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Report Date : |
17.06.2014 |
IDENTIFICATION DETAILS
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Name : |
TOSAF COMPOUNDS LTD. |
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Registered Office : |
P.O. Box 2633, Afula, Industrial Area, Alon Tavor 1812601 |
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Country : |
Israel |
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Date of Incorporation : |
05.09.1989 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Subject is engaged in Developers, processors, manufacturers, exporters and marketers of compounds, colors and additives concentrates for the plastic industry out of basic raw materials and polymers extracts |
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No of Employees : |
450 |
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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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
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Source
: CIA |
TOSAF COMPOUNDS
LTD.
Alon Tavor Site:
Telephone 972 4 606 80 00; 642 04
19
Fax 972 4 642 04 23
P.O. Box 2633,
Afula
Industrial Area
ALON TAVOR 1812601 ISRAEL
Tnuvot Site:
Telephone 972 9 898 46 84
Fax 972 9 898 46 49
P.O. Box 52, KFAR
YONA (4035001)
Industrial Zone
TNUVOT 4283000 ISRAEL
E-mail: tosafcom@tosaf.com
Originally established
as a department in TOSAF – MEGIDES JOSEPH AND SONS FARM (1981) LTD. (originally
founded in 1951).
Converted into a
private limited company and registered as such as per file
No. 51-141084-7 on the 05.09.1989 under the name of TIRKOVOT PLASTIYIM M.B.S.
LTD., changed to TIRKOVOT PLASTIC M.B.S. LTD. (or in English translation M.B.S.
PLASTIC COMPOUNDS LTD.), on the 16.04.1992 and on the 07.02.1993 changed to the
present one.
On the 29.10.1993
converted into a public limited liability company and registered in file No.
52-004021-3.
In January 1994
published a prospectus offering shares to the public, following which shares
started to be trading on the Tel Aviv Stock Exchange.
In August 2002,
following a successful tender offer by WORLD COLOR CORP. B.V., subject’s shares
were de-listed from trade and subject re-converted into a private limited
company (keeping same latest registration number).
On the 01.01.2003,
all activities of subsidiary TOSAF - MEGIDES JOSEPH AND SONS FARM (1981) LTD.,
were transferred into subject and on 06.11.2005 the subsidiary was legally
merged into subject.
Authorized share
capital NIS 11,870,000.00, divided into: -
11,870,000
ordinary shares of NIS 1.00 each,
of which 6,492,767 shares amounting to NIS 6,492,767.00 were issued.
Subject is fully
owned by MEGIDES ASSETS A.M.A 2000 LTD., fully owned by WORLD COLOR CORP. B.V.
(hereinafter WCC).
WCC is owned: 70%
by MEGIDES HOLDINGS B.V., a holding company controlled by Amos Megides and 30%
by RAVAGO B.V., of Belgium, who acquired their shares from Amos Megides in
2001.
1.
Amos Megides, Chairman and General Manager,
2.
Ezra Megides,
3.
Menahem Megides, both 2 a/m brothers of Amos
Megides.
Erez Levy.
Developers,
processors, manufacturers, exporters and marketers of compounds, colors and
additives concentrates for the plastic industry out of basic raw materials and
polymers extracts from the petrochemical industry.
Some 70% of sales
are for export.
Subject’s clients
are from the agricultural sector, as well as plastic, automotive, electronic,
electrical, construction and other industries.
Among many local
customers are: ZRICHA HLAVIN INDS., KETER PLASTIC, PALRIG, STARPLAST, TERAFLEX
INDUSTRIES, AMGAT, TELDOR CABLES, PLASTIV YAKUM, BANIAS, DOLAV DVIR LAHAV
PLASTIC PRODUCTS, GENIGAR PLASTIC PRODUCTS, PALGAL PLASTIC INDUSTRIES, ROTONIV
TECHNOLOGIES, POLYRAZ - PLASTIC INDUSTRIES, VOLTA BELTING TECHNOLOGY, etc.
Subject purchases
its raw materials, equipment and machinery from some 35 local and overseas
suppliers.
Among local
suppliers: PETRUS CHEMICALS, ALLIBERT PLAST.
Operating from
rented premises, offices and 2 plants, one on an area of 25,000 sq. meters and
2nd plant, on an area of 20,000 sq. meters, both in the Industrial
Area, Alon Tavor, in the Afula region (based on our files, Amos Megides owns at
least one of the plant premises), as well as a 3rd plant, on an area
of 15,000 sq. meters (rented), in the Tnuvot Industrial Zone (Moshav Tnuvot,
some 10km east of Netanya).
Also operating
from 7 plants abroad (Turkey, Holland, England and Germany).
Having 450
employees.
Having 850
employees serving the whole International Group (had 750 employees in end of
2013).
Group’s
consolidated stock is valued at NIS 170 million (same as in mid 2013, was
valued at NIS 150 million in end of 2011).
Subject is an
"Approved Enterprise" and as such entitled for State investment
grants and tax benefits. In the framework of approved investment plans totaling
NIS 78 million, up until 2001 received grants amounting to NIS 33.7 million,
including an investment of US$ 8.2 million for the extension of subject’s plant
in Alon Tavor, approved by the Israeli Investments Center (IIC) in 1999.
