MIRA
INFORM REPORT
|
Report Date : |
23.12.2008 |
IDENTIFICATION DETAILS
|
Name : |
ARGAM FLEXIBLE PACKAGING LTD. |
|
|
|
|
Formerly Known as : |
BARHUM PLASTIC PACKAGES LTD. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Year of Establishment : |
1986 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturers, Marketers and Exporters of Packaging products for the
Food Industry, mainly flexible packaging |
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 |
|
Maximum Credit Limit : |
US$ 70,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
ARGAM FLEXIBLE PACKAGING
LTD.
Telephone 972 3 961 11 78
Fax 972
3 961 05 75
P.O. Box 1815 Holon (58117)
Industrial Zone
HISTORY
& LEGAL FORMATION
Originally established as a non-registered partnership in 1986.
Converted into a private limited company and
registered as such as per file
No. 51-125445-0 on the 20.12.1987.
Originally registered under the name BARHUM BROTHERS PRINT LTD., which
changed to BARHUM PLASTIC PACKAGES LTD. on the 15.8.2006. and to the present
name on the 7.8.2008.
In September 2008 subject purchased all activities (including machinery,
equipment and goodwill) of ATIFON INDUSTRIES LTD., a private limited company
(which took over the business activities of ATIFON LTD., originally established
in 1956), in consideration of allocating 25% of subject’s shares.
SHARE
CAPITAL
Authorized share capital
10,000 ordinary shares of
of which shares amounting to
SHAREHOLDERS
1.
BARHUM BROTHERS HOLDINGS
LTD., 75%, equally owned by Nissim Barhum, Uri Barhum and Reuven Barhum.
2.
ATIFON INDUSTRIES LTD.,
25%.
DIRECTORS
1.
Uri Barhum - Joint General Manager,
2.
Reuven Barhum - Joint General Manager,
3.
Gadi Caspi.
BUSINESS
Manufacturers, marketers and exporters of packaging products for the food
industry, mainly flexible packaging.
Almost all sales are to the local market.
Operating from rented premises, on an area of 5,000 sq. meters (of which
2,700 sq. meters built), in
Having 35 employees (had some 11 employees in 2007, and number of employees
rose following the merger of ATIFON into subject).
MEANS
Current stock is valued at
Other financial data not forthcoming.
There are 3 charges for unlimited amounts registered on the company’s
assets in favor of The First International Bank of Israel Ltd.
ANNUAL
SALES
2005 sales claimed to be
2006 sales claimed to be
2007 sales claimed to be
We are informed that an increase in sales was noted in 2008 (one should
also take into account the addition of sales by ATIFON, merged into subject
during the 4th quarter of 2008).
BANKERS
The First International Bank of Israel Ltd., Top Dan Branch (No. 094), Tel
Aviv.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Subject acquired in September 2008 the activities of ATIFON INDUSTRIES
LTD., which was dealing in flexible packaging manufacturing and merged it into
subject. ATIFON INDUSTRIES itself took over all the business activities in
2004/5 from a publicly traded company ATIFON LTD. (following which the latter
changed its name and line of activities).
ATIFON’s activities are very long established and known in the branch.
There are some 120
packaging production plants in
The Plastic &
Rubber Union at the Industrialists' Association data published summering 2007,
This figure brakes into sales to the local market of US$ 1.665 billion
(about same as in 2006), while sales for export rose 14% to US$ 2.17 billion.
55% of export was for Western Europe, 20% to North America, 10% to
30% of the plastic sector's sales are of household products, 23% for the
agriculture, 16% for packaging, 9% to the building sector and 9% to the
industry (rest is to other sectors).
Import of machinery and equipment by the industry were US$ 132 million
in 2007, almost 18% increase from 2006.
Total consumption of raw materials for the branch summed up at US$ 1.005
billion (4.5% rise, after 4% rise in 2006 from 2005).
The number of employees in the branch in 2007 was around 22,000 (4% rise
from 2006), though there have been dismissals in 2008 due to the general global
slow-down in economy and increasing production costs: current estimations are
3%, but estimations are of 10% dismissals.
The global economic crisis has been and expected to further take its
toll in terms of performance of the plastics industry.
Scope of export by the local Plastics sector in 2008 is expected to fall
to US$ 2 billion, representing 5% decrease from 2007.
SUMMARY
Good for trade engagements.
Maximum unsecured credit
recommended US$ 70,000.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.99 |
|
|
1 |
Rs.72.49 |
|
Euro |
1 |
Rs.68.44 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)