MIRA INFORM REPORT

 

 

Report No. :

332856

Report Date :

29.07.2015

 

IDENTIFICATION DETAILS

 

Name :

LUXEMBOURG BIO TECHNOLOGIES LTD.

 

 

Registered Office :

P. O. Box 4133 (7414002), 8 Pinhas Sapir Street, Science Park Nes Ziona 7403631

 

 

Country :

Israel

 

 

Date of Incorporation :

06.01.2008

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers of chemistry procedures, manufacturers (via subcontractors) and international traders in chemicals, dealing mainly with reagents such as COMU, HDMC, OxymaPure, PyClock , PyOxim and others.

 

 

No. of Employees :

6

 

 

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 – 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 & address

                                                                                                     

LUXEMBOURG BIO TECHNOLOGIES LTD.

(Also known as LBT)

Telephone    972 8 946 60 40

Fax             972 8 946 64 02

Email:           main@peptide-and-dna.com

P. O. Box 4133 (7414002)

8 Pinhas Sapir Street

Science Park

Nes Ziona 7403631 Israel

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-407629-8 on the 06.01.2008.

 

Subject was founded as a spinoff of LUXEMBOURG INDUSTRIES LTD. (owned by the Luxembourg family), founded in 1997, itself continuing activities which began in 1930.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 100,000.00, divided into -

 9,999,471 ordinary shares (1,177 shares issued),

529 deferred shares (issued), all of NIS 0.01 each, of which 1,000 shares amounting to NIS 17.06 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Y.L EVEN-HAROSHE HOLDINGS LTD., fully owned by Yoav Luxemburg,

 

According to the Registrar of Companies, In February 2015 .L EVEN-HAROSHE acquired the holdings of SHARON O.S.R. HOLDINGS LTD. (owned by Sharon Rahamim, held 15% of ordinary shares and 66.5% of deferred shares issued), and reached full ownership.

Note: Registration date in the Registrar of Companies is not necessarily the date the transaction took place.

 

 

SOLE DIRECTOR AND GENERAL MANAGER

 

Yoav Luxemburg

 

 

BUSINESS

 

Developers of chemistry procedures, manufacturers (via subcontractors) and international traders in chemicals, dealing mainly with reagents such as COMU, HDMC, OxymaPure, PyClock , PyOxim and others.

 

98% of sales are export.

 

Local sales are to TEVA PHARMACEUTICAL INDUSTRIES.

Among foreign clients: CHEMGO (Switzerland).

 

Operating from rented premises, on an area of 300 sq. meters, 8 Pinhas Sapir Street Science Park, Nes Ziona.

Subject has 2 logistics partners in Europe and 1 in the USA.

 

Having 6 employees.

 

 

MEANS

 

Financial data not forthcoming.

 

There is 1 charge for an unlimited amount registered on the company's assets (all assets), in favor of Bank Leumi Le’Israel Ltd. (harges placed in 2008).

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

OTHER COMPANIES

 

Yoav Luxemburg holds 12% in LUXEMBOURG PAMOL LTD., a holding company (remaining shares held by Yoav brothers David and Itzhak Luxembourg), founded in the 1930s and incorporated in 1968. This company fully owns LUXEMBOURG INDUSTRIES LTD., incorporated in 1997 (assuming LUXEMBOURG PAMOL's activities), manufacturers, exporters and marketers of chemicals, agro-chemicals, raw and intermediate materials for the pharmaceutical and bio-technology fields. Having 174 employees, 2014 sales US$ 53 million. Holds the following 4 subsidiaries:

LUXEMBOURG-PAMOL INC., 100%, USA,

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

LUXEMBOURG BRASIL LTDA., 100%, Brazil,

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

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

Luxembourg family also holds other real estate holdings companies.

 

 

BANKERS

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's General Manager, Yoav Luxemburg, refused to disclose financial data.

 

Subject is ISO 9001:2008 certified.

 

LUXEMBOURG INDUSTRIES LTD. is a long established family business, enjoying good reputation. It should be noted, however, that although subject is affiliated to LUXEMBOURG INDUSTRIES, it is not considered as the same group and business activities are separate (a spinoff).

 

From the Ministry of Economy publication, total estimated revenues of the local Chemical & Oils Industrial branch in 2012 amounted to NIS 120 billion (comprising some 30% of Israel’s total industrial turnover), divided into: Refinery, Petrol & Petrochemicals - NIS 55 billion; Pharmaceuticals - NIS 32 billion; Sub-branches – NIS 22 billion (incl. industrial chemicals, pesticides & disinfections materials, and fertilizers); Others – NIS 11 billion (incl. paints, cosmetics, cleaning materials and other chemistry products).

The revenues were generated from some 115 plants in the branch.

 

Sales for export by the Chemicals Manufacturing Industry in 2014 reached US$ 10,971 million, representing 2.5% decrease from 2013, after in 2013 export witnessed 18% increase from 2012.

 

According to Central Bureau of Statistics data, investments in imported machinery & equipment for the Chemical Industries (incl. pharmaceuticals, excl. oil refinery) in 2013 summed up to NIS 717.6 million, similar to 2012 level (where 2012 saw a sharp decrease of over 20% from 2011, after over 50% increase in real terms in 2011).

 

 

SUMMARY

 

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

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.72

Euro

1

Rs.70.88

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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%)

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