MIRA INFORM REPORT

 

 

Report Date :

16.10.2014

 

IDENTIFICATION DETAILS

 

Name :

OPAL S.Y. INTERNATIONAL LTD.

 

 

Registered Office :

P.O. Box 4118, 10 Zarhin Street, Industrial Zone,, Ra'anana 4366238

 

 

Country :

Israel

 

 

Date of Incorporation :

12.05.1996

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, exporters, marketers and international traders in foodstuff, e.g. frozen fruit and vegetables, olive oil, olives, jams, juices, gourmet food.

 

 

No of Employees :

15

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

OPAL S.Y. INTERNATIONAL LTD.

Telephone    972 9 741 50 25

Fax             972 9 741 51 06

P.O. Box 4118

10 Zarhin Street

Industrial Zone,

Ra'anana 4366238 Israel

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-232187-8 on the 12.05.1996 under the name OPAL IMPORTS & EXPORT OF FOOD PRODUCTS LTD., which changed to the present name on 20.05.1996.

 

As of 01.01.2008, subject assumed, in a way of merger, all the activities of sister company OPAL EXPORT A.Y. 2002 LTD., which ceased activities.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 29,400.00, divided into -

29,400 ordinary shares of NIS 1.00 each, of which 300 shares amounting to NIS 300.00 were issued.

 

 

SHAREHOLDERS

 

1.      Itzhak Kol, 50%,

2.      Yosef Michael Sprontz, 50%.

 

 

DIRECTORS & JOINT GENERAL MANAGERS

 

1.    Itzhak Kol,

2.    Yosef Michael Sprontz.

 

 

BUSINESS

 

Importers, exporters, marketers and international traders in foodstuff, e.g. frozen fruit and vegetables, olive oil, olives, jams, juices, gourmet food.

10% of sales are export (was 25% of sales in 2010-2013. The decrease is due to establishing a US subsidiary which took over some of export activities).

 

Having over 100 retailers in Israel, the US, Canada, South Africa, Australia, Korea, and other countries

 

Among clientele: SHUFERSAL, TEMPO BEVERAGES, HADAROM FOOD INDUSTRIES, TOMER IMPORT & MARKETING OF FOOD PRODUCTS, and more.

 

Purchasing is from imports and local suppliers.

 

Agents for:

ZGODA, of Poland (responsible for large part of imports).

PITTAFFO, of Italy.

 

Operating from rented premises (offices), on an area of 250 sq. meters, in 10 Zarhin Street, Industrial Zone, Ra'anana (to where subject moved from 16 Hatidhar Street, Industrial Zone, Etgarim House, Ra'anana in May 2014). Also using rented warehouse facilities in Western Galilee, local sub-contractors warehouse facilities in Dror Junction, as well as from subsidiary facilities in the USA.

 

Having 15 employees (had 14 employees in mid 2012, same as in the end of 2011).

 

 

MEANS

 

Current stock is valued at NIS 6,000,000.

 

Other financial data not forthcoming.

 

There are 13 charges for unlimited amounts, as well as 3 charges for the total sum of NIS 4,391,271.00 registered on the company’s assets (financial assets and fixed assets), in favor of Mizrahi Tefahot Bank Ltd., Israel Discount Bank Ltd., Mercantile Discount Bank Ltd., Bank Hapoalim Ltd. and Bank Leumi Le'Israel Ltd. (last charge placed October 2013).

 

 

REVENUES

 

2008 sales claimed to be NIS 60,000,000, where export rate said to be high.

2008 sales rose significantly, after subject absorbed activities of sister company OPAL EXPORT A.Y. 2002 LTD. (whose 2007 sales summed up to NIS 35,500,000).

2009 sales claimed to be NIS 57,000,000, of which 40% were for export.

2010 sales were NIS 46,280,650, of which 25% were for export.

2011 sales were NIS 49,700,000, of which 25% were for export, making a profit of circa NIS 1,000,000 before tax.

2012 sales claimed to be NIS 50,000,000, of which 25% were for export.

2013 sales claimed to be NIS 50,000,000, of which 25% were for export.

2014 first 6 months sales claimed to be NIS 25,000,000, of which 10% were for export.

 

OTHER COMPANIES

 

Explore Asian inc., 100%, USA, purchasing and selling foodstuff abroad, assumed part of subject's export activities.

 

OPAL EXPORT A.Y. 2002 LTD., non-active.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Bat Yam Branch (No. 425), Bat Yam, account

No. 133314.

Israel Discount Bank Ltd., Shenkar Branch (No. 199), Herzliya, account

No. 45861.

Mercantile Discount Bank Ltd., Netanya Branch (No. 647), Netanya, account

No. 20609.

 

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m accounts.

 

 

CHARACTER AND REPUTATION

 

In January 2010 a forwarding and logistics company FRIDENSON AIR AND OCEAN LTD. sued subject for NIS 150,000. Case details are unavailable, but the case is closed, after ending in a compromise.

Apart from that, nothing unfavorable learned.

 

OPAL Group is considered among the largest local dealers and importers of frozen fruit and vegetables in Israel.

 

According to survey from 2013, the local food market, manufacturing, import and trade, rolls NIS 80 billion per annum. There are some 1,700 food plants in Israel (some also import) and hundreds of importers in the food, beverage and consumer products, supplying raw materials and finished goods to the food market.

 

After several years of constant growth, the consumer products market, which includes food, beverages and household and personal care goods, ended 2012 with fixation and even decrease in sales, according to Nilsen Market Research. In money terms, the market grew by mere 0.7%, lest than the population growth rate (2% per annum). Sales in the bar-coded consumer market reached NIS 40.4 billion. Sales of food in 2012 grew by 1.1%, reaching NIS 29.8 billion, while in the beverage market sales fell by 2% to NIS 5.1 billion. Volume of personal care goods rose by 3% to NIS 3 billion, while sale of household increased by 1.5% to NIS 2.7 billion.

 

In 2013, there was a decrease in consumption of food products in the marketing markets in terms of quantity, which was halted in money terms due to prices rise.

 

The marketing chains reported on sharp drop (7.9%) in sales of foodstuffs in the first 2 months of 2014 in terms of quantity. The main reason for the trend is the continuous rise in cost of living in Israel, which cause the decrease in expenditure by consumers.

Sales for exports by the food & beverages industries grew by 1.5% in 2013 from 2012, with sales reaching US$ 1,072.5 million (in $ terms, though fell 5% in NIS terms), after remaining stagnant in 2012 and 17% rise in export in 2011.

 

According to Central Bureau of Statistics (CBS), import of food and beverages to Israel in 2013 reached NIS 6,946 million, rising by mere 0.7% (in NIS terms, 7.4% rise in $ terms), continuing the upward growth trend from 2012 (14% rise), 2011 and 2010.

 

The Central Bureau of Statistics data shows that import of raw food products to Israel in 2013 summed up to NIS 8,552.7 million, 6.4% decrease from 2012 (in NIS terms, was stagnant in $ terms). That continues the downwards trend from 2012, when it fell by 2.7% from 2011, whereas in both 2011 and 2010 import rose by around 20% in each of the years. Over 50% of import is from the EU.

 

 

SUMMARY

 

Good for trade engagements

Maximum unsecured credit recommended US$ 200,000.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.11

UK Pound

1

Rs.98.15

Euro

1

Rs.77.68

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 


 

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.