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Report No. : |
314647 |
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Report Date : |
01.04.2015 |
IDENTIFICATION DETAILS
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Name : |
SHINTRACO LTD. |
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Registered Office : |
P.O. Box 1825 (5211702),
5 Hahilazon Street, Ramat Gan 5252269 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
05.11.1991 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and marketers of fodder, basic foodstuff commodities and raw
materials, e.g. sugar, edible oil, rice, various grains and seeds including
wheat, beans, corn. |
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No. of Employees : |
30 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Israel |
A2 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
SHINTRACO LTD.
Telephone 972 3 751 10 04 /5
Fax 972 3 752 35 08
Email: shalom@shintraco.co.il
P.O. Box 1825
(5211702)
5 Hahilazon Street
Ramat Gan 5252269 Israel
A private limited
company, incorporated as per file No. 51-161820-9 on the 05.11.1991.
Authorized share capital
NIS 430,000.00, divided into -
430,000 ordinary
shares of NIS 1.00 each,
of which 426,000
shares amounting to NIS 426,000.00 were issued.
1. PROALUM S.A., 76%, subsidiary of CETACO S.A.,
of Genčve, Switzerland,
2. Shalom Hatuka, 24%.
Shalom Hatuka.
Importers and
marketers of fodder, basic foodstuff commodities and raw materials, e.g. sugar,
edible oil, rice, various grains and seeds including wheat, beans, corn. Subject
imports hundreds thousands tons a year.
Also operating a
flour mill and a factory for processing animal fodder seed.
Among clients:
ANGEL'S BAKERY, TELMA – UNILEVER ISRAEL, EDEN CANDY & FOOD INDUSTRIES,
ACHDUT BAKERY, STRAUSS-ELITE, PRINCE TEHINA MANUFACTURING, etc
All purchases are
from import.
Operating from
rented premises:
1. Offices, on an area of 580
sq. meters in 5 Hahilazon Street, Ramat Gan,
2. Warehouse in Kibbutz Hulda,
on an area of 1,400 sq. meters.
3. Feed mill and warehouse in
Mabo’im Village, on an area of 5,000 sq. meters.
4. Warehouse in Beit Elazar
Village, on an area of 10,000 sq. meters.
Having some 30
employees (had 28 employees in 2013, 31 employees in 2012, 20 employees 2010), current employee number not forthcoming.
Stock
was valued at NIS 50,000,000 in the 1st half of 2013. Current value
not forthcoming.
B/S shows (last obtainable):
NIS
31.12.2011
ASSETS
Current assets 154,956,000
Fixed assets 5,364,000
Investments in subsidiaries 15,908,875
176,228,875
==========
LIABILITIES
Current liabilities 116,952,000
Long-term liabilities 3,725,000
Provisions 723,000
Equity and surpluses 54,828,875
176,228,875
==========
Subject reported that
in 2013 it purchased offices in the B.S.R. 4 project, a luxurious office
building, in Bnei Brak.
There are 33
charges for unlimited amounts, as well as 3 charges for total sum of NIS
3,850,000.00 registered on the company's assets (financial assets, stock and
vehicles), in favor of Mizrahi Tefahot Bank Ltd., Israel Discount Bank Ltd.,
Bank Hapoalim Ltd., Bank Leumi Le’Israel Ltd., local leasing companies and a
foreign company (7 last charges placed during 2014, of which 4 on financial
assets and 3 on vehicles).
REVENUES
Statement
of Income
NIS
(thousands)
Year
ended 31.12
2006 2007
Sales 335,758,324 429,429,906
Gross profit 13,313,305 18,320,670
Operating income 9,188,346 13,374,570
Profit before taxes 8,931,869 18,762,448
Net profit for the year 6,157,129 13,259,536
========== ==========
2008 sales were
NIS 470,000,000.
2009 sales were
NIS 343,000,000.
2010 sales were
NIS 391,000,000.
2011 sales were
NIS 612,000,000.
2012 sales were
NIS 963,000,000.
2013 sales reported
to be exceeding NIS 1,000,000,000.
Later
sales data not forthcoming.
