MIRA INFORM REPORT

 

 

Report Date :

05.03.2014

 

IDENTIFICATION DETAILS

 

Name :

OFFIS TEXTILE LTD.

 

 

Registered Office :

47 Moshe Sharet Street, Industrial Zone, Azor 5800273    

 

 

Country :

Israel

 

 

Financials (as on) :

30.09.2009

 

 

Date of Incorporation :

18.02.1973

 

 

Com. Reg. No.:

52-003467-9

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Textile dyers, printers and bleachers of textile woven fabrics, mainly for bed linen

 

 

No. of Employees

Having 240 employees (had 235 employees in mid 2013, similar to the beginning of 2012, had 220 employees in the beginning of 2010).

 

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

 

OFFIS TEXTILE LTD.

Telephone                           972 77 555 44 44

Fax                                     972 77 555 46 46

47 Moshe Sharet Street

Industrial Zone

AZOR      5800273    ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally incorporated as a private limited company and registered as such as per file No. 51-063832-3 on the 18.02.1973.

 

Converted into a public limited company and registered as such as per file No. 52-003467-9 on the 10.02.1983. In parallel published a prospectus offering shares to the public on the Tel Aviv Stock Exchange.

 

On 23.12.2009 following a successful tender offer for the shares held by the public, subject was de-listed from trade (after being on the preservation list since July 2008) and re-converted into a private limited company.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 20,000,000.00, divided into -

                   20,000,000,000 ordinary shares of NIS 1.00 each,

of which 14,300,000 shares amounting to NIS 14,300,000.00 were issued.

 

 

SHAREHOLDERS

 

Subject is owned by Eliezer Fishman, via owned Israeli private companies (MAAVAR LTD., EDEN-RON INVESTMENT CO. LTD., E.T. FISHMAN PROPERTIES (1998) LTD.) and via trustee POALIM TRUST SERVICES LTD., part of Eliezer Fishman Group.

 

 

DIRECTORS

 

1.     Ramzi Gabbay, Chairman,

2.     Eliezer Fishman,

3.     Mrs. Ronit Fishman-Ophir, Mr. Fishman’s daughter

4.     Mrs. Ronit Even,

5.     Eyal Fishman, Mr. Fishman’s son,

 

 

GENERAL MANAGER

 

Sason Tzalisher

 

 

BUSINESS

 

Textile dyers, printers and bleachers of textile woven fabrics, mainly for bed linen.

 

Also operating retail factory stores chain for selling finished textile products.

 

Some 50% of sales are for export, to factories, textile wholesalers and retail chains in the USA, Canada, Europe, Russia, Egypt, Mexico, Taiwan, and more.

 

Subject has some 130 clients.

 

Among local clients: WARDINON TEXTILE, GOLF & CO., ARLIKTEX/ DARLAN, FOX, HOME CENTER, FATTAL HOTELS, ISROTEL, IRONI TEXTILE – INDUSTRIES.

 

Among local suppliers: AVCO CHEMICALS, A.H. HADEEL, DYCOL, ALBA-TEX.

Fabrics are imported mainly from the Far East.

 

Operating from rented premises (offices, plant), owned by Fishman family, on an area of 32,000 sq. meters, in 47 Moshe Sharet Street, Industrial Zone, Azor.

 

Having 240 employees (had 235 employees in mid 2013, similar to the beginning of 2012, had 220 employees in the beginning of 2010).

 

 

MEANS

 

Current stock is valued at NIS 60,000,000 similar to mid 2013).

 

In December 2009 subject's shares were purchased from the public according to a company value of NIS 75 million.

 

Subject is an “Approved Enterprise” and as such enjoys State financial assistance. Subject received several approvals for their expansion plans of their plant from the Israeli Investment Centre.

 

There are no charges registered on the company's assets.


 

Balance Sheet showed (last obtainable):

                                                                                         NIS (thousands)

                                                                               31.12.2008            30.09.2009

ASSETS

Current assets

     Cash and cash equivalents                                               2,008                    4,468

     Customers   44,931                                                       47,257

     Other receivables                                                            2,878                    1,595

     Inventory                                                                       64,270                  56,386

                                                                                       114,087                 109,706

Non-current assets

     Investment in subsidiary                                                     469                       425

     Fixed assets                                                                 16,434                  14,044

                                                                                        16,903                  14,469

                                                                                       130,990                 124,175

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

 

LIABILITIES

Current liabilities                                                                65,985                  57,812

Non-current liabilities                                                            3,853                    3,334

Equity                                                                               61,152                  63,029

                                                                                       130,990                 124,175

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

 

 

 

SALES

                                                                                  Statement of Income

                                                                                     NIS (thousands)

                                                                                    Year ended 31.12

                                                                        2006                   2007                2008

Sales                                                               209,237             190,585           189,191

 

Gross profit                                                        31,185              25,823             23,131

 

Operating income                                               17,583              12,022               7,957

 

Pre-Taxes Income                                               30,323                8,797               4,616

 

Net income                                                        20,562                6,683               3,286

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

Consolidated first 3 quarters of 2009 sales NIS 152,689,000 (8% increase comparing to the parallel period in 2008), making a gross profit of NIS 20,612,000, an operating profit of NIS 10,644,000, making a net profit of  NIS 6,877,000 (compared to a net profit in parallel period 2008 of NIS 421,000).

 

Above data was taken from subject's financial statements (while shares were traded on the Tel Aviv Stock Exchange).

 

2009 sales reported to be some NIS 200,000,000.

According to a report from May 2011, subject's 2010 sales were

NIS 250,000,000, making a net profit of NIS 10,000,000.

2011 sales reported to be NIS 273,000,000.

