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Report Date : |
14.06.2012 |
IDENTIFICATION DETAILS
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Name : |
E.F. DESIGNS LIMITED PARTNERSHIP |
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Registered Office : |
2 Haetzel Street New Industrial Zone Rishon Le-Zion 7570604 |
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Country : |
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Date of Incorporation : |
28.08.2003. |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Importers and marketers of furniture, household products, lighting elements, home textile goods, etc. |
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No. of Employees : |
423 |
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
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
E.F. DESIGNS LIMITED
PARTNERSHIP
(Also known under
trade name BETILI; or in short as EFD)
Telephone 972 3 953 64 00
Fax 972 3 961 17 89
New Industrial Zone
RISHON
LE-ZION 7570604
A limited
partnership, registered as per file No. 55-021484-5 on 28.08.2003.
Subject was
incorporated in order to merge all retail activities of the BEITILI and I.D.
DESIGN retail marketing chains, which were transferred to subject on
01.09.2003.
1. IKOO DESIGNS LTD., 49.5%,
limited partner, a fully owned subsidiary of CARMEL HOLDINGS (I.L) LTD., a
public limited company whose shares are traded on the Tel-Aviv Stock Exchange,
controlled (73.6%) by the Eitani family and by NORSTAR HOLDINGS INC. (14.8%),
controlled by Haim Katzman,
2. F.C.P. DESIGN LTD. (trading as
I.D.DESIGN), 49.5%, limited partner, owned by Eliezer Fishman & family,
3. E.F. HOME DESIGNS LTD., 1%,
equally controlled by the 2 above mentioned partners, being the general
partner.
Aviv
Eitani.
Importers and
marketers of furniture, household products, lighting elements, home textile
goods, etc., operating retail chains of 26 retail stores, under the brand names
"Betili" (19 stores), "IDdesign" (3 stores), "Rich and
Taylor" (4 stores). In addition, also operate "My Home Page" (8
stores and via the Internet, focusing on young audience), and run a store under
the name “
Some 60% of
purchase is import. Among foreign suppliers: REDA, WOODFAP, IMPERIORS, R.R.
INDUSTRIES, all from
Among local
suppliers: IKOO DESIGNS (affiliate), SHIR FURNITURE, etc.
Operating from
rented offices in CARMEL HOLDINGS headquarters premises (total area spans over
1,200 sq. meters which partly serve subject), in
Having 423
employees in the Furniture Sector of CARMEL HOLDINGS (mostly in subject).
Financial data is
included (relatively) in the consolidated B/S of parent company, CARMEL
HOLDINGS (I.L) LTD. LTD., which shows:
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
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LIABILITIES
Current liabilities 103,010 99,444
Non-current
liabilities 34,191 34,257
Equity 51,546 53,368
188,747 187,069
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CARMEL HOLDINGS
current market value US$ 7.3 million.
Assets attributed
to the furniture segment in CARMEL HOLDINGS
financial statements (mainly attributed to subject) as of 31.12.201:
In its 2009 annual
statements, CARMEL HOLDINGS notified that in 2009 subject ended with a
deficit in its equity of NIS 0 (zero), after deduction partner’s loans, that is
according to its obligation to its bankers.
According
to CARMEL HOLDINGS financial statements, the Furniture segment sales (in
essence represents subject’s sales, proportionally to
2009
in were
2010
sales were
2011
sales were
Sales
for the first 3 months of 2012 were
Consolidated
Statement of Income
Year
ended on the 31.12
2009 2010 2011
Revenues 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
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* 2009 operating
profit includes “other income” of
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.
CARMEL HOLDINGS
(I.L) LTD., parent company, via subsidiaries dealing as manufacturers, importers,
marketers and retailers of (1) floor covering, carpets and parquet floors; (2)
furniture, household goods, etc. Also controls:
CAESAREA CARPETS
(97) LTD. (known as CARMEL CARPETS), 100%, manufacturers,
importers, marketers and exporters of woven and wall-to-wall carpets,
concentrates Group's institutional sales activities in the floor covering
field to retail chains, owns SHAKED CARPETS LTD., 50%, floor covering importers
and marketers, mainly parquets,
IKOO DESIGNS LTD.,
100%, subject's parent company, furniture manufacturing,
ZIEGLER
INVESTMENTS LTD. (formerly BETILI INVESTMENTS (1997) LTD.), 100%, investments
and real estate,
CARMEL FLOOR
DESIGN LTD., 100%, concentrates CARMEL Group's retail sales to 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. (formerly GAZIT INC.), a public foreign company,
whose shares are traded on the Tel Aviv Stock Exchange, part of the GAZIT GLOBE Group, operates in the real estate investment fields. Current market value
US$ 465.1 million.
F.C.P. DESIGN
LTD., parent holding company, part of FISHMAN Group.
