MIRA INFORM REPORT

 

 

Report No. :

324728

Report Date :

03.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ROLL PROFILE LTD.

 

 

Formerly Known As :

BAMASAF ETAMAR (ROLL-FORMING) 1995 LTD.

 

 

Registered Office :

P.O. Box 659 (2161601) P.O. Box 47 (2161001) 6 Zur Street Eastern Industrial Zone Karmiel 2161601

 

 

Country :

Israel

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

22.06.1995

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, manufacturers and marketers of aluminum shutters and shutters cases.

 

 

No. of Employees :

318

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Israel

A2

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

 

ROLL PROFILE LTD.

 

Telephone 972 4 990 02 00

                  972 4 995 31 64

Fax           972 4 990 02 55

P.O. Box 659 (2161601)

P.O. Box 47 (2161001)

6 Zur Street

Eastern Industrial Zone

KARMIEL  2161601         ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-216685-1 on the 22.06.1995 under the name of BAMASAF ETAMAR (ROLL-FORMING) 1995 LTD., which changed to the present one on the 26.08.1996.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 27,100.00, divided into -

                   27,100 ordinary shares of NIS 1.00 each, of which 302 shares amounting to NIS 302.00 were issued.

 

 

SHAREHOLDERS

 

1.     KLIL INDUSTRIES LTD., 82.78%, a public limited company whose shares are traded on the Tel Aviv Stock Exchange, controlled (60.5%) by Zur (Zuri) Daboosh (via owned companies),

2.     Etamar Ochayun, 17.22%.

 

 

DIRECTORS

 

1.    Etamar Ochayun, General Manager,

2.    Avi Somech.

 

 

BUSINESS

 

Developers, manufacturers and marketers of aluminum shutters and shutters cases.

Operating from a plant, on an area of 2,087 sq. meters, which subject leases from parent KLIL INDUSTRIES, part of KLIL’s owned premises (offices, storage facilities and plants) on an area of 105,000 sq. meters, in 6 Zur Street, Eastern Industrial Zone, Karmiel.

 

There are 318 employees serving KLIL INDUSTRIES Group in Israel, of which 33 employees in the shutters segment (subject's segment).

 

 

MEANS

 

Financial data is included in the consolidated B/S of parent company, KLIL INDUSTRIES LTD., which shows:

 

                                                                                                NIS (thousands)

ASSETS                                                                       31.12.2014               31.03.2015

Current assets:

     Cash and cash equivalents                                                  13,877                16,333

     Investment in marketable securities                                      49,943                50,569

     Customers                                                                          64,990                63,580

     Other debtors                                                                       2,640                  3,061

     Stock                                                                                 81,161                81,639

                                                                                             212,611               215,182

Non-current assets

     Fixed assets (net)                                                               94,471                96,943

     Other non-current assets                                                       1,627                  1,584

                                                                                              96,098                98,527

                                                                                             308,709               313,709

                                                                                          =======            =======

LIABILITIES

Current liabilities                                                                      88,316                79,081

Non-current liabilities                                                                 2,182                  2,995

Equity                                                                                   218,211               231,633

                                                                                             308,709               313,709

                                                                                          =======            =======

 

Parent company KLIL INDUSTRIES current market value US$ 182 million.

 

In March 2012 KLIL Board approved a loan of NIS 1.8 million to subject.

 

Assets attributed to the Shutter Segment (practically to subject) in KLIL financial statements as of 31.12.2014: NIS 21,394,000 (NIS 15,778,000 as of 31.12.2013). Liabilities NIS 4,542,000 (NIS 4,292,000 as of 31.12.2013).

 

There are 2 charge for unlimited amounts registered on the company's assets (financial assets), in favor of Union Bank of Israel Ltd. (charge placed February 1999 and June 2009).

 

 

 


REVENUES

 

Shutters and shutters cases sales as reported by parent company KLIL INDUSTRIES (practically attributed to subject):

2011 sales were NIS 20,928,000, making an operating profit of NIS 1,883,000. Subject ended 2011 with a net profit of NIS 1,299,000.

2012 sales were NIS 24,347,000, making an operating profit of NIS 3,201,000. Subject ended 2012 with a net profit of NIS 2,318,000.

2013 sales were NIS 28,371,000, making an operating profit of NIS 4,889,000. Subject ended 2013 with a net profit of NIS 3,621,000.

2014 sales were NIS 30,470,000, making an operating profit of NIS 6,434,000. Subject ended 2014 with a net profit of NIS 4,729,000.

Sales for the first 3 months of 2015 were NIS 7,914,000, making an operating profit of NIS 1,808,000.

 

 

                                                                                      KLIL INDUSTRIES LTD.

                                                                             Consolidated Statement of Income

                                                                                                NIS (thousands)

                                                                                             Year ended 31.12

                                                                                    2012              2013              2014

Sales                                                                          356,989          377,766          378,681

 

Gross profit                                                                103,322          116,694          122,907

 

Operating income                                                         59,353           73,301           72,841

 

Profit before taxes on income                                       56,399           71,133           69,681

 

Net income                                                                   42,499           54,358           51,813

                                                                               =======       =======       =======

 

 

KLIL INDUSTRIES consolidated first 3 months of 2015 sales were
NIS 95,946,000 (4% decrease compares to parallel period of 2014), making a gross profit of NIS 28,692,000, an operating profit of NIS 16,573,000, making a net profit of NIS 13,491,000.

