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Report Date : |
15.12.2014 |
IDENTIFICATION DETAILS
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Name : |
M.I.D.HOUSE OF DIAMONDS LTD. |
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Registered Office : |
23 Tuval Street Diamond Exchange, Noam Bldg. Ramat Gan 5252238 |
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Country : |
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Date of Incorporation : |
22.08.1994 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Diamond cutters, processors/ polishers, traders, importers
and exporters |
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No. of Employees |
40 |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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A2 |
A2 |
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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 |
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Source
: CIA |
M.I.D. HOUSE OF
DIAMONDS LTD.
(Known as MID
Telephone 972 3 575 71 55
Fax 972 3 575 51 64
Email: Israel@middiamonds.com
23 Tuval Street Diamond Exchange, Noam Bldg.
A private limited company, incorporated as per file No. 51-201591-8 on the 22.08.1994, continuing business founded over 20 years earlier.
Originally registered under the name B.Y. MEIROV GEM LTD.,
which changed to MEIROV INTERNATIONAL DIAM
Authorized share capital
19,800 ordinary shares of
of which 100 shares amounting to
1. Benny Meirov, 50%,
2. Josef Meirov, 50%.
1. Benny Meirov,
2. Josef (Yossi) Meirov.
Diamond cutters, processors/ polishers, traders, importers and exporters.
80% of sales are for export.
Operating from rented premises, on an area of 300 sq.
meters, in
Also operating from
branches in
Having in all 60
employees, of which 40 employees in
Financial data not forthcoming, but considered to be financially solid.
There are 2 charges for unlimited amounts registered on the
company's assets, in favor of Union Bank of
2012 consolidated
sales were around US$ 200,000,000, of which 80% exported.
2013 consolidated
sales were around US$ 200,000,000, of which 80% exported.
M.I.D. INC., branch in
M.I.D. LOS ANGELES LLC., branch in
M.I.D. BELGIUM B.V.B.A, branch in
M.I.D. HONG KONG LTD., branch in
Subject's owners, Meirov Bros., have other local
investments, in jewelry company, software house, in a real estate project in
Tel Aviv and 50% in MORE INVESTMENT HOUSE LTD., an investment house (currently
observes an IPO on the Tel Aviv Stock Exchange based on a company value of
Union Bank of Israel Ltd., Ramat Gan Branch (No. 062),
account No. 3374/82.
A check with the
Central Banks' database did not reveal any negative information regarding
subject's a/m account.
Nothing unfavorable learned.
Subject is one of the largest diamond manufacturers and distributors in the local market, enjoying good reputation in the branch.
According to the report published by the Israel Supervisor on Diamonds in the Ministry of Industry and Trade, subject was ranked the 2nd in the 2013, 2012 and the 2011 list of Israel's largest polished diamonds exporters. In 2010 and 2009 subject was ranked 3rd and 5th, respectively (though there are large exporters which choose not to be included in the list in order not to be exposed).
Subject received Outstanding Exporter Award for 2011 from the Israel's Ministry of Industry, Trade & Labor, after its diamond exports rose 49% from 2010 to US$239 million in 2011, as reported by the Ministry.
Israel's diamond industry remarked on impressive growth in almost all trade parameters in 2013, from the data by Israel's Diamond Administration at the Ministry of Economics: Net export of polished diamonds rose by 11.6% from 2012, reaching US$ 6.2 billion. The market has been volatile in recent years: the branch –in Israel as well as globally- experienced its worst depression in the 2nd half of 2008 and 2009 due to the global economic crisis (almost an entire freeze and collapse in sales of about 70% in the peak of the crisis), then recovered in 2010 and mainly in and fell again in 2012 (net export fell by 23% in 2012 from 2011).
Net rough diamond exports totaled US$2.9 billion in 2013, a mere rise from 2012.
Net imports of polished diamonds remained in similar level as 2012 (after drop by 25% in 2012 from 2011), totaling US$4.3 billion, while net rough diamonds imports summed at US$ 4 billion, 4% up from 2012 (when it fell 13% from 2011).
The United States continued to be Israel’s major market for polished diamonds, accounting for 37% of the market in 2013 (35% in 2013). Hong Kong is the next largest market with 27% of exports, with Switzerland accounting for 9.3%, Belgium 7.3%, and India accounting for 2.3% 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 stands on US$ 1.5 billion, down from US$ 2.4 billion in the eve of the global crisis. The Ministry of Economics also assisted the local diamond exporters by providing bank guarantees in total scope of NIS 1 billion.
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.
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. The Attorney General is in process of preparing indictments.
In the end of December 2013 it was reported that 5 diamond dealers were summoned to a hearing (not mandatory) regarding a/m affair, prior to filing an indictment, before the Tel Aviv District Attorney (Tax and Finance sector).
Good for trade engagements
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.62.44 |
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1 |
Rs.98.15 |
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Euro |
1 |
Rs.77.38 |
INFORMATION DETAILS
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Analysis Done by
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SUM |
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Report Prepared
by : |
DPT |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.