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Report No. : |
331553 |
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Report Date : |
17.07.2015 |
IDENTIFICATION DETAILS
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Name : |
ELYAKIM BEN ARI
LTD. |
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Registered Office : |
P.O.
Box 2455 (7712302), 6 Hahadarim Street, Industrial Zone, Ashdod 7761303 |
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Country : |
Israel |
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Date of Incorporation : |
12.01.1970 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Civil Engineering Company |
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No. of Employees : |
240 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
ELYAKIM BEN ARI LTD.
Telephone 972 8 856 25 52
Fax 972 8 856 14
56
Email: office@benari.co.il
P.O. Box 2455
(7712302)
6 Hahadarim Street
Industrial Zone
ASHDOD
7761303 ISRAEL
A private limited company, incorporated as
per file No. 51-053256-7 on the 12.01.1970.
Authorized share capital NIS 13,640,000.00,
divided into: -
13,640,000 ordinary shares of NIS 1.00 each,
fully issued.
1. DANIEL
BE ARI LTD., 50%, owned by Daniel Ben Ari,
2. TOMER
KOKO INVESTMENTS LTD., 50%, owned by Tomer Koko.
In February 2011 TOMER KOKO INVESTMENTS
acquired 50% of subject.
1. Daniel
Ben Ari, General Manager,
2. Tomer
Koko.
A civil engineering company (as well as a
holding company), heads BEN ARI Group, operating 5 quarries in Israel and a
quarry in Romania, and an asphalt plant. Also providing transport services for
quarry goods, and heavy equipment services.
Note: subject is
Group's main company.
Among Group's
clientele: SHAPIR CIVIL & MARINE ENGINEERING, DANYA CEBUS, ISRAEL RAILWAYS,
ISRAEL NATURAL GAS LINES, Ports Authority, Airport Authority, Ministry of
Defense, MEKOROT WATER CO., DEAD SEA WORKS, and more.
Among current
projects (both for State-owned companies):
1. Bridges for ISRAEL RAILWAYS rail lines.
2. A project for ISRAEL NATURAL GAS LINES.
Operating from premises, owned by shareholders,
on an area of 8,000 sq. meters (serving the Group), in 6 Hahadarim Street (and
not #26), Industrial Zone, Ashdod, from 5 quarries and an asphalt plant in
Israel, and a quarry in Romania. Also operating 2 garages for Group's uses
only.
Having 240 employees serving the Group (same
as in mid 2014).
Current inventory is valued at NIS
6,000,000.
Other financial data not forthcoming.
There are 78 charges for unlimited amounts,
as well as 5 charges for the total sum of NIS 1,308,780 registered on the
company's assets (vehicles and equipment – mostly, and financial assets), in
favor of Bank Leumi Le'Israel Ltd., Mizrahi Tefahot Bank Ltd. and companies
(last 7 charges placed January-April 2015).
Group's consolidated sales:
2012 sales claimed to be NIS 400,000,000.
2013 sales claimed to be NIS 400,000,000.
2014 sales claimed to be NIS 470,000,000.
Subject's Group of companies also includes:
BEN ARI TEL RAM PROJECTS LTD., 50%, a civil engineering
construction company, specializing in bridges (of all sorts), as well as other
concrete works.
OREN BEN ARI
ASPHALT LTD., operating an asphalt plant.
SA AFAR LTD., transportation services.
ELYAKIM BEN ARI ROTEM MARKETING LTD.
TOMER KOKO INVESTMENTS LTD., a holding and
managing company, managing KOKO Group (known as K-Group), headed by Tomer
Koko's father Ovadia, who established K-Group in 1984, with some 25 companies
in the transport & automotive, energy & fueling, real estate, investments
and more.
Among companies in the K-Group:
In the transportation field:
MAX TRUCKS AND
BUSES LTD., importers and marketers of SCANIA buses and trucks, and spare parts
thereof.
MAX SCANIA SERVICE CENTERS LTD.,
incorporated in 2013.