In August 2006,
IIC approved another investment plan
for the expansion of subject’s plant, in total of NIS 45 million.
In January 2008,
it was reported that subject is expanding its Alon Tavor plant, with investment
of NIS 100 million.
Full financial
statements not disclosed.
There are 36
charges for unlimited amounts registered on the company's assets, in favor of
the State of Israel, Bank Hapoalim Ltd., Bank Leumi Le’Israel Ltd. and a
company (last charge placed December 2013).
Consolidated 2007
sales claimed to be NIS 1,100 million, 70% for export.
Consolidated 2008
sales claimed to be NIS 1,080 million, 70% for export.
Consolidated 2009
sales claimed to be NIS 1,100 million, 70% for export.
Consolidated 2010 sales
claimed to be NIS 1,100 million, 70% for export.
Consolidated 2011
sales claimed to be NIS 1,350 million, 70% for export.
Consolidated 2012
sales claimed to be US$ 350 million, 70% for export.
Consolidated 2013 sales claimed to be US$ 350 million, 70%
for export
RESINEX ISRAEL
LTD., 70%, subject's trade company.
TOSAF TECHNOLOGIES
LTD., 100%, investments in technology sector
TOSAF
INTERNATIONAL (formerly M.B.S. PLASTIC COMPOUNDS), Holland
TOSAF PLASTIK SAN,
Turkey, 100%, markets subject’s products in Turkey
TSAF N.V., Belgium
TOSAF ITALY SRL,
Italy
M.A.M. ADVANCED
PACKAGING LTD., 50%, partnered by KETER PLASTICS.
MEGIDES HOLDINGS
B.V., a holding company owned by Amos Megides.
MEGIDES ASSETS
A.M.A. 2000 LTD.
A. MEGIDES HOLDINGS
LTD., both latter holding companies, fully owned by Amos Megides.
S. H. F. – UPGRADED PLASTIC MATERIALS LTD.,
controlled by the Megides Family, manufacturers, marketers, exporters and
recyclers of raw materials for the plastic field.
RAVAGO B.V., of
Belgium, dealing in raw materials to the plastic industry.
SYFAN SAAD COMPANY
(99) LTD., 98%, manufacturers, exporters and marketers of "SYTEC"
polyolefin and PVC shrink films for display and food packaging
applications.
Bank Hapoalim
Ltd., Netanya Branch (No. 612), Netanya, account No 186574.
Bank Leumi
Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv, account
No. 399400/19.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m accounts.
Nothing
unfavorable learned.
Having the
international ISO 9001:2000 quality standard.
Subject is a
leading company in its field in Israel, its competitors are local (KAFRIT
INDS., POLYRAM RAM ON INDS.) and various importers.
In January 2000
subject purchased from Amos Megides, the full control of TOSAF-MEGIDES JOSEPH
AND SONS FARM (1981) LTD., in consideration of NIS 10.7 million.
In October 2001 it was reported that Mr. Amos
Megides sold 25% of his shares in subject’s parent to the Belgium concern,
RAVAGO. RAVAGO, a holding company which holds companies in the field of raw
materials to the plastic industry. In
August 2003, it was reported that subject, together with RAVAGO, intends to
invest in several joint ventures in Europe.
In March 2010
subject completed the acquisition 25% of SYFAN SAAD COMPANY, a plastic
packaging plant founded in Kibbutz Saad in 1981 and controlled by Kibbutz Saad.
SYFAN 2010 sales were circa NIS 65 million. It also fully owns a subsidiary in
the U.S.A. (SYFAN USA INC.), during 2014 subject increased its holdings to 98%.
The Society of
Israel Plastic & Rubber Industry published data on the sector for 2011: The
sector’s turnover (both local and for export) reached US$ 5,075 million. Sales
breakdown: 30% of the Plastic & Rubber sector's sales are Household
Products, 23% - Agriculture, 16% - Packaging, 9% - Building sector, 9%
Industry, 5% Furniture, 4% - Compounds (rest is to other fields).
Sales for export by the Plastic and Rubber Industry in 2013 climbed by
7% from 2012 up to US$ 1,961 million, after it fell by some 3% in 2012 from
2011, returning to the growth trend in 2011 (by 15% from 2010).
According to the
Central Bureau of Statistics, import of Plastic and Rubber raw material for the
local industry in 2013 summed up to NIS 8,702.6 million, falling by 3.7% from
2012. In 2012 import rose by 6% from 2011, keeping the growth trend from 2010
and 2009, though in a well lower pace.
Investment in imported machinery and equipment by the Plastic &
Rubber industries fell in 2013 by 20% from 2012, totaling NIS 383.5 million.
This is after a decrease in 2012 by 4.5% from 2011, whereas investments rose in
2011 and in 2010.
Good for trade engagements.
Maximum unsecured credit recommended up to several US$ millions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 60.00 |
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1 |
Rs. 101.99 |
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Euro |
1 |
Rs. 81.25 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
DPT |
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.