MIRA INFORM REPORT

 

 

Report No. :

331553

Report Date :

17.07.2015

 

IDENTIFICATION DETAILS

 

Name :

ELYAKIM BEN ARI LTD.

 

 

Registered Office :

P.O. Box 2455 (7712302), 6 Hahadarim Street, Industrial Zone, Ashdod 7761303

 

 

Country :

Israel

 

 

Date of Incorporation :

12.01.1970

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Civil Engineering Company

 

 

No. of Employees :

240

 

 

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

 

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

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-053256-7 on the 12.01.1970.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 13,640,000.00, divided into: -

13,640,000 ordinary shares of NIS 1.00 each, fully issued.

 

 

SHAREHOLDERS

 

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.

 

 

DIRECTORS

 

1.    Daniel Ben Ari, General Manager,

2.    Tomer Koko.

 

 

BUSINESS

 

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).

 

 

MEANS

 

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).

 

 

REVENUES

 

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.

 

 

OTHER COMPANIES

 

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%.

 

 

BANKERS

 

Bank Leumi Le'Israel Ltd., Hacharoshet Business Branch (No. 651), Holon.

 

 

CHARACTER AND REPUTATION

 

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).

 

 

SUMMARY

 

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

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.50

UK Pound

1

Rs.99.17

Euro

1

Rs.69.39

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.