MIRA
INFORM REPORT
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Report Date : |
02.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
LINE SACIM LTD. |
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Registered Office : |
14 Lisbon Street New Industrial Area Sderot 87146 |
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Country : |
Israel |
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Date of Incorporation : |
11.7.2004. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers and Marketers of Polypropylene Sacks. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 40,000. |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
LINE SACIM LTD.
Telephone 972 8 661 21 61
Fax 972 8 661 22 29
P.O. Box 569
(87014)
14 Lisbon Street
New Industrial
Area
SDEROT 87146
ISRAEL
HISTORY
A private limited
company, incorporated as per file No. 51-356512-7 on the 11.7.2004.
SHARE CAPITAL
Authorized share
capital NIS 2,039,100.00, divided into:
2,039,100 ordinary shares, of NIS 1.00 each,
of which shares
amounting to NIS 400,200.00 were issued.
SHAREHOLDERS
1. Eliyahu Zabaro, 50%,
2. BEN - NUN ADVERTIZING AND
MARKETING LTD., 50%, shares are held in trustee on behalf of a Spanish
investing firm. According to subject's website, the firm is
RAFIA INDUSTRY of the ARMANDO ALVARES Group.
SOLE DIRECTOR & GENERAL
MANAGER
Eliyahu Zabaro
BUSINESS
Manufacturers and marketers of polypropylene sacks.
Subject produces woven bags, for packaging goods, such as chemicals,
plastic granules, sugar, grains of wheat and coal etc., as well as shopping
bags.
Among clients are: KESHET PRIMA, ISRAEL
CHEMICALS, HAIFA CHEMICALS, FERTILIZERS & CHEMICALS, ZUCKERMAN & CO.,
etc.
Subject imports raw materials for
production.
All purchasing is imported.
Among foreign suppliers: MAYOR, of India.
Operating from
rented premises, offices, plant and warehouse, on an area of 4,000 sq. meters
(of which 2,000 sq. meters are built), in 14 Lisbon Street, New Industrial
Area, Sderot.
Having 20
employees (same as in 2006).
MEANS
Current stock is
valued at US$ 200,000 (was valued at US$ 100,000 in 2006).
Subject's shareholder and general manager informed us that they invested
US$ 3,000,000 in the erection of the plant.
Subject is an "Approved
Enterprise" and as such enjoys tax benefits and State incentives (subject
is exempted from state income taxes payments for 10 years).
There are 9 charges for unlimited amounts registered on the company’s
assets, in favor of Israel Discount Bank of Ltd. and leasing companies.
ANNUAL SALES
2005 sales claimed
to be US$ 1,000,000.
2006 sales claimed
to be US$ 1,400,000.
2007 sales claimed
to be US$ 1,600,000.
OTHER COMPANIES
EUROPACK (2002)
LTD., owned by Eliyahu Zabaro, marketers of metal detectors. We are informed
that activity is on low volume.
BANKERS
The First International Bank of Israel Ltd., Kikar Hamedina Branch (No.
093), Tel Aviv, account No. 122491.
Israel Discount Bank Ltd., Main Branch (No. 070), Haifa, account No.
47333.
A check with the Central Banks' database did not reveal anything
detrimental regarding subject’s a/m accounts.
CHARACTER AND REPUTATION
Nothing unfavorable learned on subject itself.
However, subject is operating from Sderot, a town which has been under
constant Palestinian militia rockets bombardment. Sderoth is the closest town
to the Gaza Strip, and mainly since the Hamas takeover during 2006, it
is suffering from sporadic shelling. During 2007 the rockets fell in the region
counted to few, day in and day out, however in some periods, notably in the
beginning of 2008, due to the deterioration in the political situation, rockets
fell on a daily basis and in large numbers. Although the "home-made"
rockets thrown so far inflicted relatively small physical damage to persons and
buildings, they disturb the daily living and businesses to a large extent and
cause significant moral harm.
Plants and business suffer directly, from long breaks in work while
shelling and from workers absence or leaving the area altogether. Some
companies consider moving to new location.
It should be noted
that presently (time of writing this report) the situation is relatively
calmer.
The Ministry of Industry, Trade & Labour
announced that it will provide aid to compensate business for damages inflicted
due to the situation.
Mr. Eliyahu Zabaro
has been working in the packaging line of business for several years, also
prior to establishing subject.
With regard to the
situation, he commented that the plant is producing normally despite the
interruptions, for which they make up while situation is calmer.
Subject is ISO
9001:2000 certified.
There are some 120
packaging production plants in Israel, directly employing some 10,000
employees.
According to the
Chairman of the Packaging and Design Institute the branch sales in 2006 were
expected to increase by 4% comparing to 2005 and reach US$ 1.13 billion, of
which US$ 310 million for exports (11% increase).
During the first half of
2006, around US$ 50 million were invested in the branch in R&D and design .
According to data published summering 2006 in the plastic industry, it
turns out that the sector's proceeds increased in 2006 by over 5% to around US$
3.5 billion. This figure brakes into sales to the local market of over US$ 1.6
billion (about same as in 2005), while sales for export rose 10% to US$ 1.8
billion.
50% of export is for Europe, 33% to North America, 10% to Latin America
and Asia and the reminder to the rest of the world.
30% of the plastic sector's sales are of household products, 23% for the
agriculture and 16% for packaging.
Import of machinery and equipment by the industry were US$ 134 million
in 2006, almost 50% increase from 2005.
Import of plastic products grew by 24% comparing to 2005.
Total consumption of raw materials for the branch summed up at US$ 1.154
billion (32% rise).
The Plastic &
Rubber Union at the Industrialists' Association reports that the export of the
branches in the first 9 months of 2007 grew by 12.6% comparing to the parallel
period in 2006, summing up at US$ 1.61 billion. Sales to the local market
reached US$ 1.28 billion, representing a 2.4% increase.
Investments in the
branches for the period rose by 14.5% to US$ 95 million.
The current number of employees in the branch is around 22,000, of which
some 1,000 joined during 2007.
SUMMARY
Good for trade engagements.
Maximum unsecured credit recommended US$ 40,000.
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. |
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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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%)