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Report Date : |
25.06.2013 |
IDENTIFICATION DETAILS
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Name : |
LUXEMBOURG INDUSTRIES LTD. |
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Formerly Known As : |
LIMA DELTA LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
23.12.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, exporters and marketers of chemicals, agro-chemicals, raw and intermediate materials for the pharmaceutical and bio-technology fields (mainly of crop protection chemicals). |
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No. of Employees : |
170 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Exists |
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, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
LUXEMBOURG
INDUSTRIES LTD.
Telephone 972
3 796 43 00
Fax 972 3 510 04 74
P.O. Box 13, Tel Aviv (6100010)
27 Hamered Street
TEL AVIV 6812509 ISRAEL
A private limited company, incorporated as
per file No. 51-256854-4 on the 23.12.1997.
Originally registered under the name
LIMADELTA LTD., which changed to LIMA DELTA LTD. on 18.06.1998, which changed
to the present one on 11.12.2003.
Following structural changes, during 2000
subject became dormant for few years (see more below - CHARACTER).
As of the 01.01.2004, subject assumed all the industrial and commercial
activities from parent LUXEMBOURG PAMOL LTD. (founded in the 1930s and
incorporated in 1968), which became a holding company.
Authorized share capital NIS 34,300.00,
divided into -
34,300
ordinary shares of NIS 1.00 each,
of which 1,110 shares amounting to NIS
1,110.00 were issued.
Subject is fully
owned by LUXEMBOURG PAMOL LTD., owned by David
Luxemburg (76%) and his brothers (12% each) Itzhak Luxemburg and Yoav
Luxemburg.
David Luxembourg.
Manufacturers, exporters and marketers of chemicals, agro-chemicals, raw
and intermediate materials for the pharmaceutical and bio-technology fields
(mainly of crop protection chemicals).
70% of sales are
for export.
Among clients: AMIR SUPPLY CO., HAGARIN, HAMASHBIR FOR AGRICULTURE,
CHEMAGIS, etc.
Among local
suppliers: PACHMAS METAL & PLASTIC, PLASTIV YAKUM,
GADOT CHEMICAL TERMINALS, MAGAL ISRAEL GAS & OIL ENT., CHEMICHLOR (2005)
CHEMICAL MARKETING, etc.
Among service providers:
LAOR ENGINEERING.
Operating from:
1. Owned plant (long-term
lease-hold from the State), on an area of 50,000 sq. meters (one third is
built), in Ramat Hovav Industrial Area.
2. Owned plant, on an area of
22,000 sq. meters, in Industrial Area, Arad.
3. Rented warehouses, on an area of 1,200 sq.
meters, in the Ashdod Port area.
4. Main headquarters offices, on
an area of 550 sq. meters, in 27 Hamered Street, Tel Aviv
(rented).
(Note:
long-term leas-hold from the State is practically ownership of the property)
International
branches in: Brazil, U.S.A, Argentina, Dominica, Cyprus, Costa Rica and Serbia.
Having 170
employees (had 160 employees in 2012, similar to 2011 and 2010).
B/S shows:
NIS
(thousands)
31.12.2011 31.12.2010
ASSETS
Current assets
Cash and cash equivalents 625 2,688
Trade receivables 72,669 63,686
Other accounts receivables 3,333 4,102
Inventories 35,771 36,278
112,398 106,754
Fixed assets 47,225 50,523
Intangible assets 5,898 6,229
Other assets 1,400
2,776
166,921 166,282
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LIABILITIES
Current
liabilities 41,411 48,686
Long term
liabilities 35,545 37,605
Equity 89,965 79,991
166,921 166,282
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Group’s current
consolidated stock (chiefly held by subject), is valued at
US$ 10,000,000
(similar to 2012, was valued at US$ 9,000,000 in mid 2011).
Subject is an “Approved Enterprise” and as such enjoys tax benefits and
State incentives.
In May 2004, the Israeli Investment Center approved a US$ 1.37 million investment
plan for the expansion of subject’s plant in Arad.
There are 2
charges for unlimited amounts registered on the company’s assets, in favor of
Bank Leumi Le’Israel Ltd., and the State of Israel (last charge placed October
2011).
2007 sales claimed to be US$ 37,000,000, making a net profit of US$
1,300,000.
2008 sales claimed to be US$ 44,000,000, of which 65% were exports.
