MIRA INFORM REPORT

 

 

Report Date :

04.04.2013

 

IDENTIFICATION DETAILS

 

Name :

CONLOG LTD.

 

 

Registered Office :

P.O. Box 3265, 17 Hamefalsim Street, Kiryat Arie Industrial Zone, Petach Tikva 4913000

 

 

Country :

Israel

 

 

Date of Incorporation :

10.08.1978

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, marketers and distributors, handling industrial equipment and machinery, including conveyors, pneumatic, automation, motion and control, assemblies and accessories for processing electronic chips and hi-tech industries

 

 

No. of Employees :

Having 50 employees in subject and 175 employees serving CONLOG/ COMTAL Group (had 170 and 140 employees in Group in 2012 and end of 2010, respectively)

 

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 :

Good

 

 

Payment Behaviour :

Regular 

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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

 

CONLOG LTD.

Telephone                           972 3 926 95 95

Fax                                     972 3 923 33 67

P.O. Box 3265

17 Hamefalsim Street

Kiryat Arie Industrial Zone

PETACH TIKVA                             4913000         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-079000-9 on the 10.08.1978.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 11,001.00, divided into -

                1,100,100 ordinary shares of NIS 0.01 each,

of which 116,609 shares amounting to NIS 1,166.09 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Amichai Drezner and spouse Ms. Bracha Drezner, via the following 4 holding companies:

 

1.    GREEN LIFE FOLDACK LTD., 85%,

2.    GREEN LIFE (76) LTD., 5%,

3.    GREEN LIFE (79) LTD., 5%,

4.    GREEN LIFE (30) LTD., 5%.

 

 

DIRECTORS

 

1.         Amichai Drezner, Chairman,

2.         Mrs. Bracha Drezner.

 

 

GENERAL MANAGER

 

Dani Klein.

BUSINESS

 

Importers, marketers and distributors, handling industrial equipment and machinery, including conveyors, pneumatic, automation, motion and control, assemblies and accessories for processing electronic chips and hi-tech industries.

Subject provides turn-key solutions and consulting services in the said areas.

Most of the subject’s clients are leading hi-tech and various industrial companies.

Among clients: DAGESH P.K.

 

Subject represents over 30 foreign manufacturers.

 

Sole local representatives of (among others):

C.P.C., HUMPHREY, ELECTROID, TOLL-O-MATIC, MPL, all of USA,

IGUS, ELMO RIETSCHLE, MöllerWerke, WEFORMA, all of Germany,

TISCO, PISCO, COGANEI, NITTO KOHKI, all of Japan,

AMKO, AIRTAC, both of Taiwan,

MICROPLAN GROUP, RTA, both of Italy,

AP&T, KOGE, ANHUI ZONGCHEN (CMB), all of China,

KANYA, of Switzerland,

HIWIN, DAEDAL/ of PARKER, etc.

 

Subject is also a holding company for COMTAL Group, 100% (subject acquired the 50% of Isler Family in December 2009), headed by COMTAL TECHNOLOGIES AND ENGINEERING LTD., a holding company whose strategy is acquiring veteran solid companies and activities in the trade fields, characterized with long-term growth potential. Its subsidiaries are engaged in import and marketing of products, machinery and equipment to the local industries, electro-mechanic and electronic systems, representing world leading manufacturers and providing services and solutions in their fields. Also operates in the aviation field (see more in OTHER COMPANIES).

 

Operating from premises owned by Amichai Drezner (a building of 12,000 sq. meters, of which subject utilizes 4,500 sq. meters), serving also other members of the Group, in 17 Hamefalsim Street, Kiryat Arie Industrial Zone, Petach Tikva

 

Having 50 employees in subject and 175 employees serving CONLOG/ COMTAL Group (had 170 and 140 employees in Group in 2012 and end of 2010, respectively).

 

 

MEANS

 

Current stock is valued at NIS 8,000,000 (was valued at NIS 5,000,000 in the end of 2010).

 

Group’s consolidated current stock is valued at NIS 30,000,000 (similar to the end of 2010).

 

Equity to the 31.12.2006 was NIS 52,000,000.

Equity to the 31.12.2007 was NIS 59,000,000.

Later equity data was not disclosed.

 

There are 8 charges for unlimited amounts, as well as a charge for the sum of NIS 4,740,000.00 registered on the company's assets (financial assets, fixed assets and vehicles), in favor of Bank Leumi Le’Israel Ltd. and a leasing company (last 2 charges placed November 2012 and in January 2013).

 

 

REVENUES

 

Subject’s sales:

2006 sales claimed to be NIS 65,000,000, making a net profit of NIS 11,000,000.

2007 sales claimed to be NIS 65,000,000, making a net profit of NIS 11,000,000.

2008 sales claimed to be NIS 62,000,000.

2009 sales claimed to be NIS 38,000,000.

2010 sales claimed to be NIS 55,000,000.

2011 sales claimed to be NIS 65,000,000.

