MIRA INFORM REPORT

 

 

Report Date :

06.03.2012

 

IDENTIFICATION DETAILS

 

Name :

OFFIS TEXTILE LTD.

 

 

Registered Office :

47 Moshe Sharet Industrial Zone Azor      58002  

 

 

Country :

Israel

 

 

Financials (as on) :

30.09.2009

 

 

Date of Incorporation :

18.02.1973

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Textile dyers, printers and bleachers of textile woven fabrics, mainly for bed linen.

 

 

No. of Employees :

235

 

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

 

Maximum Credit Limit :

US$ 1,000,000

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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 and address      

 

OFFIS TEXTILE LTD.

Telephone  972 3 550 24 94

Fax         972 3 556 93 47

47 Moshe Sharet

Industrial Zone

AZOR      58002-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally incorporated as a private limited company and registered as such as per file No. 51-063832-3 on the 18.02.1973.

 

Converted into a public limited company and registered as such as per file
No. 52-003467-9 on the 10.02.1983. In parallel published a prospectus offering shares to the public on the Tel Aviv Stock Exchange.

 

On 23.12.2009 following a successful tender offer for the shares held by the public, subject was de-listed from trade (after being on the preservation list since July 2008) and re-converted into a private limited company.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 20,000,000.00, divided into -

                   20,000,000,000 ordinary shares of NIS 1.00 each,

of which shares amounting to NIS 14,300,000.00 were issued.

 

 

SHAREHOLDERS

 

1.    Subject is owned by Eliezer Fishman via owned company E.T. FISHMAN PROPERTIES (1998) LTD., directly and by other companies,

2.    Ms. Ronit Even, 2.3%.

 

 

DIRECTORS

 

1.     Ramzi Gabbay, Chairman,

2.     Eliezer Fishman,

3.     Mrs. Ronit Fishman-Ophir, Mr. Fishman’s daughter

4.     Mrs. Ronit Even,

5.     Eyal Fishman, Mr. Fishman’s son,

 

 

GENERAL MANAGER

 

Sason Tzalisher

 

 

BUSINESS

 

Textile dyers, printers and bleachers of textile woven fabrics, mainly for bed linen.

Some 50% of sales are for export, to retail chains, mainly in Europe.

Also operating retail factory stores chain for selling finished textile products.

 

Subject has some 130 clients.

Among local clients: WARDINON TEXTILE, GOLF & CO., ARLIKTEX/ DARLAN.

 

Among local suppliers: AVCO CHEMICALS.

Fabrics are imported mainly from the Far East.

 

Operating from rented premises (offices, plant), owned by the Fishman family, on an area of 32,000 sq. meters, in 47 Moshe Sharet Street, Industrial Zone, Azor.

 

Having 235 employees (had 220 employees in the beginning of 2010).

 

 

MEANS

 

Balance Sheet showed (last obtainable):

                                                                                         NIS (thousands)

                                                                               31.12.2008            30.09.2009

ASSETS

Current assets

     Cash and cash equivalents                                               2,008                    4,468

     Customers   44,931                                                       47,257

     Other receivables                                                            2,878                    1,595

     Inventory                                                                       64,270                  56,386

                                                                                       114,087                 109,706

Non-current assets

     Investment in subsidiary                                                     469                       425

     Fixed assets                                                                 16,434                  14,044

                                                                                        16,903                  14,469

                                                                                       130,990                 124,175

                                                                                    =======              =======

 

LIABILITIES

Current liabilities                                                                65,985                  57,812

Non-current liabilities                                                            3,853                    3,334

Equity                                                                               61,152                  63,029

                                                                                       130,990                 124,175

                                                                                    =======              =======

 

In December 2009 subject's shares were purchased from the public according to a company value of NIS 75 million.

 

Subject is an “Approved Enterprise” and as such enjoys State financial assistance. Subject received several approvals for their expansion plans of their plant from the Israeli Investment Centre.

 

Later financial data not forthcoming.

 

There are no charges registered on the company's assets.

 

 

REVENUES

 

                                                                                  Statement of Income

                                                                                     NIS (thousands)

                                                                                    Year ended 31.12

                                                                        2006                   2007                2008

Sales                                                               209,237             190,585           189,191

 

Gross profit                                                        31,185              25,823             23,131

 

Operating income                                               17,583              12,022               7,957

 

Pre-Taxes Income                                               30,323                8,797               4,616

 

Net income                                                        20,562                6,683               3,286

                                                                       ======            ======           ======

 

 

Consolidated first 3 quarters of 2009 revenues NIS 152,689,000 (8.4% increase comparing to the parallel period in 2008), making a gross profit of
NIS 20,612,000, an operating profit of NIS 10,644,000, making a net profit of
NIS 6,877,000 (compared to a net profit in parallel period 2008 of
NIS 421,000).

