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Report Date : |
17.10.2013 |
IDENTIFICATION DETAILS
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Name : |
ZIKA INDUSTRIES LTD. |
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Formerly Known
as: |
TECHNO ZIKA (1983) LTD |
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Registered Office : |
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Country : |
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Date of Incorporation : |
06.09.1983 |
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Com. Reg. No.: |
51-099806-5 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers,
marketers and exporters of welding electrodes and allied products |
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No. of Employees : |
Having 65 employees
in subject (had 63 employees in 2011), and 80 employees serving ZIKA Group
(had 86 employees in the Group in mid 2012 and 81 employees in mid 2011). |
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 : |
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 – 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.
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Source : CIA |
ZIKA INDUSTRIES LTD.
Telephone 972 4 985 18 05; 985 18 00
Fax 972 4 985 18 70
P.O. Box 2317
Moshe Borenstein
Street
Southern
Industrial Zone
ACRE 2412202 ISRAEL
A private limited company,
incorporated as per file No. 51-099806-5 on the 06.09.1983, as a subsidiary of
ELECTRODE WORKS ZIKA LTD., a public limited liability company established in
1950.
Originally
registered under the name of KEREN DISTRIBUTORS OF WELDING PRODUCTS (AGENCIES
AND IMPORT) LTD., which changed to TECHNO ZIKA (1983) LTD. on the 16.07.1990,
which changed to the present name on the 17.01.2000.
During 2001-2003
the ELECTRODE WORKS ZIKA Group (subject included) encountered grave financial
difficulties and reached bankruptcy. In October 2003 a request for liquidation
was submitted by the Group's creditors (banks) and in February 2004 the Haifa
District Court issued a liquidation order.
The Group operated
under a special Court nominated manager and in August 2005, following a
Creditors' Arrangement, the Court appointed an official receiver to the Group,
including for subject.
In June 2004, ZIKA
GROUP LTD. acquired all the activities of ELECTRODE WORKS ZIKA LTD., including
subject's activities, for a sum of NIS 7.26 million (see more below).
In November/
December 2006 ZIKA GROUP LTD., after obtaining all approvals, acquired subject
from the liquidator and transferred all their manufacturing activities into
subject.
Authorized share capital
NIS 93.00, divided into -
2
deciding shares (issued),
4
management shares (issued),
92,994
ordinary shares (11,008 shares issued), all of NIS 0.001 each
of which shares amounting to NIS 1.014 were issued.
(Note: The currency in share capital was
originally in Old Israeli Shekel whose nominal value was 1 thousandth of
the current New Israeli Shekel (NIS), converted in 1986).
Subject is fully
owned by ZIKA GROUP LTD., owned by Yaakov Bakarach.
In August 2008 Yehoshua Perla –via his owned company CHIMNIAR GROUP LTD. - sold his shares in ZIKA GROUP LTD. and since then Yaakov Bakarach is the sole owner.
1.
Liav Bakarach, General Manager,
2.
Yaakov Bakarach,
3.
Ms. Rina Bakarach,
4.
Roi Bakarach.
Manufacturers, marketers
and exporters of welding electrodes and allied products.
Subject's products are used for a wide range of purposes, from thickly
coated electrode for general purposes, through special electrode suitable for
workings used in Nuclear reactors, petrochemical industry and heavy industry.
50% of sales are
for export.
All of raw
materials purchases are imported.
Amongst local suppliers: INBAR TECHNOLOGIES,
B. GAVRIEL TRANSPORTATION (transportation services).
Among local clientele: Ministry of Defense, DEAD
SEA WORKS, MEKOROT WATER CO., ISRAEL ELECTRIC CORP., MEM BET, A.G. POLACK, etc.
Operating from
owned premises (Group's offices and plant), on an area of 15,000 sq. meters (of
which 13,000 sq. meters built), in Moshe Borenstein Street, Southern Industrial
Zone, Acre (city Hebrew name: Acco or Akko).
Having 65
employees in subject (had 63 employees in 2011), and 80 employees serving ZIKA
Group (had 86 employees in the Group in mid 2012 and 81 employees in mid 2011).
Owned property in
Moshe Borenstein Street, Southern Industrial Zone, Acre (where subject is
operating from), was valued at NIS 15 million in 2011.
Group's
consolidated stock was valued at NIS 6,000,000 in 2008 (same as in 2007 and
2006). Later stock and other financial data not forthcoming.
There are 5
charges for unlimited amounts registered on the company's assets (financial
assets, real estate and other assets), in favor of Union Bank of Israel Ltd.
Bank Leumi Le’Israel Ltd., Bank Hapoalim Ltd. and the State of Israel (last 3 charges
placed during 2012).
Group's consolidated sales (subject and parent
company ZIKA GROUP LTD.):
2006 sales claimed to be NIS 28,000,000, of which
NIS 3,000,000 were for export.
2007 sales claimed to be NIS 28,000,000, of which
NIS 3,000,000 were for export.
