MIRA INFORM REPORT

 

 

Report Date :

29.07.2014

 

IDENTIFICATION DETAILS

 

Name :

ZAHAVI STEEL LTD.

 

 

Formerly Known As :

Y. ZAHAVI & CO.

 

 

Registered Office :

37 Abulafia Street Tel Aviv 6655009

 

 

Country :

Israel

 

 

Date of Incorporation :

1936

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         Manufacturers and markers of metal springs, dies, disks and other various metal products.

·         Import is of raw materials.

 

 

No. of Employees

30

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

 

 


Company Name and address

 

ZAHAVI STEEL LTD.

Telephone         972 3 683 72 31

Fax                   972 3 683 74 84

Email:               i_zahavi@zahav.net.il

37 Abulafia Street

TEL AVIV 6655009 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a sole proprietorship in 1936 under the name Y. ZAHAVI & CO.

 

Converted into a private limited company and registered as such as per file No. 51-402294-6 on the 08.08.2007.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 50,000.00, divided into -

            50,000 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Yitzhak Shadar.

 

 

SOLE DIRECTOR

 

Yitzhak Shadar, born 1930.

 

 

GENERAL MANAGER

 

Moshe Shadar, son of Yitzhak Shadar.

 

 

BUSINESS

 

Manufacturers and markers of metal springs, dies, disks and other various metal products.

Import is of raw materials.

 

Among clientele: Ministry of Defense, ELBIT SYSTEMS, ISRAEL MILITARY INDUSTRIES, and more.

 

Among local suppliers: SCOPE METALS, ISKOOR METALS AND STEELS, PACKER YADPAZ.

 

Operating from rented premises, on an area of 900 sq. meters, in 37 Abulafia Street, Tel Aviv.

 

Having 30 employees.

 

 

MEANS

 

Current stock is valued at NIS 400,000.

 

Other financial data not forthcoming.

 

There is 1 charge for an unlimited registered on the company's assets (financial assets), in favor of Bank Leumi Le'Israel Ltd. (charge placed 2007).

 

 

REVENUES

 

2012 sales claimed to be NIS 7,000,000.

2013 sales claimed to be NIS 7,000,000.

Sales for the first 6 months of 2014 claimed to be NIS 3,500,000.

 

 

BANKERS

 

Bank Leumi Le'Israel Ltd., Florentine Branch (No. 805), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

This is a very veteran business.

 

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. 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 import of metals raw materials to the local industries: Import of Iron and Steel in 2013 kept the negative trend from 2012 after a remarkable recovery in the years 2010 and 2011 from 2009 with decreased by 2.3% reaching US$ 2,127 million (fell 11.5% in 2012, after rising by over 30% per year in 2010 and in 2011); On the other hand, import of Precious Metals rose by 7.3% in 2013 to US$ 157 million (fell 13% in 2012 after rising by 2% in 2011 and 22.5% in 2010), and import of Non-ferrous Metals increased by 6% to US$ 850 million (after a 13% fall in 2012 and rise by 20% in 2011 and by 41% in 2010).

 

Central Bureau of Statistics (CBS) data reveals that investments by the local manufacturing industries in machinery & equipment (M&E) in 2013 fell by 12% from 2012, after a decrease by 3% in 2012. Investments whose source was from import, which comprised 62% of total investment by the industries in M&E, fell by 21.5%, while investments whose source was from local manufacturing rose by 11.5% in 2013.

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.

 

 

SUMMARY

 

Good for trade engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.10

UK Pound

1

Rs.102.04

Euro

1

Rs.80.74

                

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

SDA

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.