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Report Date : |
04.08.2012 |
IDENTIFICATION DETAILS
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Name : |
CAESAREA CARPETS (97) LTD |
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Formerly Known As : |
BARKAN CARPETS INDUSTRIES (97) LTD. |
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Registered Office : |
2 Haetzel Street, New Industrial Zone, Rishon Le-Zion 7570604 |
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Country : |
Israel |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
29.01.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, importers, marketers and exporters of woven and
wall-to-wall carpets |
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No. of Employees : |
261 employees in the Group's floor covering
segment |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Israel |
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 |
CAESAREA CARPETS (97) LTD.
(Also known as: CARMEL CARPETS & PARQUETS)
Headquarters:
Telephone 972 3 953 64 00
Fax 972 3 961 17 89
2 Haetzel Street
New Industrial Zone
RISHON LE-ZION 7570604 ISRAEL
Plant:
Telephone 972 3 908 19 10
Fax 972 3 936 50 05
11 Shoham Street
Industrial Zone
BARKAN 4482000 ISRAEL
A private limited company, incorporated as per file No. 51-244140-3 on the
29.01.1997 under the name BARKAN CARPETS INDUSTRIES (97) LTD., which changed to
the present one on the 03.06.1998.
In April 1999 the Eitani Family sold their holding in CAESAREA CARPET
INDUSTRIES LTD., a private limited company incorporated in 1994, continuing
“Carmel Carpets” activities which began in the 1960s) to CARMEL HOLDINGS (I.L)
LTD. (formerly BETILI LTD.), a publicly traded company, also controlled by the
Eitani Family, who merged these activities into subject.
Authorized share capital NIS 9,000,000.00, divided into -
9,000,000 ordinary
shares of NIS 1.00 each,
of which 8,610,000 shares amounting to NIS 8,610,000.00 were issued.
Subject is fully
owned by CARMEL HOLDINGS (I.L) LTD., a public limited liability company, whose
shares are traded on the Tel Aviv Stock Exchange (TASE) (on the
preservation list), controlled by the Eitani Family (74.66%) and NORSTAR HOLDINGS
INC. (14.8%, publicly traded on TASE), controlled by Haim
Katzman.
·
Ofer
Eitani, General Manager,
Haim Eitani, Chairman of CARMEL HOLDINGS,
Aviv Eitani.
Manufacturers, importers, marketers and exporters of woven and wall-to-wall
carpets.
In 2011 subject manufactured 817,000 sq.m woven carpets and 350,000 sq.m wall-to-wall
carpets.
Sales are to the private and institutional sectors, to Israel, Palestinian
Authority and worldwide. 24% of sales were for export.
Since the beginning of 2011 subject is in charge of the Group's floor
covering sales for the institutional market, while sales to the retail sector
is carried out via Group's subsidiary CARMEL FLOOR DESIGN.
Floor Coverings segment in CARMEL Group also includes import and marketing
of parquets and artificial grass, sold via “Carmel Carpets & parquets”
chain store of 17 branches (4 operated directly and rest via concessionaires), as
well as floor covering departments inside retail chains Home Center (12
points), Betili (16), IDdesign (3) and "Floor" store in Tel Aviv
Port. Also selling on wholesale basis to SHUFERSAL supermarket chain, HOME
CENTER DIY chain and others.
Local representatives of: DURKAN, MOHAWK (USA), NEWMOR (UK), EGE (Denmark),
EGGER (Germany). Also importers and sole licensed marketers of "Disney
Carpets" and "Bratz Carpets".
80% of raw material purchasing was from import, mainly from Europe.
Operating from parent's CARMEL/BETILI rented offices, on an area of 1,200
sq. meters (serving the Group), in 2 Haetzel Street, New Industrial Zone,
Rishon Le-Zion, from a plant, on an area of 8,500 sq. meters, owned by the
Group, in Shaked Industrial Zone, and from plant and warehouses in several
facilities (all rented), on total area of over 17,450 sq. meters, in 11 Shoham
Street, Barkan Industrial Zone (serving subject and other Group members,
including E.F.).
Flagship retail store of "Carmel Carpets & parquets" is in
Bnei Brak, on an area of 300 sq. meters, owned by the Group.
Having 261
employees in the Group's floor covering segment, which includes subject (had
257 employees in end of 2010). Having 698 employees serving the whole BEITILI
Group.
As part of a organizational change in the CARMEL Group, on 01.01.2011
parent company CARMEL HOLDINGS transferred to subject all the institutional
activities, including stock and customers' relations, for NIS 2.6 million
(price was valued by an outside evaluator).
