MIRA INFORM REPORT

 

 

Report Date :

20.10.2014

 

IDENTIFICATION DETAILS

 

Name :

JOSEPH LEVY – FOOD ENTERPRISES LTD.

 

 

Formerly Known As :

JOSEPH LEVY - FOOD BUSINESS LTD.

 

 

Registered Office :

P.O. Box 5145, Tel Aviv (6105101), 65 Matalon Street , Tel Aviv 6685616 Israel

 

 

Country :

Israel

 

 

Date of Incorporation :

1952

 

 

Legal Form :

Sole Proprietary

 

 

Line of Business :

Importers and marketers of foodstuffs (e.g. canned food, dried fruit, herbs and spices, legumes & pulses, nuts.)

 

 

No of Employees :

22

 

 

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

 

JOSEPH LEVY - FOOD ENTERPRISES LTD.

Telephone 972 3 687 95 44

Fax           972 3 687 01 66

P.O. Box 5145, Tel Aviv (6105101)

65 Matalon Street

Tel Aviv 6685616 Israel

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a sole proprietary business in 1952, by Joseph Levy.

 

Converted into a private limited company and registered as such as per file
No. 51-053262-5 on the 13.01.1970 under the name JOSEPH LEVY - FOOD BUSINESS LTD., which changed to the present one on the 14.06.1990.

 

SHARE CAPITAL

 

Authorized share capital NIS 2,000,000.00, divided into -

 1,000 management shares (200 shares issued),

1,999,000 ordinary shares (951,916 shares issued), all of NIS 1.00 each, of which shares amounting to NIS 952,116.00 were issued.

 

 

SHAREHOLDERS

 

1.  MENASHE LEVY MANAGEMENT AND HOLDINGS LTD., 75% of ordinary shares and 81% of management shares issued, fully owned by Menashe Levy,

2.  ANAT GEVA MANAGEMENT AND HOLDINGS LTD, 25% of ordinary shares and 19% of management shares issued, fully owned by Ms. Anat Geva.

 

 

DIRECTORS & JOINT GENERAL MANAGERS

 

1.  Menashe Levy,

2.  Ms. Anat Geva.

 


BUSINESS

 

Importers and marketers of foodstuffs (e.g. canned food, dried fruit, herbs and spices, legumes & pulses, nuts.)

 

Amongst subject’s clients are supermarket chains, including leading SHUFERSAL, MEGA BOOL, EDEN TEVA MARKET, as well as KATIF and others.

 

Sales are also to companies in the Palestinian Authority. Among clientele: SHAREKAT MASNA ZATAR WA BHARAT ALAQSA, HANI SHAHROURI.

 

All purchases are imports.

 

Operating from rented offices, on an area of 400 sq. meters, in 65 Matalon Street, Tel Aviv, and from owned warehouse, on a built area of 3,000 sq. meters, in the Industrial Zone, Ariel.

 

Had 22 employees in 2008 (had 17 employees in 2007). Current number not forthcoming, believed to be similar.

 

 

MEANS

 

Stock was valued at NIS 5,000,000 in mid 2008.

Later and other financial data not forthcoming.

 

There are 6 charges for unlimited amounts registered on the company's assets (fixed assets, financial assets and vehicles), in favor of Israel Discount Bank Ltd. and Bank Hapoalim Ltd. Charge were placed in 1986,1996, 1998, 2007 and last charge placed June 2012.

 

 

REVENUES

 

2006 sales claimed to be NIS 100,000,000.

2007 sales claimed to be NIS 110,000,000.

2008 sales are known to exceed NIS 100,000,000.

2009 sales are known to exceed NIS 100,000,000.

Later sales figures not forthcoming.

 

 

BANKERS

 

Israel Discount Bank Ltd, Kikar Hamoshavot Branch (No. 014), Tel Aviv,
account No. 258253.

Bank Hapoalim Ltd., Haaliya Branch (No. 503), Tel Aviv, account No. 77755.

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's General Manager refused to disclose any data, following the change in their policy since 2011, saying they do not use credits.

 

This is a long established business.

 

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.

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. There has been a recovery in the sale of food products in the following months, and food chains sales index marked a 3.3% rise in annual calculation.

According to Nilsen Market Research survey of the consumer market for the first half of 2014, in money terms, the market experienced an erosion, and stagnant in terms of quantity, besides the beverage market, which presented a decrease. The volume of FMCG bar-coded market totaled NIS 20.6 billion, and was divided into: 79% for food (-0.5% in money terms, stagnant in quantity), 12% for beverages (-3.3% in money, -1.9% in quantity), 7% for personal care goods


(-2.3%, stagnant in quantity), and 7% for home care goods (-3%, stagnant in quantity).

 

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. In the first 8 months of 2014 import increased by 8% compared to the parallel period in 2013 (by 13% in $ terms).

 

From the 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. Expenditure on food, beverage & tobacco increased by 3.8% (after 3.5% rise in 2012).

 

 

SUMMARY

 

Notwithstanding the refusal to update data, considered good trade engagements.


NOTES:

 

1.      Please note subject's correct P.O. Box – 5145 (and not 5154)

2.    Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.62

UK Pound

1

Rs.99.12

Euro

1

Rs.78.89

 

 

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.