|
Report Date : |
05.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
ANTECO LTD. |
|
|
|
|
Formerly Known As : |
ANTECO COMMUNICATION & ENGINEERING INDUSTRIES LTD |
|
|
|
|
Registered Office : |
6 Moshe Aviv Street, Industrial Zone B OR Yehuda
6037128 |
|
|
|
|
Country : |
Israel |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Year of Establishment : |
1967 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importers and marketers of close circuit communication systems,
including CCTV systems, video-phones, intercoms, alarm systems, smoke
detectors. |
|
|
|
|
No of Employees : |
32 employees. |
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 |
|
Maximum Credit Limit : |
US$ 150,000 |
|
|
|
|
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically
advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals
are among the leading exports. Its major imports include crude oil, grains, raw
materials, and military equipment. Israel usually posts sizable trade deficits,
which are covered by tourism and other service exports, as well as significant
foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5%
per year, led by exports. 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. 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. The economy has recovered
better than most advanced, comparably sized economies, but slowing demand
domestically and internationally, and a strong shekel, have reduced forecasts
for the next decade to the 3% level. Natural gas fields discovered off Israel's
coast since 2009 have brightened Israel's energy security outlook. The Tamar
and Leviathan fields were some of the world's largest offshore natural gas
finds this past decade. The massive Leviathan field is not due to come online
until 2018, but production from Tamar provided a one percentage point boost to
Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In
mid-2011, public protests arose around income inequality and rising housing and
commodity prices. Israel's income inequality and poverty rates are among the
highest of OECD countries and there is a broad perception among the public that
a small number of "tycoons" have a cartel-like grip over the major
parts of the economy. 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. In May 2013 the Israeli government, in a politically
difficult process, passed an austerity budget to reign in the deficit and
restore confidence in the government's fiscal position. Over the long term,
Israel faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
|
Source
: CIA |
ANTECO LTD.
Telephone 972 3
735 40 00
Fax 972 3 634 63 66
Email: info@anteco.co.il
6
Moshe Aviv Street
Industrial
Zone B
OR
YEHUDA 6037128 ISRAEL
Originally
established in 1967 as a non-registered business called ANTECO.
Converted into a
private limited company and registered as such as per file No. 51-097010-6 on
the 10.03.1983, under the name ANTECO COMMUNICATION & ENGINEERING
INDUSTRIES LTD., which changed to the present name on 21.07.2005.
Authorized share
capital NIS 60.00, divided into -
60,000 ordinary
shares of NIS 0.001 each, of which 25,000 shares amounting to NIS 25.00 were
issued.
1. SYNEL
M.L.L. PAYWAY LTD. (formerly SYNEL INDUSTRIES LTD.), 85%, a public limited
company whose shares are trade on the Tel Aviv Stock Exchange, controlled
(63.3%) by Gavriel (Gabi) Boganem,
2. Avi Bareket, 15%.
In October 2009
SYNEL acquired subject from the Heirs of the Late Morris Ben-David. As part of
the transaction, SYNEL transferred 15% of subject's shares to Avi Bareket (at
face value).
1.
Gavriel (Gabi) Boganem, General Manager of SYNEL
M.L.L. PAYWAY,
2.
Sharon Motai – Weiss, CFO of SYNEL M.L.L. PAYWAY.
Avi Bareket.
Importers and
marketers of close circuit communication systems, including CCTV systems,
video-phones, intercoms, alarm systems, smoke detectors.
In the past also dealt
in installation, which they no longer perform. Installation is carried out via
sub-contractors and integrators.
Note: as of
31.12.2012 subject assumed all activities of sister company LOGIPHONE PHONE
COMMUNICATION (importers and marketers of telephones and other electronic
equipment) as part of an intended merger (not as yet registered in the
Registrar of Companies). Subject is the "Low Voltage" Sector activity
of SYNEL (following assuming all activities of LOGIPHONE).
Having over 600
customers, including government organs, banks and public institutions. Amongst
clients: Ministry of Defense (and Israel Defense Force), MEGASON ELECTRONICS
& CONTROL, BEZEQ THE ISRAELI TELECOMMUNICATIONS CO., A.A.P., MATKINET.
