MIRA INFORM REPORT
|
Report Date : |
24.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
FORMEX WOOD INDUSTRIES LTD. |
|
|
|
|
Registered Office : |
P.O. Box 32,
Industrial Park, Migdal Tefen 2495900 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
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 polymers. |
|
|
|
|
No. of Employees : |
Having 120
Employees |
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among the
leading exports. Israel usually posts sizable trade deficits, which are covered
by tourism and other service exports, as well as significant foreign investment
inflows. The global financial crisis of 2008-09 spurred a brief recession in
Israel, but the country entered the crisis with solid fundamentals - following
years of prudent fiscal policy and a resilient banking sector. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel's energy security
outlook. The Leviathan field was one of the world's largest offshore natural
gas finds this past decade, and production from the Tama field is expected to
meet all of Israel's natural gas demand beginning mid-2013. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands.
Source
: CIA
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 Park
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 PROD
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%,
owned by 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 polymers.
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, AVERB
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 Park,
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 in2012, 2011 and
end of 2010, had 80 employees in early 2010, similar to 2008).
MEANS
Current stock is valued at around NIS 10,000,000.
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 1,260,000.00 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 3 charge placed
August-December 2012).
B/S shows
NIS
31.12.2011 31.12.2012
ASSETS
Current assets
Cash 3,831 25,455
Short term investments 1,427,399 543,749
Customers 14,432,695 14,988,678
Other debtors 781,229 1,898,004
Stock 12,423,000 11,060,966
28,068,154 28,516,852
Fixed assets, net 11,670,422 11,745,411
39,738,576 40,262,263
========= =========
LIABILITIES
Current liabilities 19,634,012 18,918,155
Long-term liabilities 9,625,713 5,440,457
Equity 10,478,851 15,903,651
39,738,576 40,262,263
========= =========
REVENUES
2009 sales were NIS 44,621,253,
making a net profit of NIS 1,062,256
Statement
of Income
NIS
Year
ended 31.12
2010 2011 2012
Sales 55,862,447 62,730,545 63,378,437
Gross profit 12,420,299 16,710,450 17,506,773
Operating income 3,760,647 8,177,719 9,239,215
Profit before taxes on
income 3,014,220 6,814,632 7,442,157
Net income 2,675,883 5,047,964 5,424,800
========= ========= =========
OTHER COMPANIES
PYRAMID EXPORT LTD., sister company, 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.
From the CBS National Accounts for 2012, it
turns that in 2012 expenditure by local households on private consumption grew by
2.7% from 2011, after rising by 3.8% in 2011. Expenditure on durable goods
decreased by 4% (after 10.5% rise in 2011 and 12% rise in 2010), although a
breakdown shows that expenditure on furniture rose by 3%.
CBS preliminary National Accounts for 2012 reveals
that per-capita expenditure on durable goods decreased by 4.2% (after 8.5% rise
in 2011 and 10.1% rise in 2010). A breakdown of the expenditure reveals a 3%
fall in purchases of household equipment (domestic electrical appliances), 9.1%
decrease in purchase of vehicles for private use, and an increase by 1.9% in
purchase of furniture.
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 was 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 CBS data, investments in machinery & imported equipment
for the wood and its products and the furniture industries in 2011 reached NIS
201.2 million, 23.6% increase from 2010 (when it rose by 20.5% from 2009).
SUMMARY
Good for trade
engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.99 |
|
|
1 |
Rs.84.19 |
|
Euro |
1 |
Rs.71.86 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.