MIRA INFORM REPORT

 

 

Report Date :

18.02.2014

 

IDENTIFICATION DETAILS

 

Name :

CLASIKALETET LTD.

 

 

Formerly Known As :

CLASIKALETET

 

 

Registered Office :

Hayotzer Center, 34 Hahofer Street, Industrial Zone, Holon 5885807

 

 

Country :

Israel

 

 

Year of Establishments:

1987

 

 

Com. Reg. No.:

51-150217-1

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Producers, content developers, exporters and marketers of educational and recreation multimedia products for children, including DVDs, CDs, video cassettes, computer educational software programs, as well as books, toys and games.

 

 

No. of Employees :

Having 32 employees (data is based on subject's web-site, as they have not been cooperating with us).

 

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. 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 & address

 

CLASIKALETET LTD.

Telephone    972 3 558 20 80

Fax             972 3 558 22 90

Hayotzer Center

34 Hahofer Street

Industrial Zone

HOLON        5885807         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established in 1987 as a non-registered business under the name CLASIKALETET.

 

Converted into a private limited company, incorporated as per file No. 51-150217-1 on the 09.09.1990.

 

SHARE CAPITAL

 

Authorized share capital NIS 14,000.00, divided into -

                   14,000 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1. Mordechai (Mark) Amos, 50%,

2. Mrs. Ilana Amos, wife of Mordechai, 50%.

 

 

DIRECTORS

 

1. Mordechai (Mark) Amos, General Manager,

2. Mrs. Ilana Amos.

 

 

BUSINESS

 

Producers, content developers, exporters and marketers of educational and recreation multimedia products for children, including DVDs, CDs, video cassettes, computer educational software programs, as well as books, toys and games.

 

Also supply content for TV VOD broadcast channels, mobile phones applications, etc.

 

Subject holds the rights to many of Israel's children's classic stories and songs, which are put on the various mentioned platforms.

 

Almost all sales are to the local market, to most retail marketing chains (having some 1,000 points of sale).

Amongst clients: MEGA RETAIL, HOME CENTER, SHILAV, TZOMET SFARIM, SHUFERSAL, STEIMATZKY, HOT CABLE TV, OFFICE DEPOT, SAMSUNG ISRAEL, SUPER PHARM, TZLIL, etc.

 

Amongst foreign suppliers: DISNEY - USA, KING ROLLER - UK.

Amongst local suppliers: MACHSANEI TEURA, OMI, CD LINE, etc.

 

Operating from owned premises, on an area of 800 sq. meters, in 34 Hahofer Street, Hayotzer Center, Industrial Zone, Holon, and from a rented warehouse on an area of 1,000 sq. meters, in 14 Habanai Street, Industrial Zone, Holon.

 

Having 32 employees (data is based on subject's web-site, as they have not been cooperating with us).

 

 

MEANS

 

Financial data not forthcoming.

 

In 1999, it was reported that subject acquired 800 sq. meters in Hayotzer Center, 34 Hahofer Street, Holon, for a sum of US$ 920,000. That owned property (where subject is operating from) was valued at US$ 1 million several years ago.

 

There are 26 charges for unlimited amounts registered on the company’s assets (fixed assets, financial assets and vehicles), in favor of Bank Hapoalim Ltd., Mercantile Discount Bank Ltd., Bank Otsar Hahayal Ltd. and Mizrahi Tefahot Bank Ltd. (last 4 charges placed April-August 2013).

 

 

saleS

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

CLASIKALETET DISTRIBUTION LTD.

CLASSIKINNERET LTD., non-active.

 


BANKERS

 

According to our:

Bank Leumi Le’Israel Ltd., Hacharoshet Business Branch (No. 651), Holon.

Bank Hapoalim Ltd., Itzhak Sade Branch (No. 780), Tel Aviv.

Mercantile Discount Bank Ltd, Holon Branch (No. 686), Holon.

 

Bank Otsar Hahayal Ltd., Bat Yam Holon Branch (No. 382), Bat Yam, account No. 338375.

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

 

Since we could not speak to subject's officials, we could not confirm a/m banks data.

 

 

CHARACTER AND REPUTATION

 

In May 2007, ACUM, the local Artists' Organization for protection of Intellectual Property, submitted a lawsuit against subject to the Tel Aviv District Court, for NIS 2.6 million (the sum is for fee purpose). ACUM claims that the agreement regarding rights between them and subject was not renewed in 2006, therefore no longer valid but the defendants kept producing products without paying royalties. The plaintiffs also accuse subject in false reports regarding correct sales along the years they had the agreement valid (c.a. 1680/07). Matter ended in compromise in April 2012 (further data not forthcoming).

 

In April 2008 a motion for a class action lawsuit in value of NIS 9 million was filed to the Tel Aviv District Court against subject and another company (PLAY MARKETING & DISTRIBUTION LTD.). Subject’s part is reported to be NIS 6.3 million. The plaintiffs claim for methodically misleading customers regarding the real length of the children DVDs that the defendants sell. It should be noted that such motions usually take time to be approved by court and many times end in either dismissal or compromise.

 

In October 2008 it was reported that subject reached a compromise with an author of children books, who sued subject for violating her copyrights regarding a series of her books. According to the compromise, subject is to pay the author a sum of NIS 300,000.

 

Apart from that, nothing unfavorable learned.

 

Despite our efforts, we were unable to speak with subject's officials being told by subject's accountant he is very busy. In the past several years we either could not speak with subject's officials, or they refused to disclose information.

 

Subject is a local leading and familiar company in their field, with products are sold in local largest marketing chains.

 

It should be noted that subject suffers from the pirate products that flood the market.

 

In September 2004, it was reported that subject invested NIS 1 million in the new line of kids brand.

 

In January 2005 subject signed an agreement with Israel's cable TV operator HOT to provide contents to HOT's VOD channel.

In April 2010 it was reported that subject will distribute the Oscar winning animation film of "Peter and the Wolf" in DVD.

 

In September 2013 it was reported that subject is one of the suppliers of contents to SAMSUNG's Galaxy smartphone VOD application in Israel.

 

 

SUMMARY

 

Notwithstanding the lack of updated data from its officials, we figure that subject is good for trade engagements.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.95

UK Pound

1

Rs.104.02

Euro

1

Rs.84.95

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.