2009 sales reported to be some NIS 200,000,000.

According to a report from May 2011, subject's 2010 sales were NIS 250,000,000, making a net profit of NIS 10,000,000.

 

Later sales data not forthcoming.

 

OTHER COMPANIES

 

GAS DAN LTD., 40%.

 

FISHMAN GROUP, controlled by Eliezer Fishman, also fully or partially holds a long list of companies in a large array of industrial and commercial sectors in the local market, as well as broad operations abroad.

In the Retail businesses, the Group holds FISHMAN CHAINS LTD., a roof company for the FISHMAN Group’s retail businesses, managed by Mr. Fishman’s son Eyal Fishman and includes:

E.F. DESIGNS - LIMITED PARTNERSHIP, 50% (partnership of the Fishman and Eitani families), furniture and household goods, 27 store chain under the names ”Betili”, “IDdesign” and "Rich & Taylor", annual sales of over NIS 200 million.

HOME CENTER (DIY) LTD., local largest DIY and household goods, indoor and outdoor furniture, electrical and building materials and appliances, etc (43 branches nationwide, as well as branches via subsidiaries in Cyprus. Annual consolidated sales were around NIS 1 billion.

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 NIS 200 million.

HYPERTOY LTD., importers and marketers of toys (including children and youth bicycles), games (including multimedia) and accessories, operating 2 retail chains: Toys’R’Us", a franchisee of Toys’R’Us International - 20 branches, and The Red Pirate" – 18 branches.

CELIO CLOTHING AND FOOTWEAR LTD., men’s fashion wear chain (some 20 branches).

ZER. 4. U (2000) LTD., 96%, a retail flower chain, operating 26 stores nationwide

FISHMAN CELLULAR DIVISION GENERAL PARTNERSHIP, importers and distributors of cellular phones.

TELEPHARMA THE FIRST DIRECT PHARMACY (1999) LTD., Israel’s first direct marketing pharmacy.

As well as the ACCESSIRIZE franchise for fashion accessories.

 

Eliezer Fishman and his family own, control and manage companies in major important sectors in Israel (finance, industry, energy, hi-tech, media), real estate assets as well as numerous foreign companies. Main publicly traded companies controlled by FISHMAN Group are real estate holdings companies JERUSALEM ECONOMY LTD. (JEC), one of the largest in Israel, and its subsidiary INDUSTRIAL BUILDINGS CORPORATION LTD., both publicly traded on the Tel Aviv Stock Exchange (TASE), as well as DARBAN INVESTMENTS LTD. and MIRLAND DEVELOPMENT CORPORATION PLC. FISHMAN Group also control (82%) TEN - PETROLEUM COMPANY LTD., publicly traded on TASE, which operates 35 petrol stations.

 

 

BANKERS

 

The First International Bank of Israel Ltd., Holon Business Branch (No. 078), Holon.

Mizrahi Tefahot Bank Ltd., Tel Aviv Main Business Branch (No. 461), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's officials refused to disclose financial data.

 

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.

 

Subject is one of the leading companies in its field in Israel, and estimates its local market share in sales of woven fabrics at 50%.

 

Ramzi Gabbay, subject's Chairman (and until February 2010 subject's General Manager for 23 years) served for many years as the Chairman of the Textile Manufactures Union and presently serves as the Chairman of The Israel Export & International Cooperation Institute (Government supported export promotion body).

 

In May 2011 subject's Chairman reported that it closed 2 sawing facilities in the Galilee and transferred it production to Egypt.

 

Sales by local Textile, Clothing and Fashion Industries experienced decrease in sales over the last couple of years. The output by the local Textile and Clothing industries in 2009 fell down by 13% from 2008. Some 60% of the textile industry production is sold in the local market and the rest for export. Most exports were the North American markets (some 50%), and the industries suffered from the global economic crisis, mainly in the USA, as well as the slow-down in local market. In 2010 sales for export of the Textile, Clothing & Leather industries improved just slightly, with 3.5% increase from 2009, however in 2011 fell again by 6.6% (mainly due to global markets weakness) reaching US$ 858.7 million.

 

The local industry has been in state of crisis during last decade in face of amounting import from foreign competitors with cheaper production costs, forcing streamlining process, plants closure, and mostly resulting in the shift of textile manufacturing to low labor cost countries. There are around 14,000 employed in the textile sector in some 130 plants. In order to deal with the situation, the local textile industry diverted mainly to advanced technologies production, niches and design aspects.

 

 

SUMMARY

 

Good for trade engagements.

Maximum unsecured credit recommended US$ 1,000,000.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.79

UK Pound

1

Rs.78.79

Euro

1

Rs.65.74

 

 

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.