FISHMAN CHAINS LTD., a
roof company for the FISHMAN Group’s retail businesses, operating retail chain
stores, managed by Eyal Fishman:
HYPERTOY LTD.
("TOYS'R'US ISRAEL"), 100%, local largest toys and games chain (under
the names "Toys’R’Us" and "The Red Pirate"), importers and
marketers of toys, with annual sales are circa
BEST BUY MARKETING
NETWORKS LTD. ("Best Buy" and "Big Box" stores), a large
domestic electrical appliances and electronic goods chain, with estimated
annual sales of
Also: ZER.FOR.U
(2000) LTD. (ZER4U), 96%, flowers chain; AVIV SHIGUR LTD.,
delivery and courier service countrywide; CELIO CLOTHING AND FOOTWEAR LTD.,
men’s fashion wear chain; FISHMAN CELLULAR, importers and distributors of
cellular phones; TEN - PETROLEUM CO. LTD., operates 35 petrol stations; ACCESSIRIZE
franchise for fashion accessories; and more.
Eliezer Fishman & family own, control and manage companies in major
important sectors in
Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv,
account No. 785500/68.
A check with the
Central Bank's database did not reveal anything detrimental on subject’s a/m
account.
Mercantile
Discount Bank Ltd., Tel Aviv Main Branch (No. 654), Tel Aviv.
Nothing
unfavorable learned on subject.
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.
Subject's chain stores, especially the “Betili” brand, are well-known
locally, among the leading in their fields.
Subject estimates its market share of the home furniture sector at circa
7%. The whole market comprises of 15 large chain stores and hundreds of retail
stores.
Subject was established in view of joining forces of two local leading
players in the furniture arena, Eitani family/ CARMEL HOLDINGS Betili retail
chain on one hand, and Fishman Group's IDdesign Chain. In mid 2003, both sides
signed an agreement to merge the retail activities -administrative and
logistic, establishing subject's partnership, though both chains keep their
commercial logos.
FISHMAN GROUP is controlled by Eliezer Fishman, a leading local businessman
and entrepreneur, one of the most influential figures in the local business and
commercial community.
NORSTAR HOLDINGS INC., which invested in parent CARMEL HOLDINGS, is a public foreign company, whose shares are traded on the Tel Aviv Stock
Exchange, part of the leading GAZIT GLOBE Group, operates in the
real estate investment fields.
GAZIT GLOBE is a
well-known leading real estate investment company traded in the Tel Aviv stock
exchange as part of the Tel Aviv 25 Index (symbol: GLOB).
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
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,
In July 2007 it
was reported that subject is investing
In February 2008, subject launched a new sub
chain that specializes in leather furniture called "Leatherland" in
Rishon Le-Zion. Subject was planning to open 4 stores within the next 2 years,
with initial investment of
In February 2009, BEITILI Group opened 3 new retail stores as part of a new
furniture chain targeted at the young audience and “low budget”, called “My
Home Page”. Initial investment was
In April 2012
subject closed its store in Gaash.
In May 2012
subject was negotiating to acquire the stock as well as rental of premises of
KIKA
Local furniture
and allied accessories is valued at
According to a
survey in 2011, customers prefer mostly carpenters and small shops (65%), and
large retail chains (35%, over 8% of which by DIY chain IKEA).
According to the Central Bureau of
Statistics (CBS) data, private consumption expenditure by local households in
furniture in 2011 fell by 3.6% from 2010, after in 2010 it rose by 7.3% from
2009.
According to Central Bureau of Statistics (CBS) data, import
of Furniture and Domestic Electrical Equipment grew in 2011 by 16.1% from 2010,
summing up to NIS 8,975 million. This is after 9.4% rise in 2010 from 2009
(when it withdrew by 2.7% from 2008 due to the slow-down in the local market).
However, it should
be noted that based on CBS data in 2011 2nd half the local market
has entered slow-down mainly due to macro economic reasons (connected with the
global economic impact) and indications are that the market will continue
facing slow-down in coming period.
Import of furniture (excluding plastic
furniture) in 2010 totaled US$ 227 million, 17.4% increase from 2009, of which
25% was from
Export of furniture (excl. plastic
furniture) summed up to US$ 18 million, 21.1% rise from 2009.
The local furniture
branch is
considered to be in relatively high risk branch.
According to a survey
published in January 2012 by credit analysis firm for 2011, it turns that Wood
& Furniture Manufacturing and Wholesale branch worst in the credit days
outstanding in the various industrial branches (some 124 days credit days). The
average credit days outstanding in practice (meaning credit days agreed plus
unplanned delay) for Israeli suppliers in the first half of 2011 reached 96
days, making it well higher than average credit days outstanding in the
developed world (around 50 days).
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.85 |
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1 |
Rs.86.88 |
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Euro |
1 |
Rs.69.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<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.