MIRA INFORM REPORT

 

 

Report No. :

345831

Report Date :

21.10.2015

 

IDENTIFICATION DETAILS

 

Name :

HANDMADE CONTEMPO RUGS LTD.

 

 

Registered Office :

P.O. Box 12784 22 Maskit Street  Herzliya Pituach  Herzliya 4673322

 

 

Country :

Israel

 

 

Date of Incorporation :

21.09.2011.

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of handmade designer rugs and carpets.

 

 

No. of Employee :

2 employees (including David Ovadia).

 

 

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 – 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

 


 

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 2013, 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. 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

 

HANDMADE CONTEMPO RUGS LTD.

 

Telephone  972 9 885 57 45

Fax                                     972 9 957 70 84

P.O. Box 12784

22 Maskit Street

Herzliya Pituach

HERZLIYA 4673322 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-467116-3 on the 21.09.2011.

 

Note: Subject has no registered Latin name in the Registrar of Companies, and the direct translation of Hebrew name is HANDMADE MODERN CARPETS LTD.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 100,000.00, divided into -

            100,000 ordinary shares of NIS 1.00 each,

of which 200 shares amounting to NIS 200.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by David Ovadia.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

David Ovadia.

 

 

BUSINESS

 

Importers and marketers of handmade designer rugs and carpets, from all over the world.

Also operating a retail store.

 

Sales are mostly to private clientele.

 

All purchase is import.

 

Sole local representatives of (among others):

NAMICA, of USA.

 

Operating form rented premises (office, retail store and warehouse), on an area of 240 sq. meters in 22 Maskit Street, Herzliya Pituach Industrial Zone, Herzliya.

 

Having 2 employees (including David Ovadia).

 

 

MEANS

 

Financial data not forthcoming.

 

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

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Herzliya Pituach Branch (No. 522), Herzliya.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned (please refer to NOTE below).

 

David Ovadia refused to disclose financial data.

 

The local floor covers market (carpets, rugs, wall-to-wall carpets, parquets floor) is estimated well over at US$ 100 million per annum.

 

 

SUMMARY

 

Considering the refusal to disclose financial data, and being a very small business, dealings are recommended on secured basis.

 

 

NOTES

 

1.    According to the Registrar of Companies subject has a "Law Violating Company" Status.

As part of the Registrar efforts in the last period to collect fees and supervision on meeting all duties by Companies’ law, such status notes have been added to the registry. Registration as a "Law Violating Company" is done due certain violation by the subject company for not meeting the Registrar of Companies regulations promptly, mainly for not paying Registrar fees, and/or not submitting annual reports on time.

 

 

The sanctions and penalties against the company in such case include fines up to NIS 250,000, not allowing the company to register new charges on its favor, not allow registration a charge on its assets (which may deprive the company from taking new loans at their banks), cannot make changes in the Registrar, and more.

It should be noted that this may not necessarily be connected to the company's business activities and financial standing (although in many cases there is a connection, but we do not know the reason in subject's case. It is also possible that there is a technical or administrative problem, as such things also happen).

 

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.64.89

UK Pound

1

Rs.100.39

Euro

1

Rs.73.52

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

ANK

 


 

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.