MIRA INFORM REPORT

 

 

Report Date :

03.05.2012

 

IDENTIFICATION DETAILS

 

Name :

J. KAHAN LTD.

 

 

Registered Office :

P.O. Box 2420, Industrial Zone Milu'ot South, Mateh Asher Council, Kiryat Yam 2912302           

 

 

Country :

Israel

 

 

Date of Incorporation :

22.05.1941

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers, processors, packers, importers, exporters and marketers of food powder mixtures (e.g. coffee powders, dessert powders, soft drink powders, etc).

 

 

No. of Employees :

100

 

 

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

 

Status :

Satisfactory

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

(31.12.2011)

Current Rating

(31.03.2012)

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

 

J. KAHAN LTD.

Telephone         972 4 875 87 80

Fax       972 4 877 24 29

P.O. Box 2420

Industrial Zone Milu'ot South

Mateh Asher Council

KIRYAT YAM    2912302            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established in 1938 as a non-registered business.

 

Converted into a private limited company and registered as such as per file No. 51-000770-1 on the 22.05.1941.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 0.20, divided into

2,000 ordinary shares of NIS 0.0001 each,

fully issued.

 

(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).

 

 

SHARE HOLDERS

 

Subject is fully owned by Ram Teren.

Ram Terem, who used to hold 50% until 2011, gained his father Shlomo Teren's 50% shares.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Ram (Ramy) Teren

 

 

BUSINESS

 

Manufacturers, processors, packers, importers, exporters and marketers of food powder mixtures (e.g. coffee powders, dessert powders, soft drink powders, etc.).

Also importers, marketers and packers of foodstuff commodities (tea, coffee, sugar and sugar substitutes, baking powders, etc.), activity acquired from EL ZAN IMPORT PACKAGING AND MARKETING CO. LTD. in the beginning of 2011.

25% of sales are for export.

Export is to Europe, USA, South Africa and more.

 

Among clientele are leading local companies: SHUFERSAL (largest supermarket chain), OSEM FOOD INDUSTRIES, UNILEVER ISRAEL (latter 2 are leading foodstuff manufacturers), AROMA (largest Coffee Chain), VITA PRI GALIL, BLUEBERRY YOGURT BAR, NE’EMAN LEHORECH ZMAN, HANAMAL PACKAGING, SUGAT FOOD, EL AL AIRLINES, Ministry of Defense, etc.

 

Among local suppliers: GALILEE HERBS, ISRAEL SALT CO., ORDA PRINT, SUGAT FOOD, ELITE FOODS, GALAM, ARIZ DISTRIBUTION OF PACKAGING MATERIALS, S.N. PACKAGING, WISSOTZKY, etc.

 

Operating from premises, owned by the shareholders, on an area of 12,000 sq. meters (4,000 sq. meters built), in Industrial Zone Milu'ot South, Mateh Asher Council (in the north of the country).

 

Having 100 employees (similar to 2011).

Subject had 50 employees in the end of 2010, and the increase is related to the acquisition of the EL ZAN activity.

 

 

MEANS

 

Current stock said to valued NIS 7,500,000, well higher than the figures we were given in the end of 2010, then it was valued at NIS 6,000,000, mainly due to the addition of EL ZAN (which was valued at NIS 2,000,000 in October 2010).

 

Property owned by shareholders in Industrial Zone Milu'ot South (where subject is operating from) is valued at NIS 20,000,000.

 

Former property of subject in 2 Ha’histadrut Blvd., Kiryat Yam, is owned by subject’s shareholders and rented to 3rd parties.

 

There are 45 charges for unlimited amounts registered on the company’s assets (financial assets, fixed assets), in favor of Bank Leumi Le'Israel Ltd., Bank Hapoalim Ltd. and leasing companies (LEASE CAR RAM LTD., HAMIT LEASING CO. LTD., DAIMLER FINANCIAL SERVICES LTD., MEIT LEASING LTD.). Most charges are on the company’s vehicles, machinery & equipment. Charges were placed between the years 1986 to 2012.

 

 

REVENUES

 

2008 sales claimed to be NIS 50,000,000, of which 30% were for export.

2009 sales claimed to be NIS 50,000,000, of which 30% were for export.

2010 sales claimed to be NIS 52,000,000, of which 25% were for export.

2011 sales claimed to be NIS 60,000,000, of which 25% were for export.

The increase in sales in 2011 are following the acquisition of EL ZAN's activity (whose 2010 sales claimed to be NIS 14,000,000).

 

 

BANKERS

 

Bank Hapoalim Ltd., Hamifratz Business Branch (No. 169), Haifa, account No. 330907.

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m account.

 

Bank Leumi Le'Israel Ltd., Hamifratz Business Branch (No. 898), Kiryat Bialik.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is a very veteran business, enjoying good reputation in their field.

 

In the beginning of 2011 subject acquired the veteran activities of EL ZAN IMPORT PACKAGING AND MARKETING CO. LTD., established 1966 by Ouzan family (the sellers), and integrated it into subject (price of acquisition not forthcoming). EL ZAN has been well known in their field.

 

The local market for current consumption of consumer products grew in 2010 in money terms by 3.7% from 2009, while in the food & beverage market 3.9% growth was noted (summing up to NIS 33.3 billion). These numbers reflect the improvement in the local economy after the slow-down in 2009.

 

According to the Industrialists' Association, 2008 revenues by the local food industries reached NIS 56 billion, of which NIS 53 billion were to the local market, the rest for export. In real terms, revenues fell by 1.5% from 2007. Some NIS 43 billion of sales came from sales of food products. Local food industries marked a decrease in 2009 due to the slow-down in local economy and global economic crisis, although decrease was relatively mild, mainly as the economic climate ameliorated in the 2nd half of 2009.

In 2011 sales for exports by the food & beverages industries rose by 16.6%, reaching US$ 929.8 million (rose by 9.8% in 2010 after export rate fell in 2009 by 11% from 2008).

 

Import of food and beverages to Israel in 2011 summed up to US$ 2,358.2 million, rising by 18.7% from 2010, which comes after a by 15.5% increase in 2010 from 2009 (when import decreased by 9.4% comparing to 2008 due to the slow-down in local economy).

 

The Central Bureau of Statistics data shows that import of raw food products to Israel in 2011 summed up to US$ 2,062.6 million, 23% increase from 2010 (a similar growth trend to 2010 from 2009, a year which witnessed a 20% decrease from 2008). Over 50% of import is from the EU.

 

According to Central Bureau of Statistics (CBS) data, investments in machinery & equipment from import for the food industry in 2010 summed up to NIS 640 million, 15% rise from 2009, while investments in machinery & equipment from import for the beverage & tobacco industries rose by 9.3% to NIS 381.7 million.

 

According to the CBS, the total household expenditure for private consumption in 2011 on food, beverage and tobacco rose 3.7% from 2010, after 4% rise in 2010 from 2009, reflecting an improvement trend in the loacl market after the general slow-down in economy in 2009.

 

 

SUMMARY

 

Good for trade engagements.

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.93

UK Pound

1

Rs.85.85

Euro

1

Rs.69.94

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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