MIRA INFORM REPORT

 

 

Report Date :

04.05.2012

 

IDENTIFICATION DETAILS

 

Name :

FORMEX WOOD INDUSTRIES LTD.

 

 

Registered Office :

P.O. Box 32 Industrial Area Migdal Tefen 2495900           

 

 

Country :

Israel

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

14.09.1999.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers and marketers of decorative solutions for kitchen and furniture manufacturers in H.P.L., postforming, softforming and polymer.

 

 

No. of Employees :

120

 

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

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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      

 

FORMEX WOOD INDUSTRIES LTD.

Telephone  972 4 910 94 00

Fax           972 4 910 94 12/ 4

P.O. Box 32

Industrial Area

MIGDAL TEFEN                         2495900          ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-283015-9 on the 14.09.1999.

Subject took over all manufacturing activities in the field of post forming plates from the u/m companies:

1.    BIRMAN WOOD & HARDWARE LTD., established in January 1992.

2.    DESKO WOOD PRODUCTS (1987) LTD., a private limited company established in August, 1987.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 35,000.00, divided into -

                   35,000 ordinary shares of NIS 1.00 each,

of which 1,000 shares amounting to NIS 1,000.00 were issued.

 

 

SHAREHOLDERS

 

1.         PYRAMID EXPORT LTD., 30%, Tzvi Letzter (50%) and Michael Kolan (50%),

2.         G. GONEN INDUSTRIES LTD., 17.5%, owned by Tzvi Letzter,

3.         T. EL-GAL LTD., 17.5%, owned by Michael Kolan,

4.         AL LADAM INTITIATION LTD., 17.5%, controlled by Amit Sarig,

5.         AD HAPOSKIM INDUSTRIES LTD., 17.5%, controlled by Yossef Hayu,

 

 

DIRECTORS

 

1.    Michael Kolan, General Manager,

2.    Yossef Hayu, CFO,

3.    Amit Sarig,

4.    Tzvi Letzter.

 

BUSINESS

 

Manufacturers and marketers of decorative solutions for kitchen and furniture manufacturers in H.P.L., postforming, softforming and polymer.

Subject specializes in post-forming plates, used for cupboards and the furniture industry (offices, kitchens, bathrooms and domestic).

 

Amongst clients: KARDOSH KHALIL TIMBER, PYRAMID EXPORT, A.P. FORMICA CENTER, MAKOR HAFORMAIKA, MEZONIT Y.S.R, ETZ YAROK, AVERBUCH FORMICA CENTER, AMBIN, SIMHA COHEN TRADING CO., LAVI PLYWOOD TRADE & MARKETING, ALFANDARY PLYWOOD MARKETING, FARGUN NISSIM TRADING, etc.

 

85% of purchases are imports.

 

Amongst local suppliers: BIRMAN WOOD & HARDWARE, etc.

 

Among foreign suppliers: INTERPRINT, SCHATTDECOR (both of Germany).

 

Operating from rented premises, on an area 9,000 sq. meters (rented 5,000 sq. meters in 2007, and 7,000 sq. meters in mid 2010), in the Industrial Area, Migdal Tefen, a locality in the Upper Galilee in the north of the country.

 

Subject's officials informed us that during 2010 subject increased its premises area from 7,000 sq. meters to 9,000 sq. meters.

 

Having 120 employees (same as in the end of 2010, had 80 employees in early 2010, similar to 2008).

 

 

MEANS

 

Current stock is valued at NIS 10,000,000 (same as in the end of 2010).

 

Subject is an "Approved Enterprise", and as such entitled to tax benefits and State incentives. In September 2007, the Israeli Investment Center (IIC) approved an investment plan for the expansion of subject's plant.

 

There are 29 charges for unlimited amounts, as well as 5 charges amounting to NIS 1,2695,000.00 and Austrian Schilling 104,000.00 registered on the company’s assets (financial assets, fixed assets, equipment and vehicles), in favor of The First International Bank of Israel Ltd., Bank Leumi Le’Israel Ltd., Bank Hapoalim Ltd. and leasing companies (last charge placed August 2011).

 


B/S shows:

                                                                                                  NIS

                                                                           31.12.2010              31.12.2011

ASSETS

Current assets

     Cash                                                                         13,157                      3,831

     Short term investments                                          1,186,660                1,427,399

     Customers                                                          13,806,361              14,432,695

     Other debtors                                                           597,038                   781,229

     Stock                                                                 11,275,201              12,423,000

                                                                               26,878,417              28,068,154

 

Fixed assets, net                                                     11,642,333              11,670,422

                                                                               38,520,750              39,738,576

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

 

LIABILITIES

Current liabilities                                                       21,295,111              19,634,012

Long-term liabilities*                                                 11,794,752                9,625,713

Equity                                                                       5,430,887              10,478,851

                                                                               38,520,750              39,738,576

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

 

 

REVENUES

                                                                                  Statement of Income

                                                                                                  NIS

                                                                                    Year ended 31.12

                                                                        2009                   2010                   2011

Sales                                                            44,621,253          55,862,447          62,730,545

 

Gross profit                                                     9,263,314          12,420,299          16,710,450

 

Operating income                                            2,307,015            3,760,647           8,177,719

 

Profit before taxes on income                            1,315,202            3,014,220           6,814,632

 

Net income                                                     1,062,256            2,675,883           5,047,964

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

 

 

2012 first 4 months sales claimed to be NIS 25,000,000.

 

 

OTHER COMPANIES

 

PYRAMID EXPORT LTD., importers and exporters of and raw materials for the furniture field.

 

BANKERS

 

The First International Bank of Israel Ltd., Haifa Bay Branch (No. 004), Haifa, account No. 403172.

Bank Leumi Le’Israel Ltd., Hamifratz Business Branch (No. 898), Haifa, account No. 239800/57.

A check with the Central Banks' database did not reveal anything detrimental on subject’s a/m accounts.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Local furniture and allied accessories is valued at NIS 9 billion per annum (2012).

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 Industrialists' Association in 2010 furniture manufacturing recovered and got back to growth, rising 5.4% from 2009, then it fell by 8.9% from 2008 due to the slow-down in local economy. Revenues by the furniture industry (incl. plastic and metal) increased by 4.1% from 2009, reaching US$ 1.1 billion. A similar growing trend is forecasted for 2011.

Number of employees in the furniture industry counted 9,360, similar to 2009, though number of furniture plants showed 1% decrease.

 

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 CBS data, investments in machinery & imported equipment for the wood and furniture industries in 2010 reached NIS 166.2 million, 20.5% increase from 2009 (in 2009 a decrease in similar rate was noted from 2008).

 

 

SUMMARY

 

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.53.23

UK Pound

1

Rs.86.14

Euro

1

Rs.69.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.