MIRA INFORM REPORT

 

 

Report No. :

308662

Report Date :

24.02.2015

 

IDENTIFICATION DETAILS

 

Name :

DURAM INDUSTRIES A.C. LTD.

 

 

Registered Office :

Ramat Hakovesh 4493000

 

 

Country :

Israel

 

 

Year of Establishment :

1968

 

 

Legal Form :

Agricultural Cooperative Society, Assuming all activities and assets of the Limited Partnership.

 

 

Line of Business :

Manufacturers, distributors, marketers and exporters of technical rubber goods and parts, including a wide range of O-rings for various applications, picking fingers for all types of pickers, rubber slings for the automotive industry, various gaskets, seals and machetes for sanitary equipment, PVC pipes and irrigation systems, technical parts for the electronic and security industry, and many custom made rubber parts for different applications as well as parts for agricultural machinery such as doffers and moistening systems for cotton pickers.

 

 

No. of Employees :

Not Available

 

 

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

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      

 

DURAM INDUSTRIES A.C. LTD.

Telephone      972 9 747 44 58

Fax                972 9 747 44 79

Email:            Duram@netvision.net.il

RAMAT HAKOVESH 4493000 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as a limited partnership under the name DURAM RUBBER PRODUCTS, registered as per file No. 55-000244-8 on the 25.02.1974, continuing a department of Kibbutz Ramat Hakovesh established in 1968.

 

In 2011 converted into an agricultural cooperative society (A.C.S.) registered as such as per file No. 57-004355-4, assuming all activities and assets of the limited partnership. The ACS registered in 2003, however remained dormant until 2011.

 

Share capital data not forthcoming.

 

 

OWNERSHIP

 

Subject is fully owned by Kibbutz Ramat Hakovesh, a co-operative society, operating a communal agricultural settlement.

 

 

GENERAL MANAGER

 

Amnon Ben-Peretz.

 

 

BUSINESS

 

Manufacturers, distributors, marketers and exporters of technical rubber goods and parts, including a wide range of O-rings for various applications, picking fingers for all types of pickers, rubber slings for the automotive industry, various gaskets, seals and machetes for sanitary equipment, PVC pipes and irrigation systems, technical parts for the electronic and security industry, and many custom made rubber parts for different applications as well as parts for agricultural machinery such as doffers and moistening systems for cotton pickers.

Some 65% of sales are for export.

 

Operating from premises (plant, offices, storage facilities), on an area of 7,000 sq. meters, in Kibbutz Ramat Hakovesh (premises owned by the Kibbutz), situated north to Kfar Saba.

 

Note: "Kibbutz" is a typical local cooperative agricultural settlement/ village.

 

Number of employees not forthcoming.

 

 

MEANS

 

Financial data unavailable.

 

Kibbutz Ramat Hakovesh is considered financially solid.

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

Kibbutz Ramat Hakovesh also holds:

DURAM MASK A.C. LTD., established 1989, manufacturers of high quality technical rubber products, and the 'Duram Escape Mask' - a line of special emergency escape masks, designed for personal use in situations involving smoke, fire, chemical spill or chemical/biological terror attack.

 

DURAM RUBBER PRODUCTS IN INJECTION RAMAT HAKOVESH, limited partnership.

 

 

BANKERS

 

Bank data not forthcoming.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts, we were unable to speak with subject's General Manager, the authorized person to disclose data on the company. We left messages which remain unanswered. In case receive further information, we shall update you accordingly.

 

This is a long establish business. The plant is ISO 9001:2000 certified.

 

Kibbutz Ramat Hakovesh was established in 1932, has 380 members. It also cultivates a large area of agricultural land and field corps, orchards (avocado) on total land of 1,000,000 sq. meters, operates other farming branches (dairy farm, nursery, etc.), as well as a popular festive garden for celebration events (called Gan Hapeckan), and DESHE BERAMA, manufacturers and marketers of grass slabs.

 

In April 2014, it was reported that IT Group One1 completed a project of assimilating an ERP system into 5 corporations owned by Kibbutz Ramat Hakovesh, subject being one and main corporation, in a project with total value of NIS 700,000.

 

According to a market research firm published in mid 2014 (ordered by the Ministry of Economy), total revenues of the local Plastic & Rubber Industry reached US$ 5 billion (return to the levels in 2007, prior to the global economic crisis, when revenues fell and started to climb back since 2010), half of which was for export (which is comprise US$ 2.3 billion from goods, the rest from raw products). Sales breakdown: 30% of the branch's sales are for the Household, 23% - Agriculture, 16% - Packaging, 9% - Building sector, 9% Industry, 5% Furniture, 4% - Compounds (rest is to other fields).

There were 23,700 workers employed in the Plastic & Rubber branch in 2013.

 

According to the Central Bureau of Statistics (CBS), sales for export from the manufacturing of Plastic and Rubber products in 2014 climbed by 5.6% from 2013 up to US$ 2,078.5 million, continuing the upward trend from 2013 (rose 7.6% from 2012, after it fell by some 3% in 2012 from 2011).

 

According to the Central Bureau of Statistics (CBS), import of Plastic and Rubber raw material for the local industry in 2014 summed up to US$ 2,518 million, up 4.5% from 2013 (in $ terms, rose by 2.7% in 2013 from 2012).

Plastic & rubber raw materials consumption by the local industry is of around 1 million tons, 70% of which derives from import, the rest from local production (which is comprised mainly of simple raw materials).

 

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 lack of data from the company's officials, considered good for trade engagements.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.18

UK Pound

1

Rs.95.71

Euro

1

Rs.70.76

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.