MIRA INFORM REPORT

 

 

Report Date :

02.01.2014

 

IDENTIFICATION DETAILS

 

Name :

DORMEX TRADE & INVESTMENTS COMPANY (1984) LTD.

 

 

Registered Office :

P.O. Box 2666 (5112601), 1 Ben Gurion Street, B.S.R. 2 Tower, Bnei Brak 5120149           

 

 

Country :

Israel

 

 

Financials (as on) :

2010

 

 

Date of Incorporation :

24.09.1984

 

 

Com. Reg. No.:

51-104073-5

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers, exporters and distributors of chemicals and allied products.

 

 

No. of Employees :

Having in 9 employees as of 2012 (had 10 employees in 2010, same as in previous years)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

With Financials

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown 

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

DORMEX TRADE & INVESTMENTS COMPANY (1984) LTD.

Telephone                972 3 616 61 11

Fax                         972 3 570 77 50

P.O. Box 2666 (5112601)

1 Ben Gurion Street

B.S.R. 2 Tower

BNEI BRAK             5120149                ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-104073-5 on the 24.09.1984.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 520.00, divided into -

                520,000 ordinary shares of NIS 0.001 each,

of which 52 shares amounting to NIS 0.052 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).

 

 

SHAREHOLDERS

 

1.           Matityahu (Matti) Ben-Ari,

2.           Mrs. Aviva, wife of Matityahu Ben-Ari, holding one single share.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Matityahu Ben-Ari.

 

BUSINESS

 

Importers, exporters and distributors of chemicals and allied products.

Also agencies in the field of paper.

51% of sales are for export (in 2011).

 

Exports are to Turkey and Eastern Europe.

 

Subject is the exclusive representative and distributor of local chemical manufacturers ROTEM AMFERT NEGEV products in Turkey.

 

In addition, subject represents exclusively other local companies, as well as several foreign companies in other foreign markets, e.g. AKKIM (of Turkey) in India, Taiwan and China.

 

Amongst local clients: CARMEL CHEMICALS, RAMI PINHASSI & CO., KOFFOLK, AMGAL, DEAD SEA WORKS, MAKHTESHIM CHEMICAL WORKS, FRUTAROM, TAMBOUR, TERMOKIR, MODUL BETON, ASHKELON POLYMERS, etc.

 

80% of purchases are in Western Europe.

 

Sole local representatives/distributors of (main suppliers):

·         QUINNS PLATICS, of Belgium and Spain,

·         UPM KYMMENE, of Finland and Germany,

·         HEXION, of Germany and Italy,

·         SAMSUNG FINE CHEMICALS, YOUNGS, L.G. CHEMICALS, AYKUNG, HANKUCK, all of Korea,

·         NISSAN CHEMICALS, MITSUI TOATSU, SAKAI, SANYO, all of Japan,

·         SISECAM, EGE KIMYA, AKKIM, all of Turkey,

·         SINPRO, VIPA, both of Switzerland,

·         EXPAL, TOLSA, both of Spain,

·         FINNISH CHEMICALS - KEMIRA, of Finland,

·         INDUSTRIAL SOLVENTS, of India.

·         YOKE CHEMICALS,DALIAN CHEMICALS, both of China,

·         ELOF HANSSON, of England,

·         CMMP, of France.

 

Among local suppliers are: ROTEM AMFERT NEGEV, CARMEL CHEMICALS, DOR CHEMICALS, etc.

 

Palestinian supplier (cardboard): AL AHLIA BOXES INDUSTRIES.

 

Operating from owned office premises, on an area of 207 sq. meters, in 1 Ben Gurion Street, Bnei Brak, and from:

1.    Rented offices, on an area of 200 sq. meters, in David House, 138 Jabotinsky Street, Ramat Gan,

2.    A rented warehouse, on an area of 200 sq. meters, in Sde Uziyahu (village),

3.    A rented warehouse, on an area of 100 sq, meters, in 14 Hamelacha Street, Shemen Beach, Industrial Zone, Haifa.

 

Having in 9 employees as of 2012 (had 10 employees in 2010, same as in previous years).