2009 sales claimed to be US$ 35,000,000, of which 65% were exports.
2010 sales claimed to be US$ 38,000,000, of which 65% were exports.
2011 sales claimed to be US$ 45,000,000, of which 65% were exports.
2012 sales claimed to be US$ 50,000,000, of which 70% were exports.
We are informed
that sales growth in continuing in 2013.
LUXEMBOURG Group includes:
LUXEMBOURG PAMOL LTD., parent company, a holding company,
LUXEMBURG
CHEMICALS AND AGRICULTURE LTD., non-active,
LUXEMBOURG HOLDINGS (1955) LTD., real estate holding.
Luxembourg family
also holds other real estate holdings companies.
Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv,
account No. 417400/25.
Bank Hapoalim Ltd., Central Business Branch (No. 600), Tel Aviv, account
No. 613803.
The First
International Bank of Israel Ltd., Migdal Shalom Branch (No. 067), Tel Aviv,
account No. 319937.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m accounts.
Nothing unfavorable learned.
In June 2003, it was reported that a group of farmers filed a NIS 2.5
million lawsuit against subject's parent, claiming the products sold damaged
their vines.
We have not heard in this regard since, hence we believe it has been
resolved.
LUXEMBOURG Group is a long established family business, enjoying good
reputation.
Mr. David
Luxemburg is a respectful businessman. He is known to be
a person of very much wealth (as is the Luxemburg family), owner
(some alone, some with partners) of several highly valued real estate assets.
Subject is ISO 9001:2000 certified.
In 1997 parent company established subject with DOW AGROSCIENCE B.V.
(HOLLAND), a subsidiary of DOW CHEMICALS (one of the largest corporations in
the world in the chemical field). Each party held 50% of the new company (then
called LIMA DELTA). The company was established in order to use the
technologies and know-how of both parent companies to manufacture the pesticide
“Chlorapiripus” in a plant in Ramat Hovav and distribute it worldwide.
However, during 2000, subject ceased all its activities and retrenched its
60 employees. Later, in 2004, subject resumed activities (in present form).
During 2000, parent LUXEMBOURG PAMOL sold its shares (50%) in LUXEMBURG
PHARMACEUTICALS LTD. to the MAKHTESHIM-AGAN Group.
Subject is part of the “Arad Initiative”, a group of industrial companies
which won in mid 2008 the Chief Scientist Office (Industry & Trade
Ministry) tender to establish an industrial Technological Incubator, designed
to support and promote technology-based start-up ventures in various industrial
areas. The programme is taking place in the Negev Region in the country’s
south, and subject is the partner who supports ventures in the chemistry and
biology fields.
Subject's
accountant informed us that recently subject signed a deal to acquire from a
Chinese firm (2 representatives who came to Israel and were escorted by David
Luxemburg) raw materials in volume of US$ 6,000,000 per year.
The local Chemical
industry is considered one of the strongest in the market, with impressive
growth trend in recent years. The chemical industry includes minerals
extracted, refinery and petrochemical industry, manufacturing of pesticides for
agriculture, pharmaceuticals and bio-technology industries, as well as other
consumer products related industries, including paints, cosmetics, cleaning
materials and others. The industry employs over 30,000 employees.
Total turnover of
the local Chemical Industry in 2008 amounted to US$ 26 billion, comprising some
30% of Israel’s total industrial turnover. Sales for export recorded US$ 14
billion, comprising some 35% of Israel’s total export, continuing years of
constant growth. Growth trend reversed in 2009, due to the economic crisis in
the global markets.
The Chemical
sector recovered in 2010, where export of Industrial Chemicals rose by 34.3%
from 2009, kept rising in 2011(by 18.6%), but fell by 9% in 2012. Sales for
export in 2012 reached US$ 15.1 billion (of which US$ 6.85 billion were of
pharmaceuticals).
According to Central Bureau of Statistics data, investments
in imported machinery & equipment from for the Chemical Industries (incl.
Pharmaceuticals, excl. oil refinery) in 2012 summed up to NIS 891 million, a
sharp decrease of 20.8% from 2011 (after witnessing 50.7% increase in real
terms in 2011, which came after couple of years the trend was negative).
Good for trade
engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.73 |
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1 |
Rs.91.82 |
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Euro |
1 |
Rs.78.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.