 

 

OTHER COMPANIES

 

KLIL INDUSTRIES LTD., parent company, manufacturers, importers, marketers and exporters of aluminum profiles, shutters, curtain walls, door and window frames, as well as allied hardware products. Also developers, manufacturers, importers and marketers of allied accessories for aluminum profile systems.

Other subsidiaries:

KLIL U.K. LIMITED, 100%, non-active.

 

BANKERS

 

Based on our:

Union Bank of Israel Ltd., Haifa Main Branch (No. 081), Haifa.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts, we were unable to speak with subject's officials, as they were always unavailable. We left messages which so far remain unanswered.

 

Subject is among the leading companies in their field.

Parent company KLIL INDUSTRIES is the one of the leading and veteran (founded in the 1950s, incorporated 1962) companies in the aluminum field in Israel. KLIL's estimated market share in 2014 is of one quarter of the products manufactured in Israel from aluminum profiles. KLIL’s products are well-known in their quality. KLIL is publicly traded since 1981.

 

Subject's market share is 40% of the local market

 

Subject meets the ISO 9002 standard of quality.

 

According to estimations in the Aluminum branch, total of annual manufacturing in the aluminum profiles for construction and industry in Israel in the recent years summed at 40,000 – 45,000 tons, in money value of NIS 1 billion.

In Israel and Palestinian Authority teritorries there are known to be 6 aluminum profile manufacturers. In addition, there is increasing import from China, Jordan and other countries.

 

Zuri Daboosh was one of the founders of EMBLAZE, publicly traded on the London Stock Exchange. In year 2000 he materialized 12% from his 25% shares in EMBLAZE in consideration of US$ 45 million.

 

In March 2007 parent KLIL signed a 3 years agreement with American ALCOA, the world's largest aluminum company, for an exclusive license to manufacture and market ALCOA's products (ALCOA – KAWNEER) in Israel, in return for royalties.

 

In October 2007, it was reported that KLIL’s aluminum window systems will be installed in 60 villas in a fancy neighborhood in Bucarest, Romania. The aluminum worls said to be in volume of NIS 5 million.

 

The local Metal, Electricity and Infrastructure Industries manufactue 21% of Israel's industrial prodction, according to data by the Metal, Electrical and Infrastructure Industries Association, representing, large scale export-oriented industries on one hand and family-owned plants which sell to the local market.

2012 sales (local and export) by the said industries amounted to NIS 75 billion, of which US$ 9 billion were for export (20% of Israel's industrial export).

Some 98,000 employees serve the said industries (27% of Israel's industrial workforce).

 

The Central Bureau of Statistics (CBS) data on import of metals raw materials to the local industries: Import of Iron and Steel in 2014 summed up to US$ 2,120.5 million, similar to the level in 2013 (witnessed decrease the previous couple of years after a remarkable recovery in the years 2011 and 2010 from 2009; Import of Precious Metals also remained stagnant in 2014, summing up to US$ 157 million (rose by 7.3% in 2013 to from 2012), whereas import of Non-ferrous Metals decreased by 4% from 2013 (after increasing by 6% in 2013) to US$ 816.5 million.

 

The Home Design area is directly influence by the changes in the local market in general, and construction and real estate market in particular.

From the Central Bureau of Statistics (CBS) data for 2014, investments in construction for dwelling in 2014 fell by 1.2%, after an increase of 1.2% in 2013 and 8.6% in 2012. Investments in construction not for dwelling (public institutions, commerce, industry, etc.) and other construction works (e.g. roads, offices, industrial, institutional) dropped 13% in 2014, after climbing 8% in 2013.

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.

 

 

The annual volume of houses renovations according to the Renovations Contractors Association is estimated at NIS 15 billion, and the turnover of the ceramics branch is estimated to capture NIS 2.3 billion (which comprises some 80% of the branch's total volume).

 

The building sector indicators for 2014 show a withdrawal from the previous year, a reverse trend from 2013, a year which marked an improvement in activities after ambiguous previous several years. Volume of building starts for dwelling (which is a dominant indicator for the trend in the building sector) in 2014 fell by 8% from the previous year with 43,620 building starts, compared to 47,351 in 2013 (43,287 in 2012, 46,923 in 2011). A similar rate of decrease was also noted in the number of apartment whose building has been completed, and in the number of dwellings transactions, where a sharp decrease was seen. In 2013 there was also 11.8% increase in apartments whose construction was finished (41,970 apartments).

Number of dwellings transactions climbed by 9% in 2013 reaching total of 114 thousands transactions (rise in both new and second-hand apartments), but fell in 2014 (in the beginning of 2015 the rising trend in transactions resumed). In new apartments sold, a slight 0.3% rise noted in 2013 from 2012.

 

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.63.83

UK Pound

1

Rs.97.10

Euro

1

Rs.69.74

 

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.