MIRA INFORM REPORT

 

 

Report Date :

08.11.2014

 

IDENTIFICATION DETAILS

 

Name :

AVIV - RECYCLING INDUSTRIES LTD.

 

 

Registered Office :

P.O. Box 127, Farm No. 8 , Kfar Truman 7315000

 

 

Country :

Israel

 

 

Date of Incorporation :

31.03.1991

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Marketers and exporters of recycled plastic, operating a plastic recycling plant, producing P.E.T. flakes. Subject uses mainly plastic bottles, and enjoys incentives from the Ministry of Environmental Protection.

 

 

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 :

Slow but correct

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

 

 

note

 

AVIV RECYCLING LIMITED

 

 

Company Name & address

 

AVIV - RECYCLING INDUSTRIES LTD.

Telephone             972 3 970 29 93

Fax                       972 3 970 29 96

Email: pniot@avivplastic.co.il

P.O. Box 127

Farm No. 8

Kfar Truman 7315000 Israel

 

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-155811-6 on the 31.03.1991.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 7,700,000.00, divided into -

7,700,000 ordinary shares of NIS 1.00 each, of which 1,000,000 shares amounting to NIS 1,000,000.00 were issued.

 

 

SHAREHOLDERS

 

1.    Itzhak Mizrahi, 35%,

2.    Mrs. Aliza Mizrahi, 35%,

3.    ISRAEL PLASTICS INC., 15%, a foreign company owned by Mizrahi family,

4.    Ziv Mizrahi, 3.75%,

5.    Ms. Dafna Ben Yaakov, 3.75%,

6.    Yaron Mizrahi, 3.75%,

7.    Oded Mizrahi, 3.75%.

In practice, subject is owned by Mizrahi family.

 


DIRECTORS

 

1.    Itzhak Mizrahi, General Manager,

2.    Mrs. Aliza Mizrahi.

 

 

BUSINESS

 

Marketers and exporters of recycled plastic, operating a plastic recycling plant, producing P.E.T. flakes. Subject uses mainly plastic bottles, and enjoys incentives from the Ministry of Environmental Protection.

20% of sales are export.

 

Subject signed a contract with local municipalities, positioning at street corners containers for collecting plastic bottles (P.E.T) for recycling.

 

Operating from office premises, owned by the Mizrahi family, in Farm No. 8, Kfar Truman, and from an owned plant, on an area of 25,000 sq. meters, in Neot Hovav.

 

Having 100 employees (same as in 2013).

 

 

MEANS

 

Financial data not forthcoming.

 

Subject is an “Approved Enterprise” and as such entitled for State support, grants and tax relief.

In May 1998 the Israeli Investment Centre (IIC) approved a US$ 4.7 million investment plan for the expansion of subject’s plant.

 

There are 12 charges for unlimited amounts registered on the company's assets (financial assets, fixed assets equipments and vehicles), in favor of Bank Leumi Le'Israel Ltd., Mercantile Discount Bank Ltd. and Mizrahi Tefahot Bank Ltd. (last 5 charges placed May-September 2014).

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

ISRAEL PLASTICS INC., a foreign company registered also in Israel, incorporated in 1952 and owned by Mizrahi family.

 

BANKERS

 

Union Bank of Israel Ltd., Jerusalem Main Branch (No. 051), Jerusalem.

 Mizrahi Tefahot Bank Ltd., Keshet Airport City Branch (No. 418), Lod.

 

 

CHARACTER AND REPUTATION

 

Although itself being an environmental plant, subject was involved in environmental violations. In June 2011 it was reported that the Chief of Ramat Hovav Council ordered an administrative closing of subject's plant due to a fire which broke out, which was caused by violations of fire regulations and faults in plants maintenance.

Also in June 2011 it was reported that the Ministry of Environmental Protection ordered a criminal investigation against subject's plant in Ramat Hovav, due to sewerage violations.

We did not find further data on a/m matters.

 

Apart from that, nothing unfavorable learned.

 

Subject's officials refused to disclose financial data.

 

Subject is the largest local plant of plastic recycling, processing some 6,000 tons per year. Subject won the tender of the Ministry of Environmental Protection for the recycling of plastic bottles, collects the plastic bottles from containers stationed at municipalities

 

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 7.6% from 2012 up to US$ 1,969 million, after it fell by some 3% in 2012 from 2011, returning to the growth trend in 2011 (by 15% from 2010). Growth in export trend continued into the first 7 months of 2014, with 7.7% rise compared to the parallel period in 2013.

 

According to the Central Bureau of Statistics, import of Plastic and Rubber raw material for the local industry in 2013 summed up to US$ 2,409.6 million, compared to US$ 2,345.7 in 2012. The positive trend continued in the first 4 months of 2014, where import rose by 6.7% compared to the parallel period in 2013.

 

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.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial details, considered good for trade engagements.

Maximum unsecured credit recommended US$ 100,000.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.52

UK Pound

1

Rs.97.39

Euro

1

Rs76.15

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

TPT

 


 

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.