Financial data is included
in the consolidated financial statements of parent company, CARMEL HOLDINGS
(I.L) LTD., which shows:
NIS
(thousands)
31.12.2011 31.03.2012
ASSETS
Current assets
Cash
and cash equivalents 7,527 6,560
Customers 52,764 50,925
Other debtors 10,832 12,487
Other current assets 581 825
Stock 66,296 66,176
138,000 136,973
Non-current assets
Fixed assets (net) 37,152 36,237
Other non-current assets 13,595 13,859
50,747 50,096
188,747 187,069
======= =======
LIABILITIES
Current liabilities 103,010 99,444
Non-current
liabilities 34,191 34,257
Equity 51,546 53,368
188,747 187,069
======= =======
CARMEL HOLDINGS (I.L) LTD market value US$ 7 million.
Subject is an approved enterprise, and as such entitled to tax benefits and
State incentives.
In December 2003, Israeli Investment Center (IIC) approved a US$ 1.5
million investment plan for the expansion of subject’s plant.
In June 2005, the IIC approved a NIS 1 million investment plan for
the expansion of subject’s plant.
In December 2009, the IIC approved an investment plan for the expansion
of subject’s plant.
Assets attributed to the floor covering segment as of 31.12.2011 (in
brackets 31.10.2010): NIS 101,295,000 (NIS 91,852,000).
There are 14 charges for unlimited amounts registered on company’s assets
(financial assets and fixed assets), in favor of the state of Israel,
Mercantile Discount Bank Ltd, Bank Leumi Le’Israel Ltd., Union Bank of Israel Ltd. and Israel Discount Bank Ltd. (last 2 charges
placed November 2011).
In the financial statements
of parent CARMEL HOLDINGS (I.L) LTD., the floor covering field, which is
attributed to subject and its subsidiaries, sales were:
2008 sales were NIS 110,000,000, making an operating profit of NIS
5,900,000. Subject ended 2008 with a net profit of NIS 188,000.
2009 sales were NIS 103,500,000, making an operating profit of NIS
5,075,000.
Subject ended 2009 with a net profit of NIS 1,654,000.
2010 sales were NIS 119,600,000, making an operating profit of NIS
4,436,000.
Subject ended 2010 with a net profit of NIS 1,602,000.
Since 2011, the floor covering field includes also new company CARMEL FLOOR
DESIGN, in addition to subject.
2011 sales were NIS 126,642,000, making an operating profit of NIS
6,621,000.
Subject ended 2011 with a net profit of NIS 2,522,000.
Sales for the first quarter of 2012 were NIS 33,002,000 (1.7% rise from
2011 1stQ), making an operating profit of NIS 527,000.
CARMEL
HOLDINGS (I.L) LTD. LTD.
Consolidated
Statement of Income
NIS
(thousands)
Year
ended on the 31.12
2009 2010 2011
Sales 205,133 223,701 243,602
Gross profit 87,034 94,388 106,862
Operating income* 31,729 12,203 11,228
Income before income
taxes 29,341 7,912 8,294
Profit from
continuing operation 28,426 5,541 7,942
Profit from ceased
operation 7,370 - -
Net profit 35,796 5,541 7,942
======= ======= =======
* 2009 operating
profit includes “other income” of NIS 25,594,000, deriving from a capital gain
following the agreement signed with its bonds holders.
CARMEL HOLDINGS (I.L) LTD. LTD. consolidated
first 3 months of 2012 sales were NIS 61,270,000 (similar to the parallel
period in 2011), making a gross profit of NIS 25,822,000, an operating income
of NIS 2,135,000 and a net income of NIS 1,822,000.
SHAKED CARPETS
LTD., 50%, importers and marketers of floor covering, mainly parquet floors,
CARMEL HOLDINGS (I.L) LTD., via subsidiaries, operates in the floor covering,
furniture and household products fields. Holding also:
CARMEL FLOOR
DESIGN LTD., Group's retail activities in the floor covering field to retail
chains,
IKOO DESIGNS LTD.,
100%, furniture manufacturing,
ZIEGLER
INVESTMENTS LTD., 100%, investments and real estate,
E.F. DESIGN LP
(EFD), 50%, operates the "Betili" (19 branches), "I.D.
Design" (3 branches) and "Rich & Taylor" (4 branches), “My
Home Page” (8 stores and via the Internet, focusing on young audience), as well
as “Hazorea Furniture Center” store. Also importers and marketers of furniture,
household products, lighting elements, home textile goods, etc.
E.F. HOME DESIGNS
LTD., 50%, management company for the above chains,
Eitani family also
owns, among other companies:
HAIM EITANI
HOLDINGS LTD.