All suppliers are foreign, having no local
purchasing.
Among local
services providers: TALI KEREN (public relations).
Sole local
representatives of (among others, in line of activity):
A.V. TECH,
DYNACOLOR, ACTI, HUNT, all of Taiwan,
VISION ARECONT,
BRICKCOM, both of USA,
SANYO FISHER, of
Germany/ Japan,
SIEMENS
ENTERPRISE, of Germany,
FERMAX, of Spain,
DEDICATED MICROS,
of the U.K,
IRLAB, of China,
TIBET SYSTEMS,
CNB, SAMSUNG (CCTV field), all of South Korea.
Other foreign
suppliers: KT&C, SAMSUNG TECHWIN, IR LAB.
Operating from rented premises, on an area of 600 sq. meters, in 6 Moshe
Aviv Street, Industrial Zone B, Or Yehuda.
Having 32
employees.
Having 221
employees in SYNEL Group.
According to SYNEL
M.L.L. PAYWAY LTD. 2013 annual statements, assets attributed to the "Low
Voltage" Segment as of 31.12.2013 – practically attributed to subject in
2013 (in brackets 31.12.2012): NIS 22,888,000 (NIS 25,039,000). Liabilities:
NIS 15,757,000 (NIS 23,790,000)
In its 2013 annual statements, SYNEL M.L.L.
reported that subject meets all its financial covenants.
Financial data is
included in the consolidated B/S of parent company, SYNEL M.L.L. PAYWAY LTD.,
which shows:
NIS
(thousands)
31.12.2013 31.03.2014
ASSETS
Current assets
Cash and cash equivalents 6,775 2,918
Financial assets in fair value 15,793 15,270
Customers 34,421 36,965
Other debtors 1,163 1,408
Other current assets 2,990 2,767
Stock 16,222 15,931
77,364 75,259
Non-current assets
Fixed assets (net) 10,751 10,662
Real estate for investment 239,610 260,001
Goodwill and other intangible assets 31,681 31,745
Other non-current assets 10,802 9,108
292,844 311,516
370,208 386,775
======= =======
LIABILITIES
Current
liabilities 61,307 65,376
Non-current liabilities 161,302 170,312
Equity 147,599 151,087
370,208 386,775
======= =======
SYNEL M.L.L.
PAYWAY LTD. current market value US$ 26.5 million.
Subject's B/S data
which was published as part of the acquisition by M.L.L. PAYWAY LTD. showed:
31.12.2008 30.06.2009
Total assets 14,794,000 15,688,000
Total liabilities 18,851,000 18,876,000
There are 8
charges for unlimited amounts registered on the company's assets (financial and
fixed assets), in favor of The First International Bank of Israel Ltd., Bank
Hapoalim Ltd., Bank Leumi Le'Israel Ltd. and a leasing company (last charge
placed March 2008).
2008 sales were
NIS 25,960,000, making an operating profit of NIS 2,480,000, and a net profit
of NIS 1,234,000.
2009 sales claimed
to be 30,000,000, ending with a net loss of NIS 34,000.
2010 sales claimed
to be 30,000,000, making a net profit of NIS 678,000.
Subject ended 2011
with a net profit of NIS 366,000.
Subject ended 2012
with a net profit of NIS 881,000.
Subject ended 2013
with a net profit of NIS 81,000.
Revenues of the
"Low Voltage" Segment in SYNEL financial statements:
2011 revenues were
NIS 32,876,000, making an operating profit of
NIS 1,775,000.
2012 revenues were
NIS 36,211,000, making an operating profit of
NIS 2,595,000.
Note: following
assuming LOGIPHONE's activities, all segment revenues are subject's.
2013 revenues were
NIS 26,992,000, making an operating profit of
NIS 926,000.
SYNEL
M.L.L. PAYWAY LTD.
