MIRA INFORM REPORT

 

 

Report Date :

23.02.2011

 

DENTIFICATION DETAILS

 

Name :

TWO FEET LTD.

 

 

Registered Office :

21 Hamovil Road, Tzofit 44925  

 

 

Country :

Israel

 

 

Date of Incorporation :

01.01.2006

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of kids and youth footwear

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

€ 50,000

Status :

Moderate

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 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address

 

TWO FEET LTD.

(Also trading as: "2 FEET")

Telephone             972 9 740 15 30; 740 15 42

Fax                       972 9 740 15 31

21 Hamovil Road

TZOFIT-44925-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-377090-9 on the 01.01.2006.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 40,000.00, divided into -

                40,000 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by MITOS NOVELTIES LTD., owned by brothers Guy and Eyal Barhavay.

 

 

SOLE DIRECTOR

 

Guy Barhavay.

 

 

JOINT GENERAL MANAGERS

 

1.    Eyal Barhavay,

2.    Guy Barhavay.

 

BUSINESS

 

Importers and marketers of kids and youth footwear.

 

Sales are mostly to large retail chain stores. Among clients: SHUFERSAL, KFAR HASHAASHUIM (BEE GROUP RETAIL), KOL NAAL CENTER, TOYS'R'US, MEGA SPORT, etc.

 

Sole local representatives of (main ones, among others):

·         MARVEL, of U.S.A. (for certain brands)

·         SANTORO GRAPHICS, of U.K

·         DRAGON BALL GT, of Japan.

 

Operating from rented premises (offices and warehouse), on an area of 2,700 sq. meters, in 21 Hamovil Road, Tzofit Village (“Moshav Tzofit”, where “moshav” is a local typical communal agricultural village), situated in the Sharon Region.

 

Having 25 employees serving subject and parent company MITOS NOVELTIES (same as in 2008).

 

 

MEANS

 

Financial data not forthcoming.

 

There are 8 charges for unlimited amounts registered on the company's assets (financial assets), in favor of Bank Hapoalim Ltd., Bank Leumi Le'Israel Ltd., Mizrahi Tefahot Bank Ltd. and The First International Bank of Israel Ltd.

 

 

ANNUAL SALES

 

2006 sales claimed to be NIS 22,000,000.

2007 sales claimed to be NIS 29,000,000.

Later sales figures not forthcoming.

 

 

OTHER COMPANIES

 

MITOS NOVELTIES LTD., established 1999, importers and marketers of handbags, purses, fashion accessories and pop items.

 

 

BANKERS

 

Bank Hapoalim Ltd., Afula Branch (No. 727), Afula, account No. 699921.

 

First International Bank of Israel Ltd., Afula Branch (No. 111), Afula, account

No. 333204.

 

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m accounts.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

However subject was involved in a legal affair, in which in mid 2007 CROCS ISRAEL, manufacturers and distributors of the Crocs footwear, filed a lawsuit against SHUFERSAL, Israel’s largest supermarket chain, for disallowing the sale of footwear that resembles their Crocs design and supplied to SHUFERSAL by subject, and for compensation. The Court accepted the plaintiffs claim in part, and issued a temporary restraint against SHUFERSAL to sell the said footwear.

 

Subject's officials refused to disclose financial details.

 

The local footwear market rolls an annual turnover of around NIS 3.5 billion according to sources in the branch, mostly from import, with 33 million pairs of shoes sold each year over some 1,500 footwear stores. Annual consumption per capita is 4-5 pairs of shoes. Import of footwear originated from Asian countries keeps rising. That trend has brought the local shoe industry to a nearly shut-down.

 

Import of Clothing and Footwear in 2009 summed up to US$ 1,267 million, comparing to US$ 1,402 million in 2008 (9.6% decrease) and US$ 1,188 million in 2007. Import of footwear alone fell by 7% in 2009, reaching US$ 304.5 million. Most import comes from China (US$ 126 million in 2009), while import from Italy summed up to US$ 26 million.

 

The decrease in 2009 reflects the slow-down trend in the local economy during 2009, mainly in the first half of the year. The trend reversed in 2010 and import of Clothing and Footwear rose 12% in 2010 1st half comparing to the parallel period in 2009, reaching US$ 674.6 million.

 

The local fashion market has been suffering from slow-down during 2009, and the trend continued into 2010. According to a local retail research company, retail fashion chains witnessed in 2009 an overall decrease of over 5% in proceeds comparing to 2008. In breaking down the data, it turns that a majority of retails stores witnessed a higher fall of up to 15%, while some stores experienced even a growth. Market reaserch checked 1,100 fashion (cloths and footwear) stores and found that sales reached NIS 2.75 billion (were NIS 2.9 in 2008).

 

In addition new international fashion players (GAP, H&M) entered in 2009/2010 to the local fashion market, which has been highly competitive already.

 

According to the Central Bureau of Statistics, the current expenditure for private consumption in 2009 for clothing, footwear and personal items fell marginally (0.7%) from 2008, when it rose by 4.1% from 2007 (rose then by 7% from 2006).

 

According to surveys, average spending per houshold on clothing & footwear in 2008 reached NIS 483 per month and fell to around NIS 455 per month in 2009 (similar level as 2007).

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial details, considered good for trade engagements.

Maximum unsecured credit recommended € 50,000.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.20

UK Pound

1

Rs.73.07

Euro

1

Rs.61.41

 

 

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

 

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.