MIRA INFORM REPORT

 

 

Report No. :

304900

Report Date :

30.01.2015

 

IDENTIFICATION DETAILS

 

Name :

SHACHAM GIVAT ADA LTD.

 

 

Formerly Known As :

·         SHACHAM MINERALS LTD

·         SHACHAM –MINERALS $ CHEMICALS FOR THE INDUSTRY AND AGRICULTURE LTD

 

 

Registered Office :

P.O. Box 12 (3780801), Binyamina Local Council, Givat Ada 3780800

 

 

Country :

Israel

 

 

Date of Incorporation :

19.05.1964

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Designers, manufacturers, exporters and marketers of organic pellets for fertilizers. Also recyclers and producers of organic materials in four categories: organic fertilizer in pellet form, bio compost, soil-less growing media and animal feed.

 

 

No. of Employees :

50 Employees

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

 

 

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 – 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

 

 

 

 


Company Name and address

 

SHACHAM GIVAT ADA LTD.

Telephone        972 4 638 95 51

Fax                  972 4 638 95 56

Email: shacham1@netvision.net.il

P.O. Box 12 (3780801)

Binyamina Local Council

GIVAT ADA 3780800 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-043238-8 on the 19.05.1964.

 

Originally registered under the name of SHACHAM MINERALS LTD., which changed to SHACHAM –MINERALS $ CHEMICALS FOR THE INDUSTRY AND AGRICULTURE LTD. on 10.03.1981, which changed to the present name on the 10.05.1984.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 33,100.00, divided into:

4,999,994 ordinary shares, of NIS 0.0001 each (3,619,700 shares issued),

32,500 ordinary shares, of NIS 1.00 each,

100 management shares, of NIS 1.00 each (6 shares issued)

6 management shares, of NIS 0.0001 each (issued), of which shares amounting to NIS 367.9706 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by the heirs of the Late Elisha Kalai (who is still the registered shareholder).

 

 

DIRECTORS

 

1.    Yaron Shapira, General Manager,

2.    Chaim Kalai,

3.    Boaz Naor,

4.    Yohanan Filtz,

5.    Menachem Einan.

 

 

BUSINESS

 

Designers, manufacturers, exporters and marketers of organic pellets for fertilizers. Also recyclers and producers of organic materials in four categories: organic fertilizer in pellet form, bio compost, soil-less growing media and animal feed.

 

According to our, 25%-30% of sales are for export, mainly to Southern Spain and Portugal, as well as to Germany and Holland.

 

Among local clients: AMIR SUPPLY, HAGARIN, HAMASHBIR FOR AGRICULTURE, GIVAT BRENNER NURSERIES, etc.

 

Among local suppliers: FERTILIZER S & CHEMICALS, GENIGAR, HAMASHBIR FOR AGRICULTURE, etc.

 

Operating from owned premises, offices, plant and warehouse, on an area of 12,000 sq. meters, in Givat Ada, a village within the Binyamina Local Council, in the Sharon Area.

 

Having 50 employees, as of end of 2012. Current employees number unavailable.

 

 

MEANS

 

Financial data not forthcoming.

 

There are 28 charges for unlimited amounts, as well as 3 charges for the total sum of NIS 501,190.41 registered on the company’s assets (financial assets, fixed assets, equipment and vehicles), in favor of Bank Leumi Le'Israel Ltd., Bank Hapoalim Ltd. and local companies (last charge placed July 2012, prior 3 charges placed September 2009).

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

Sister companies also controlled by the Late Elisha Kalai:

KFIR MINERALS LTD., marketing special sand platforms for pets.

DEKEL INFRASRUCTURES (2001) LTD., operating a quarry, marketing sand for the construction field.

 

 

BANKERS

 

Bank Hapoalim Ltd., Hadera Business Branch (No. 072), Hadera, account

No. 524987.

 

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m account.

 

 

CHARACTER AND REPUTATION

 

In 2011, a group of residents from the villages in proximity to subject's plant in Givat Ada, organized and started a public struggle against subject, due to severe odor hazards for many years.

 

In May 2012 it was reported that a local resident of Regavim (in close proximity to subject's plant) filed a motion to the Haifa District Court for the approval as a class action lawsuit for the sum of NIS 40 million, on that matter (it should be noted that the procedure for such claims to be approved are usually long and mostly eventually turned down or reach compromise).

 

In November 2013 there was a hearing for subject at the Ministry of Environment concerning the claims, after the Ministry collected evidence of the claimed hazards.

 

In December 2014 it was reported that subject's plant near Givat Ada will be closed down by the end of 2015, as reported in a meeting of the environmental committee of Binyamina-Givat Ada Council held in November 2014. It is noted that the decision was taken despite the fact that the odor disturbances actually has been decreasing in recent years, after subject installed filtering systems in their main plant, following the complaints.

 

At this stage we have been unable to speak with any of subject's officials, as all the officials who are authorized to disclose data are currently out of office and due back in a week's time. Therefore, at present we do not know the status of the closure of the plant, whether it is scheduled to be transferred to elsewhere, or else. We shall contact the officials upon their return and update you accordingly.

 

Nothing unfavorable learned apart from the above.

 

This is a very long established company. It is considered the largest plant in its field in Israel.

 

Investments in the Agriculture sector fell by 8.1% in 2013, continuing the decrease by 10% in 2012 (and 5% rise in 2011). Investments in machinery & equipment in the sector also fell, by 4.9% in 2013 (after rising by 6% in 2012).

 

 


SUMMARY

 

In principle, subject is known to be good for trade engagements. However, in view of the above said concerning the possibility of closing subject's plant, we prefer to wait with our recommendation till we get to speak with subject's officials.

 

This report is furnished to you in strict confidence for your EXCLUSIVE use. The correctness of same is not guaranteed, but it has been obtained in good faith from sources deemed reliable as of this date.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.93.12

Euro

1

Rs.69.32

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.