MIRA INFORM REPORT

 

 

Report No. :

305424

Report Date :

05.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SHODAN LTD.

 

 

Registered Office :

P.O. Box 438, UDIM, 4290500

 

 

Country :

Israel

 

 

Date of Incorporation :

13.07.1997

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is importers and marketers of apparel and textile products for women, men and children.

 

 

No. of Employee :

10

 

 

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 :

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 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Israel

B1

B1

 

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

 

SHODAN LTD.

 

Telephone                         972 9 885 97 64

Fax                                   972 9 885 37 80

 

P.O. Box 438

UDIM      4290500       ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-250655-1 on the 13.07.1997.

From our, subject was dormant for a while, around year 2008, but we do not have further data on the duration.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 10,000.00, divided into, -10,000 ordinary shares of NIS 1.00 each, of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Yoav Eliav.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Yoav Eliav.

 

 

BUSINESS

 

Importers and marketers of apparel and textile products for women, men and children.

 

Among clientele: HAMASHBIR DEPARTMENT STORES, Israel Nature and Parks Authority, and more.

 

Operating from rented premises (offices, showroom and warehouses), on an area of 400 sq. meters, in Farm No. 1 ("Meshek 1"), Udim village (“Moshav Udim”, where “moshav” is a local typical agricultural village), near Netanya.

Premises also serve sister company HORSE CENTER.

 

Having 10 employees.

 

 

MEANS

 

Current stock is valued at NIS 2,000,000.

 

Other financial data not forthcoming.

 

There are 11 charges for unlimited amounts registered on the company's assets (financial assets and vehicles), in favor of Bank of Jerusalem Ltd., Bank Otsar Hahayal Ltd. and Mercantile Discount Bank Ltd. (last 2 charges placed 2007).

 

 

REVENUES

 

2013 sales claimed to be NIS 5,000,000.

2014 sales claimed to be NIS 5,000,000.

 

 

OTHER COMPANIES

 

HORSE CENTER LTD. ("SUS CENTER"), 50% owned by Yoav Eliav, importers and marketers of horses riding equipment, mainly riding apparel and footwear. The company was incorporated 2006 as a spin-off from subject, assuming a/m activities, following the entrance of a partner.

 

 

BANKERS

 

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

 


 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

According to the Central Bureau of Statistics (CBS), import of Clothing and Footwear in 2014 increased by 8.3% (in NIS terms, rose by 9.5% in $ terms), summing up to NIS 7,421.6 million. This comes after in 2013 import rose by mere 0.9% from 2012, but rose by 13% in 2012.

Most import comes from China. Main other countries of origin for textile goods are France, Italy, Hong Kong and Turkey, Spain and the U.S.A.

 

The local fashion market has been significantly influenced by the entrance of new international fashion players to the already highly competitive local market.

To many players in the branch, the fierce competition, coupled with the slow-down in local economy resulted in stagnation in sales and drop in revenues. There have been also few collapses of veteran and big retailers in some niches, including in the ladies fashion and children's apparel.

Moreover, in particular for the recent period, local businesses in general, and the fashion market in particular, sufferred a blow from the fighting situation in Israel during July-August in the south of Israel, causing freeze in sales.

 

From the CBS preliminary National Accounts for 2014 on private consumption expenditure, it turns that the current local households expenditure grew by 3.9% from 2013, after rising by 3.3% in 2013 and by 3.2% in 2012.

Consumption expenditure by households on Clothing and Footwear in 2014 rose by 10.1% from 2013 (after 2.2% rise in 2013 and by 8.5% in 2012).

 

 

SUMMARY

 

Good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.68

UK Pound

1

Rs.93.53

Euro

1

Rs.70.75

 

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.