MIRA INFORM REPORT

 

 

Report Date :

08.10.2014

 

IDENTIFICATION DETAILS

 

Name :

RAMIM ENGINEERING WORKS LTD.

 

 

Registered Office :

P.O. Box 668, Yuval Yaniv Street, Southern Industrial Zone, Kiryat Shmona1101502

 

 

Country :

Israel

 

 

Date of Incorporation :

01.08.1971

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

·         Metal works, specializing in communications boxes, and poles construction.

·         Designers, manufacturers and marketers of advanced steel and aluminum products – portable military shelters, high tension electric poles, telecommunications towers and structural elements.

 

 

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 – 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 & address

                                                                                                     

RAMIM ENGINEERING WORKS LTD.

Telephone 972 4 694 00 72

Fax  972 4 694 97 82

Email: office@ramim.net

P.O. Box 668

Yuval Yaniv Street

Southern Industrial Zone

Kiryat Shmona1101502 Israel

 

 

HISTORY & LEGAL FORMATION

 

A private limited liability company, incorporated as per file No. 51-058006-1 on the 01.08.1971.

 

Originally registered under the name GICHNER RAMIM LTD., which changed to the present name on the 24.10.1979.

 

Subject was founded by KOOR INDUSTRIES LTD. concern and was part of KOOR METALS Group since its inception. KOOR was owned by Israel Workers’ Union Enterprises and like many of the subsidiaries suffered from managerial problems, lack of profitability and accumulated losses, which reached climax in mid 1980s. Subject was even closed down for certain period form late 1988 till early 1989. KOOR INDUSTRIES Group went through massive re-organization, was sold to investors and in 1999 other investors (as below in SHAREHOLDERS) acquired KOOR METALS activities from KOOR INDUSTRIES, which included subject.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 10,000,000.00, divided into -

10,000,000 ordinary shares of NIS 1.00 each, of which 9,498,200 shares amounting to NIS 9,498,200.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by KOOR METALS GROUP LTD., owned by:

1.   RUBELLITE, 90%, a foreign company from Switzerland, controlled by Pinchas (Pini) Oslerne,

2.   Ms. Etle (Etti) Yohai, 10%.

 


DIRECTORS

 

1.  Pini Oslerne, Chairman & General Manager of KOOR METALS GROUP,

2.  Ms. Etti Yohai.

 

 

GENERAL MANAGER

 

Haim Segev

 

BUSINESS

 

Metal works, specializing in communications boxes, and poles construction.

Designers, manufacturers and marketers of advanced steel and aluminum products – portable military shelters, high tension electric poles, telecommunications towers and structural elements.

 

20% of sales are export.

 

Sales are mainly to the military sector.

 

Among local customers: ISRAEL ELECTRIC CORP., ISRAEL AEROSPACE INDUSTRIES, ELTA ELECTRONIC INDUSTRIES, RAFAEL ADVANCED DEFENSE SYSTEMS, ELBIT SYSTEMS, PAZ ASHDOD REFINERY, CARMEL OLEFINS

 

Among foreign clientele: NATO, US Army, M+W ZANDER, CHINA CIVIL ENGINEERING CONSTRUCTION CO., KOCKS KRANE, CIMOLAI, KONE CRANES, DOOSAN HEAVY INDUSTRIES, and more.

 

Most suppliers are foreign.

 

Operating from premises (offices, plant & facilities), on an area of 26,000 sq. meters (of which 20,000 sq. meters are owned by subject and the rest is leased), in Yuval Yaniv Street, Southern Industrial Zone, Kiryat Shmona.

Registered address is 17 Hatidhar Street, Ra’anana, which parent company’s address.

 

Having 100 employees (same as in mid 2013 and in mid 2011).

 

 

MEANS

 

Stock was valued at NIS 28,000,000 in mid 2011.

Other and later financial data not forthcoming.

 

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

In October 2008 the Israeli Investment Centre (IIC) approved a NIS 11,232,000 investment plan for the expansion of subject’s plant.

 

There are 21 charges for unlimited amounts, as well as a charge for the sum of NIS 453,950 registered on the company's assets (financial assets, fixed assets, equipment and vehicles), in favor of The State of Israel, Bank Leumi Le'Israel Ltd., The First International Bank of Israel Ltd., Bank Hapoalim Ltd., Mizrahi Tefahot Bank Ltd. and companies (last charge placed September 2013).

