MIRA INFORM REPORT

 

 

Report Date :

20.10.2014

 

IDENTIFICATION DETAILS

 

Name :

EREZ INDUSTRIAL FURNITURE LTD.

 

 

Registered Office :

Sahak Industrial Park, Mobile Post Menashe, Shaked 3786200

 

 

Country :

Israel

 

 

Date of Incorporation :

1978

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers and marketers of industrial storage solutions (racks, shelves, etc.), ranging from light to heavy loads, working furniture (lab tables, etc.), cabinets, bookshelves and stationary shelves.

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate 

 

 

Payment Behaviour :

Unknown 

 

 

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 and address       

 

EREZ INDUSTRIAL FURNITURE LTD.

Telephone                           972 4 873 11 11

Fax                                     972 4 873 99 98

Email:                           erez@erez-rihut.com

Sahak Industrial Park

Mobile Post Menashe

SHAKED 3786200 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a non-registered business in 1978.

 

Converted into a private limited company and registered as such as per file

No. 51-152337-5 on the 10.12.1990.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 11,000.00, divided into - 11,000 ordinary shares of NIS 1.00 each, of which 200 shares amounting to NIS 200.00 were issued.

 

 

SHAREHOLDERS

 

1.    Yosef Barda,

2.    Ms. Noa Barda, holding 1 single share.

 

 

SOLE DIRECTOR

 

Yosef (Yossi) Barda.

 

 

GENERAL MANAGER

 

Alon Dalal.

 

BUSINESS

 

Manufacturers and marketers of industrial storage solutions (racks, shelves, etc.), ranging from light to heavy loads, working furniture (lab tables, etc.), cabinets, bookshelves and stationary shelves.

Specializing in customizing products according to need.

 

Subject may export though we could not verify this.

 

Sales are to plants, storage facilities, companies, libraries, retail stores, etc.

Among clientele: TNUVA, ISRAEL MILITARY INDUSTRIES, RAFAEL ADVANCED DEFENSE SYSTEMS, ISRAEL ELECTRIC CORP., CRAZY LINE, ONOT, RISCO, KAMADA, ISRAEL RAILWAYS, NEGEV, SONOL, HOME CENTER, ISRAEL AEROSPACE INDUSTRIES, ZOKO, and many more.

 

Operating from premises in Sahak Industrial Park, Shaked.

 

Number of employees not forthcoming.

 

 

MEANS

 

Financial data not forthcoming.

 

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

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

BANKERS

 

Bank data not forthcoming.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts, we were unable to speak with subject's officials, as they were always unavailable. We left messages which so far remain unanswered.

 

This is a veteran business.

 

Based on media reports, turnover of the local furniture and allied accessories was valued in 2012 at NIS 9 billion.

In another later market survey, the estimated revenues of the furniture branch in 2013 reached NIS 6.6 billion, 3% rise from 2012 (it is possible that the recent survey did not include allied accessories, hence the gap in data). Revenues were divided to NIS 1.6 billion of furniture from import and NIS 5 billion is from local manufacturing. Main countries from which import is made are China and Italy.

In Israel there are some 2,300 furniture retail stores. According to a survey in 2011, customers prefer mostly carpenters and small shops (65%), and large retail chains (35%, over 8% of which by DIY chain IKEA).

 

Central Bureau of Statistics (CBS) data reveals that investments by the local manufacturing industries in machinery & equipment (M&E) in 2013 fell by 12% from 2012, after a decrease by 3% in 2012. Investments whose source was from import, which comprised 62% of total investment by the industries in M&E, fell by 21.5%, while investments whose source was from local manufacturing rose by 11.5% in 2013.

Gross Domestic Capital Formation (investment) in machinery & other equipment in 2013 reached NIS 39,743 million in current prices (NIS 46,436 million in 2012), of which NIS 24,596 million was from imports production (NIS 32,886 million) and NIS 15,147 million from domestic production (NIS 13,551 million in 2012).

 

 

SUMMARY

 

Considering the lack of data from subject's officials, dealings are recommended on secured basis.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.61

UK Pound

1

Rs.99.11

Euro

1

Rs.78.89

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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.