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Report No. : |
326065 |
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Report Date : |
12.06.2015 |
IDENTIFICATION DETAILS
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Name : |
SYNEL M.L.L PAYWAY
LTD. |
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Registered Office : |
P.O. Box 142
(2069202), 2 Hamada Street, Industrial Zone, Yoqneam Illit 2066719 |
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Financials (as on) : |
31.03.2015 (Consolidated) |
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Country : |
Israel |
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Date of Incorporation : |
05.10.1989 |
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Com. Reg. No.: |
51-141661-2 |
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Legal Form : |
Private Limited
Company |
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Line of Business : |
Subject, directly and via subsidiaries,
operates in the following lines of activities: 1. Developers, manufacturers, exporters and
marketers of data collection systems and solutions for workforce management, time
and attendance, access control and job costing applications, as well as
providers of service and solutions in the Human Resources management field
(this segment comprised of 62% of Group sales in 2014, 62% in 2013).
Activities carried out via subject directly and via its foreign subsidiaries
in USA, UK, Sweden and France. 2. Owners and leasers of real estate assets,
via 80%
subsidiary DORSEL (20% of 2014
revenues, 18% in 2013). 3. Low voltage operations, via 85%
subsidiary ANTECO (18% of 2014 revenues, 20% in 2013). |
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No of Employees : |
235 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Israel |
A2 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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.
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Source
: CIA |
SYNEL M.L.L PAYWAY
LTD.
Telephone 972 4 959 67 77
Fax 972
4 989 04 84
Email: dina@synel.co.i
P.O. Box 142
(2069202)
2 Hamada Street
Industrial Zone
YOQNEAM ILLIT
2066719 ISRAEL
Originally
incorporated as a private limited company, registered as per file No
51-141661-2 on the 05.10.1989.
On the 06.07.2000
published a prospectus offering shares to the public on the Tel Aviv Stock
Exchange, raising a sum of NIS 34 million.
Following the
public issuance, converted into a public limited company on the 27.09.2000
(keeping same registration number).
On the 26.03.2008
D.N. LINER INDUSTRIES LTD. was merged into subject.
On the 04.07.2012
SYNEL TECHNOLOGIES LTD. and SYNEL M.L.L PAYVIEW LTD. were merged into subject.
Originally
registered under the name KING HESHBON LTD., which changed to SYNEL INDUSTRIES
LTD. on the 24.06.1991, which changed to the present name on the 13.11.2012
Authorized share
capital NIS 1,000,000.00, divided into -
10,000,000
ordinary shares of NIS 0.10 each,
of which 5,692,705
shares amounting NIS 569,270.50 were issued.
1. Gavriel (Gabi) Boganem,
63.25%,
2. SHAHAR Y.A.S LTD., 5.24%,
controlled by Isaac and Mrs. Nitza Zinger,
3. PSAGOT, 8.48% and MENORA
5.12%, institutional investors,
4. Shares are also traded on the
Tel Aviv Stock Exchange (TASE).
1. Isaac Zinger, Chairman
2. Ms. Limor Magen-Telem,
3. Ms. Gilat Boganem,
4. Barak Uziel,
5. Itzhak Izo Shlomovich.
Gavriel (Gabi)
Boganem.
Subject, directly
and via subsidiaries, operates in the following lines of activities:
1. Developers, manufacturers, exporters
and marketers of data collection systems and solutions for workforce management, time and attendance, access control and job costing
applications, as well as providers of service and solutions in the Human
Resources management field (this segment comprised of 62% of Group sales in
2014, 62% in 2013). Activities carried out via subject directly and via its
foreign subsidiaries in USA, UK, Sweden and France.
2. Owners and leasers of real
estate assets, via 80% subsidiary DORSEL (20% of 2014 revenues, 18% in 2013).
3. Low voltage operations, via
85% subsidiary ANTECO (18% of 2014 revenues, 20% in 2013).
42% of Group sales
in 2014 were export (43% in 2013).
