MIRA INFORM REPORT

 

 

Report Date :

09.03.2013

 

IDENTIFICATION DETAILS

 

Name :

HOD-ZAMIR BUILDING EQUIPMENT & REQUIREMENTS LTD.

 

 

Registered Office :

P.O. Box 10331, Haifa Bay (2611202), 1 Zvulun Road, Industrial Zone, Kiryat Ata 2850301           

 

 

Country :

Israel

 

 

Financials (as on) : 

31.12.2011

 

 

Date of Incorporation :

17.05.2001

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Traders, importers and marketers of building supplies and materials, including professional working tools, sealants, etc.

 

 

No. of Employees :

Had 35 employees in the end of 2008

Having 1,011 employees (664 employees of which in Israel) serving the whole HOD Group as of end of 2011

 

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. 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

 

HOD-ZAMIR BUILDING EQUIPMENT & REQUIREMENTS LTD.

Telephone              972 4 840 26 66

Fax                       972 4 849 21 47

P.O. Box 10331, Haifa Bay (2611202)

1 Zvulun Road

Industrial Zone

KIRYAT ATA-285030-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-311189-8 on the 17.05.2001.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 100,000.00, divided into -

                100,000 ordinary shares of NIS 1.00 each,

of which 125 shares amounting to NIS 125.00 were issued.

 

 

SHAREHOLDERS

 

1.         HOD – ASSAF INDUSTRIES LTD., 60%, a public limited company, shares of which are traded on the Tel Aviv Stock Exchange, controlled (74.8%) by Abraham Shani (formerly Sheinbaum),

2.         David Vanunu, 40%.

 

In February 2006 HOD – ASSAF INDUSTRIES LTD. increased its holding in subject from 50% to 60%.

 

 

DIRECTORS

 

1.         David Vanunu, General Manager,

2.         Joseph (Yosi) Anglister, General Manager of HOD – ASSAF INDUSTRIES.

 

 

BUSINESS

 

Traders, importers and marketers of building supplies and materials, including professional working tools, sealants, etc.

 

Having many clients.

Sales are to construction companies, constructors, etc.

 

Operating from premises, in Zvulun Road, Industrial Zone, Kiryat Ata.

 

Had 35 employees in the end of 2008, current number not forthcoming..

Having 1,011 employees (664 employees of which in Israel) serving the whole HOD Group as of end of 2011.

 

 

MEANS

 

Financial data is included in the consolidated financial statements of parent company, HOD – ASSAF INDUSTRIES LTD., which shows:

 

                          NIS (thousands)

                                                                                         31.12.2011            30.09.2012

ASSETS

Current assets:

     Cash                                                                                   12,539                24,473

     Customers                                                                         299,956              272,486

     Other debtors                                                                       30,248                17,763

     Stock                                                                                305,718              324,296

                                                                                              648,461              639,018

 

Non-current assets:

     Pre-paid operation leasing expenses (net)                               26,933                25,941

     Fixed assets (net)                                                               240,713              264,927

     Other non-current assets                                                        7,944                11,899

                                                                                              275,590              302,767

                                                                                              924,051              941,785

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

 

LIABILITIES

Current liabilities                                                                      417,460              426,981

Non-current liabilities                                                                 29,470                25,445

Equity                                                                                    477,121              489,359

                                                                                              924,051              941,785

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

 

 

Parent HOD – ASSAF INDUSTRIES current market value US$ 40.5 million.

 

There are 3 charges for unlimited amounts registered on the company’s assets (all assets), in favor of Bank Leumi Le’Israel Ltd., Bank Hapoalim Ltd. and Israel Discount Bank Ltd. (last charge placed December 2010).

 

REVENUE

 

Subject ended 2009 with a net profit of NIS 823,000.

Subject ended 2010 with a net profit of NIS 2,254,000.

Subject ended 2011 with a net profit of NIS 2,722,000.

 

 

                                                                        HOD – ASSAF INDUSTRIES LTD.