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2011 2012 2013
Revenues (sales, services and leasing) 133,284 142,594 132,130
Gross profit 60,839 65,628 62,444
Operating income 22,247 27,432 27,774
Pre-tax income 12,757 21,896 22,187
Net income 5,717 17,646 12,529
====== ====== ======
SYNEL M.L.L. PAYWAY LTD. consolidated revenues
for the first 3 months of 2014 were NIS 31,450,000 (similar to the parallel
period in 2013), making a gross profit of NIS 15,266,000, an operating income
of NIS 6,420,000, and a net income of NIS 3,488,000.
SYNEL M.L.L.
PAYWAY LTD., parent company, established in 1989 and publicly traded since
2000. Directly and through its subsidiaries, operates in the following lines of
activities:
1. Developers, manufacturers,
exporters and marketers of data collection systems and solutions for workforce management, time and attendance, access control and job
costing applications, as well as providers of service and solutions in the
Human Resources management field.
2. Owners and leasers of real
estate assets.
3. Low voltage operations (subject)
Holds:
DORSEL (B.A.Z.)
LTD., 80%, a public limited company whose shares are traded on the Tel Aviv
Stock Exchange, a yielding properties real estate company, current market value
US$ 33.1 million, owns DORSEL RAANANA LTD. 100% and HAMADA 5 YOKNEAM LTD., 50%.
TIME AMERICA,
100%, U.S.A.,
SYNEL INDUSTRIES
(UK) LTD., 80%, U.K., holds 90% in SYNEL FRANCE (SYSIO), France,
FEROX KONSULT AB,
50%, Sweden.
The First
International Bank of Israel Ltd., Kiryat Hamelacha Branch (No. 055), Tel Aviv.
Bank Hapoalim
Ltd., Azor Branch (No. 639), Azor.
Nothing
unfavorable learned on subject.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Subject is a
veteran business, well-known in its field and considered to be one of the
largest local companies in the field of CCTV import and marketing with an
estimated market share of 50%.
Subject is ISO
9001:2000 certified.
The acquisition of
subject by SYNEL Group was synergetic to the Group’s activities of Access
Control Division and LOGIPHONE (switchboard area).
In May 2007,
subject signed several agreements worth NIS 5.5 million for the export of CCTV
systems to European and African countries. According to the reports, among the
companies subject signed contracts with are SECURITY WORLD in Kenya and EMI in
Nigeria.
In August 2007, it
was reported that subject signed an agreement with SANYO of Japan for exclusive
representation in Israel for the CCTV systems.
Also in August
2007, it was reported that subject opened a center in Bulgaria.
In July 2010 it
was reported that subject will represent ACTI of Taiwan.
In July 2012 it
was reported that subject received the representation of BRICKCOM, VISION
ARECONT and HUNT.
In the end of
December 2012 SYNEL reported on merging LOGIPHONE PHONE COMMUNICATION,
incorporated in 1992, into subject to
achieve greater efficiency in the "Low Voltage" Sector. In November
2013 the Tax Authorities approved the merger which will be affective from 31.12.2012.
Final merger is awaiting legal registration.
According
to the Israel Association of Electronics & Software, Hi-Tech industries
sales in 2013 summed up to US$ 27.3 billion, over 6% rise from 2012 (then sales
were US$ 25.6 billion, up from US$ 24.8 billion in 2011 and US$ 23.5 billion in
2010). 2013 sales divided into export of US$ 22.86 billion (US$ 21.48 billion,
US$ 20.99 billion & US$ 19.87 billion in 2012, 2011 & 2010,
respectively) and US$ 4.4 billion of sales to the local market (US$ 4.1 billion,
US$ 3.9 billion & US$ 3.6 billion in 2012, 2011 & 2010, respectively).
Investments
(capital formation) in imported machinery and other equipment (M&E) by the
hi-tech industries in the branches of computers, electronic and optical
production in 2013 fell by 55.4% from 2012, reaching NIS 2,552.5 million,
continuing the negative trend in 2012, when investment fell by 30.5% from 2011.
Good for trade
engagements.
Maximum unsecured
credit recommended US$ 150,000.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.79 |
|
|
1 |
Rs.102.66 |
|
Euro |
1 |
Rs.81.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.