3decades

MIRA INFORM REPORT

Report No. :	500872
Report Date :	05.04.2018

IDENTIFICATION DETAILS

Name :	INDUSTRIES DEVELOPMENT CORPORATION (1996) LTD.

Formerly Known As :	· IDC – INDUSTRIES DEVELOPMENT CORPORATION · I.D.C. - INTERGRATION & DEVELOPMENT CORPORATION LTD

Registered Office :	P.O. Box 642, 5 Hamada Street,New Industrial Zone,Upper Yokneam 2069200

Country :	Israel

Date of Incorporation :	30.07.1996

Legal Form :	Private Limited Company

Line of Business :	Designers, developers, manufacturers, integrators, exporters and marketers of automated assembly and test equipment including wafer handlers, printed circuit board coaters, semiconductor, electro mechanic and control systems for the military and high-tech industries.

No. of Employees :	22(2011)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Israel

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

ISRAEL - ECONOMIC OVERVIEW

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset 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 weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.

Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.

Income inequality and high housing and commodity prices continue to be a concern for many Israelis. 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. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.

In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

Source : CIA

Company name and address

INDUSTRIES DEVELOPMENT CORPORATION (1996) LTD.

(Also known as I.D.C.)

Telephone 972 4 909 80 00

Fax 972 4 959 80 01

Email: idc@idc-rd.com

P.O. Box 642

5 Hamada Street

New Industrial Zone

UPPER YOKNEAM 2069200 ISRAEL

HISTORY & LEGAL FORMATION

Originally established as a department in BATEMAN ENGINEERING LTD. in 1986 (which also continued activities of a private company founded in 1958).

Converted into a private limited company and registered as such as per file
No. 51-235588-4 on the 30.07.1996 under the name IDC – INDUSTRIES DEVELOPMENT CORPORATION (1996) LTD.*, which changed to I.D.C. - INTERGRATION & DEVELOPMENT CORPORATION LTD. on the 10.09.1996, which changed its name to the present name on the 17.09.1996.

*NOTE: the Hebrew registered name is the full translation of INDUSTRIES DEVELOPMENT CORPORATION (1996) I D C LTD.

SHARE CAPITAL

Authorized share capital NIS 1,000,001.00, divided into:-

1,000,001 ordinary shares of NIS 1.00 each,

of which 760,777 shares amounting to NIS 760,777.00 were issued.

SHARE HOLDERS

1. Zvi (Zvika) Koren, 25%,

2. Zvi Alon, 25%,

3. Itzhak Korman, 25%,

4. Azriel Kitlaro, 25%,

5. MEITAD TRUST COMPANY LTD., holding 1 share.

In 2004 current shareholders acquired all of subject's shares from the former shareholding Group, headed by BATEMAN INTERNATIONAL, who held 85% in subject.

DIRECTORS

1. Zvi Koren, General Manager,

2. Zvika Alon,

3. Itzhak Korman,

4. Azriel Kitlaro, CFO.

BUSINESS

Designers, developers, manufacturers, integrators, exporters and marketers of automated assembly and test equipment including wafer handlers, printed circuit board coaters, semiconductor, electro mechanic and control systems for the military and high-tech industries.

Subject operates as a systems integrator house, which offers engineering services, expertise in devising complete solutions, including specific turnkey projects and joint product development.

Among industries served: PCB, microelectronics equipment manufacturers, automated material handling systems, high precision inspection machines, dip coaters and automotive equipment, monitoring and detection systems, control-servo systems, simulators, robotic systems.

Also were known to have sales for export, export rate unavailable (was 30% in 2011).

Amongst local customers: INTEL ISRAEL, Ministry of Defense, ELBIT SYSTEMS, IMI SYSTEMS, RAFAEL ADVANCED DEFENSE SYSTEMS, etc.

Operating from rented premises, on an area of 1,700 sq. meters (according to our past), in 5 Hamada Street, New Industrial Zone, Upper Yokneam (or "Yoqneam Illit" in Hebrew).

Website: http://www.idc-rd.com

Number of employees not forthcoming (had 22 employees in 2011).

MEANS

All activities are based on orders.

Financial data not forthcoming.

Subject is an “Approved Enterprise” and as such enjoys tax benefits and State incentives. In 2004, Israel Investment Center approved a US$ 105,000 investment plan for the expansion of subject’s plant.

There are 3 charges for unlimited amounts, as well as 3 charges for the total sums of NIS 2,090,000 and US$ 850,000 registered on the company’s assets (financial assets, fixed assets and vehicles), in favor of The State of Israel, Bank Leumi Le’Israel Ltd., Bank Hapoalim Ltd., Union Bank of Israel Ltd. (last charge placed in 2014 on a vehicle, prior charge placed in 2013).

REVENUES

Annual sales in 2009 - 2011 claimed to be between NIS 12,000,000 – NIS 15,000,000, of which 25% - 30% were for export.

Later sales figures not forthcoming.

BANKERS

According to our records (since subject's officials refused to cooperate, we are unable to verify the u/m bank details):

Union Bank of Israel Ltd., Haifa Main Branch (No. 081), Haifa, account No. 585600/78.

Bank Hapoalim Ltd., Yoqneam Branch (No. 722), Yoqneam, account No. 465467.

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m account.

Bank Leumi Le’Israel Ltd., Hamifratz Business Branch (No. 898), Kiryat Bialik.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject’s General Manager, Mr. Zvika Koren, refused to update information.

The Company is ISO 9001:2000 certified.

In December 2001 it was published that subject signed a contract with the Ministry of Defense for the development, manufacture and support for advanced technological system for the 4^th generation “Merkava” tank (developed and used by the Israeli Army). The contract, for 4 years, is reported to be in the volume of NIS 28 million.

In the past, subject also developed a system for the 3^rd generation “Merkava” tank.

SUMMARY

In principle, we consider the company to be a reasonably fair trading partner, suitable for trade engagements. Yet, due to the refusal to disclose any information, we prefer to be cautious and not recommend on credits.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.02
UK Pound	1	INR 91.49
Euro	1	INR 79.79
ILS	1	INR 18.40

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI

Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.