Group has
thousands of clients. Among local clients:
Ministry of
Defense (and Israel Defense Force), AFCON GROUP, HI SECURITY SYSTEMS, EVRON
SYSTEMS, PROTECH, G4S Group, MEGASON ELECTRONICS & CONTROL, BEZEQ THE
ISRAELI TELECOMMUNICATIONS CO., A.A.P., MATKINET, ISRAEL AEROSPACE INDUSTRIES,
MACABBI HEALTH SERVICES, RAFAEL ADVANCED DEFENSE SYSTEMS, Netanya Municipality,
etc.
Subject is a
technological partner of ORACLE and is a MICROSOFT Gold Partner.
Among Group's
clients abroad: MCDONALD’S (China), TARGET (USA), Australian Post, Louvre
Museum (France), TATA (India), Argentina's Ministry of Justice (Argentina),
TEXACO (Holland), and more.
Subsidiary ANTECO
is sole local representatives of many companies.
Operating from
premises, partly owned by the Group, in 2 Hamada Street, Industrial Zone,
Yoqneam Illit, and from subsidiaries in France, Sweden, the UK and USA.
Having 235
employees in SYNEL Group as of end of 2014.
Accrued orders as
of 31.12.2014: NIS 17,366,000 in Israel and NIS 868,000 abroad.
Consolidated B/S
shows:
NIS (thousands)
31.12.2014 31.03.2015
ASSETS
Current assets
Cash and cash equivalents 13,765 8,236
Financial assets in fair value 47,520 50,554
Customers 33,777 39,054
Other debtors 4,485 2,161
Other current assets 2,845 2,792
Stock 18,283 18,959
120,675 121,756
Non-current assets
Fixed assets (net) 10,063 10,172
Real estate for investment 392,722 392,954
Goodwill and other intangible assets 32,433 32,512
Other non-current assets 8,374 7,960
443,592 443,598
564,267 565,354
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LIABILITIES
Current
liabilities 78,774 85,680
Non-current
liabilities 311,465 305,340
Equity 174,028 174,334
564,267 565,354
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Current market
value US$ 23.7 million.
There are 4 charges for unlimited amounts,
as well as 2 charges for the total sum of 40,000,000 registered on the
company's assets (all assets), in favor of Bank Leumi Le'Israel Ltd., Bank
Hapoalim Ltd., The First International Bank of Israel Ltd. and companies (last
charge placed June 2015).
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2012 2013 2014
Revenues (sales, services and leasing) 142,594 132,130 127,221
Gross profit 65,628 62,444 63,867
Operating income 27,432 27,774 50,436
Pre-tax income 21,896 22,187 43,378
Net income 17,646 12,529 32,323
====== ====== ======
Consolidated revenues for the first 3 months of
2015 were NIS 37,035,000 (18% increase compared to the parallel period in
2014), making a gross profit of NIS 17,788,000, an operating income of NIS
7,935,000, and a net income of NIS 6,506,000.
ANTECO LTD., 85%,
importers and marketers of close circuit communication systems, including CCTV
systems, video-phones, intercoms, alarm systems, smoke detectors, etc.
DORSEL (B.A.Z.)
LTD., 80%, a public limited company whose shares are traded on the Tel Aviv
Stock Exchange, a yielding properties real estate company, current market value
US$ 32.9 million, owns DORSEL RAANANA LTD. 100%, TOREN LTD., 100% and HAMADA 5
YOKNEAM LTD., 50%.
TIME AMERICA,
100%, U.S.A.,
SYNEL INDUSTRIES (UK)
LTD., 80%, U.K., holds 90% in SYNEL FRANCE (SYSIO), France,
FEROX KONSULT AB,
50%, Sweden.
According to our:
Bank Leumi
Le'Israel Ltd., Haifa Main Branch (No. 876), Haifa.
Bank Hapoalim
Ltd., Hakirya Branch (No. 876), Tel Aviv.
Since we could
speak to subject's officials, we could not verify a/m bank data.
Nothing
unfavorable learned.
Subject is ISO
9001:2000 certified and meets other international standards.
In 2005, it was
reported that subject will acquire 50% in M.L.L, developers of human resources
solutions, for a sum of NIS 13.5 million.
In January 2006,
it was reported that subject signed a NIS 500,000 deal with the Tel Aviv
Municipality for supplying services.
In April 2006,
subject’s subsidiary, DORSEL (B.A.Z.), raised a sum of NIS 67 million in an
initial public offering of bonds on the Tel Aviv Stock Exchange.