Companies related to K-Group's oil and
energy operations:
ISRAOIL ENERGY & ESSETS LTD.,
MIKA OPERATING GAS STATION LTD., operating
of petrol stations under the brand name 'Mika',
MAX - FUELS PRODUCTS COMPANY LTD.,
distributors of oils to fuel stations and other, such as Ashdod Port (local
largest sea port),
SHEFER & ELI LEVY (1993) TRANSPORT AND
FREIGHT LTD. (Note: was known to be -based on our past - owned by Ovadia Koko
and Avi Matan, bulk oils, gas and fuels haulage company. Also operating tens of
petrol stations and partners in public transportation concession lines.
NITZANIM ENERGY, PROMOTIONS &
INVESTMENTS LTD.,
K.N. GAS STATION LTD., incorporated in 2007.
Other companies:
T.B.N. RESTAURANT HOLDINGS LTD., 65%,
HAGIT & ORIT PROPERTIES LTD.,
ETERNITY HOLDINGS LTD.,
GOLAN-MIKA INSURANCE AGENCIES (2006) LTD.,
51%.
Bank Leumi Le'Israel Ltd., Hacharoshet
Business Branch (No. 651), Holon.
Nothing unfavorable learned.
Subject is a veteran company, and is ranked
9th in 2014 list of local infrastructure companies (8th
in the 2013 and in 2012), enjoying good reputation.
Subject is registered contractor in the
Israeli Contractors’ Almanac
(contractor No. 8792) as an
approved contractor in the following classifications: construction; sewage and
water drainage; roads and infrastructure development works (also approved for
government works in this category).
Tomer Koko is a known businessman. His
family is wealthy and familiar in the local business community
K-Group and Koko family are known to own
real estate properties, among them are the premises in 31 Hakidma Street,
Northern Industrial Zone, Ashdod, on an area of 1,500 sq. meters, as well as
the 'Mika' fueling stations compounds (currently 6 stations).
In addition, K-Group has a company which
provides tourism services of transportation and travel agency ("Century
21").
In 2013 K-Group opened its own fueling
stations chain, with fueling stations across the country under the name 'Mika'
(in addition to the stations operated by sister company SHEFER & ELI LEVY),
with intention to reach several tens of fueling stations, which include
convenient stores in their compounds.
Total investment in buildings and other
construction works in 2014 reached NIS 104.15 billion, 6% decrease from 2013
(when it rose 3.7% from 2012). The investment included NIS 66 billion in
residential building (-1.2% from 2013), of which 91.5% was for private
building, the rest for public building. Construction fell despite the
Government's efforts to increase investments. The fall in investment also lead
to a rise in houses prices.
Investment in construction for
non-residential building (public institutions, commerce, industry, etc.) summed
up to NIS 19.4 billion in 2014 (-12% from 2013), and investment in other
construction works (e.g. roads, offices, industrial, institutional) reached NIS
18.75 billion (-14%).
Investments in infrastructures comprise 19%
of total investments in construction.
Investment (Gross Domestic
Capital Formation) in infrastructure in Israel in 2014 marked 23% decrease
(continuing 13.4% decrease in 2013), reaching NIS 25.6 billion (in current
prices). The investment was divided into the transport -roads and railways-
sector (NIS 13.6 billion, 28% increase from 2012), energy sector (NIS 12.6
billion, 38% decrease), water (NIS 3.3 billion, 10% decrease), and
telecommunications (NIS 3.5 billion, rose by 11% from 2012).
The Ministry of Transportation development budget for investments in roads
& highways (handled by Israel's National Roads Co.), railways and public
transportation rose in the years 2005-2010 by 70%, reaching NIS 8.3 billion in
2010. In following years budget kept rising, and development budget of the
Ministry approved for 2014 sums up to NIS 12 - 13 billion (some 50% rise), and
will grow further in 2015 (the only budget which was not cut, in contrast to
the general cut all ministries' budgets due to economic crisis and budgetary
deficits).
Investments in
infrastructure is financed mainly out of the State Annual Budget, and the rest
comes from the private sector (including PFI based projects). According to the
State budget for 2011 & 2012 total expenditure for infrastructure and
construction stands on NIS 16.9 billion & NIS 17.9 billion, respectively
(6.3% of total expenditure).
Good for trade engagements.
Note: Since February 2013 Israel Post has
started using a new area code method of 7 digits (the old method of 5 digits is
no longer valid).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.63.50 |
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|
1 |
Rs.99.17 |
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Euro |
1 |
Rs.69.39 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.