MIRA INFORM REPORT

 

 

Report Date :

20.09.2014

 

IDENTIFICATION DETAILS

 

Name :

ABRAHAM SHERIZLY & SON LTD.

 

 

Registered Office :

15 Hamiktzo'ot Blvd., Einav Center - Ispro Center, MODI'IN-MACCABIM-RE'UT 7177849 Israel

 

 

Country :

Israel

 

 

Date of Incorporation :

1955

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of car tinwork and car painting materials and equipment, as well as automotive mechanics equipment, as well as importers and distributors of paints and paint products for the automotive field.

 

 

No of Employees :

80

 

 

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 & Address

                                                                                                  

ABRAHAM SHERIZLY & SON LTD.

(Also known as: A.SHERIZLY & SON LTD.)

Telephone                         972 8 923 37 77

Fax         972 8 923 44 77

Email: sherizly@sherizly.com

15 Hamiktzo'ot Blvd.

Einav Center - Ispro Center

MODI'IN-MACCABIM-RE'UT 7177849 Israel

 

 

HISTORY & LEGAL FORMATION

 

Originally established in 1955 as a non-registered business under the style ABRAHAM I SHERIZLY.

Converted into a private limited company and registered as such as per file
No. 51-071171-6 on the 20.05.1975.

 

In the past, subject was also trading under the name ABRAHAM I SHERIZLY & SON LTD.

 

In the beginning of 2002, subject took over all activities of sister company, CAR SYSTEM ISRAEL (A.S.) LTD., established in 1998, which operated in the same line of activities as subject.

Subject also assumed all activities of fully owned subsidiary SUMMIT& DIXON LTD., established in 2001, importers and distributors of paints and paint products for the automotive field.

 

SHARE CAPITAL

 

Authorized share capital NIS 52.00, divided into -

            1 founder "A" share (issued),

            1 founder "B" share (issued),

            1 founder "C" share (issued),

 519,997 ordinary shares (150,100 shares issued), all of NIS 0.0001 each, of which shares amounting to NIS 15.0103 were issued.

 

SHAREHOLDERS

 

1.    Ariel (Arik) Sherizly, holding 40% of ordinary shares and the 3 founder "A", "B" & "C" shares issued,

2.    Ms. Dorit Sherizly Jeorgi, holding 20% of ordinary shares issued,

3.    Eyal Sherizly, holding 20% of ordinary shares issued,

4.    Ms. Michal Solomon, holding 20% of ordinary shares issued.

 

SOLE DIRECTOR & PRESIDENT

 

Ariel (Arik) Sherizly, General Manager, son of the Late Abraham Sherizly (founder of subject).

 

GENERAL MANAGER

 

Eyal Sherizly, son of Arik.

 

BUSINESS

 

Importers and marketers of car tinwork and car painting materials and equipment, as well as automotive mechanics equipment, as well as importers and distributors of paints and paint products for the automotive field.

Also importers and marketers of tools and equipment for wood work, wood paints, finishing

 

Subject has over 1,000 customers, including MERKAVIM METAL WORKS, SHAMIR TRUCKS, car rental firms e.g. KESHER RENT-A-CAR (Hertz Israel), DAN VEHICLE & TRANSPORTATION (Avis Israel), automobile importers and agents e.g. CALMOBIL (Mitsubishi), UNION MOTORS (Toyota), DELEK MOTORS (Mazda, Ford), garages, e.g. DERECH NES, TAMBOUR RECHEV, HOLON MOTORS, NATAN EXPRESS

Sales are also to carpentries, furniture companies, etc.

 

99% of purchases are imports.

Sole local importer and representative of (main ones):

P.P.G/ Max Meyer, of Italy/USA,

GERSON, of USA,

STANDOX, SPIES HECKER, PROTOOL FESTOOL, SATA, CAR SYSTEM, ROTARY, all of Germany,

MAB, OMCN, SAIMA, SPACE, all of Italy,

JONNESWAY, of Taiwan,

FARÉCLA, of the U.K.,

NORTON ABRASIVES, part of SAINT-GOBAIN, of France,

SPACE, of Spain,

AUTO ROBOT, of Finland.

 

Operating from owned premises, on an area of 10,000 sq. meters, of which 7,100 sq. meters are built, in 15 Hamiktzo'ot Blvd., Einav Center - Ispro Center, Light Industrial Zone, Modi'in-Maccabim-Re'ut, and rented branches in:

1.         10 Tushiya Street, Tel Aviv,

2.         Talpiot Industrial Zone, Jerusalem,

3.         Shefar'am (northern area of the country).

 

Having 100 employees (had 80 employees 2013 and in 2012, had 65 employees as of the end of 2010).

 

MEANS

 

Subject still owns the property in Lod, subject's former premises on an area of 3,000 sq. meters, on which we are informed subject negotiates in view of selling the property (property is valued at several US$ million).

 

Other and later financial data not forthcoming.

 

There are 27 charges for unlimited amounts registered on the company's assets (financial assets and vehicles), in favor of Mercantile Discount Bank Ltd., Bank Leumi Le’Israel Ltd., Bank Hapoalim Ltd., Israel Discount Bank Ltd., Mizrahi Tefahot Bank Ltd. and leasing companies (last charge placed July 2012 on a vehicle, prior 6 charges placed November-December 2011 on vehicles).

 

REVENUES

 

2011 sales claimed to be NIS 70,000,000.

Later sales data not forthcoming.

 

OTHER COMPANIES

 

SUMMIT& DIXON LTD., 100%, non-active.

 

Also owned by Sherizly Family:

A. SHERIZLY & SON ASSETS LTD.

 

BANKERS

 

Bank Hapoalim Ltd., Ben Gurion Airport Branch (No. 774), Lod.

Israel Discount Bank Ltd., Kikar Hamedina Branch (No.152), Tel Aviv.

Above two are main accounts, also working on low level with:

Mizrahi Tefahot Bank Ltd., Hatzerot Yafo Branch (No. 436), Tel Aviv.

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's officials refused to update sales figures (along the years, officials have been reluctant to disclose financial data).

 

This is a long established family company.

Company and products meet ISO 9001:2008 quality standard.

 

During 2005, subject acquired full ownership of SUMMIT & DIXON LTD., which dealt in a complimentary line of activity to subject. SUMMIT was established in 2001 and represented locally German firm STANDOX, and later activities were merged into subject.

 

2013 sales of new vehicles in Israel witnessed an increase of 4% compared to 2012, with a total of 212,581 cars sold. That rise happens after in 2012 car sales fell by 9% from 2011, which reflected some slowdown in the local market.

In the first 7 months of 2014, 153,977 cars were sold, a 15.4% increase compared to the parallel period in 2013.

 

Until 2009, the number of owned private vehicles in Israel was in constant rise in high ratios all over last decade and more (for instance, from 123,000 in 2003 to over 194,000 in 2008). The major increase in recent years has been the volume of vehicles owned by leasing companies. In 2008, 62% of the new cars sold were to leasing companies. Yet in recent years, the demand by leasing companies fell as market conditions got weaken.

 

SUMMARY

 

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

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.81

UK Pound

1

Rs.100.06

Euro

1

Rs.78.47

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.