MIRA INFORM REPORT

 

 

Report Date :

23.02.2012

 

IDENTIFICATION DETAILS

 

Name :

NIROTEK NIR DAVID – AGRICULTURAL COOPERATIVE SOCIETY LTD.

 

 

Formerly Known As :

NIROTEK COATED PAPER MANUFACTURING NIR DAVID.

 

 

Registered Office :

Mobile Post Beit Shean Nir David 10803

 

 

Country :

Israel

 

 

Date of Incorporation :

11.06.1984

 

 

Legal Form :

Cooperative Society

 

 

Line of Business :

Manufacturers, marketers and exporters of coated paper:

1) Self adhesive laminated paper (around 80% of activity)

2) Carbonless copying coated paper (20% of activity).

 

 

No. of Employees :

105

 

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$ 750,000.

Status :

Good

Payment Behaviour :

No Complaints

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address      

 

NIROTEK NIR DAVID

 

Correct Name:         NIROTEK NIR DAVID – AGRICULTURAL COOPERATIVE

                              SOCIETY LTD.

                              (Known in short: NIROTEK ACS LTD.)

                              Telephone              972 4 648 80 11

                              Fax                       972 4 648 89 00

                              Mobile Post Beit Shean

                              NIR DAVID          10803        ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a limited partnership, incorporated as per file
No. 55-000760-3 on the 11.06.1984, under the name NIROTEK COATED PAPER MANUFACTURING NIR DAVID.

 

As of 01.01.2008, converted into an Agricultural Cooperative Society (ACS), registered as such as per file No. 57-003927-1 (registration date: 26.08.2007).

 

 

OWNERSHIP

 

Subject is fully owned by Kibbutz Nir David, a cooperative society operating an agricultural communal settlement.

 

 

MANAGEMENT

 

1.         Shaul Golomb, Chairman,

2.         Ori Carmel, General Manager.

 

 

BUSINESS

 

Manufacturers, marketers and exporters of coated paper:

1) Self adhesive laminated paper (around 80% of activity)

2) Carbonless copying coated paper (20% of activity).

Some 25% of sales were for exports in 2011 (was 20% in 2010, 15% in 2009).

Subject manufactures microcapsules under the license of BAYER of Germany.

 

Amongst clients: TADBIK, PITKIT PRINTING ENTERPRISES, MIGVAN GRAPHICS ENTERPRIES, GLILON INDUSTRIES, HADERA PAPER, S. LERNER PACKAGING PROD., STICKER GRAF, TAVIT 2000 LABEL MANUFACTURING AND MARKETING, D. FEHL PAPER MARKETING, AVRAHAM HARATI, etc.

 

95% of purchases are imports (all paper and raw materials are purchased abroad). Among local suppliers: KFAR GILADI QUARRIES, SAIPAN RAW MATERIALS FOR INDUSTRY, HP INDIGO.

 

Operating from premises (offices, plant, owned by Kibbutz Nir David), on an area of 25,000 sq. meters (7,000 sq. meters built), in Kibbutz Nir David, located in the Beit-Shean Valley.

Note: "Kibbutz" is a typical local cooperative agricultural settlement/ village.

 

Having some 105 employees (had as 100 employees in mid 2010, 95 employees in 2009, same as in 2008 and 2007).

 

 

MEANS

 

Current stock is valued at NIS 30,000,000 (was valued at NIS 23,000,000 in mid 2010, NIS 22,000,000 in the end of 2009).

 

Data from B/S to the 31.12.2009:

Total assets NIS 83,000,000 (was NIS 81,000,000 on the 30.09.2009)

(of which) Fixed assets NIS 10,860,000

Equity NIS 36,500,000 (was NIS 35,500,000 on the 30.09.2009).

Later financial data was is not forthcoming.

 

Subject is an “Approved Enterprise” and as such entitled for State support and tax relieves. In December 1999, the Israeli Investment Center (IIC) approved an investment plan of US$ 2.3 million for the expansion of subject’s plant in Nir David.

