MIRA INFORM REPORT

 

 

Report Date :

22.04.2013

 

IDENTIFICATION DETAILS

 

Name :

SCANMASTER SYSTEMS (IRT) LTD.

 

 

Formerly Known as:

MARMIRT LTD

 

 

Registered Office :

P.O. Box 11431, 23 Hamelacha Street, Afek Industry Park, Rosh Haayin 4809173           

 

 

Country :

Israel

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

15.12.1997

 

 

Com. Reg. No.:

51-256379-2

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, manufacturers (via subcontractor) and marketers of ultrasonic inspection solutions, systems and products (UT instrumentation, UT inspection & imaging systems and transducers), for the metal industries in the sectors of aerospace, railways, automotive, nuclear, petroleum, piping and others

 

 

No. of Employees :

33

 

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 – 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. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. 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, and production from the Tama field is expected to meet all of Israel's natural gas demand beginning mid-2013. 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

 

SCANMASTER SYSTEMS (IRT) LTD.

Telephone 972 3 758 12 52

Fax           972 3 758 12 45

P.O. Box 11431

23 Hamelacha Street

Afek Industry Park

ROSH HAAYIN 4809173-ISRAEL

E-Mail:              ofer@scanmaster-irt.com

Web:                            www.scanmaster-irt.com

Location:                      Rented

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-256379-2 on the 15.12.1997.

 

Originally registered under the name MARMIRT LTD., which changed to the present one on 21.04.1998.

 

In 1998 subject acquired the business activities of I.R.T INSPECTION AND RESEARCH TECHNOLOGIES LTD. (a private limited company registered as per file No. 51-105963-6 on the 19.03.1985) which it carries on.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 34,300.00, divided into:-

              3,430,000 ordinary shares of NIS 0.01 each,

of which 357,460 shares amounting to NIS 3,574.60 were issued.

 

SHAREHOLDERS

 

1.    CONTROL MESURES SYSTEMS, 21.4%, a foreign company,

2.    David Gal, 20.6%,

3.    Ofer Sela, 19.7%,

4.    DEA - CONSULTING & INITIATION INVESTMENTS (2000) LTD. 9.6%,

5.    Ms. Silvia Sverdlin, 6.5%,

6.    Arie Dobson, 5.9%,

7.    Ms. Lillian Dobson, 4.4%,

8.    M.E.O. MANAGEMENT CONSULTING LTD., 4.4%,

9.    Alon Granot, 2.2%,

10.   SPIN MARKETING & INVESTMENTS LTD., 2.2%,

11.   SPRING FOOD LTD., 2.2%,

13.   Asaf Wiesel, 0.9%.

 

In September 2004 subject was acquired by ELBIT VISION SYSTEMS LTD. (EVS) for the sum of US$ 8.5 million.

In June 2010 EVS sold subject and sister company IRT SCANMASTER SYSTEMS INC. to the present group of investors, for US$ 250,000.

 

 

DIRECTORS

 

1.    David Gal, Chairman,

2.    Ofer Sela, General Manager,

3.    Patrick Cannard, of France,

4.    Roberto Spindel.

 

 

BUSINESS

 

Developers, manufacturers (via subcontractor) and marketers of ultrasonic inspection solutions, systems and products (UT instrumentation, UT inspection & imaging systems and transducers), for the metal industries in the sectors of aerospace, railways, automotive, nuclear, petroleum, piping and others.

90% of sales are for export.

 

Subject's work is based on orders.

Local subcontractor: ITS INDUSTRIAL TECH LOGIC SOLUTIONS LTD.

 

Among clients: BOEING, General Electric, Daimler Benz, Wyman Gordon, General Motors, Cummins Diesel, Pratt & Whitney, MAN Technologies, Deutscher Aerospace, MTU, Snechma, Fortech, Volvo Aerospace and Preussagstahl.

 

Operating from rented premises, on area of 500 sq. meters, in 23 Hamelacha Street, Afek Industry Park, Rosh Haayin, and from subcontractor ITS facilities in 5 Ati Yeda Street, Industrial Park, Kfar Saba. Also operating from affiliate's offices in South Carolina, USA (leased premises, 500 sq. meters), and representatives in Europe, Russia, Asia, Central & South America, and South Africa.

 

Having 33 employees.

