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MIRA INFORM REPORT
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Report No. : |
484173 |
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Report Date : |
10.01.2018 |
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 : |
1984 |
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Legal Form : |
Sole proprietorship |
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Line of Business : |
Subject is
engaged in Processors, importers, traders, exporters and marketers of rough
and polished diamonds. Specializing in special diamonds and in diamond
tenders. |
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No. of Employees : |
10 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Exist |
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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 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 free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.6% per year during the period 2014-16. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2017 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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Source
: CIA |
Company
name and address
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
HISTORY
& LEGAL FORMATION
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.
PARTNERS
1. Meir Anavi, 50%,
2. Abraham (Avi) Anavi, 50%, son of Meir.
JOINT
GENERAL MANAGERS
1. Abraham (Avi) Anavi,
2. Meir Anavi.
BUSINESS
Processors,
importers, traders, exporters and marketers of rough and polished diamonds.
Specializing in special diamonds and in diamond tenders.
Polishing is
carried out via subcontractors.
According to our, some
15% of sales are for export (Meir Anavi refused to disclose export percentage).
Operating from
large offices premises, owned by the partners, on an area of 250 sq. meters, in
21 Tuval 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 10
employees in 2016 (had 18 - 20 employees in mid-2014). Current number of
employees not forthcoming
MEANS
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).
REVENUES
2013 sales claimed
to be US$ 400,000,000, 15% of which were for export.
Later sales data
not forthcoming.
OTHER
COMPANIES
ANAVI JEWELRY
LTD., inactive.
SELENE BLUE
DIAMONDS LTD., owned by Aviad Anavi, incorporated 2015 started activities in
2016/17, known to be affiliated to subject. Shares premises with subject.
BANKERS
The First
International Bank of Israel Ltd., Diamond Exchange Branch (No. 26), Ramat Gan.
Mizrahi Tefahot Bank Ltd., Diamond Business Branch (No. 466), Ramat Gan.
CHARACTER
AND REPUTATION
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 was 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.
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 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 October 2015 the
State Attorney filed indictments against 5 defendants, Meir Anavi being
one of them (also 2 diamond dealers and 2 diamond companies) for
felonies of money laundering, issuing fictitious salary invoices and tax
evasion in volumes of US$ millions. The case (file no. 42750-10-15) is pending,
next hearing scheduled for 06/05/18.
In August 2016
further indictments were filed against 6 diamond dealers and their companies.
In 2014 the Tax
Authority laid a ransom of NIS 200,000 on Avraham Anavi (as well as NIS 200,000
each on other 3 members of the Anavi family) for tax evasion on his salary of
NIS 680,000 between the years 2007-2011.
We spoke with Mr. Meir Anavi, subject's Joint General Manager, who
refused to disclose details, besides the very general (saying they are paying
cash, no credits involved).
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
(do not appear in later published lists, but that could also be for subject’s
own choice not to be included).
In March 2016 it
was reported that diamond miner PETRA DIAMONDS sold its recently recovered 32ct
pink diamond for US$15 million. The
exceptional diamond, was recovered from the Williamson mine in Tanzania and
bought by GOLDEN YELLOW DIAMONDS on behalf of subject. That comes after in
December 2015 subject acquired a 23cr rough pink diamond for US$ 10.1 million.
Subject is known to be large and unique coloured diamond specialist, and Mr.
Meir Anavi in particular specialize in tenders for such unique stones.
Export (net) of
polished diamonds from Israel in the first 9 months of 2017 totaled US$ 3,383
million, which represents 11.8% decrease compared to the parallel period in
2016, while export of net rough diamonds fell 10.4% in this period, reaching
US$ 1,796 million. That is in contrast to the figures in 2016, which showed
signs of recovery for the Israeli diamond trade, coming after the export of
diamonds from Israel experienced a drastic fall by 20% in 2015 from 2014 (down
40% from 2011).
Net export of
polished diamonds in 2016 decreased by 6.4% from 2015, reaching US$ 4,675
compared to US$ 4,993 million in 2014 (after 0.6% rise in 2014 and 11.6% in
2013), however net rough diamonds exports jumped 23.1% to US$2,702 million (in
2015 fell 28.3% from 2014, after 4.2% rise in 2014, and a mere rise in 2013).
Yet the figures are well away from its peak on the eve of the crisis with
export of polished diamonds of US$ 7 billion.
The market has
been volatile over the last years after experiencing its worst depression due
to the global economic crisis. According to Israel's Diamond Administration
(IDA) at the Ministry of Economics, profit margins have been decreasing due to
smaller gaps between rough (increasing) and polished (decreasing) diamond
prices.
In addition, the
local diamond sector has been negatively affected by other significant factors:
the production of counterfeit diamonds, whose quality keeps improving (harming
the raw diamonds market), the entrance of new rules by the local Tax
Authorities on the Diamond Exchange for enforcing money laundering, and the
"underground bank" affair.
As a result, local
diamond dealers report on difficulties in executing transactions and bad
atmosphere in the branch. Signs of recovery appeared towards the last quarter
of 2016 – mainly due to the growing stability of the market and the industry’s
agreement with the Israel Tax Authority in December, yet the market is still
volatile, as witnessed with the endurance of the depression trend during 2017.
Net imports of
polished diamonds totaled US$ 3,282 million in 2016, 5.7% decrease from 2015, while
net import of rough diamonds reached US$ 3,246 million, up 16.7% from 2015.
Net imports of
polished diamonds decrease by 15.1% in the first 9 months of 2017 and totaled
US$ 2,015 million, compared to the parallel period in 2016, whereas net import
of rough diamonds reached US$ 2,089 million, down 11.6% from 2016.
The United States
continued to be Israel’s major market for polished diamonds, accounting for 45%
of the market in the first 9 months 2017 (was 39% in 2016). Hong Kong is 2nd
largest market with 30% of exports (26% in 2016), followed by Switzerland 9%
(7%), Belgium 8% (8%), and the rest of the world account for the remaining 8%
of Israel's polished diamond export.
In 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.
SUMMARY
On one hand,
subject is well-known in their field, has been among the leading local diamond
dealers, and considered financially solid. On the other hand, there is the
pending severe indictment filed against Meir Anavi, with its implication. It is
difficult to estimate the outcome, however we figure that subject is
financially strong, and given the fact that Avi Anavi is not facing charges, we
believe subject is good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.46 |
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1 |
INR 86.15 |
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Euro |
1 |
INR 75.91 |
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ILS |
1 |
INR 18.49 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VAR |
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Report Prepared
by : |
DNS |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.