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Report Date : |
20.06.2014 |
IDENTIFICATION DETAILS
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Name : |
MAX STOCK LTD. |
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Registered Office : |
72 Yafo Street, Jerusalem 9434112 |
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Country : |
Israel |
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Date of Incorporation : |
16.12.2004 |
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Com. Reg. No.: |
51-361896-7 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· Importers and marketers of Low-Cost Consumer Non-Food Product of all types (Gifts, Toys, Household, Stationery & Furniture.) · Engaged in operating a Retail Chain Store of Low Price Products, with some 25 stores under the name "Max Stock" (some stores -at least 6- are owned by subject and the other stores are franchised). |
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No of Employees : |
Had between 200
to 300 employees (2011) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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.
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Source : CIA |
MAX STOCK LTD.
Telephone 972 2 500 40 84
Fax 972
77 455 34 38
Email: service@maxstock.co.il
72 Yafo Street
JERUSALEM 9434112 ISRAEL
A private limited company, incorporated as per file No. 51-361896-7 on
the 16.12.2004.
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.
1. Ori Max, 50%,
2. DAN - AS LTD., 50%, owned by
Daniel Astrog.
Ori Max.
Importers and marketers
of low-cost consumer non-food product of all types (gifts, toys, household,
stationery, & furniture.), operating a retail chain store of low price
products, with some 25 stores under the name "Max Stock" (some stores
-at least 6- are owned by subject and the other stores are franchised).
Offering 10,000
products. Most import is from China.
Operating from
main offices premises in 72 Yafo Street, Jerusalem (to where they moved from
15 Keren Hayesod, Industrial Zone, Tirat Carmel), and from discount retail
stores countrywide (including one store in 72 Yafo Street, Jerusalem).
Had between 200 to
300 employees in 2011. Current number of employees may be higher since the
number of stores more than doubled since 2011. Nevertheless, we do not know how
many employees actually hired and paid by subject, and how many are of the
franchisers (and still considered part of the Group, which in all counts
several hundred, according to estimations).
Financial data not forthcoming.
There are 2 charges for unlimited amounts registered on the company's
assets. Both charges are in favor of Bank Hapoalim Ltd. on financial assets,
one placed in 2011 and one in 2012.
Sales figures not forthcoming.
According to a media report from mid 2012,
reported estimated turnover of MAX STOCK Group is NIS 100 million, though we
could neither confirm that number, nor have idea of the current figures.
· MAX STOCK HATAHANA JERUSALEM LTD., sister company,
· MAX STOCK HOLDINGS JERUSALEM 2008 LTD., sister company.
Note: There are several more companies with the name "MAX STOCK"
registered in the Registrar of Companies, each probably operating a store as
part of subject's Group, yet we do not know if it is owned by subject's
shareholders or by franchisers.
Based on our from 2011:
· Bank Hapoalim Ltd., Tirat Carmel Branch (No. 703), Tirat Carmel.
Since so far we
could not speak to subject's officials, we are unable to verify a/m bank
details.
In 2005 a local
pencils manufacturer and marketer sued subject for selling counterfeited
pencils in one of their stores carrying the plaintiff's trade name. In 2006 the
Court ruled against subject, instructing it to pay compensation of NIS 26,000
and to exterminate all the counterfeited stocks.
There are few more
other lawsuits the Group was involved in, though appear to be insignificant.
Nothing
unfavorable learned apart from the above.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. Whoever we spoke to, directed us to the office
in Jerusalem (at caption address) to speak with subject's General Manager, Mr.
Ori Max. Yet, it is impossible to reach Mr. Max, and we are told by an official
that she will notify Mr. Max on our request. We shall update you in case he
return to us with fresh data.
In mid 2010 it was
reported that subject is opening a shop in Rishon Le-Zion, on a rented area of
800 sq. meters, with an investment of NIS 1.2 million. Subject’s General
Manager Uri Max was quoted to say they intend to open 5 additional new shops
within next year, with total investment of NIS 7 million.
In
May 2013 it was reported that subeject launched a sub-chain for selling
non-food goods of less than NIS 10.00 (close to US$ 3.00), called "Max
10", to be operated by franchisers.
Subject
had 10 branches in early 2011, and according to reports has been growing fast –
to 15 branches in mid 2012, some 20 branches in the late 2013, and over 20
to-date.
From the Central Bureau of Statistics (CBS)
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.
Per-capita private consumption expenditure
increased by 1.8% (1.4% in 2012).
According
to CBS,
import of consumer goods in 2013 marked a 2.2% increase continuing the rise of
1.9% in 2012 and 9.8% in 2011. Most of the rise was in durable goods (4.1%),
which comprising some 40% of the import volume, while import in durable goods
rose by mere 0.9% from 2012. Main rise derived from import of Household
Utensils in 2013 which rose by 2.5% from 2012, summing up to NIS 2,546 million
(in NIS terms, 9.5% in $ terms), after 1.7% in 2012.
The local household
products market is considered highly competitive after reaching market
saturation. It includes household textile, tableware and kitchenware and
utensils, bath accessories and ornaments &decorative items, ceramic and
glass ware, etc. According to estimations, the local household products market
volume reaches NIS 2.5 – 3 billons annually (of which circa NIS 1 billion for
“home textile”), and includes retail, wholesale, institutional markets (Retail
chains capture 30% of the market share, specialization stores 20%, while the
institutional and workers unions sector has 50% share).
Considering the
lack of updated data from subject's officials (as we could not reach them),
dealings recommended on a secured basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.00 |
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UK Pound |
1 |
Rs.102.05 |
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Euro |
1 |
Rs.81.71 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.