MIRA INFORM REPORT

 

 

Report No. :

329147

Report Date :

02.07.2015

 

IDENTIFICATION DETAILS

 

Name :

LUXEMBOURG PAMOL LTD.

 

 

Formerly Known As :

LUXEMBURG INDUSTRIES (PAMOL) LTD.

 

PAMOL LTD

 

 

Registered Office :

P.O. Box 13 (6100010), 27 Hamered Street, Tel Aviv 6812509

 

 

Country :

Israel

 

 

Year of Establishment :

1930

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacturers, exporters and marketers of chemicals, agro-chemicals, raw and intermediate materials for the pharmaceutical and bio-technology fields (mainly crop protection chemicals).

 

 

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 – March  31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 2013, 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. 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

 

LUXEMBOURG PAMOL LTD.

 

Telephone                  972 3 796 43 00

Fax                            972 3 510 04 74

P.O. Box 13 (6100010)

27 Hamered Street

TEL AVIV 6812509 ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established in the 1930’s by the Late Israel Luxemburg.

Converted into a private limited company, incorporated as per file No. 51-050556-3 on the 17.10.1968.

 

Originally registered under the name of PAMOL LTD., which changed to LUXEMBURG INDUSTRIES (PAMOL) LTD. on the 01.03.1989, which changed to the present name on the 11.12.2003.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 10,000,000.00, divided into -

                10,000,000 ordinary shares of NIS 1.00 each,

of which 8,084,210 shares amounting to NIS 8,084,210.00 were issued.

 

 

SHAREHOLDERS

 

Subject is owned by Luxemburg family, i.e. David Luxemburg – 76%, and his brothers (12% each) Itzhak Luxemburg and Yoav Luxemburg.

According to the Registrar of Companies, shareholders are:

1.    RUTH AND AVRAHAM LTD., 95%,

2.    YARDENI – GELFAND TRUSTEES (2000) LTD., 5%.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

David Luxemburg

 

 

BUSINESS

 

A holding company, with no commercial activities.

Fully owns LUXEMBOURG INDUSTRIES LTD., manufacturers, exporters and marketers of chemicals, agro-chemicals, raw and intermediate materials for the pharmaceutical and bio-technology fields (mainly crop protection chemicals).

66% of the Group’s sales are exports.

 

 

Until the 01.01.2004 subject operated in the above field, when it transferred all commercial and industrial activities to the fully owned subsidiary and became a holding company.

 

Operating from Group’s Headquarters offices, owned by Group, in 27 Hamered Street, Tel Aviv. The Group also operates from:

1.  Owned plant, on an area of 50,000 sq. meters (one third is built), in Ramat Hovav Industrial Zone.

2.  Owned plant, on an area of 22,000 sq. meters, in Industrial Zone, Arad.

3.  Rented warehouses, on an area of 1,200 sq. meters, in the Ashdod Port area.

 

Subject has no employees.

Having some 174 employees in LUXEMBOURG Group (had 170 employees in mid 2013).

 

MEANS

Group’s consolidated stock valued at US$ 10 million (held mainly by LUXEMBOURG INDUSTRIES).

 

In September 2014 we were informed by LUXEMBOURG INDUSTRIES's accountant that it is very profitable, its equity exceeds US$ 20 million, and is over 50% of total B/S.

 

Subject's equity to the 31.12.2008 totaled NIS 90 million.

 

The LUXEMBOURG Group is an “Approved Enterprise” and as such enjoys tax benefits and state incentives.

In May 2004, the Israeli Investment Center approved a US$ 1.37 million investment plan for the expansion of subsidiary LUXEMBOURG INDUSTRIES plant in Arad.

 

There is 1 charge for an unlimited amount registered on the company's assets (fixed assets and equipment), in favor of the State of Israel (charge placed 1990).

 

 

REVENUES

 

LUXEMBOURG Group consolidated sales (chiefly LUXEMBOURG INDUSTRIES):

2014 sales claimed to be US$ 53,000,000, of which 66% for export.

Sales for the first 6 months of 2015 claimed to be US$ 25,000,000, of which 66% for export.

 

 

OTHER COMPANIES

 

LUXEMBOURG Group includes:

LUXEMBOURG INDUSTRIES LTD., 100%, manufacturers, exporters and marketers of chemicals, agro-chemicals, raw and intermediate materials for the pharmaceutical and bio-technology fields.

LUXEMBOURG-PAMOL INC., 100%, USA,

LUXEMBOURG PAMOL (CYPRUS) LTD., 100%, Cyprus,

LUXEMBOURG BRASIL LTDA., 100%, Brazil,

LUXEMBOURG D.O.O., 100%, Serbia.

 

LUXEMBURG CHEMICALS AND AGRICULTURE LTD., non-active,

LUXEMBOURG HOLDINGS (1955) LTD., real estate holding.

Luxembourg family also holds other real estate holdings companies.

 

LUXEMBOURG BIO TECHNOLOGIES LTD., controlled by Yoav Luxembourg.

 

 

BANKERS

 

Bank Leumi Le'Israel Ltd., Principal Branch Tel Aviv (No. 800), Tel Aviv.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

We spoke with subject's CFO, who confirmed to us that subject is a holding company and has no commercial activities. All the Group’s business activities are handled by subject’s subsidiary LUXEMBOURG INDUSTRIES LTD.

 

Subject and the Group are very long established.

Mr. David Luxemburg is a respectful businessman. He is known to be a person of very much wealth (as is the Luxemburg family), owner (some alone, some with partners) of several highly valued real estate assets.

 

In 1997 subject established a new company LIMA DELTA LTD., with DOW AGROSCIENCE B.V. (HOLLAND), a subsidiary of DOW CHEMICALS (one of the largest corporations in the world in the chemical field). Each party held 50% of the new company. This company was established in order to use the technologies and know how of both parent companies to manufacture the pesticide “Chlorapiripus” in a plant in Ramat Hovav and distribute it worldwide. However, during 2000, it ceased all its activities and retrenched its 60 employees. Later, in 2004, it resumed activities (in present form as LUXEMBOURG INDUSTRIES LTD.).

 

During 2000, subject sold its shares (50%) in LUXEMBURG PHARMACEUTICALS LTD. to MAKHTESHIM-AGAN Group (today under the name ADAMA Group).

 

LUXEMBOURG INDUSTRIES  is part of the “Arad Initiative”, a group of industrial companies which won in mid 2008 the Chief Scientist Office (Industry & Trade Ministry) tender to establish an industrial Technological Incubator, designed to support and promote technology-based start-up ventures in various industrial areas. The programme is taking place in the Negev Region in the country’s south, and LUXEMBOURG INDUSTRIES  is the partner who supports ventures in the chemistry and biology fields.

 

LUXEMBOURG INDUSTRIES's accountant informed us that recently LUXEMBOURG INDUSTRIES signed a deal to acquire from a Chinese firm (2 representatives who came to Israel and were escorted by David Luxemburg) raw materials in volume of US$ 6,000,000 per year.

 

 

SUMMARY

 

Being a holding company and credit is irrelevant. In principle LUXEMBOURG Group is considered good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.62

UK Pound

1

Rs.99.89

Euro

1

Rs.70.77

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

VNT

 

               

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.