MIRA INFORM REPORT

 

 

Report No. :

314647

Report Date :

01.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SHINTRACO LTD.

 

 

Registered Office :

P.O. Box 1825 (5211702), 5 Hahilazon Street, Ramat Gan 5252269

 

 

Country :

Israel

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

05.11.1991

 

 

Legal Form :

Private Limited Company

 

 

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.

 

 

No. of Employees :

30

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Israel

A2

B1

 

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

                                                                                                  

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

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-161820-9 on the 05.11.1991.

 

 

SHARE CAPITAL

 

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.

 

 

SHAREHOLDERS

 

1.    PROALUM S.A., 76%, subsidiary of CETACO S.A., of Genčve, Switzerland,

2.    Shalom Hatuka, 24%.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Shalom Hatuka.

 

 

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. 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.

 

 

MEANS

 

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.

 

 

OTHER COMPANIES

 

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.

 

 

BANKERS

 

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.

 

CHARACTER AND REPUTATION

 

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.

 

SUMMARY

 

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.59

UK Pound

1

Rs.92.45

Euro

1

Rs.67.51

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.