We are informed by subject's CFO that 2012 and 2013 (projected) sales are between 250,000,000 - NIS 300,000,000.

2012 sales claimed to be NIS 270,000,000, 50% for export.

2013 sales claimed to be NIS 280,000,000, 50% for export.

 

Note: 'reported to be' means we obtained data from media reports; 'claimed to be' means we received data from subject's officials.

 

OTHER COMPANIES

 

AYALON BIO - GAS LTD., 49%, utilizing natural gas produced by Hiriya dump site (see more in CHARACTER).

 

FISHMAN GROUP, controlled by Eliezer Fishman, also fully or partially holds a long list of companies in a large array of industrial and commercial sectors in the local market, as well as broad operations abroad.

 

In the Retail businesses, the Group holds FISHMAN CHAINS LTD., a roof company for the FISHMAN Group’s retail businesses, managed by Mr. Fishman’s son Eyal Fishman and includes:

 

HOME CENTER (DIY) LTD., 90%, local largest DIY and household goods, indoor and outdoor furniture, electrical and building materials and appliances, etc (45 branches nationwide, as well as branches via subsidiaries in Cyprus. Annual consolidated sales were around NIS 1 billion.

 

FISHMAN CELLULAR DIVISION GENERAL PARTNERSHIP, importers and distributors of cellular phones.

HYPERTOY LTD., importers and marketers of toys (including children and youth bicycles), games (including multimedia) and accessories, operating 2 retail chains: Toys’R’Us", a franchisee of Toys’R’Us International - 20 branches and The Red Pirate" – 20 branches.

 

E.F. DESIGNS - LIMITED PARTNERSHIP, 49%, furniture and household goods, 23 store chain under the names ”Betili”, “IDdesign”, "Rich & Taylor" and "My Home Page", annual sales of NIS 200 million.

 

ZER. 4. U (2000) LTD., a retail flower chain, operating some 30 stores nationwide (mostly by concessionaires).

CELIO CLOTHING AND FOOTWEAR LTD., men’s fashion wear chain (some 20 branches).

TELEPHARMA THE FIRST DIRECT PHARMACY (1999) LTD., Israel’s first direct marketing pharmacy

TEN - PETROLEUM COMPANY LTD., operates 35 petrol stations.

GLOBRANDS AGENCIES 2007 LTD., 40%, importers and marketers of tobacco products of BRITISH AMERICAN TOBACCO (BAT), of the U.K.

 

As well as the ACCESSORIZE franchise for fashion accessories.

 

Eliezer Fishman and his family own, control and manage companies in major important sectors in Israel (finance, industry, energy, hi-tech, media), real estate assets as well as numerous foreign companies. Main publicly traded companies controlled by FISHMAN Group are real estate holdings companies JERUSALEM ECONOMY LTD. (JEC), one of the largest in Israel, and its subsidiary INDUSTRIAL BUILDINGS CORPORATION LTD., both publicly traded on the Tel Aviv Stock Exchange (TASE), as well as DARBAN INVESTMENTS LTD. and MIRLAND DEVELOPMENT CORPORATION PLC.

 

 

BANKERS

 

·         The First International Bank of Israel Ltd., Holon Business Branch (No. 078), Holon.

Mizrahi Tefahot Bank Ltd., Tel Aviv Main Business Branch (No. 461), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

FISHMAN Group is controlled by Mr. Eliezer Fishman, a leading local businessman and entrepreneur, enjoying very good reputation. Fishman's influence on the local market is mainly from his real estate holdings (as above OTHER COMPANIES) and in the local media/press field, via local leading daily 'Yediot Ahronot' (33%, jointly with a partner) and in 'Globes' economic daily (full control, jointly with a partner).

 

Subject is one of the leading companies in its field in Israel, and estimates its local market share in sales of woven fabrics at 50%.

 

Ramzi Gabbay, subject's Chairman (until February 2010 subject's General Manager for 23 years) serves for many years as the Chairman of the Textile Manufactures Union and presently serves as the Chairman of The Israel Export & International Cooperation Institute (Government supported export promotion body).

 

In May 2011 subject's Chairman reported that it closed 2 sawing facilities in the Galilee and transferred it production to Egypt.

 

Subject holds 49% of AYALON BIO - GAS LTD., which utilizes the natural gas which is produced in Hiriya, one of Israel's largest dump sites, thus significantly reducing energy costs (According to a report from December 2012 several hundred thousand NIS per month), as well as generating sales from sale of pollution rights.

 

According to a report from December 2012, subject is contemplating to move its activities to KITAN TEXTILE INDUSTRIES's shut down plant in Dimona.

 

Sales by local Textile, Clothing and Fashion Industries have been experiencing decrease in sales over the last years. Some 60% of the textile industry production is sold in the local market and the rest for export. Most exports are the North American market, and the industries suffered from the global economic crisis, mainly in the USA, as well as the slow-down in local market.

Sales for export by the Textiles, Wearing Apparel & Leather industries has been in a decreasing trend over the last years: export fell by 6.6%, 6.7% and 5.2% in the years 2011, 2012 and 2013, respectively (from the previous year), reaching US$ 763 million in 2013.

 

Besides the weakness of global markets, the local industry has been in state of crisis in face of amounting import from foreign competitors with cheaper production costs, forcing streamlining process, plants closure, and mostly resulting in the shift of textile manufacturing to low labor cost countries. There are around 14,000 employed in the textile sector in some 130 plants. In order to deal with the situation, the local textile industry diverted mainly to advanced technologies production, niches and design aspects.

 

 

SUMMARY

 

Good for trade engagements.

 

 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

        Rs.61.90

UK Pound

1

Rs.103.26

Euro

1

Rs.85.14

 

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.