                                                                        Consolidated Statement of Income

                                                                                         NIS (thousands)

                                                                                      Year ended 31.12

                                                                               2009                 2010              2011

Sales                                                                     841,593            975,249         1,262,114

 

Gross profit                                                              66,783              68,549           105,601

 

Operating profit (loss)                                             (21,576)              12,571             38,299

 

Profits (loss) before taxes on income                       (23,146)               6,721             29,536

 

Net profit (loss)                                                      (16,803)               5,418             16,183

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

 

 

Consolidated first 9 months of 2012 sales were NIS 973,495,000 (2% increase compared to the parallel period in 2011), making a gross profit of

NIS 68,665,000, an operating income of NIS 19,439,000 and a net income of

NIS 11,146,000.

 

 

OTHER COMPANIES

 

ISCOL TRADE LTD., 100%, importers and marketers of wood and timber for the construction sector, and electricity poles.

LEVIN IRON LTD., 100%.

 

HOD – ASSAF INDUSTRIES LTD., parent company, independently and via subsidiaries, operating as traders, manufacturers, processors, exporters and marketers of metal goods for the construction, industrial and agricultural sectors. Amongst its holdings (all 100% subsidiaries unless otherwise mentioned):

HOD - ASSAF STEEL LTD., Group’s steel melting plant in Acre, manufacturing steel bars from scrap metal.

HOD GLOBAL WIRE LTD., manufacturers of steel wires, fully owns ASSAF CONDUCTORS LTD.

                                                                                                                           

STEEL RECYCLING LTD., established in 2006, purchasing steel scraps and processing them for the melting in Group's plant.

HOD ASSAF METALS LTD., 100%, traders in iron for construction, owns:

HOD SELA LTD., 51%, dealers in flat iron, professional iron and piping,

TAMA LTD., Guernsey Island, 100%, owns:

GAMMA INDUSTRIES SRL, Romania, 100%, holds S.C SARME SI CABLURI S.A. ("SIRME"), Romania, 99.9%, plant in Romania, ORON INTERNATIONAL SRL, Romania, 50%.

 

 

BANKERS

 

According to our:

Bank Hapoalim Ltd., Hamifratz Branch (No. 791), Haifa.

Bank Leumi Le’Israel Ltd., Haifa Main Branch (No. 876), Haifa.

Since subject's General Manager refused to provide any data, we could not confirm a/m bank data.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned

 

Subject's General Manager refused to provide any information.

 

HOD ASSAF Group is one of the leading and largest suppliers of steel to the local industry.

HOD ASSAF Group has been going a structural change, in which HOD ASSAF METALS is to concentrate all Group's steel activities in Israel, including manufacturing activities from sister companies HOD - ASSAF STEEL and STEEL RECYCLING. All Romanian activities will become a separate division, under TAMA LTD. A 3rd segment will be of "Others", including subject and subsidiaries, HOD GLOBAL WIRE and HOD SELA (which will remain HOD ASSAF METALS' 51% subsidiary).

 

In February 2006 subject acquired ISCOL TRADE LTD., dealing in wood processing and marketing, in consideration of NIS 4,144,000.

 

In April 2008 VAN MERKSTEIJN B.V. purchased HOD Group's holdings (95%) in THIBO BOUWSTAAL HOLDINGS B.V, and its fully owned subsidiary THIBO BOUWSTAAL B.V., Netherlands, for a sum of circa € 17 million.

 

In August 2012, HOD – ZAMIR completed the acquisition of LEVIN IRON LTD. from the company's Receiver, for NIS 13.4 million. LEVIN IRON, deals in metal processing, was established in 1975 by Levin family and encountered financial difficulties.

 

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%).

 

The building sector indicators show ambiguous signs in recent periods. Volume of building starts for dwelling (which is an indicator for the trend in the building sector) in 2012 indicated a 13% decrease from 2011, reaching close to 40,000 new apartments, though building starts in the 4th quarter marked a 40% rise from the previous quarter. The decline in 2012 came after a growth trend in building starts in the previous couple of years (9% in 2011 and 7% rise in 2009).

On the other hand, after in 2011 the number of dwellings transactions fell by 18% from 2010, an increase in acquisition of dwellings was noted in 2012 by same rate of 18%, though the Government expects the number to fall in 2013 following steps taken.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.40

UK Pound

1

Rs.81.57

Euro

1

Rs.71.24

 

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.