2012 sales claimed to be NIS 70,000,000.

 

Consolidated sales of COMTAL Group:
2008 sales claimed to be over NIS 80,000,000.

We were informed that there was a 30% decline in 2009 COMTAL Group sales, due to the slow-down in local economy, mainly in the year’s first half.

2010 sales claimed to be NIS 160,000,000.

2011 sales claimed to be NIS 200,000,000.

2012 sales claimed to be NIS 250,000,000.

 

 

OTHER COMPANIES

 

D.K. WORKING TOOLS LTD., 100%, importers and marketers of working tools.

 

COMTAL TECHNOLOGIES AND ENGINEERING LTD., 100%, also holds (100% subsidiaries):

HOR-TAL MARKETING PRODUCTION AND SERVICES COMPANY LTD., established in 1972, part of the Group since year 2000, importers, marketers and agents of C.N.C machine tools and laser machines, machinery and equipment for the plastic industry.

HUMPHREY AUTOMATION INC., Canada, part of the Group since 2001, provides pneumatic factory automation components and motion control solutions for a diversified range of industries throughout Canada.

SMADAR TECHNOLOGIES LTD., established in 1979, joined subject’s Group in 2002, agencies, importers and marketers of equipment, machinery and raw materials for the food and packaging industry.

LUMITRON (2008) LTD., part of subject’s Group since 2008, continuing activities which started in early 1980s, manufacturers’ representatives, importers and marketers of electronic instruments for laboratory solutions and applications such as centrifugation, PCR, gel electrophoresis and more.

 

AMBAR FORUM INTERNATIONAL LTD., established in 1993, part of subject’s Group since November 2008, manufacturers’ representatives, importers and marketers of elevators, electrical gates and parking systems, etc.

LUMITRON (2008) LTD., part of subject’s Group since 2008, continuing activities which started in early 1980s, manufacturers’ representatives, importers and marketers of electronic instruments for laboratory solutions and applications such as centrifugation, PCR, gel electrophoresis and more.

ABIRY TECHNOLOGIES LTD.

PICOTECH LTD.

 

Amichai Drezner also operates in the real estate area, holding:

ET-DAR LTD., owners of real estate (office building),

KIDMAT HI-TECH HOD HASHARON LTD., 67%, real estate company, owners of a large office building.

Amichai Drezner and his spouse Ms. Bracha Drezner also have other holding companies, among the GREEN LIFE FOLDACK LTD.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Petach Tikva Business Branch (No. 707), Petach Tikva, account No. 273500/93.

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned on subject.

 

At the end of December 2009 Amichai Drezner, via subject, acquired from his partners Yossef and Dina Isler their 50% (via MEDITAL LTD.) in COMTAL TECHNOLOGIES AND ENGINEERING, reaching full ownership of Group.

 

Subject is a long established company, considered among the local leading companies in their field in Israel.

 

Subject is ISO-9001 certified.

 

COMTAL Group is well known. Members of the Group, mainly SMADAR TECHNOLOGIES, HOR-TAL and LUMITRON, are long established and enjoy good reputation in their field, representing leading foreign manufacturers.

 

In 2000, COMTAL TECHNOLOGIES acquired HOR-TAL from its former shareholders, for a sum of US$ 1.85 million.

In 2004 part of HOR-TAL activities (lifting & conveying systems) were acquired by Ofer Hopshteter, a former General Manager in HOR-TAL.

In the beginning of 2009 HOR-TAL sold its forklifts activities to EMCOL LTD.

 

As part of COMTAL Group’s expansion strategy, during 2008 it acquired AMBAR FORUM and NIMDA AVIATION and completed the acquisition of the activities of LUMITRON – ELECTRONIC INSTRUMENTS LTD.

 

In general, COMTAL Group was adversely affected by the global economic crisis that also hit the local economy in 2009. The Group recovered in 2010, as markets conditions also improved.

 

In the end of 2011 Group sold NIMDA AVIATION LTD. (which joined subject’s Group in 2008), an aviation brokerage firm, operating in the aviation aftermarket services.

 

Despite the current general weakness in local markets (negatively affected by the global economy), 2011 ended with significantly improved economic indicators compared to 2010 in terms of gross domestic investment in machinery and other equipment for the manufacturing industry (excl. ships & aircrafts). Central Bureau of Statistics data reveals that investments -both from import and domestic production- of machinery & equipment rose by over 35% from 2010 (in 2010 it rose by some 10% from 2009, after it fell by 19% from 2008). Total gross domestic investment in machinery & equipment from import alone, rose in 2011 by 52% from 2010 (12% rise in 2010 after falling in 2009 by almost 23%).

 

Import of investment products - machinery and equipment segment - for the local industry rose in 2012 by 2% from 2011, reaching NIS 26,529.2 million (in $ currency terms, import fell by 5%).

 

 

SUMMARY

 

Good for trade engagements.

 

Note: Since the beginning of February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.05

Euro

1

Rs.69.59

 

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.