IRA INFORM REPORT

 

 

Report No. :

302661

Report Date :

15.01.2015

 

IDENTIFICATION DETAILS

 

Name :

RONOPOLIDAN LTD

 

 

Registered Office :

P.O. Box 88 4 Hashoham Street Industrial Zone Barkan 4482000 Israel

 

 

Country :

Israel

 

 

Date of Incorporation :

16.05.1969

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers, marketers and exporters of flexible plastic packaging, mainly for the food and beverages industries.

 

 

No. of Employees :

80

 

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 :

Slow but correct

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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


note

 

TOAM FOR RONOPOLIDAN LTD.

 

TOAM IMPORT AND EXPORT AGRICULTURAL COOPERATIVE SOCIETY LTD. (hereinafter “TOAM”), importers of equipment, industrial raw materials and other supplies, acting as a central buying organization. Goods are ordered by TOAM on behalf of the clients (mainly agricultural communal settlements i.e. “kibbutzim”, but also other manufacturers), and sent by the suppliers directly to customers. It also handles the importing procedures on behalf of its clients, as well as providing them with credits.

Operating from offices in 11, Meytav Street, Tel Aviv.

We hereby report on RONOPOLIDAN LTD.

 

 

Company name and address

 

RONOPOLIDAN LTD.

(Also trading as: RONOPOLIDAN PACKAGING LTD.)

Telephone         972 3 936 71 31

Fax                   972 3 936 71 51

Email:               rpp@rpp.co.il

 

P.O. Box 88

4 Hashoham Street

Industrial Zone

Barkan 4482000 Israel

 

Website: www.rrp.co.il

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-051745-1 on the 16.05.1969.

 

Originally registered under the name RONOPOL PLASTIC INDUSTRIES LTD., which changed to the present one on the 03.03.2002 after merging, as of 01.01.2002, the activities with POLIDAN LTD. (registration No. 51-061895-2), which was established by Alon Family in 1972.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 8,000,000.00, divided into -

7,999,995 ordinary shares (7,625,000 shares issued),

5 senior shares, all of NIS 1.00 each,

of which shares amounting to NIS 7,625,000.00 were issued.

 

SHAREHOLDERS

 

Subject is fully owned by Oded and Jacob Neumark, holding as follows (according to the Registrar of Companies):

RONOPOLIDAN LTD. (subject itself), 60%,

Oded Neumark, 20%,

Jacob Neumark, 20%,

 

 

DIRECTORS & JOINT GENERAL MANAGERS

 

Jacob Neumark,

Oded Neumark.

 

 

BUSINESS

 

Manufacturers, marketers and exporters of flexible plastic packaging, mainly for the food and beverages industries.

Activities consist of manufacturing, printing and marketing of polyethylene bags.

Level of export is relatively minor.

 

Amongst clients are leading local food and consumer goods industries: THE CENTRAL BOTTLING CO. (Coca Cola Israel), UNILEVER ISRAEL, TNUVA, SUNFROST, KIMBERLEY-HOGLA, SANO, MAADANOT, MILUOUT, BEIGEL & BEIGEL, STRAUSS GROUP, OSEM-NESTLE, ZOGLOWEK, GOLF-KITAN, MEY EDEN, etc.

 

Most purchasing is from import.

Subject imports raw materials for production and machinery (machinery is imported from Germany, Italy, Spain, etc.).

Among local suppliers & service providers: PIONEER PLATES, C.N.F., CONSULTANTS, A.G.S.

 

Operating from rented premises (offices, plant and warehouses), on an area of 8,000 sq. meters (of which 4,200 sq. meters are built), in 4 Hashoham Street, Industrial Zone, Barkan.

 

Having 80 employees as of mid 2013, current number unavailable (same as in the end of 2012, had 85 employees in the beginning of 2011).

 

 

MEANS

 

Inventory was valued at over NIS 10,000,000 in mid 2013 (similar to previous years' levels).

Later and other financial data not forthcoming.

 

 

There are 33 charges for unlimited amounts and a further 10 charges for the sums of US$ 46,000.00 and NIS 11,576,172.00 registered on the company's assets (fixed assets, financial assets equipment and vehicles), in favor of the State of Israel, Bank Massad Ltd., Bank Otsar Hahayal Ltd., Bank Hapoalim Ltd, Israel Discount Bank Ltd., Union Bank of Israel Ltd. and companies.

 

 

REVENUES

 

2007 sales claimed to be NIS 80,000,000.

2008 sales claimed to be NIS 80,000,000.

2009 sales claimed to be NIS 72,000,000.

2010 sales claimed to be NIS 70,000,000.

2011 sales claimed to be NIS 70,000,000.

2012 sales claimed to be NIS 70,000,000.

2013 first 8 months sales claimed to be NIS 48,000,000.

Later sales figures not forthcoming.

 

 

OTHER COMPANIES

 

NIR – EFRAT LTD., controlled by Neumark family.

 

 

BANKERS

 

Israel Discount Bank Ltd., Main Branch (No. 010), Tel Aviv.

Bank Hapoalim Ltd., Neve Monoson Branch (No. 573), Neve Monoson/ Yehud.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned on subject itself.

 

Despite our efforts, we were unable to speak with both subject's general managers, as they were always unavailable or too busy to take our calls. We sent an email with our request, which so far remains unanswered. We shall update you after we manage to speak with them and get fresh data.

 

Subject is ISO-9002 certified.

 

This is a very long established company and considered one of the leading local companies in its field.

 

In May 2006 the Securities Authority brought to the arrest of Giora Naftali, one of the shareholders of MEY EDEN, a public company whose shares are traded on the Tel Aviv Stock Exchange and a client of subject (Giora Naftali also a director in subject at the time), together with 3 of his friends, Oded Neumark (shareholder in subject) being one of them.

 

Mr. Naftali was suspected in violating the securities rules, by using inside information of MEY EDEN towards a major deal.

According to suspicions, he tipped the data to his 3 friends, who gained considerable amounts of money as a result of the data. The 4 were bailed out and the Securities Authority announced it is continuing the investigation.

In July 2007 it was reported that the Securities Authority transferred the file to the Attorney General's Office with their suspicions of findings.

We found no further data on case, which may have been closed.

 

The Society of Israel Plastic & Rubber Industry published data on the sector for 2011: The sector’s turnover (both local and for export) reached US$ 5,075 million. Sales breakdown: 30% of the Plastic & Rubber sector's sales are Household Products, 23% - Agriculture, 16% - Packaging, 9% - Building sector, 9% Industry, 5% Furniture, 4% - Compounds (rest is to other fields).

 

Sales for export by the Plastic and Rubber Industry in 2013 climbed by 7.6% from 2012 up to US$ 1,969 million, after it fell by some 3% in 2012 from 2011, returning to the growth trend in 2011 (by 15% from 2010). Growth in export trend continued into the first 7 months of 2014, with 7.7% rise compared to the parallel period in 2013.

 

According to the Central Bureau of Statistics, import of Plastic and Rubber raw material for the local industry in 2013 summed up to US$ 2,409.6 million, compared to US$ 2,345.7 in 2012. The positive trend continued in the first 4 months of 2014, where import rose by 6.7% compared to the parallel period in 2013.

 

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 (4.5% from 2011), while investments rose in 2011 and 2010.

 

 

SUMMARY

 

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

 

NOTE: The address, as well as the telephone numbers you provided, belongs to TOAM (as mentioned in caption).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.15

UK Pound

1

Rs.94.24

Euro

1

Rs.73.30

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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.