US$ 827 million.
The United States continued to be Israel’s major market for polished
diamonds, accounting for 39% of the market in the 1stQ 2015 (31% in 2014). Hong
Kong is 2nd largest market with 33% of exports (30% in 2014), then
Switzerland 13%, Belgium 7%, and U.K. accounting for 2% 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.
Notwithstanding a/m affair, we figure that subject is financially
strong, therefore good for trade engagements.
(Note: if indicted, and at this stage we do not know if and when an
indictment would be filed against Meir Anavi, he may face prison and large
fines).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.90 |
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|
1 |
Rs.98.16 |
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Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
ASH |
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.