MIRA INFORM REPORT

 

 

Report Date :

22.08.2014

 

IDENTIFICATION DETAILS

 

Name :

M.I.D. (HK) LTD.

 

 

Registered Office :

22/F., Queen’s Road Centre, 152 Queen’s Road Central, Central

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

22.02.2005

 

 

Com. Reg. No.:

35362592

 

 

Legal Form :

Private Limited Company

 

 

LINE OF BUSINESS :

MANUFACTURER, IMPORTER, EXPORTER, WHOLESALER AND TRADER OF ALL KINDS OF DIAMONDS.

 

 

No of Employees :

05

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 


 

HONG KONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 12% of total system deposits in Hong Kong by the end of 2013. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's total trade by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 


Company name & address

 

M.I.D. (HK) LTD.

 

ADDRESS:        Room 1003, 10/F., The Chinese Bank Building, 61-65 Des Voeux Road Central, Hong Kong

 

&

 

22/F., Queen’s Road Centre, 152 Queen’s Road Central, Central, Hong Kong

(Registered Office)

 

 

PHONE:            852-2545 7118

 

FAX:                 852-2545 6102

 

E-MAIL:            hongkong@middiamonds.com

 

 

MANAGEMENT

 

Marketing Manager:  Mr. Gastao Fausto D’Aquino

 

 

SUMMARY

 

Incorporated on:             22nd February, 2005.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,000.00

 

Issued:                          HK$1.00

 

Business Category:        Diamond Trader.

 

Employees:                   5.

 

Main Dealing Banker:     The Hong Kong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.

 


Name

 

M.I.D.  (HK)  LTD.

 

 

ADDRESS

 

Registered Office:-

22/F., Queen’s Road Centre, 152 Queen’s Road Central, Central, Hong Kong.

 

Head Office:-

Room 1003, 10/F., The Chinese Bank Building, 61-65 Des Voeux Road Central, Hong Kong.

 

Associated Companies:-

M.I.D. (Shanghai) Ltd., China.

M.I.D. House of Diamonds Ltd., Israel.

MID Belgium B.V.B.A., Belgium.

MID La LLC, US.

MID London, UK.

MID Los Angeles LLC, US.

 

 

BUSINESS REGISTRATION NUMBER 

 

35362592

 

 

COMPANY FILE NUMBER

 

0952563

 

 

MANAGEMENT

 

Marketing Manager:       Mr. Gastao Fausto D’Aquino  (Mobile: 852-9489 4181)

Contact Person:             Mr. Rafael-Arie Kish

 

 

CAPITAL

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$1.00

SHAREHOLDER

 

(As per registry dated 22-02-2014)

 

Name

 

No. of share

Benjamin MEIROV

 

1

=

 

 

DIRECTORS

 

(As per registry dated 22-02-2014)

 

Name

(Nationality)

 

Address

Michael MEIROV

Aric Dulchin 8, Ramat-Aviv, Israel.

 

Rafael-Arie KISH

Yizhak Sade 15, Kiriat-ono 55299, Israel.

 

 

SECRETARY

 

(As per registry dated 22-02-2014)

 

Name

Address

Gastao Fausto D’AQUINO

Apartment 4A, Pokfulam Court, 94 Pok Fu Lam Road, Hong Kong.

 

 

HISTORY

 

The subject was incorporated on 22nd February, 2005 as a private limited liability company under the Hong Kong Companies Ordinance.

 

At the very beginning, the subject was located at “Flat A, 14/F., Hong Kong Jewellery Building, 178-180 Queen’s Road Central, Hong Kong”, moved to “22/F., Queen’s Road Centre, 152 Queen’s Road Central, Central, Hong Kong” in March 2011, and further moved to the present address in May 2014.

 

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 


OPERATIONS

 

Activities:          Importer, Exporter and Wholesaler.

 

Lines:   All kinds of diamonds

 

Employees:       5.

 

Commodities Imported:   India, Belgium, Israel, other European countries

 

Markets:           China, Japan, other Asian countries, US

 

Terms/Sales:  L/C, T/T

 

Terms/Buying:  L/C, T/T, D/P

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)

 

Issued Share Capital: HK$1.00

 

Profit or Loss:    Making a small profit every year.

 

Condition:  Keeping in a satisfactory manner.

 

Facilities:  Making active use of general banking facilities.

 

Payment:  Met trade commitments as required.

 

Commercial Morality:  Satisfactory.

 

Banker:  The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Standing:  Normal.

 

 

GENERAL

 

M.I.D. (HK) Ltd. is wholly-owned by Benjamin Meirov who is an Israel passport holder.  Currently he is residing in Israel.

 

The subject is a diamond trader.  It is a member of the MID Group which is Israel based.  Formally, the Israel company is known as M.I.D. House of Diamonds Ltd.

 

MID is one of the world’s largest and manufacturers of polished diamonds.  It has been selling to leading retailers around the world for the past 50 years and even though it is among the top ten diamond manufacturers in the world in size, it is still a family business.  It belongs to the Meirov family.

 

Through its international network of factories and offices, MID maintains close relationships with its clients offering diamonds in every shape, size and colour from ten pointes to extreme sizes, both as individual stones and in bulk.

The story of MID House of Diamonds is really the story of the Meirov Brothers.  Born in Northern Israel, Benny and Yossi Meirov were born into the diamond business.  As teenagers they helped their father in his small jewellery shop.  In young adulthood, the brothers moved to Tel Aviv, gained employment with a major diamond company, and began to learn the diamond business.  They began by learning rough assortments and progressed to learning about the cutting and polishing processes.  The brothers progressed in the diamond trade and subsequently the brothers turned their attention to the global diamond market.

 

Now, the Group has set up offices in Belgium, the United States, the United Kingdom, besides Israel and the subject in Hong Kong.

 

The MID Group is one of Israel’s top diamond exporters, ranking the second in 2011 with an export value of US$239 million.  The President of the Group is Mr. Benny Meirov.

 

The subject is trading in the following products:

 

18K Gold Diamond Ring, Platinum Diamond Ring. It is also trading in pear-shaped diamonds, 19 carat diamond, etc.  Most of the products are imported from India, Israel, etc.  Products are exported and re‑exported to the other Asian countries, the United States.

 

In order to penetrate the international market further, the subject has taken part in fairs and exhibitions held in Hong Kong and other foreign large cities.  For instance, it is going to take part in “HKTDC Hong Kong International Diamond, Gem & Pearl Show 2015” which will be held in Hong Kong AsiaWorld-Expo, Lantau, Hong Kong during the period of 2nd to 6th March, 2015.  Its booth No. is AWE 2-L01.

 

The subject is fully supported by the MID Group.  History in Hong Kong is over nine years.

 

On the whole, consider the subject good for normal business engagements.

 


 

DIAMOND INDUSTRY – INDIA

 

-            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.

-            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.

-            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.

-            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.

-            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.

-            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.

-            Excerpts from Times of India dated 30th October 2010 is as under –

 

-            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.

 

-            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

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.77

UK Pound

1

Rs.100.72

Euro

1

Rs.80.55

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.