 

 

REVENUES

 

Subject’s sales:

2009 sales claimed to be NIS 84,000,000, of which 10% were for export.

2010 sales claimed to be NIS 82,000,000, of which 20% were for export.

Later sales data not forthcoming.

 

KOOR METALS GROUP consolidated sales (without PELEG-NIA):

2008 consolidated sales claimed to be NIS 250,000,000.

2009 consolidated sales claimed to be NIS 250,000,000.

 

2012 Group's consolidated sales reported to be estimated NIS 200,000,000.

 

 

OTHER COMPANIES

 

SIMAT INDUSTRIES LTD., 100%, CNC works, plant for metal precision engineered parts and subassemblies,

TAL TECHNOLOGYOT RITUCH LTD., 100%, CNC works.

 

RUBELLITE (ISRAEL) LTD.,

KOOR METALS GROUP LTD., parent company, also holds:

KOOR METALS LTD., incorporated in 1942, metal works and infrastructure projects constructions and civil engineering contractors, comprised of 2 main divisions:

1.    “Vulcan Engineering Works”, the manufacturing arm of KOOR METALS, specializes in heavy and special works, constructions, electric poles, train wagons, containers, cranes, pressure vessels and more,

2.    “Koor Projects Management”, execution, construction, supervision and managements of projects, which were manufactured by “Vulcan Engineering Works”.

KOOR METALS INDUSTRIES LTD.

SIMAT TRADING LTD.

TADIR-GAN (METAL) LTD.

KOOR METALS LABORATORIES & CLEAN ROOMS LTD., importers, distributors of equipment for laboratories and clean rooms, also engaged in design and erection of clean rooms.

 

PELEG-NIA LTD., 100%, engaged in manufacture of general shaft machining and sheeting for industrial uses; design, manufacture, assembly and installation of furniture products; and ergonomic solutions for the transportation market.

 

BANKERS

 

The First International Bank of Israel Ltd., Holon Business Branch (No. 078), Holon, account No. 313300.

Bank Leumi Le'Israel Ltd., Rishon Le-Zion Business Branch (No. 671), Rishon Le-Zion, account No. 111000/40.

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

 

Bank Hapoalim Ltd., Raanana Business Branch (No. 394), Raanana.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

Subject's official refused to update financial data.

 

Subject is ISO 9001 certified and meets international military standards.

 

In August 1999, KOOR METALS GROUP (formally ACCORD TECHNOLOGIES HOLDINGS (1999) LTD.) acquired KOOR METALS LTD. from KOOR INDUSTRIES LTD., in consideration of NIS 10.7 million.

 

KOOR METALS GROUP is very long established company, well known and among the leading in their branch.

 

In mid 2010 KOOR METALS GROUP and CLEARMARK CAPITAL Fund acquired (in equal parts) 85% of PELEG-NIA LTD., who stumbled upon grave financial difficulties, inconsideration of fueling NIS 12 million to PELEG-NIA who was traded on the Tel Aviv Stock Exchange (designed to pay debts to their bonds holders). In June 2014 following a successful tender offer, KOOR METALS GROUP reached full ownership of PELEG-NIA, paying NIS 2.5 million.

 

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).

 

Central Bureau of Statistics data reveals that investments by the local manufacturing industries -both from import and domestic production- in machinery & equipment (M&E) in 2012 fell by 1%, which comes after 41% rise in 2011. The investments originating from import, which comprised 70% of overall investment in M&E, fell 3.8% (after 69% rise in 2011), while investment originating from local production rose by 6.2% in 2012 (fell 5.3% in 2011).

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.

 

According to the Central Bureau of Statistics, investments by the local industrial branch in imported machinery and other equipment in 2012 witnessed almost 20% (in current prices) decrease from 2011, after climbing by 108% in 2011 from 2010. The fall in 2012 in investment could be explained by the continuing unfavorable business environment, which is also negatively affected by the slow-down in overseas markets.

 

 

SUMMARY

 

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

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.98.71

Euro

1

Rs.77.47

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.