MIRA INFORM REPORT

 

 

Report No. :

315822

Report Date :

08.04.2015

 

IDENTIFICATION DETAILS

 

Name :

DOMOTECK LTD.

 

 

Formerly Known As :

·         KAMIN-SCHEFER INVESTMENTS & FINANCE CO. LTD.

·         GAMA MANUFACTURING OF TEXTILE PRODUCTS LTD.

·         DECORA MANUFACTURING OF TEXTILE PRODUCTS (1977) LTD.

 

 

Registered Office :

P.O. Box 59, Ha’te'ena Street, Block 6, Tefen Industrial Zone, Migdal Tefen 2495900

 

 

Country :

Israel

 

 

Date of Incorporation :

28.09.1977

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, manufacturers, exporters and marketers of floor heating products such as cables and mats. Products used for indoor heating and outdoor for snow melting both for residential and commercial, and can be installed under tiles or marble, under laminate flooring or under carpet for indoor applications.

 

 

No. of Employees :

60 Employees

 

 

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 :

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Israel

B1

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 and address

           

DOMOTECK LTD.

Telephone    972 4 987 22 66; 635 68 18

Fax             972 4 987 22 69

Email:          berta@domoteck.com

P.O. Box 59

Ha’te'ena Street, Block 6

Tefen Industrial Zone

MIGDAL TEFEN 2495900 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-076593-6 on the 28.09.1977.

 

Originally registered under the name KAMIN-SCHEFER INVESTMENTS & FINANCE CO. LTD., which changed to GAMA MANUFACTURING OF TEXTILE PRODUCTS LTD. on the 18.11.1986, which changed to DECORA MANUFACTURING OF TEXTILE PRODUCTS (1977) LTD. on the 09.08.1987, and finally changed to the present name on the 02.02.1995.

 

In 2006 subject assumed the activities of affiliate D. K. ACCLIMATIZATION SYSTEMS LTD.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 1,500.00, divided into -

1,500 ordinary shares of NIS 1.00 each, of which 1,440 shares amounting to NIS 1,440.00 were issued.

 

 

SHAREHOLDERS

 

1.  DECORA GROUP LTD., 66.66%, owned by Danny Klein,

2.  F WEINBERG & CO. TRUST CO. LTD., 33.33%, a trustee holding on behalf of ELRON ELECTRONIC INDUSTRY LTD., SHAMROCK Investments Group, Avihu Nen-Nun and others.

 

Until December 2009, Danny Klein held 100% in subject (via owned DECORA GROUP LTD.). Then shareholder No. 2 gained one third of subject.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Danny Klein

 

 

BUSINESS

 

Developers, manufacturers, exporters and marketers of floor heating products such as cables and mats. Products used for indoor heating and outdoor for snow melting both for residential and commercial, and can be installed under tiles or marble, under laminate flooring or under carpet for indoor applications.

 

90% of sales are for export, to the U.S.A, Western Europe, Australia and New Zealand.

 

Among local suppliers: TAMBOUR, DVNET, CARMIEL TECHNICAL SUPPLY, ARROW/RAPAC, NEWLOG, SHEFI PACKAGING, SHLOMI PRINT, etc.

 

Operating from owned premises, on an area of 500 sq. meters, in Ha’te'ena Street, Block 6, Industrial Zone, Tefen (in the Upper Galilee region).

 

Having 60 employees.

 

 

MEANS

 

Work is based on orders.

 

Financial data not forthcoming.

 

Subject is an "Approved Enterprise", and as such entitled to tax benefits and State incentives.

 

There are 11 charges for unlimited amounts registered on the company's assets (fixed and financial assets), in favor of Bank Hapoalim Ltd., Mizrahi Tefahot Bank Ltd. and a vehicle leasing company. Charges placed between the years 1983 and last one in August 2014 (on a vehicle).

 

 

REVENUES

 

Group’s consolidated 2008 sales were NIS 45,739,000, 95% for export.

Group’s consolidated 2009 sales were NIS 31,289,000, 95% for export.

Group’s consolidated sales for the first 9 months of 2010 were NIS 17,943,000, 95% for export (drop in sales due to the global economic crisis).

Later sales figures not forthcoming.

 

 

OTHER COMPANIES

 

DOMOTECH GERMANY GmbH, 100%, a marketing subsidiary in Germany.

 

Also owned by Danny Klein:

DECORA GROUP LTD (formerly DECORA NAHARIYA LTD.), holding company, established in 1967.

 

D. K. ACCLIMATIZATION SYSTEMS LTD., non-active since January 2006.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Nahariya Branch (No. 443), Nahariya, account No. 624219.

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

 

Bank Hapoalim Ltd., Nahariya Business Branch (No. 168), Nahariya.

Mercantile Discount Bank Ltd., Nahariya Branch (No. 660), Nahariya.

Israel Discount Bank Ltd., Hamifratz Branch (No. 176), Haifa.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's officials refused to update financial data.

 

Subject is a long established company. The company is ISO 9001 certified.

 

Several years ago we obtained several favorable suppliers' opinions on subject's payments record:

SHEFI PACKAGING officials told us they are working with subject since early 2000s, supplying them with packaging products. Subject was described as a good client who always pays on time.

SHLOMI PRINT officials told us they are working with subject from mid 1990s, supplying them with printing services. Subject was described as a good client who always pays on time.

ARROW RAPAC officials told us they are working with subject for many years, supplying them with tools. Subject was described as a good client who always pays on time.

 

During 2004, subject sold its shares (25%) in S.P.O DOMOTECK, installers of heating solutions.

 

Corporate investors in subject are well-known:

SHAMROCK Fund is an investment fund controlled by the DISNEY family investing mostly in mature industries. To date, in over 20 years of investments in Israeli industrial companies, it invested some US$ 600 million.

 

ELRON ELECTRONIC INDUSTRIES LTD. is an investment company in hi-tech companies and start-up ventures. It is publicly traded on e Tel Aviv Stock Exchange, with current market value US$ 146.5 million.

 

 


SUMMARY

 

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


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.33

UK Pound

1

Rs.92.83

Euro

1

Rs.68.08

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.