MIRA
INFORM REPORT
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Report Date : |
02.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
AVCO CHEMICALS LTD. |
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Registered Office : |
P.O. Box 50377, Tel Aviv (61050) 2 Kaufman Street, Textile House, TEL
AVIV 68012 |
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Country : |
Israel |
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Date of Incorporation : |
20.11.1972. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, Marketers and Exporters of
Chemicals and Substances for the Textile Industry. |
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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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
AVCO CHEMICALS LTD.
Telephone 972 3 516 38 24
Fax 972 3 516 42 21
P.O. Box 50377, Tel Aviv (61050)
2 Kaufman Street
Textile House
TEL AVIV 68012 ISRAEL
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per
file No. 51-062986-8 on the 20.11.1972.
SHARE
CAPITAL
Authorized share capital NIS 3,003,017.50
divided into –
30,175,000 ordinary shares of NIS 0.0001 each,
3,000,000 ordinary “A” shares of NIS 1.00 each,
of which shares amounting to NIS 1,300,270.00
were issued.
SHAREHOLDERS
1. A. AMORA LTD., 50%, owned by Avner Cohen,
2. ZEEV LAHAT HOLDINGS (2006) LTD., 50%, owned
by Zeev Lahat.
DIRECTORS
1.
Avner Cohen,
2.
Zeev Lahat.
JOINT
GENERAL MANAGERS
1.
Avner Cohen,
2.
Zeev Lahat,
3.
Haim Cohen.
BUSINESS
Manufacturers, marketers and exporters of
chemicals and substances for the textile industry.
40% of sales are
for export.
Amongst subject’s clients are local leading
textile industries: DELTA GALIL INDUSTRIES, GIBOR SPORT ACTIVE WEAR, CEASAREA
WARDINON, ROTEX, OFFIS TEXTILE, KITAN TEXTILE INDUSTRIES, etc.
50% of raw materials purchases are imports.
Amongst local suppliers: LIDDOR CHEMICALS, DOR CHEMICALS,
MAKHTESHIM CHEMICAL WORKS, DEPOCHEM, CHEMOVIL, GADOT CHEMICALS, DALIA
CHEMICALS, GILON SPORTSWEAR, etc.
Operating from a plant owned by the
shareholders, on an area of 15,000 sq. meters, in Hamasger Street, Industrial
Zone, Beit Shemesh and main offices, also owned by the shareholders, in 2
Kaufman Street, Textile House, Tel Aviv.
Having 80 employees serving the Group (same as
in 2007).
All employees are on subject's payroll,
although serving also other members of the Group (see OTHER COMPANIES).
MEANS
Group's current
consolidated stock is valued at NIS 11,000,000 (was valued
NIS 12,000,000 in 2006 and 2007).
Other financial data not forthcoming.
There is 1 charge for an unlimited amount registered on the company's
assets (financial assets), in favor of Mizrahi Tefahot Bank Ltd.
ANNUAL
SALES
AVCO CHEMICALS
Groups' consolidated sales:
2004 sales claimed to be NIS 180,000,000, 30% for export.
2005 sales claimed to be NIS 180,000,000, 40% for export.
2006 sales claimed
to be NIS 200,000,000, 40% for export.
2007 sales claimed to be NIS 200,000,000, 40% for export.
2008 sales claimed to be NIS 190,000,000, 40% for export.
Subject’s official claim to be a profitable
company.
OTHER
COMPANIES
AVCO CHEMICALS Group subsidiaries:
DYCOL, a general partnership, 50% owned by
subject, importers and marketers of dyes for the textile industries.
CHEMIPRINT, 70%, a general partnership,
importers, manufacturers and marketers of chemicals for printing field.
CHEMIART, importers and marketers of chemical raw
materials to the industrial field, a general partnership owned by subject's
shareholders.
SINTOCHEM TECHNOLOGIES LTD., manufacturers, exporters and marketers of
chemical substances. Owned by subject's shareholders.
Also in the AVCO Group:
AVCOLOR LTD.
K.G.N. TRADING LTD.
AVCO KIMYEVI MADDELER TICARET LTD., Turkey.
AVCO MEX SA DE CV., Mexico, a production plant.
AVCO CHEM SA (PTY) LTD., South Africa, a
production plant.
COLDIS
INVESTMENTS LTD., an investment and holding company, equally owned by Zeev
Lahat and Avner Cohen, among its holdings:
SHREM PUDIM GROUP
LTD., 9.25%, a local large investments and holdings Group, shares traded on the
Tel Aviv Stock Exchange.
BANKERS
Mizrahi Tefahot Bank Ltd., Tel Aviv Main
Business Center Branch (No. 461), Tel Aviv, account No. 191868.
A check with the Central Banks' database did
not reveal anything detrimental on subject’s a/m account.
CHARACTER
AND REPUTATION
Subject was involved in couple of violations in
the environmental aspects and in some cases was fined for its acts; however,
none of the above is significant for subject.
Apart from that, nothing unfavorable learned.
Subject is a very long and well established and
enjoys a favorable business reputation.
Subject is ISO-9002 certified.
Avner Cohen comes from a well known local family (his nephew serves as a
member in the Israeli Government).
The local
Chemical industry is considered one of the strongest in the market, with impressive
growth trend in recent years.
Total sales by
the Chemical sector in 2007 amounted to over NIS 35 billion, 17% increase from
2006. Export by the sector recorded US$ 9.5 billion, comprising 20% of Israel’s
total export.
The Chemical industry
employs over 17,000 employees.
Chemicals and oil
refinery industries’ investments in import of machinery and equipment in 2007
summed up to US$ 1.719 billion, representing a 10% decrease in real terms from
2006.
According to the Chairman of the Textile and
Fashion division of the Industrialists’ Association, the sales of the textile
industry in 2007 reached
US$ 2.4 billion (similar to 2006, which marked 6% rise comparing to 2005).
Total sales divided
into sales to the local market of US$ 1.4 billion and US$ 950 million for
export. Most exports were the North American markets.
The local Textile
industry has been in state of crisis during last decade in face of amounting
import from foreign competitors with cheaper production costs, forcing streamlining
process, plants closure, and mostly resulting in the shift of textile
manufacturing to low labor cost countries.
SUMMARY
Good for trade engagements.
Maximum unsecured credit recommended US$ 800,000.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.50.52 |
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UK Pound |
1 |
Rs.75.08 |
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Euro |
1 |
Rs.63.72 |
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%)