MIRA INFORM REPORT

 

 

Report Date :

12.04.2014

 

IDENTIFICATION DETAILS

 

Name :

NEW JEANS LTD.

 

 

Registered Office :

9 Jaffo Rd.,      Beit Romano, Shop No. 16, TEL AVIV 6684201

 

 

Country :

Israel

 

 

Date of Incorporation :

12.03.2000

 

 

Com. Reg. No.:

51-292249-3

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of men and women apparel.

 

 

No of Employees :

10

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. 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. 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. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. 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. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

 

Source : CIA

 


COMPANY NAME & ADDRESS

 

NEW JEANS LTD.

Telephone         972 3 516 28 98

Fax                   972 3 516 28 98

Email:              info@cargo-f.co.il

9 Jaffo Rd.

Beit Romano, Shop No. 16

TEL AVIV          6684201            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-292249-3 on the 12.03.2000.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 38,100.00, divided into -

            38,100 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Zion Zakri.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Zion Zakri, born 1951.

 

Lior Zakri, son of Zion, acts as subject’s Deputy General Manager.

 

 

BUSINESS

 

Importers and marketers of men and women apparel.

Subject markets clothes under the brands “Cargo”, “Record” and others, manufactures in China based on subject’s requirements.

Also imports from the Far East and Turkey.

 

Among clients: MEGA RETAIL and other marketing chains, as well as many wholesalers countrywide.

We are informed that subject works with the local largest retail chains.

 

Operating from key-money premises (office and shop), on an area of 40 sq. meters, in 9 Jaffa Rd., Beit Romano, shop No. 16, Tel Aviv, and from rented warehouse, on an area of 500 sq. meters, in Rishon Le-Zion.

 

Having 10 employees (same as in mid 2012, had 14 employees in mid 2010).

 

 

MEANS

 

Financial data not forthcoming.

 

There 9 charges for unlimited amounts registered on the company's assets (financial assets and vehicles), in favor of Bank Leumi Le’Israel Ltd. and Bank Hapoalim Ltd. (last charge placed December 2012).

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

CARGO FASHION LTD., owned by Zion Zakri, non-active.

 

 

BANKERS

 

Bank Hapoalim Ltd., Harimon Branch (No. 500), Tel Aviv, account No. 418209.

 

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

We are informed that subject works with other banks as well (not forthcoming). According to our working with:

Bank Leumi Le'Israel Ltd., branch details not forthcoming.

 

 

CHARACTER AND REPUTATION

 

In May 2004 it was reported that the Police raided subject's warehouses in the south of Tel Aviv, confiscating faked jeans of the brand "Krocker" in value of NIS 1 million.

 

The detectives found a container with 7,000 items bearing the trade name of "Crocker", a known jeans brand, who initiated the investigation in the first place. CROCKER INTERNATIONAL LTD. also said they will press charges against the ones responsible for the faking.

 

In October 2005 DIESEL, the international jeans manufacturer (represented locally by POLYMODE), filed a NIS 750,000 lawsuit and a request for permanent injunction against subject and its owner Zion Zakri, as well as against another retail fashion chain store, all for marketing and selling jeans with similar design to the "Diesel", which allegedly constitute trade-mark and other violations.

 

Subject lost a court cases filed in 2008 against two fashion chains RENUAR FASHION MANUFACTURING & MARKETING (1993) LTD. and GOLF & CO. LTD., regarding a claim that the latter violated subject’s alleged brand name "Cargo". The Tel Aviv District Court ruled in 2008 and later also in 2011 that the term "Cargo" is a general clothing term meaning “baggy” pants with many pockets. The Court reproached subject for withholding this information. Subject later appealed to the Court and later to the Supreme Court, yet its appeals were rejected.

 

Nothing unfavorable learned besides the above cases.

 

Subject's officials refused to disclose financial data.

 

In 2005 it was reported that subject will be the marketer of PLAYBOY ISRAEL's apparel line.

 

Mr. Zion Zakri is veteran in the local textile and fashion industry (with over 40 years of experience). Subject is managed by him and his 4 sons.

 

Reportedly, total revenues of the local fashion market in 2013 reached NIS 12 billion per annum. In 2012 sales reached NIS 11 billion. 40% of sales are in the large fashion chains, 34% in other smaller chains, and the rest in private shops.

 

According to the fashion market survey, which monitors sales by the local fashion chains, 2012 marked almost a freeze in revenues, with mere 0.7% increase from 2011. The data reveals that in 2012 41 fashion chains (out of 72 chains with total of over 1,600 shops) noted decrease in sales of apparel and footwear.

 

According to the Central Bureau of Statistics (CBS), import of Clothing and Footwear in 2013 rose by mere 0.9% from 2012 (in NIS terms, rose by 7.9% in $ terms), summing up to NIS 6,854 million. This is after 2012 marked 13.3% rise (5.1% in $ currency terms). That data shows on the continuing growing trend over the last of years – by 19% and by 13.4% in 2011 and 2010, respectively, in comparison to the previous year. Most import comes from China. Main other countries of origin for textile goods are France, Italy, Hong Kong and Turkey, Spain and the U.S.A.

 

From the Central Bureau of Statistics National Accounts for 2013, it turns that expenditure by local households on private consumption grew by 3.7% from 2012, after rising by 3.2% in 2012 and by 3.8% in 2011.

Expenditure on clothing and footwear rose by 2% (after rising by 8.6% in 2012 and by 5.8% in 2011).

Per-capita private consumption expenditure increased by 1.8% (1.4% in 2012).

Per capita expenditure for private consumption on non-durable goods rose in 2012 by 1.4% per-capita (1.3% rise in 2011). This rise reflects increases by 1.3% in expenditure on food, beverage and tobacco and 4.5% expenditure on clothing, footwear and personal effects.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial details, considered good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 60.26

UK Pound

1

Rs. 101.09

Euro

1

Rs. 83.73

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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.