ISHBAR WHEAT LTD.,
50%, importers, traders and marketers of edible wheat, assumed activities of
SHAR BAR TVUOT & TRADE LTD. (50% by subject) in 2012.
ISRA-BAR OILS & GRAINS LTD., storage of wheat for emergency.
SHLOMTZIYON
ENTERPRISE K.P. LTD., 40% held by Shalom Hatuka, engaged in international
trade, import and marketing in several lines: heavy-duty equipment, iron for
the building sector, and machinery for tin and metal plants.
Bank Hapoalim Ltd., Ramat Gan Business Branch (No. 176), Ramat Gan,
account No. 145522.
Mizrahi Tefahot Bank Ltd., Hamigdal Branch (No. 477), Ramat Gan,
account No. 285840.
Israel Discount Bank Ltd., Main Tel Aviv Branch (No. 010), Tel Aviv,
account No. 43374.
Bank Leumi Le’Israel Ltd., Beer Sheva
Business Branch (No. 607), Beer Sheva,
account No. 819300/55.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m accounts.
In February 2007
Police forces and the Tax Authorities raided subject's offices, following
suspicions of assisting in financing Palestinian terror organizations, which
were outlawed by Israel. Subject's General Manager, Shalom Hatuka, was detained,
as well as other workers. According to the accusations, subject knowingly dealt
directly with a Palestinian company, which was announced by the Minister of
Defense as an "Unauthorized Association", due to proven continuous
finance of terror organizations.
In March 2008, the
State filed an indictment to the Tel Aviv District Court against subject and
Mr. Shalom Hatuka, on the charges mentioned above of indirectly, though
knowingly, financing terror parties.
In January 2009,
subject and Shalom Hatuka agreed to a plea bargain, and were convicted on a/m
accusations. Subject was sentenced to a fine of NIS 250,000, and Shalom Hatuka
was sentenced to 15 months imprisonment, of which 5 months in practice (which
were converted to community work), and a fine of NIS 250,000.
Nothing
unfavorable learned on subject in the business aspect.
Despite
our efforts, we have been unable to speak with subject's CFO, as he is
extremely busy, asking us to call after the holidays (next week it is a holiday
period in Israel). Upon speaking to him we shall update you accordingly.
This is a veteran
business, well-known in its field, a leading company in the field of import and
wholesale of foodstuff commodities.
In 2012, subject won
an Agriculture Ministry tender for 16,000 tons of wheat for animals. Also in
2012, subject set up ISHBAR GRAINS together with Israeli flour mills, and
acquired a flour mill in the north of the country.
According
to Central Bureau of Statistics (CBS), import of food and
beverages to Israel in 2014 reached NIS 7,687 million, an impressive rise by
10.7% from 2013, continuing the upward growth trend in the last years (0.7% in
2013, 14% in 2012).
The
CBS data
shows that import of raw food products to Israel in 2013
summed up to NIS 8,172.2 million, 4.4% down from 2013 (in NIS terms, fell 3.2%
in $ terms). That continues the downwards trend from 2013 and 2012 when it fell
by 6.4% and 2.7%, respectively, whereas in both 2011 & 2010 import rose by
around 20% each year. Over 50% of import is from the EU.
From the CBS
preliminary National Accounts for 2014 on private consumption expenditure, it
turns that the current local households expenditure grew by 3.9% from 2013,
after rising by 3.3% in 2013 and by 3.2% in 2012. Expenditure on Food, Beverage & Tobacco increased in 2014
by 2.7% (after 3.7% rise in 2013, 3.2% in 2012).
Import of agricultural raw materials to Israel in 2014 reached US$ 1,001.5
million, 4.5% increase from 2012 (though marked 2.1% decrease in local NIS
currency), of which US$ 766.1 million attributed to import of Fodder. In 2014
import of agricultural input rose by 9.8% from 2013.
Total value of purchases for the agricultural sector in 2013, including
animal feed (comprises 39%), water, electricity & oils, reached NIS 17.7
billion.
Notwithstanding the lack of updated data from subject's officials,
considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.59 |
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1 |
Rs.92.45 |
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Euro |
1 |
Rs.67.51 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TPT |
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.