In January 2007
subject signed an agreement to acquire the business activities of American firm
TIME AMERICA, in consideration of US$ 10.5 million. Subject's subsidiary, by
the same name, took these activities of distribution in the U.S.A. in the data
storage solutions area.
In April 2007,
subject paid NIS 520,000 to increase its holding in FEROX KONSULT AB to 50%.
In December 2007, subject
signed a contract with an American firm for licensing subject's software for
wages solutions via the Internet, in a deal valued US$ 1.5 million.
In March 2008 subject increased its holdings
in DORSEL (B.A.Z) to 80%, paying NIS 628,000.
In October 2009
SYNEL acquired ANTECO from the Heirs of the Late Morris Ben-David. As part of
the transaction, subject transferred 15% of ANTECO's shares to Avi Bareket (at
face value), ANTECO's General Manager.
ANTECO is a
veteran business, well-known in its field and considered to be one of the
largest local companies in the field of CCTV import and marketing with an
estimated market share of 50%.
In 2010 it was
reported on subject winning 2 tenders: for supply access control solutions to
local maintenance and guarding company TAVAS (with 1,500 employees), in a deal
valued several hundred thousand NIS; for supply human resources management
services for Netanya Municipality in volume of NIS 3.5 million.
In July 2010 it was reported that SYNEL
Group will supply attendance monitoring system to India's TATA plant. Another
foreign tender subject won was for TEXACO fuel company in the Benelux
countries, in volume of NIS 1 million.
In February 2013 it was reported that
Argentina's Ministry of Justice will install Group's time management systems.
In June 2012 it was reported that subject's
French subsidiary will install biometric sensors to protect the Louvre Museum.
In the end of
December 2012 subject reported on merging LOGIPHONE PHONE COMMUNICATION,
incorporated in 1992, into ANTECO to achieve greater efficiency in the
"Low Voltage" Sector. Merger was completed in July 2014.
According
to the Israel Association of Electronics & Software, Hi-Tech industries
sales in 2013 summed up to US$ 27.3 billion, over 6% rise from 2012 (then sales
were US$ 25.6 billion, up from US$ 24.8 billion in 2011 and US$ 23.5 billion in
2010). 2013 sales divided into export of US$ 22.86 billion (US$ 21.48 billion,
US$ 20.99 billion & US$ 19.87 billion in 2012, 2011 & 2010, respectively)
and US$ 4.4 billion of sales to the local market (US$ 4.1 billion, US$ 3.9
billion & US$ 3.6 billion in 2012, 2011 & 2010, respectively).
The division of Israel's Hi-Tech companies by
production in 2011: 34% Software, 30% Industrial Equipment & Components, 19%
Civilian Communications & Telecommunications, 10% Defense Systems, 8%
Medical Systems.
Breakdown
of export in 2011 showed 3.4% increase in Electronic Components &
Computers, and 3.9% increase in Communications, Medical & Scientific
Equipment.
According
to the Central Bureau of Statistics (CBS) sales for export from the manufacture
of computers, electronic & optical products in 2014 were US$ 11,328
million, compared to US$ 11,636 million in 2013 and US$ 10,986 million in 2012.
Division of export was: 50% to Asia, 20% to USA, 15% - EU, 15% to the rest of
the world.
According
to the CBS, import of raw materials for the local Machine and
Electronics Manufacturing in 2014 climbed 2.2%, reaching US$ 10,058 million
(rose by 1.5% in local NIS currency), reversing the trend in 2013 when import
fell by 1.3% from 2012, and returning to the growth trend by 8.5%, 12% and 20%
in 2012, 2011 and 2010 (in US$ terms), respectively.
Investments
(capital formation) in imported machinery and other equipment (M&E) by the
hi-tech industries in the branches of computers, electronic and optical
production increased in 2014 by 9.4% from the previous year reaching NIS
2,840.5 million. That represents a reverse from the negative trend in 2013 and
2012, where import fell by 54% and by 30.5%, respectively from the previous
year.
Good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 63.89 |
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1 |
Rs. 98.89 |
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Euro |
1 |
Rs. 72.31 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
DPT |
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.