MIRA INFORM REPORT

 

 

Report No. :

343317

Report Date :

07.10.2015

 

IDENTIFICATION DETAILS

 

Name :

MISH THE WORLD BELONGS TO CHILDREN LTD.

 

 

Registered Office :

Hatzar Gaash, Industrial Zone, Gaash  6095000  Israel

 

 

Country :

Israel

 

 

Date of Incorporation :

25.10.2012

 

 

Com. Reg. No.:

51-482960-5

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is manufacturers, importers and marketers of children and baby apparel

 

 

No. of Employee :

85

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Israel

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address

 

MISH THE WORLD BELONGS TO CHILDREN LTD.

 

(Known as MISH-MISH*)

Telephone             972 9 950 09 33

Fax                       972 9 950 32 88

Email:                   info@mish-mish.co.il

 

Hatzar Gaash, Industrial Zone

GAASH  6095000  ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-482960-5 on the 25.10.2012.

 

Subject was established following the acquisition in October 2012 of the brand names "Srigamish" and "Mish-Mish" (the goodwill) from the receiver of SRIGAMISH SAN (1957) LTD., children’s wear manufacturers, importers and retailers, a local long established and well known business established 1947, which encountered grave financial difficulties. The reported acquisition sum was NIS 1 million, and in addition, the buyers will transfer 1% of the turnover for two years (estimated at NIS 400,000).

 

* Subject's registered Latin name in the Registrar of Companies is MISH WORLD BELONGS TO THE CHILDREN LTD., however the correct translation of the Hebrew registered name is as in caption (the difference is where "THE" inserted).

 

 

SHARE CAPITAL

 

Authorized share capital NIS 500.00, divided into - 500 ordinary shares of NIS 1.00 each, of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

1.      Uri Moldovan, 75%,

2.      Avigdor Kabili, 15%,

3.      Idan Moldovan, 10%, son of Uri.

 

 

DIRECTORS

 

1.      Uri Moldovan, General Manager, born 1950,

2.      Avigdor (Avi) Kabili, born 1955.

 

                                                                                                                            

BUSINESS

 

Manufacturers (via subcontractors overseas, mainly in China and India), importers and marketers of children and baby apparel under own brand "Srigamish" and "Mish-Mish".

Also operating a retail chain of 26 branches (called "Mish-Mish"), of which 8 are operated by concessioners, selling the above goods.

 

Operating from rented premises (offices, logistics center), on an area of 1,000 sq. meters, in the Hatzar Gaash, a commercial and industrial zone outside Kibbutz Gaash (locality north of Herzliya). The premises serve also other affiliated companies.

Also using the address 36 Ben Gurion Street, Ramat Hasharon (area code 4732118), which is the residential address of Uri Moldovan.

 

Having 85 employees.

 

 

MEANS

 

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

Other financial data not forthcoming.

 

There are 4 charges for unlimited amounts registered on the company’s assets (financial assets and vehicles), in favor of Bank Leumi Le'Israel Ltd., Bank Otsar Hahayal Ltd. and a leasing company. All charges placed in 2013.

 

 

REVENUES

 

2014 sales claimed to be NIS 15,000,000.

Projected 2015 sales are NIS 18,000,000.

 

 


OTHER COMPANIES

 

G.K.A. IMPORT FASHION LTD., owned by Uri Moldovan, incorporated 2001, a management company (in the past dealt in trade, import and marketing of apparel, but ceased commercial activities after the operation of subject.

 

Avigdor Kabili has holdings in the following companies:

LELACH A.A.D. LTD., incorporated 1998, fully owned by Avi Kabili, importers and marketers of apparel.

SIMPLE O.D.S. LTD., 25%, incorporated 2010, importers and marketers of sports goods, sportswear and outdoor activity clothing and equipment.

Y.A.Y SIMPLE LTD., 25%, incorporated 2009, importers and marketers of textile products (sportswear, military clothing). All sales are to the Ministry of Defense.

 

 

BANKERS

 

Bank Hapoalim Ltd., Hatzafon Branch (No. 602), Tel Aviv.

Bank Leumi Le'Israel Ltd., Migdalei Aviv Branch (No. 812), Tel Aviv.

Bank Otsar Hahayal Ltd., Hahashmonaim Branch (No. 361), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Mr. Moldovan has vast experience in the fashion business and trade. In the 1980s he was a shareholder and General Manager of one of the local leading fashion companies those days, called TOPPER.

Later, he sold his holdings in TOPPER and operated through his other company SHMIRKA, which later on ceased activities.

 

Avi Kabili is also veteran in the apparel field. He has been a shareholder and manager of companies in the fashion and textile branches since the 1980s (continuing his father's children apparel activities founded in the 1950s).

 

Brand names "Srigamish" and "Mish Mish" are well recognized local brands.

 

In October 2014 it was reported that subject's brands will be sold also in HAMASHBIR, Israel's large (and sole) department store, in 10 branches of HAMASHBIR.

 

In January 2015 it was reported that subject leased 75 sq. meters in Premium Center shopping mall in Holon for a new branch.

 

Reportedly, total revenues of the local fashion market in 2013 reached NIS 12 billion per annum. In 2012 sales reached NIS 11 billion. 40% of sales are in the large fashion chains, 34% in other smaller chains, and the rest in private shops.

Based on surveys, around 50% and more is women's fashion. Moreover, 40% of fashion stores in Israel belong to fashion chains, the rest being private shops.

Children's fashion market is valued at NIS 2 billion per annum, sold in 1,600 shops (900 of which belong to branded chains, rest are private shops).

 

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, after climbing by 13% in 2012. Import rose by 5.6% (fell by 6% in $ terms) in the first half of 2015 (comparing to the 1st half 2014).

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.

 

From RIS data, a firm that measures revenues from sales of 2,600 shops in Israel, in 2014 local consumers reduced their purchasing in the apparel branches, witnessed in 1.5% reduction in revenues per meter in commercial centers (after 2013 ended in freeze compared to 2012).

 

From the CBS National Accounts for 2014, it turns that private consumption expenditure, in fixed prices, grew by 4% from 2013 (rose 3.3% in 2013 and 3.1% in 2012). Consumption expenditure by households on semi-durable goods rose in 2014 by 7.6% from 2013 (after 1.8% rise in 2013, and 7.4% in 2012), of which expenditure on Clothing and Footwear in 2014 rose by 10.7% from 2013 (after 2.2% rise in 2013 and by 8.5% in 2012).

The CBS first estimate for the first half of 2015 points on 4.8% rise in private consumption in annual calculation, after rise of 6.4% in the previous half and 0.6% rise in the parallel half in 2014. Consumption expenditure by households on semi-durable goods fell in this period by 4%, reflecting a 10.7% decrease in expenditure on Clothing and Footwear.

Per-capita expenditure in 2014 rose by 2% (after rise of 1.4% in 2013 and 1.2% in 2012), and by 2.8% (in annual calculation) in the 1st half of 2015.

 

 

SUMMARY

 

Good for trade engagements.

 

Notes:

1.    The phone number you provided (+972 (0)54 6378033) belongs to Ms. Rotem Levtzeler, subject' designer.

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.65.39

UK Pound

1

Rs.99.05

Euro

1

Rs.73.19

 

INFORMATION DETAILS

 

Analysis Done by :

HEN

 

 

Report Prepared by :

ASH

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.