MIRA INFORM REPORT
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Report Date : |
02.03.2011 |
IDENTIFICATION DETAILS
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Name : |
ZIKA INDUSTRIES LTD. |
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Formerly Known As : |
TECHNO ZIKA (1983) LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
06.09.1983 |
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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 : |
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$ 250,000. |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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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 – December 31, 2010
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Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
ZIKA INDUSTRIES LTD.
Telephone 972
4 985 18 05
Fax 972
4 985 18 70
Industrial Zone
ACRE 24122
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per file No. 51-099806-5 on the
06.09.1983, as a subsidiary of ELECTRODE WORKS ZIKA LTD., a public limited
liability company established in 1950.
Originally registered under the name of KEREN DISTRIBUTORS OF WELDING
PROD
During 2001-2003 the ELECTRODE WORKS ZIKA Group (subject included)
encountered grave financial difficulties and reached bankruptcy. In October
The Group operated under a special Court nominated manager and in August
2005, following a Creditors' Arrangement, the Court appointed an official
receiver to the Group, including for subject.
In June 2004, ZIKA GROUP LTD. acquired all the activities of ELECTRODE
WORKS ZIKA LTD., including subject's activities, for a sum of
In November/ December 2006 ZIKA GROUP LTD., after obtaining all
approvals, acquired subject from the liquidator and transferred all their
manufacturing activities into subject.
SHARE CAPITAL
Authorized share
capital
2
deciding shares (issued),
4
management shares (issued),
92,994
ordinary shares (1,008 shares issued), all of
of which shares amounting to
(Note: The currency in share capital was
originally in Old Israeli Shekel whose nominal value was 1 thousandth of
the current New Israeli Shekel (NIS), converted in 1986).
SHAREHOLDERS
Subject is fully
owned by ZIKA GROUP LTD., owned by Yaakov Bakarach.
In August 2008 Yehoshua Perla –via his owned company CHIMNIAR GROUP LTD. - sold his shares in ZIKA GROUP LTD. and since then Yaakov Bakarach is the sole owner.
DIRECTORS
1.
Liav Bakarach, General Manager,
2.
Yaakov Bakarach,
3.
Ms. Rina Bakarach,
BUSINESS
Manufacturers, marketers and exporters of welding electrodes.
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 36% of sales are for export.
All of raw materials purchases are imported.
Amongst local service suppliers: B. GAVRIELI
TRANSPORTATION.
Among local clientele: Ministry of Defense,
DEAD SEA WORKS, MEKOROT WATER COMPANY, ISRAEL ELECTRIC CORP., and more.
Operating from owned premises (Group's offices and plant), on an area of
15,000 sq. meters (of which 13,000 sq. meters built), in
Having 63 employees in subject (same as in mid 2009) and 81 employees
serving the ZIKA Group (had 78 employees in the Group in mid 2009).
MEANS
Group's
consolidated stock was valued at
Owned property in
Moshe Borenstein Street Industrial Zone, Acre (where subject is operating
from), is valued at
There are 3
charges for unlimited amounts registered on the company's assets, in favor of Union
Bank of Israel Ltd. Bank Leumi Le’Israel Ltd. and The First International Bank
of Israel Ltd.
ANNUAL SALES
Group's consolidated sales (subject had no sales
while in liquidation):
2005 sales claimed to be
2006 sales claimed to be
2007 sales claimed to be
2008 sales claimed to be
We were informed
that there was a significant increase in sales during 2009 and 2010 (of which
36%-37% for export). Figures were not disclosed.
OTHER COMPANIES
ZIKA GROUP LTD., parent company, traders,
importers and marketers of electrodes and accessories. Also importers, marketers and distributors of a variety of complementary
products and services required by its customers.
URANUS FINANCIAL
MARKETS LTD., owned by Yaakov Bakarach.
BANKERS
Bank Leumi
Le’Israel Ltd., Bat Yam Branch (No. 861),
Union Bank of
Israel Ltd., Tel Aviv Main Branch (No. 063), Tel Aviv, account No. 707600/04.
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 on subject since reactivation.
Subject's General
Manager refused to disclose exact sales figures.
The ZIKA Group is
ISO 9001:2000 certified.
The ZIKA Group is
the leading welding products supplier in
On 7.6.2004 the
Haifa District Court approved the sale of the activities of ELECTRODE WORKS
ZIKA LTD. and subject to parent company, ZIKA GROUP LTD., from their
liquidator. According to agreement, the buyers will pay
On 2.8.2004 the
Anti-Trust Commissioner approved the transaction. The approval was required,
since ELECTRODE WORKS ZIKA has been a monopoly in the welding electrodes field.
In May 2006, the
liquidator of ELECTRODE WORKS ZIKA LTD. approved the acquisition of the land on
which subject's plant is situated by the ZIKA Group for a sum of US$ 1.2
million.
In mid 2006 we obtained couple of favorite opinion on subject's parent
company payment:
INBAR TECHNOLOGIES officials told us they are working with the ZIKA GROUP
since 2004, supplying subject with welding materials. ZIKA GROUP was described
as a good client who always pays on time.
B. GAVRIEL officials told us they are working with the ZIKA GROUP for 2
years, supplying them with transport services. The ZIKA GROUP was described as
a good client who always pays on time.
In
July 2009 it was reported that subject exports some
According
to the Chairman of the Metal and Electricity sectors at the Manufacturers’
Association, sales of the various metal and electricity related industrial
sectors fell by 20% in 2009 (from 2008, when sales reached NIS 70 billion) due
to the significant slow-down in the local economy, affected by the global financial
and economic crisis.
Overall sales were forecasted to reach
The above
industries contracting trend was evident in 2008 after the long and significant
growth trend since 2004 (in 2007 the sectors’
overall sales reached a climex of
According
to the Central Bureau of Statistics (CBS), import of raw materials
for the local metal sector in 2009 was as follows: Iron and Steel - US$ 1,349.1
million (38% decrease from 2008), Precious Metals - US$ 117.5 million (35.3%
decrease from 2007), Non-ferrous Metals - US$ 584.4 million (44.3% decrease
from 2007).
Import of raw materials for the local metal sector in the first half of 2010
shows improvement in all segments comparing to 2009 1st half: an increase
by 47.5%, 39% and 44% in the segments of Iron and Steel, Precious Metals and
Non-ferrous Metals, respectively.
CBS
data on capital formation (investment) in imported machinery and other
equipment for the manufacturing industry in 2009 (comparing to 2008):
investments in the manufacture of metal products was NIS 900 million (31% down)
(rose 22% in 2008 from 2007); investments in the manufacture of basic metal
products was NIS 135 million, 48% down from 2007 (45% rise in 2007 from 2006).
Investment
in imported machinery and other equipment for the mixed-high tech manufacturing
industry in the engines and electrical equipment segment fell by 8% in 2009,
totaling NIS 342 million, and witnessed 40% decrease in the machinery &
equipment segment.
SUMMARY
Notwithstanding the refusal to disclose
financial details, considered good for trade engagements.
Maximum unsecured
credit recommended US$ 250,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.12 |
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1 |
Rs.73.43 |
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Euro |
1 |
Rs.62.32 |
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 |
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 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.