MIRA INFORM REPORT

 

 

Report Date :

06.05.2014              

 

IDENTIFICATION DETAILS

 

Name :

EFAL CHEMICAL INDUSTRIES LTD.

 

 

Registered Office :

8 Hamelacha Street New Industrial Zone Netanya 4250543          

 

 

Country :

Israel

 

 

Date of Incorporation :

10.05.1976

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of inputs for the agricultural field (selling products under brand name 'Efal Agri'), including seeds, pesticides, plant protection, fertilizers

 

 

No. of Employees

27

 

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 – 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


Company name and address

 

EFAL CHEMICAL INDUSTRIES LTD.

 

Telephone         972 9 865 64 54

Fax                   972 9 865 42 78

 

P.O. Box 8213, Netanya

8 Hamelacha Street

New Industrial Zone

NETANYA         4250543            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-073537-6 on the 10.05.1976.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 39.7406, divided into: -

397,406 ordinary shares of NIS 0.0001 each,

of which 67,500 shares amounting to NIS 6.75 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

 

Subject is fully owned by Ron Pulman (after in 2008 he acquired 25% from NIPON Industries INC., of U.S.A., on top of the 75% he already held).

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Ron Pulman.


 

BUSINESS

 

Importers and marketers of inputs for the agricultural field (selling products under brand name 'Efal Agri'), including seeds, pesticides, plant protection, fertilizers, etc.

 

In April 2011subject sold its activities in the manufacture, export and marketing of chemicals, used as raw materials and intermediates for the pharmaceuticals and cosmetics industries, to subsidiary TAGRA BIOTECHNOLOGIES LTD.

 

Amongst clients: HAMASHBIR FOR AGRICULTURE, AMIR SUPPLY CO., etc.

 

All of purchases are imports.

 

Sole local representatives of (among others):

ALLIED COLLOIDS, of the U.K,

AMOCO, of Switzerland,

LONZA, ICEC, both of the U.S.A,

NAGASE, of Japan,

Enza Zaden, of Holland,

POLLALCO of Spain.

 

Operating from premises, on an area of 420 sq. meters (0f which 320 sq. meters owned by the shareholder and 100 sq. meters rented), in 8 Hamelacha Street, New Industrial Zone (Kiryat Nordau), Netanya. Also operating from rented warehouses in Netiv Halamed Hey village (200 sq. meters), and in Haomanut Street, Kiryat Nordau, Netanya (200 sq. meters).

 

Having 27 employees as of mid 2012 (had 30 employees in end of 2010, though it sold part of its activities).

Having some 50 employees serving EFAL Group.

 

 

MEANS

 

Consolidated stock was valued at NIS 6,000,000 in mid 2012.

Other and later financial data not forthcoming.

 

There are 30 charges for unlimited amounts registered on the company's assets, in favor of Bank Leumi Le’Israel Ltd., The First International Bank of Israel Ltd., Bank of Jerusalem Ltd., leasing and telecom companies (25 out of the 30 charges are on vehicles, including the last 5 charges placed in 2010 and 2011).

 

 

REVENUES

 

Subject's 2010 sales claimed to be NIS 71,000,000.

Subject's 2011 sales claimed to be NIS 72,000,000.

 

(Note: Subject's CFO told us that in 2010 the sales generated from the activities sold –in April 2011, as noted above- were relatively low, hence 2010 sales reflect subject's overall sales; He added that under TAGRA, these activities –that were sold- are currently in growth trend).

 

Group's consolidated sales (see OTHER COMPANIES below regarding included companies):

2009 sales claimed to be US$ 22,000,000, of which 20% is for export.

2010 sales claimed to be US$ 24,000,000, of which 20% is for export.

 

Subject's and Group's later sales figures not forthcoming.

 

 

OTHER COMPANIES

 

Also in subject's Group, controlled by subject and Ron Pulman:

TAGRA BIOTECHNOLOGIES LTD., 99.8%, developers, manufacturers and marketers of active ingredients to the cosmetics and pharmaceuticals industries; Also importers and marketers of inputs for the cosmetics field.

RUM-UP LTD., 50% owned by Ron Pulman, importers, distributors and service solution providers for lifting and handling mechanical equipment, including a wide range of forklifts for the industry and agriculture sectors.

EFAL INTERNATIONAL (R.P.) LTD., established in 1985, wholesales of chemicals for agriculture,

GALIL LABORATORIES LTD., established in 1992, deals in agricultural production,

MYCONTROL LTD., developers, manufacturers of biological insecticides for the agricultural field.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Herzliya Business Branch (No. 864), Herzliya, account
No. 110400/95.

 

A check with the Central Banks' database did not reveal anything detrimental on subject’s a/m account.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts we were unable to speak to subject's CFO. Upon contacting him we shall update you accordingly.

 

Subject is a long established company and known in its field.

 

According to the Bureau of Statistics data, Israel’s total agricultural output value in 2012 amounted to NIS 29 billion, representing a rise of 1.8% from 2011 (rose 7% in 2011 and 0.5% in 2010). The output divided between planted crops – NIS 17.4 billion and animals – NIS 11.6 billion (small increase in both from 2011). Agricultural output in quantity aspect rose by 4.9%.

The division of branches out of the total agricultural output value was (in parentheses 2011 rate): 21% vegetables and potato (22%); 6% citrus (5%); 18% other fruits (21%); 7% field crops (6%); 4% flowers (3%); 20% sheep & cattle (20%); 18% poultry (17%); 6% - Others (6%).

 

In 2012 value of agricultural input amounted to NIS 19.3 billion, 7.7% increase from 2011 (rose 12.5% in 2011 and 9.4% in 2010). Gross Domestic Product (output value minus purchased input) was NIS 11.9 billion.

Import of agricultural raw materials (excluding animal feed) to Israel in 2012 rose by 15.7% from 2011 to NIS 3.7 billion (after close to 22% rise in 2011 from 2010).

Import fell by 3% in the first 10 months of 2013 comparing to the parallel period in 2012 (reaching NIS 2.966 billion).

Total value of purchases for the agricultural sector, including animal feed (comprises some 40%), water, electricity & oils, reached NIS 17.1 billion.

A 4.8% rise in purchased input prices was recorded in 2012 compared to 2011.

 

 

SUMMARY

 

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

 

Note: 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

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.32

Euro

1

Rs.83.34

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.