MIRA
INFORM REPORT
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Report Date : |
29th
January, 2007 |
IDENTIFICATION
DETAILS
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Correct Name : |
ZIKA
GROUP LTD. |
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Registered Office : |
P.O Box 2317, Industrial Zone, Acre 24122
Israel. |
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Country : |
Israel |
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Date of Incorporation : |
30.05.2004 |
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Com. Reg. No.: |
51-354861-0 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Manufacturers,
marketers and exporters of welding electrodes. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
US$
160,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Correct Name
ZIKA GROUP LTD.
Address
P.O Box 2317
Industrial Zone
ACRE 24122 ISRAEL
Telephone 972 4 985 18 05
Fax
972 4 985 18 70
HISTORY
A private limited company,
incorporated as per file No. 51-354861-0 on the 30.5.2004.
In June 2004, subject acquired
all the activities of ELECTRODE WORKS ZIKA LTD. (established 1950), which
stumbled upon financial difficulties, for a sum of NIS 7.26 million.
Originally registered under the
name ZIKA ELECTRODES (2004) LTD., which changed to the present name on the
18.12.2006.
SHARE CAPITAL
Authorized share capital NIS
10,000.00, divided into -10 management shares,
9,990 ordinary shares, all of NIS
1.00 each, of which shares amounting to NIS 1,002.00 were issued.
SHAREHOLDERS
1. CHIMNIAR GROUP LTD., 50%,
controlled by Yehoshua Perla,
2 Yaakov Bakarach, 50%.
DIRECTORS & JOINT GENERAL
MANAGERS
1. Yehoshua Perla,
2. Yaakov Bakarach.
BUSINESS
Manufacturers, marketers and
exporters of welding electrodes.
Also marketers
and distributors of a variety of complementary products and services required
by its customers.
Subject's
products are used for a wide range of purposes, from thickly coated electrode
for general purposes, through special electrode suitable for workings used in
Nuclear reactors, petrochemical industry and heavy industry.
Around 10% of sales are for
export.
Most purchases are imports.
Amongst local suppliers: ORIAN
INTL. MARKETING, INBAR TECHNOLOGIES, B. GAVRIELI TRANSPORTATION, etc.
Operating from rented premises (offices
and plant), on an area of 8,000 sq. meters in the Industrial Zone, Acre.
Having 48 employees (had 47 in
2005).
MEANS
Current stock is valued at NIS
6,000,000 (same as in 2005).
There are 9 charges for unlimited
amounts registered on the company's assets, in favor of Bank Leumi LeIsrael
Ltd. and Union Bank of Israel Ltd.
ANNUAL SALES
August – December 2004 sales claimed to be NIS
11,000,000, of which NIS 1,000,000 were exports.
2005 sales claimed to be NIS 27,000,000, of which
NIS 2,000,000 were exports.
2006 sales claimed to be NIS 28,000,000, of which
NIS 3,000,000 were exports.
OTHER COMPANIES
CHIMNIAR GROUP LTD., controlled
by Yehoshua Perla, importers and marketers of all sorts of paper. 2004
sales claimed to be NIS 16,000,000.
CHIMNIAR
PAPER SUPPLIERS LTD.
URANUS FINANCIAL MARKETS LTD.,
owned by Yaakov Bakarach.
BANKERS
Bank Leumi LeIsrael Ltd., Bat Yam
Branch (No. 861), Bat Yam,
Account No. 555900/22.
Union Bank of Israel Ltd., Main
Branch (No. 063), Tel Aviv,
Account No. 681200/69.
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 is ISO 9001:2000
certified.
On 7.6.2004 the Haifa District
Court approved the sale of the activities of ELECTRODE WORKS ZIKA LTD. and its
subsidiary ZIKA INDUSTRIES LTD. to subject from their liquidator. The buyers
will pay NIS 7.26 million in 12 installments.
On 2.8.2004 the Commissioner for
Trade Restrictions approved the merger of activities of subject with the ones
acquired from the above companies. The approval was required, since ELECTRODE
WORKS ZIKA was a monopoly in the welding electrodes field.
In May 2006, it was reported that
subject will acquire the land on which subject's plant is situated from the
receiver of ELECTRODES WORKS ZIKA LTD., for a sum of US$ 1.2 million.
In mid 2006 we obtained couple of
favorite opinion on subject's payment.
INBAR TECHNOLOGIES officials told
us they are working with subject since its inception, supplying subject with
welding materials. Credit terms are current + 120 days.
Subject was described as a good
client who always pays on time.
B. GAVRIEL officials told us they
are working with subject for 2 years, supplying them with transport services.
Credit terms are current + 90 days.
Subject was described as a good
client who always pays on time.
According to the Chairman of the
Metal and Electricity sectors at the Manufacturers’ Association, overall sales
of the various metal related sectors in 2005 increased by 13% in real terms
comparing to 2004, reaching NIS 57 billion. Sales to the local market increased
by 16% form 2004, summing up to NIS 34.7 billion. The metal products branch in
particular noted an impressive 21.8% increase up to NIS 21.5 billion, comparing
to NIS 17.6 billion in 2004. Basic metal sales amounted to NIS 4.2 billion, a
17.8% increase.
Exports in the metal and
electricity sectors increased in 2005 by 9% comparing to 2004, and totaled US$
4.96 billion.
The
recovery contributed to the growth in the manufacturing activity and the number
of employees in those sectors after several years of downsizing. After the
increase in 2004, 800 new employees were added to the branches in 2005,
bringing the total number of employees in these industries to 89,400.
SUMMARY
Maximum unsecured credit
recommended US$ 160,000.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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