 


MEANS

 

B/S shows (last obtainable):

 

                                                                                                NIS

ASSETS                                                                     2009                            2010

Current assets

     Cash and equivalents                                          4,236,601                    3,143,920

     Customers                                                         9,144,484                   11,920,725

     Other debtors                                                        434,919                       475,785

     Stock                                                              _2,223,978                    1,437,438

                                                                            16,039,982                   16,977,868

 

Fixed assets                                                           2,999,698                    2,784,047

Other long-term assets                                                  1,723                       173,583

                                                                            19,041,403                   19,935,498

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

 

LIABILITIES

Current liabilities

     Credits from banks                                                334,150                       299,820

     Suppliers and service providers                            9,618,174                   10,421,766

        Other accounts payable                                      663,923                    1,389,757

                                                                            10,616,247                   12,111,343

 

Long term liabilities                                                    853,794                       551,623

Equity                                                                    7,571,362                    7,272,532

                                                                            19,041,403                   19,935,498

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

 

 

Stock was valued at NIS 800,000 in the first half of 2012.

 

Subject owns a property of around 200 sq. meters, in 134 Jabotinsky Street (Beit David), Ramat Gan.

Also 6 vehicles are owned by subject.

 

There is one charge on a sum of NIS 187,500.00 registered on the company's assets (fixed asset), in favor of BANK LEUMI LEISRAEL MORTGAGES LTD. (charge placed 1992).

 

REVENUES

                                                                                    Statement of income

                                                                                                  NIS

                                                                                      Year ended 31.12

                                                                      2008                     2009                     2010

Sales                                                            48,593,458            38,682,469            46,492,074

 

Gross profit                                                     4,769,199              5,485,727              5,011,271

 

Operating income                                            1,284,534              2,136,384              1,441,674   

 

Profits before taxes on income                          1,425,423              2,055,096                 977,152

 

Net profit                                                         1,019,423              1,573,307                 751,171

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

 

2011 sales were NIS 46,610,000, with profits before taxes on income of NIS 1,682,000.

Later sales data not forthcoming.

 

 

BANKERS

 

·         Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv, account No. 537300/10.

·         Mizrahi Tefahot Bank Ltd., Diamond Tower Branch (No. 477), Ramat-Gan, account No. 286766.

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned (please refer to NOTE below).

 

Subject's General Manager, Mr. Matityahu Ben-Ari, the only authorized person to disclose data on subject is presently out of office and due back in a week's time. We shall contact him upon his return and update you accordingly.

 

Subject is long established.

 

According to the Central Bureau of Statistics, import of chemical raw materials for the local industries in 2012 increased by 20.7% from 2011 (in local NIS currency terms) reaching NIS 19,701 million (rise in $ terms was less: 11.8%), continuing growth trend from 2011 and 2010 (in over 10% in each year) as the markets recovered from the crisis in 2009.

 

The trend reversed in the first 10 months of 2013, with a 16% decrease compared to the parallel period of 2012, summing up to NIS 14,091.5 million.

 

According to the Central Bureau of Statistics (CBS), import of raw materials for the Paper industries in 2012 fell by 6% from 2011, reaching total of NIS 2,945 million (though the decrease in $ terms was by 13% to US$ 764 million). This comes after couple of years in which import level rose, by over 20% in 2010 and by several percentages in 2011. Import kept dropping by 4.5% in the first 10 months of 2013 comparing to the parallel period in 2012 (reaching NIS 2.398 billion).

 

SUMMARY

 

Notwithstanding the lack of updated data from subject's officials, considered good for trade engagements.

 

 

NOTES:

     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 assume it is not so in subject's case; It is also possible that there is a technical or administrative problem, as such things also happen).

 

     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 2012).

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.93

UK Pound

1

Rs.102.39

Euro

1

Rs.85.12

 

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.