2008 sales claimed to be NIS 40,000,000, of which
30% were for export.
We were informed
that there was a significant increase in sales during 2009 and 2010 (of which
36%-37% for export). Figures were not disclosed.
In the first 6
months of 2011, export rate was 42%, figures were not disclosed.
2011 sales claimed
to exceed NIS 50,000,000.
Later sales
figures not forthcoming.
ZIKA GROUP LTD.,
parent company, traders, importers and marketers of electrodes and accessories.
Also importers, marketers and distributors of a
variety of complementary products and services required by its customers.
URANUS FINANCIAL MARKETS LTD., owned by Yaakov
Bakarach.
Bank Leumi Le’Israel Ltd., Bat Yam Branch (No.
861), Bat Yam,
account No. 577500/16.
Union Bank of Israel Ltd., Tel Aviv Main
Branch (No. 063), Tel Aviv, account
No. 707600/04.
A check with the Central Banks’ database did
not reveal any negative information regarding subject’s a/m accounts.
Nothing unfavorable learned on subject since
reactivation (please refer to NOTE below).
Subject's General Manager refused to update
financial data.
ZIKA Group is the
leading welding products supplier in Israel.
ZIKA Group is ISO
9001:2000 certified.
On 7.6.2004 the
Haifa District Court approved the sale of the activities of ELECTRODE
WORKS ZIKA LTD. and subject to parent company, ZIKA GROUP LTD., from their
liquidator. According to agreement, the buyers to pay NIS 7.26 million in 12
installments.
On 2.8.2004 the
Anti-Trust Commissioner approved the transaction. The approval was required,
since ELECTRODE WORKS ZIKA has been a monopoly in the welding electrodes field.
In May 2006, the
liquidator of ELECTRODE WORKS ZIKA LTD. approved the acquisition of the land on
which subject's plant is situated by ZIKA Group for a sum of US$ 1.2 million.
Several years ago we obtained couple of favorite opinion on subject's
Group payment record:
INBAR TECHNOLOGIES officials told us they are working with the ZIKA
GROUP since 2004, supplying subject with welding materials. ZIKA GROUP was
described as a good client who always pays on time.
B. GAVRIEL officials told us they are working with the ZIKA GROUP since
2004, supplying them with transport services. ZIKA GROUP was described as a
good client who always pays on time.
In
July 2009 it was reported that subject exports some NIS 1.2 million to
Thailand.
According
to data by of the Metal, Electrical and Infrastructure Industries Association,
representing the local Metal and Electricity Industries, which includes large
scale export-oriented industries on one hand and family-owned plants which sell
to the local market: 2010 sales (local and export) by the said industries
amounted to NIS 70 billion, comprising 25% of Israel's industrial output.
Results are similar to 2008 scales, after some 20% drop in 2009 due to the
significant slow-down in the local economy, affected by the global financial
and economic crisis. Sales for export reached US$ 10 billion in 2010.
Some 90,000
employees serve the said industries (26% of Israel's industrial workforce).
The Central Bureau of Statistics (CBS) data on
investment in imported machinery and other equipment for the manufacturing
industry in 2012 (comparing to 2011): investments in the manufacture of metal
products was NIS 716 million (3.6% rise, after 32% rise in 2011).
CBS data reveals that investments by the
local manufacturing industries -both from import and domestic production- in
machinery & equipment (M&E) in 2012 fell by 1%, which comes after 41%
rise in 2011. The investments originating from import, which comprised 70% of
overall investment in M&E, fell 3.8% (after 69% rise in 2011), while
investment originating from local production rose by 6.2% in 2012 (fell 5.3% in
2011).
Gross
Domestic Capital Formation (investment) in machinery & other equipment in 2012 reached (in current prices) NIS 47,540 million, of
which NIS 33,336 million was from imports and NIS 14,204 miilion from domestic
production.
Notwithstanding the refusal to update
financial details, considered good for trade engagements.
NOTES:
1. According
to the Registrar of Companies subject has a "Law Violating Company"
Status.
As part of the
Registrar efforts in the last period to collect fees and supervision on meeting
all duties by Companies’ law, such status notes have been added to the
registry. Registration as a "Law Violating Company" is done due
certain violation by the subject company for not meeting the Registrar of
Companies regulations promptly, mainly for not paying Registrar fees,
and/or not submitting annual reports on time. The sanctions and penalties
against the company in such case include fines up to NIS 250,000, not allowing
the company to register new charges on its favor, not allow registration a
charge on its assets (which may deprive the company from taking new loans at
their banks), cannot make changes in the Registrar, and more.
It should be noted
that this may not necessarily be connected to the company's business activities
and financial standing (although in many cases there is a connection, we
believe it is not due financial reason; It is also possible that there
is a technical or administrative problem, as such things also happen).
2. Since
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.69 |
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UK Pound |
1 |
Rs.98.59 |
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Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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.