In September 2008, IIC approved an investment plan of NIS 16 million for the expansion of subject’s plant in Nir David.

 

 

REVENUES

 

2006 sales claimed to be NIS 138,000,000, of which 24% were for export. According to subject's CFO, they ended with a "nice" profit (figures were not given).

2007 sales claimed to be NIS 140,000,000, of which 23% were for export. Subject ended 2007 with pre-tax profit of NIS 14,000,000 (their most profitable year ever).

2008 sales claimed to be NIS 126,000,000, of which 20% were for export.

2009 sales claimed to be NIS 123,000,000, of which 15% were for export.

2010 sales claimed to be NIS 138,600,000, of which 20% were for export.

2011 sales claimed to be NIS 148,000,000, of which 25% were for export.

 

 

OTHER COMPANIES

 

NIROTEK NIR-DAVID COATED PAPER MANUFACRUTING, limited partnership, non-active,

METAL WORKS NIR DAVID, owned by Kibbutz Nir David, importers and distributors of tractors and professional gardening equipment.

NIROTEK HOLDINGS – ACS LTD.

 

 

BANKERS

 

Bank Hapoalim Ltd., Beit Shean Branch (No. 717), Beit Shean,
account No. 333388.

The First International Bank of Israel Ltd., Afula Branch (No. 111), Afula,
account No. 215457.

A check with the Central Banks' Database did not reveal any negative information regarding subject’s a/m bank accounts.

 

Bank Leumi Le'Israel Ltd., Haamakim Business Branch (No. 745), Afula.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is ISO-9001 certified.

 

Kibbutz Nir David was founded in 1936 and has some 315 members, out of overall population of around 650).

In the past, Kibbutz Nir David underwent financial difficulties. They signed the Kibbutz Debt Settlement Agreement, which has remarkably improved their financial standing.

Their main activities include cultivation of some 780 hectares of land on which they grow dates, olives, citrus, cotton, corn and potatoes, as well as turkeys and fish ponds.

Kibbutz Nir David also derives its income from operating tourist attractions: a guest house, Gan Hashlosha Gardens and an Australian Park called “Gan Garoo”, which features Australian animals, fauna and flora.

 

According to the Central Bureau of Statistics (CBS), import of raw materials for the Paper industries in 2010 increase by 27.5% from 2009, after in that year it witnessed 27% decrease from 2008 due to the slow down trend in local economy. The upwards trend continued into 2011, albeit in a much slower pace, rising by 5.5% from 2010 and summing up to US$ 877 million. In parallel, the prices of imported inputs to the Paper branch have been in a decrease trend (as of 2011 3rdQ) since 2010 3rdQ, after a sharp prices rise since 2009 3rdQ, as part of the global economy recovery.

 

According to Bank Leumi survey for the 3rdQ of 2011, industrial production by the Paper and Cardboard Branch continues its decline trend that started in the beginning of 2010. Yet the branches' export is in an upward trend.

From CBS data, in 2011 the export of Wood, Furniture, Paper & Printing products (chiefly paper products) from Israel marked a remarkable rise by 17% from 2010, reaching US$ 449.3 million, after 6.1% increase in 2010 (and 2.7% decrease in 2009 from 2008).

 

There are some 8,000 employed in the local paper and cardboard industry, in 70 large plants, as of 2010.

 

The local industry investments in imported machinery and equipment in 2010 comparing to 2009 were as follows (by industry segment):

The Paper and allied products industries – marked 61% decrease and summed up to NIS 179.2 million (after 117% increase in 2009 from 2008).

Printing and Publishing industries – noted 15% increase and summed up to NIS 248.6 million (after 14% decrease in 2009 from 2008).

 

 

SUMMARY

 

Good for trade engagements.

maximum unsecured credit of US$ 750,000.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.24

UK Pound

1

Rs.76.75

Euro

1

Rs.65.16

 

 

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

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

--

NB

                                       New Business

 

--

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.