MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

 

 

 

Tel. No.:

972 3 751 10 04

Fax No.:

972 3 752 35 08

 

 

IDENTIFICATION DETAILS

 

Name :

SHINTRACO LTD.

 

 

Registered Office :

P.O. Box 1825, Ramat Gan (5211702), 5 Hahilazon Street, Ramat Gan 5252269

 

 

Country :

Israel

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

05.11.1991

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of fodder and basic foodstuff, e.g. raw materials, commodities, sugar, edible oil, rice, etc, as well as feed for animals

 

 

No. of Employees :

31 employees

 

 

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 :

---

 

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, 2012

 

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

 

 

israel - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

 

Source : CIA

 

 


Company name & address

 

SHINTRACO LTD.

Telephone    972 3 751 10 04

Fax              972 3 752 35 08

P.O. Box 1825, Ramat Gan (5211702)

5 Hahilazon Street

RAMAT GAN                              5252269          ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-161820-9 on the 05.11.1991.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 430,000.00, divided into -

                   430,000 ordinary shares of NIS 1.00 each,

of which 426,000 shares amounting to NIS 426,000.00 were issued.

 

 

SHAREHOLDERS

 

1.    PROALUM S.A., 76%, of Genčve, Switzerland,

2.    Shalom Hatuka, 24%.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Shalom Hatuka.

 

 

BUSINESS

 

Importers and marketers of fodder and basic foodstuff, e.g. raw materials, commodities, sugar, edible oil, rice, etc, as well as feed for animals.

 

Among clients: ANGEL'S BAKERY, TELMA – UNILEVER ISRAEL, EDEN CANDY & FOOD INDUSTRIES, ACHDUT BAKERY, STRAUSS-ELITE, PRINCE TEHINA MANUFACTURING, etc

 

All purchases are from import.

Operating from rented premises:

1.    Offices, on an area of 580 sq. meters in 5 Hahilazon Street (to where they moved from 16 Aba Hillel Silver Street), Ramat Gan,

2.    Warehouse in Kibbutz Hulda, on an area of 1,400 sq. meters.

3.    Warehouse in Mabo’im Village, on an area of 5,000 sq. meters.

4.    Warehouse in Beit Elazar Village, on an area of 10,000 sq. meters.

 

Having 31 employees (had 20 employees in the end of 2010, had 15 employees in 2009).

 

 

MEANS

 

Current stock is valued at NIS 40,000,000 (was valued at NIS 35,000,000 in the end of 2010, NIS 25,000,000 in 2009).

 

 

B/S shows (last obtainable):

                                                                                                  NIS

                                                                                31.12.2006                 31.12.2007

ASSETS

Current assets:

  Customers                                                                8,933,663                  6,546,115

  Investment in future contracts                                     2,408,812                  2,133,235

  Negotiable securities                                                 3,104,007                  3,264,368

  Accounts receivable                                                 59,669,795                 53,440,412

  Stock                                                                   _16,148,296               _33,983,538

                                                                                90,264,573                 99,367,668

 

Fixed assets, net                                                      ___669,329                ___660,391

                                                                                90,933,902               100,028,059

                                                                              =========             ==========

 

LIABILITIES

Current liabilities

  Banks                                                                    17,946,814                     933,553

  Short-term loan                                                       17,533,033                 40,244,036

  Liability for buying foreign currency                             2,423,096                  2,123,373

  Suppliers                                                                27,242,212                  6,935,367

  Other accounts payable                                           11,313,151               _22,085,528

                                                                                76,458,306                 72,321,857

 

Long-term liabilities                                                        151,680                       86,750

Equity and surpluses                                                 14,323,916               _27,619,452

                                                                                90,933,902               100,028,059

                                                                              =========             ==========

 

There are 23 charges for unlimited amounts, as well as 1 charge for the sum of NIS 650,000.00 registered on the company's assets (financial assets, stock and vehicles), in favor of Mizrahi Tefahot Bank Ltd., Israel Discount Bank Ltd., Bank Hapoalim Ltd., Bank Leumi Le’Israel Ltd. and a company (last charge placed May 2012).

 

 

saleS     

 

                                                                               Statement of Income

                                                                                    NIS (thousands)

                                                                                  Year ended 31.12

                                                                               2006                        2007

Sales                                                                   335,758,324             429,429,906

 

Gross profit                                                             13,313,305               18,320,670

 

Operating income                                                      9,188,346               13,374,570

 

Profit before taxes                                                     8,931,869               18,762,448

 

Net profit for the year                                                 6,157,129               13,259,536

                                                                         ==========           ==========

 

 

2008 sales claimed to be NIS 470,000,000.

2009 sales claimed to be NIS 343,000,000.

2010 sales claimed to be NIS 391,000,000.

2011 sales claimed to be NIS 612,000,000.

Sales for the first 6 months of 2012 claimed to be NIS 422,000,000.

Subject's Accountant reported a significant increase in sales.

 

 

OTHER COMPANIES

 

ISHBAR WHEAT LTD., 50%, importers, traders and marketers of edible wheat, assumed activities of SHAR BAR TVUOT LTD. (50% by subject) on the 30.06.2012. Having 4 employees.

 

SHLOMTZIYON ENTERPRISE K.P. LTD., 40% held by Shalom Hatuka, engaged in international trade, import and marketing in several lines: heavy-duty equipment, iron for the building sector, machinery for tin and metal plants, energy drinks.

 

 

BANKERS

 

·         Bank Hapoalim Ltd., Ramat Gan Business Branch (No. 176), Ramat Gan, account No. 145522.

·         Mizrahi Tefahot Bank Ltd., Hamigdal Branch (No. 477), Ramat Gan,account No. 285840.

·         Israel Discount Bank Ltd., Main Tel Aviv Branch (No. 010), Tel Aviv, account No. 43374.

 

A check with the Central Banks' database did not reveal anything detrimental on subject’s a/m accounts.

 

 

CHARACTER AND REPUTATION

 

In February 2007 Police forces and the Tax Authorities raided subject's offices, following suspicions of assisting in financing Palestinian terror organizations, which were outlawed by Israel. Subject's General Manager, Shalom Hatuka, was detained, as well as other workers.

The raid comes following the completion of an undercover investigation that took place during 2006, by the Police with local Government Authorities.

According to the accusations, subject knowingly dealt directly with a Palestinian company, ABU AKAR, supplying them with foodstuffs. This company was announced by the Minister of Defense in December 2005 as an "Unauthorized Association", due to proven continuous finance of terror organizations in the Palestinian Territories. It is claimed that subject assisted ABU AKHAR to bypass the Israeli Authorities import barriers, even after the Authorities explained the situation to subject's officials and warned them.

Another local customs agency is also accused on their part in the affair.

 

In March 2008, the State filed an indictment to the Tel Aviv District Court against subject and Mr. Shalom Hatuka, on the charges mentioned above of indirectly, though knowingly, financing terror parties.

 

In January 2009, subject and Shalom Hatuka agreed to a plea bargain, and were convicted on a/m accusations. Subject was sentenced to a fine of

NIS 250,000, and Shalom Hatuka was sentenced to 15 months imprisonment, of which 5 months in practice (which were converted to community work), and a fine of NIS 250,000.

 

Nothing unfavorable learned on subject in the business aspect.

 

Subject is a veteran business, well-known in its field.

 

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.

 

 

SUMMARY

 

Notwithstanding a/m affair, considered good for trade engagements.

 

 




FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.86.44

Euro

1

Rs.68.95

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.