MIRA INFORM REPORT

 

 

Report Date :

23.05.2014

 

IDENTIFICATION DETAILS

 

Name :

TECHNO BAR LTD.

 

 

Registered Office :

10 Lazarov Street, Industrial Zone, Rishon Le-Zion 7565416

 

 

Country :

Israel

 

 

Date of Incorporation :

08.08.1973

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importers and marketers of stainless steel products,

 

 

No. of Employees

100

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

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 – 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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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

 

TECHNO BAR LTD.

(Also known as TECHNOBAR)

Telephone    972 3 963 23 33

Fax              972 3 961 92 43 /6

P.O. Box 5141, Rishon Le-Zion (7515002)

10 Lazarov Street

Industrial Zone

 RISHON LE-ZION 7565416 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-065779-4 on the 08.08.1973.

In 1997 took over the business activities of its sister company SHLOMO BARTAL & SONS LTD. (which turned into a real estate company), Bartal family private company incorporated in 1971, which succeeded the operation of a sole proprietorship called "TECHNICA & AGRICULTURE", established in 1946 by Shlomo Bartal.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 280.00, divided into -

            2,799,000 ordinary shares (2,379,050 shares issued),

            1,000 founder shares (issued), all of NIS 0.0001 each,

of which shares amounting to NIS 238.005 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.      Shlomo Bartal, 50% (of founder and ordinary shares issued),

2.      Aharon Bartal, 50% of founder shares and 25% of ordinary shares issued,

3.      Israel Bartal, 25% of ordinary shares issued.

 

 

DIRECTORS

 

1.      Aharon Bartal, General Manager, son of Shlomo Bartal,

2.      Shlomo Bartal.

BUSINESS

 

Importers and marketers of stainless steel products,

Also importers, traders and marketers industrial piping and metals to the industry, including: plates, sheets, bars, pipes and tubes, and accessories (fittings, flanges, valves and control valves, steam systems, etc.).

 

All sales are to the local market.

 

Among customers: Ministry of Defense, AGAN CHEMICAL MANUFACTURERS, TNUVA, STRAUSS GROUP/ ELITE, OSEM, DEAD SEA WORKS, THE ISRAEL ELECTRIC CORP., MAKTESHIM CHEMICALS WORKS, OIL REFNERIES, TEVA PHRAMACEUTICAL INDUSTRIES, K.B.A. TOWNBUILDERS GROUP, INTEL ISRAEL, ISRAEL AEROSPACE INDUSTRIES, etc.

 

Most of purchases are from import.

Among local products suppliers: FRC - AGENCIES (agencies)

Among local suppliers which subject is a local distributor for: HABONIM INDUSTRIAL VALVES, HAM-LET, MIDDLE EAST TUBE CO.

Subject sells goods by foreign manufacturers, including of GEORGE FISCHER, ESCO, CARDINAL UHP.

Among service suppliers: SAP ISRAEL.

 

Sole local representatives of:

JHONSON (KADANT), of USA (Fluid Handling)

AXAIR, WALTERMEIER, both of Switzerland.

Among foreign suppliers: MARCEGALI (Italy), etc.

 

Operating from the following premises:

1.      Offices and warehouses, owned by the shareholders, on an area of 7,000 sq. meters, in 10 Lazarov Street, Industrial Zone, Rishon Le-Zion.

2.      Owned warehouses, on an area of 1,400 sq. meters, in Hebron Road, Sara Valley Industrial Zone, Beer Sheva.

3.      A rented store, on an area of 1,100 sq. meters in 41 Shlomo Bar Yoseph Street, Industrial Zone, Kiryat Ata.

 

Had 100 employees as of the end of 2009 (same as in 2008). Current number of employees not disclosed.

 

 

MEANS

 

Stock was valued at NIS 50,000,000 at the beginning of 2009.

Other and later financial data not forthcoming.

 

There are 7 charges for unlimited amounts registered on company’s assets (financial assets and fixed assets), in favor of The First International Bank of Israel Ltd., Bank Leumi Le'Israel Ltd. and Bank Hapoalim Ltd. (latest 2 charges placed in 2012 and 2013, also on financial assets, prior to that charge was placed in 2008, also on financial assets).

 


REVENUES

 

2006 sales claimed to be circa NIS 140,000,000.

2007 sales claimed to be circa NIS 150,000,000.

2008 sales claimed to be circa NIS 140,000,000.

Later sale figures not forthcoming.

 

 

OTHER COMPANIES

 

BARTAL SHLOMO & SONS LTD., owned by Bartal family, a real estate company.

TAHALICH-PROPERTIES & INVESTMENTS (1985) LTD., a real estate company.

 

 

BANKERS

 

Bank Leumi Le’Israel Ltd., Rishon Le-Zion Business Branch (No. 671), Rishon Le-Zion, account No. 91100/96 – main account.

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

In our interview with subject's officials in the end of 2013, they refused to update financial and employee data. In the current interview, they asked for a fax with our questions, which we sent, but it remains unanswered.

 

Subject is long established family company, well-known in its field. Among subject’s clients are leading local industrial corporations.

 

Subject is ISO 9001:2000 certified.

 

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.

 

 

The 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).

 

According to CBS, investments by the local industrial branch in imported machinery and other equipment in 2013 witnessed 24.6% (in current prices) decrease from 2012, after a 20.6% decrease in 2012 from 2011 (which follows the increase by 108% in 2011 from 2010). The fall in 2013 and 2012 in investment could be explained by the continuing unfavorable business environment, which is also negatively affected by the slow-down in overseas markets. The decrease in 2013 occurred in the Hi-Tech branches (51% decrease, fell 30% in 2012), in the Medium-Low-Technology branches (15% decrease, fell 23% in 2012) and to a lesser extent in the Low-Tech branches (by 1%, fell 17% in 2012), whereas in the Medium-High Technology there was a rise by 15% (continuing the 16% rise in 2012).

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial and other data, considered good for trade engagements.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.57

UK Pound

1

Rs.98.87

Euro

1

Rs.80.05

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.