MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

A.R.I. FLOW CONTROL ACCESSORIES LTD.

 

 

Formerly Known As :

A.R.I. FLOW CONTROL ACCESSORIES AGRICULTURAL COOPERATIVE SOCIETY LTD.

 

 

Registered Office :

Mobile Post Ramat Hagolan Kfar Charuv 1293200          

 

 

Country :

Israel

 

 

Date of Incorporation :

19.06.1973

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, manufacturers, exporters and marketers of plastic and metals made flow control accessories, for water system protection from transient pressures and entrapped air in pipelines.

 

 

No. of Employees :

175

 

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

(31.03.2011)

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 and address

 

A.R.I. FLOW CONTROL ACCESSORIES LTD.

Telephone972 4 676 18 00

Fax         972 4 676 34 02

Mobile Post Ramat Hagolan

KFAR CHARUV   1293200        ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a limited partnership, registered as per file
No. 55-000221-6 on the 19.06.1973.

 

Convereted into an agricultural cooperative socielty in early 2000s and operated as such for couple of years, under the name A.R.I. FLOW CONTROL ACCESSORIES AGRICULTURAL COOPERATIVE SOCIETY LTD.
(File No. 57-003805-9).

 

Re-converted into a private limited company and registered as such as per file No. 51-376835-8 on the 28.12.2005.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 100,000.00, divided into -

                   100,000 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by KFAR CHARUV HOLDINGS ACS LTD., fully owned by Kibbutz Kfar Charuv, a cooperative society, operating an agricultural communal settlement.

 

 

DIRECTORS

 

1.    Yigal Shacham, Chairman,

2.    Ariel Sagi, General Manager,

3.    Yossi Weiss,

4.    Yoram Erlich,

5.    Steven Rosen,

6.    Sergio Fishlin,

7.    Ms. Vera Keinan.

BUSINESS

 

Developers, manufacturers, exporters and marketers of plastic and metals made flow control accessories, for water system protection from transient pressures and entrapped air in pipelines.

Subject’s products are designed for various applications in water supply (municipal and domestic), sewage, industry, agriculture and landscaping.

Over 85% of sales are for export.

 

Among local customers: MEKOROT WATER CO., ISRAEL MENDELSON TECHNICAL & ENGINEERING SUPPLIES KMN, NETAFIM, BERMAD, etc.

 

60% of raw material purchasing is from import.

 

Operating from premises (offices and plant), on an area of 20,000 sq. metres, in Kibbutz Kfar Charuv (premises are owned by the Kibbutz), situated in the south of Ramat Hagolan, near the Sea of Galillee. Also operating from a marketing office in 17 Hashikma Street, Azor.

 

Having 175 employees (same as in 2012, had 165 employees in end of 2011, 140 employees in the end of 2009, 130 in 2009 1st half).

 

 

MEANS

 

Total B/S (total assets) as of 30.09.2009 was NIS 113,000,000 (was
NIS 110,000,000 in 30.09.2008).

Equity as of 30.09.2009 was NIS 77,000,000 (was NIS 62,000,000 in 30.09.2008).

Later B/S data was not given, however we were tod that current equity comprises over 60% of total B/S.

 

Current inventory is valued at NIS 33,000,000 (was valued at NIS 30,000,000 in mid 2011, similar to the end of 2009).

 

There are 7 charges for unlimited amounts registered on the company’s assets (financial and fixed assets), in favor of Bank Leumi Le’Israel Ltd. and a leasing company MISHKEI LEASING (last charge placed in December 2008).

 

 

REVENUES

 

2006 slaes claimed to be NIS 100,000,000, of which 90% were for export.

2007 slaes claimed to be NIS 111,000,000, of which 90% were for export.

2008 slaes claimed to be NIS 130,000,000, of which 90% were for export.

We were informed that subject ended 2008 with “a nice profit”.

2009 slaes claimed to be NIS 109,000,000, of which 85% were for export.

2010 slaes claimed to be NIS 120,000,000, of which 87% were for export.

2011 slaes claimed to be NIS 116,000,000, of which 87% were for export.

First 9 months of 2012 sales claimed to be NIS 95,000,000, of which 87% for export.

OTHER COMPANIES

 

A.R.I. USA INC., 100%, USA, marketing arm.

AIRVALVE FLOW CONTROL GMBH (A.R.I. GERMANY), 33%, Germany, marketing company.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Haamakim Business Barnch (No. 745), Afula, account
No. 62400/82.

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject is ISO 9001:2000 and ISO 14001:2004 certified, as well as meeting other international standards.

 

Kibbutz Kfar Charuv was established in 1973. There are some 110 members and a total population of 350.

The Kibbutz is engaged in farming activities, including cultivating agricultural land (fruit plantations, avocado, almonds, etc) and breed livestock.

They Kibbutz also operates in torism tourist resorts (partners in “Hamat Gader” and owners of “Mitspe Lashalom” village).

 

Export by the local water-related industries is valued at US$ 900 million per annum and increasing, with new companies and startups in this field join the trend of the growing demand for drinking water. Israel has tiny part in the global market, which is valued at US$ 450 billion (in 2011, furcated to grow by 10% by 2014). However, Israel is considered as pioneer in the field and in its reputation for water management capabilities.

 

 

SUMMARY

 

Good for trade engagements.

 

Note: Since the beginning of 2012 Israel Post started using a new area code method of 7 digits (the old method of 5 digits will still be valid till end of January 2013).

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.51

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.