 

Trading Terms:

 

Purchasing Terms:       Credit (60 days)

Selling Terms              L/C

 

 

Types of customers:

End Users

 

 

auditors

 

Lior Fromovich

21 Kopelman st. Petah-Tikva, Israel

Tel. No.: +972 3 921 9292

Fax No.: +972 3 921 6910

Mail:     fromo@netvision.net.il

 

 

MEANS

 

Subject was acquired for US$ 250,000 in cash. According to the sale agreement in 2010, subject will pay its US$ 675,000 debt to former parent company EVS during the next 10 years, and it debt to MIVTACH SHAMIR (who controlled EVS) within the next 5 years. As part of the deal Bank Leumi Le'Israel and Bank Hapoalim will give up US$ 2 million of subject's and EVS's debt.

 

EVS went public in 1996 according to a company value of US$ 150 million, as part of a spin-off the local leading ELBIT Group. By June 2010, on the verge of collapse, with market value of mere US$ 3 million, some US$ 7 million debt and accumulated losses of US$ 46 million, EVS activities were sold to new investors, while subject was sold separately to its current investors.

 

B/S shows:

 

                                                                                               NIS (thousands)

                                                                                        31.12.2011            31.12.2012

ASSETS

Current assets

     Cash                                                                                 2,493                     2,831

     Restricted deposits                                                               332                       443

     Customers                                                                         7,430                     5,027

     Other accounts receivable                                                     901                     2,107

     Stock                                                                                2,999                     5,509

                                                                                            14,155                   15,917

 

Long-term deposits                                                                   154                       169

Fixed assets                                                                             246                       257

                                                                                            14,555                   16,343

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

 

LIABILITIES

Current liabilities

     Sort-term loans                                                                  3,124                     1,194

     Suppliers and service providers                                          5,463                     5,825

     Accounts payable                                                              5,561                     5,636

                                                                                            14,148                   12,655

Long-term liabilities                                                                 9,290                     5,378

Other long-term liabilities                                                            827                       766

Equity (in deficit)                                                                  (9,710)                   (2,456)

                                                                                            14,555                   16,343

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

 

 

There are 15 charges for unlimited amounts, as well 2 charges for the total sum of NIS 461,167.00 registered on company’s assets (on financial assets), in favor of Bank Hapoalim Ltd. and Bank Leumi Le'Israel Ltd.

 

 

REVENUES

 

2011 sales were NIS 29,250,000, 90% of which were for export.

2012 sales were NIS 40,514,000, 90% of which were for export.

 

 

OTHER COMPANIES

 

SCANMASTER SYSTEMS IRT INC., USA, sister company.

 

 

BANKERS

 

·         Bank Hapoalim Ltd., Kikar Paris Branch (No. 736), Haifa, account No. 317880.

·         Bank Leumi Le'Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv, account No. 864700/70.

 

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

 

 

CHARACTER AND REPUTATION

 

Former owner, the EVS Group suffered from financial difficulties, which were intensified due to the global economic crisis. As part of EVS's re-organization, it reached an agreement with its bank creditors, and in June 2010 sold its holdings in subject (and IRT SCANMASTER of the USA) to a group of investors, led by former executives in EVS. According to a report from March 2010 subject laid-off some 30 employees (out of 40 in all).

Nothing unfavorable learned apart from that (and nothing since the change in ownership).

 

We are informed by subject's CFO, and as also may be seen in subject's financial and other data, that the company went through a drastic change since it moved hands to the present shareholders. Subject's current operations are profitable, yet it still carries EVS's hump (debt arrangement), hence its deficit in equity.

 

Subject is ISO 9001 Certificated.

 

Subject was established in 1986 by a group of researchers and engineers from the Tel Aviv University in Israel.

 

In January 2009 EVS announced on winning two orders for ultrasonic inspection systems, with total value of US$1 million for US-based aerospace manufacturers.

This comes after a month earlier EVS announced it received 2 orders from Chinese aerospace manufacturers for ultrasonic inspection systems in value of US$ 700,000.

 

 


SUMMARY

 

Notwithstanding deficit in equity (which improved in 2012 from 2011), considered 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).

 

Information parted by:

Name :              Michal Zvi

Designation:     Director of finance

Mobile No.:       +972 54 972 0259


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

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.