MIRA INFORM REPORT
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Report Date : |
15.09.2011 |
IDENTIFICATION DETAILS
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Name : |
VARGUS LTD. |
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Registered Office : |
P.O. Box. 1111 (22110), 1 Hayotzrim Street, Industrial Zone, Nahariya 22311 |
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Country : |
Israel |
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Date of Incorporation : |
22.08.1960 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, exporters and marketers of precision cutting tools |
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$ 750,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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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 – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Israel |
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
VARGUS LTD.
Telephone 972
4 985 51 11
Fax 972
4 982 58 10
P.O. Box. 1111 (22110)
1 Hayotzrim Street
Industrial Zone
NAHARIYA 22311 ISRAEL
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per file No. 51-025292-7 on
the 22.08.1960.
SHARE CAPITAL
Authorized share capital NIS 15,500,000.00, divided into -
15,500,000 ordinary shares of
NIS 1.00 each,
of which
14,500,000 shares amounting to NIS 14,500,000.00 were issued.
SHAREHOLDERS
Subject is fully owned by SANEL A.G., a Swiss owned company, a
wholly-owned subsidiary of NEUMO GmbH, a German company of the
NEUMO-Ehrenberg-Group, based in Knittlingen, Germany, established in 1947 by
Late Henry Ehrenberg. Harry Ehrenberg, son of Henry Ehrenberg, holds directly
437 shares.
DIRECTORS
1. Harry Ehrenberg, Chairman
2. Mrs. Lea Ehrenberg,
3. Wolf
Ehrenberg.
GENERAL MANAGER
Avi Cohen.
BUSINESS
Manufacturers,
exporters and marketers of precision cutting tools.
Subject operates under
the brand name "Vardex" and
"Shaviv".
99% of sales are
for export.
Among local
suppliers: HANITA METAL WORKS, CHROMAT, etc.
Among service
suppliers: INTENTIA (ERP).
Operating from
premises, owned by the shareholders, on an area of 25,000 sq. meters (11,000
sq. meters built), in 1 Hayotzrim Street, Northern Industrial Zone, Nahariya.
Premises also serve sister company EGMO LTD.
Also operating
from subsidiaries in France, Germany and UK.
Having 250
employees in Israel.
EGMO - VARGUS
Group operates in about 22 countries and employ some 1,500 employees, of which
some
MEANS
Current stock is
valued at NIS 45,000,000.
Subject is an
“Approved Enterprise” and as such entitled for State support, grants and tax
relief.
In September 2003
the Israeli Investment Centre (IIC) approved a US$ 2 million investment plan
for the expansion of subject’s plant.
There are 2
charges for unlimited amounts registered on the company's assets, in favor of
the State of Israel (last charge placed in March 2010).
REVENUES
2009 sales were
NIS 82,000,000, 99% for export.
2010 sales were
NIS 127,000,000, 99% for export.
Sales for the
first 8 months of 2011 were NIS 108,000,000, 99% for export.
Projected 2011
sales are NIS 160,000,000.
OTHER COMPANIES
NEUMO VARGUS
MARKETING LTD., 100%, importers, marketers and service providers of machinery,
equipment and components for the industry (cutting tools, measuring equipment,
etc.).
V.N.E INC., USA,
100%,
VARGUS FRANCE,
France, 100%,
VARGUS TOOLINGS
UK, UK, 100%.
Also
having subsidiaries in Denmark, Switzerland, Germany, China and Poland.
EGMO
LTD., fully
owned by subject’s shareholders, developers, manufacturers, exporters and
marketers of stainless steel fittings and components for the food, wine, semiconductors
and pharmaceutical industries, 2010 sales claimed to be NIS 90 million.
BANKERS
Bank Leumi
Le'Israel Ltd., Ha'amakim Business Branch (No. 754), Afula.
Bank Hapoalim
Ltd., Haifa Business Branch (No. 562), Haifa.
CHARACTER AND REPUTATION
Nothing
unfavorable learned.
Subject is a very
veteran business enjoying an excellent reputation.
It is among the 10
largest companies in its field.
Subject holds some
20% of the deburring tools markets in the USA and Germany (2009).
Subject is ISO 9001:2008
certified.
In November 2006
it was reported that INTENTIA ISRAEL won an ERP solution tender to implement an
ERP system in subject's Group plants (local and overseas) systems. Project was
valued at NIS 3 million.
There are some 30 companies
in the precision cutting tools field, generating US$ 1 billion turnover in 2007, of which 90%
for export.
In the first 3
quarters of 2008 export by the industry was US$ 738 million, a growth of 20 %
from 2007 (US$ 615 million). Over 8,000
employees work in the precision cutting tools branch.
According
to data by of the Metal, Electrical and Infrastructure Industries Association,
representing the local Metal and Electricity Industries, which includes large
scale export-oriented industries on one hand and family-owned plants which sell
to the local market: 2010 sales (local and export) by the said industries
amounted to NIS 70 billion, comprising 25% of Israel's industrial output.
Results are similar to 2008 scales, after some 20% drop in 2009 due to the
significant slow-down in the local economy, affected by the global financial
and economic crisis. Sales for export reached US$ 10 billion in 2010.
Some 90,000
employees serve the said industries (26% of Israel's industrial workforce).
According
to the Central Bureau of Statistics (CBS), import of metals raw
materials to the local industries in 2010 and 2011 first 8 months showed an
increasing trend, after a contraction in
CBS data reveals that gross domestic
investment in machinery and other equipment for the manufacturing industry
(both from import and domestic production) for 2010 rose by some 10% from 2009
(when it fell by 19% from 2008). Total gross domestic investment in machinery
and other equipment from import alone, rose by 12% (after falling in 2009 by
almost 24%).
SUMMARY
Good for trade
engagements.
Maximum unsecured
credit recommended US$ 750,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.47.81 |
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UK Pound |
1 |
Rs.75.16 |
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Euro |
1 |
Rs.65.11 |
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.