CLASSIGAN LTD.,
33%, garden furniture manufacturers and marketers.
NATZRANIT HOLDINGS LTD., fully owned by Aviv
Eitani, owns EAGLE FORKLIFTS AND LOGISTICS LTD., 100%, importers and marketers
of forklifts. Also have holdings in real estate ventures.
NORSTAR HOLDINGS
INC., a foreign publicly traded company, current market
value US$ 378 million, part of GAZIT GLOBE Group,
operating in the real estate investment fields, in acquisition, development and
management of yielding properties in Israel, North America, Northern Europe.
Holds 56.37% in GAZIT GLOBE LTD., publicly traded on TASE, current market value
US$ 1,581 million.
Mercantile Discount Bank Ltd, Ramat Gan Branch (No. 663), Ramat Gan.
Bank Leumi Le'Israel
Ltd, Rishon Le-Zion Business Branch (No. 671),
Rishon Le-Zion.
Israel Discount
Bank Ltd.
Note: Since we were unable to speak with subject's officials, we could
not confirm a/m bank data).
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
"Carmel"
is a leading company in their fields. Both “Betili” and “Carmel Carpets” chains
are leading and well-recognized brands in their fields. CARMEL estimates its market in the floor covering
branch share at 20%. "Carmel Carpets" logo is the most recognized
carpets brand in the local market.
In April 1999, parent CARMEL acquired subject’s shares in consideration of
NIS 2.8 million.
In November 2001, subject acquired SHOMRON CARPETS, for a sum of US$
800,000 after SHOMRON CARPETS stumbled upon financial difficulties.
In December 2004,
subject acquired 40% in CARPETEC LTD., for a sum of NIS 637,000, and reached
full ownership in this company.
In 2006 CARMEL
HOLDINGS entered into business activities in the Turkish market (acquired 50.1%
of the veteran and large carpet plant). The venture, in which it invested US$
millions encountered heavy financial difficulties during 2007 (allegedly due to
market conditions and an internal fraud), and reached bankruptcy. As a result
CARMEL entered financial difficulties (causing a loss of NIS 50 million) and
had to seek an agreement with its bonds holders. In its financial statements
for the 2ndQ08 and 3rdQ08 “going concerns” note was attached.
In December 2008
CARMEL reached a settlement (approved by Court in March 2009) with its bonds
holders regarding re-schedule payments and in discounted sums and converting
some of the bonds into shares (as well as fueling capital by CARMEL controlling
shareholders and bank loan), allowing CARMEL to continue normal operation.
Following that, CARMEL’s financial standing stabilized and improved gradually.
Due to not meeting
the Stock Exchange tradability rules, in February 2009 CARMEL HOLDINGS’s shares
moved to be traded on the low-tradability list and in February 2010 moved to
the preservation list. In January 2011 shares were re-transferred to the main
list, however, on the 23.01.2012 shares were transferred again to the
preservation list.
NORSTAR HOLDINGS is part of the leading real estate
investment GAZIT GLOBE Group, controlled by Haim Katzman and Dori Segal.
In 2003 the Eitani family, founders of "Betili" chain, joined forces
with Eliezer Fishman Group, founders of "IDesign" Chain, establishing
a new partnership – E.F. DDESIGNS, becoming jointly the largest furniture chain
in Israel. FISHMAN Group is also a leading retailer in the household, DIY and
other fields (via HOME CENTER chain and others).
During 2006,
subject opened 12 points of sale ("store within store") in HOME
CENTER branches, local largest DIY chain spread countrywide, replacing a
previous franchise.
Subject's Group acquired in
In December 2008, it was reported that CARMEL Group received the
exclusivity for German parquet manufacturer EGGER for marketing it in Israel.
CARMEL is also investing in penetration the local wallpaper niche.
Also In December 2008 it was reported that CARMEL is re-branding itself
with an investment of NIS 3 million.
In May 2009 it was
reported CARMEL entered the artificial grass niche with a new retail store in
Ilanot Janction, with an investment of NIS 500,000. The artificial grass market
is estimated at NIS 10 million per year.
In February 2012 it was reported that subject closed orders in value of
tens NIS million during the 'Domotex' exhibition in Germany, deals with
representatives from over 20 countries.
The local floor covers market (carpets, rugs, wall-to-wall carpets,
parquets floor) is estimated well over at US$ 100 million per annum.
Good for trade engagements.
Note: Since the beginning of 2012 Israel Post
started using a new area code method of 7 digits (the old method of 5 digits
will still be valid till end of 2012).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.08 |
|
UK Pound |
1 |
Rs.87.03 |
|
Euro |
1 |
Rs.68.36 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
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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 |
|
<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.