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MIRA
INFORM REPORT
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Report No. : |
509713 |
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Report Date : |
23.05.2018 |
IDENTIFICATION DETAILS
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Name : |
ALL TRADE RECYCLING LTD. |
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Formerly Known As : |
B.C.S.I. COMPUTING SOLUTIONS LTD |
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Registered Office : |
P.O. Box 7 (6100001), 2 Habarzel Street, Ramat Hachayal, Tel Aviv, 6971002 |
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Country : |
Israel |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
28.03.2007 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject and its fully owned subsidiary are
providers of recycling services for electronic goods (hardware - computers,
servers, working stations, peripheral equipment – printers, screens), using a
non-polluting technology. |
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No. of Employees : |
50 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
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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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately 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 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 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.
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Source : CIA |
COMPANY NAME AND ADDRESS
RE: ALL
TRADE RECYCLING LTD.
(Also known as ALLTRADE)
Telephone 972 73 26 33
33
Fax 972
9 745 17 13
Email:
info@alltrade.co.il
P.O. Box 7 (6100001)
2 Habarzel Street
Ramat Hachayal
TEL AVIV, 6971002, ISRAEL
HISTORY & LEGAL FORMATION
A private limited company, incorporated as
per file No. 51-396019-5 on the 28.03.2007.
Originally registered under the name
B.C.S.I. COMPUTING SOLUTIONS LTD., which changed to the present name on the
07.06.2010.
SHARE CAPITAL
Authorized share capital NIS 10,000.00,
divided into -
10,000 ordinary shares of NIS 1.00 each,
of which 233 shares amounting to NIS 233.00
were issued.
SHAREHOLDERS
Subject is fully owned by ALL – IN TRADE
ISRAEL LTD., a private limited company, owned by:
1. ODED REICHMAN - DEVELOPMENT &
INVESTMENTS (1995) LTD., 83.3%, owned by Itzhak (Oded) Riechman,
2. Ran (Nahum) Tshuva, 16.7%.
On the 07.11.2017 ALL – IN TRADE published a
prospectus towards an IPO on the Tel Aviv Stock Exchange. So far the IPO has
not taken place.
SOLE DIRECTOR
Gadi Riechman, General Manager.
Role Holders in
the Company (Registered)
Gil Lazar, CPA,
registered authorized reporting official.
BUSINESS
Subject and its fully owned subsidiary are
providers of recycling services for electronic goods (hardware - computers,
servers, working stations, etc., peripheral equipment – printers, screens,
etc.), using a non-polluting technology.
Revenues derive mainly from sale of precious
metals obtained from the recycling process (87% of revenues in 2016) and
sorting and logistic services (10% of revenues in 2016).
Subject and fully owned subsidiary are ALL –
IN TRADE Group’s Recycling Segment.
Clientele include organizations, institutes,
governmental agencies, business, corporates, etc.
The Group works with all main computing
hardware providers, including LENOVO, CISCO, EMC, DELL, NETAPP, AVAYA, IBM, HP,
etc.
Operating from ALL – IN TRADE Group’s
headquarters premises (owned by shareholders), in 2 Habarzel Street, Ramat
Hachayal Industrial & Hi-Tech Zone, Tel Aviv, and from an owned recycling
plant and storage facility, on an area of 7,524 sq. meters (4,603 sq. meters
built), in the Industrial Zone, Barkan.
Website: www.alltrade.co.il
Having 50 employees in ALL – IN TRADE Group’s
Recycling Segment, and 132 employees in ALL – IN TRADE Group.
MEANS
Assets attributed to ALL – IN TRADE Group’s
Recycling Segment as of 30.06.2017: NIS 42,728,000 (NIS 39,329,000 as of
31.12.2016), liabilities:
NIS 26,955,000 (NIS 25,466,000 as of
31.12.2016).
Subject is an “Approved Enterprise” and as
such entitled for State support, grants and tax relief.
In 2012 the Israeli Investment Centre (IIC)
approved a NIS 39,962,740 investment plan, for the erection of subject’s
recycling plant.
As of 31.12.2016 investments in total of NIS
25.7 million were made, of which NIS 2.9 million received as grants.
Financial data is
included in the consolidated B/S of parent company, ALL – IN TRADE ISRAEL LTD.,
which shows:
NIS
(thousands)
31.12.2016 30.06.2017
ASSETS
Current assets
Cash and cash equivalents 733 1,075
Customers 33,962 30,144
Other debtors and current assets 6,911 8,869
Stock 6,118 12,843
47,724 52,931
Non-current assets
Fixed assets (net) 29,360 28,969
Other non-current assets 733 675
30,093 29,644
77,817 82,575
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LIABILITIES
Current
liabilities 39,763 41,113
Non-current
liabilities 20,366 20,502
Equity 17,688 20,960
77,817 82,575
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There are 9 charges for unlimited amounts, as well as 1 charge for the
sum of NIS 150,000 registered on the company's assets (financial assets, fixed
assets, equipment and vehicles), in
favor of the State of Israel, The First International Bank of Israel Ltd. and
Bank Leumi Le'Israel Ltd. (last charges placed July 2017).
REVENUES
Revenues of ALL – IN TRADE Group’s Recycling Segment:
2014 revenues were NIS 7,022,000, making a gross profit of NIS 3,005,000
and an operating profit of NIS 1,009,000.
2015 revenues were NIS 10,833,000, making a gross profit of NIS
2,968,000 and an operating profit of NIS 791,000.
Subject ended 2015 with a net profit of NIS 285,000.
2016 revenues were NIS 10,299,000, making a gross profit of NIS
2,582,000 and an operating profit of NIS 94,000.
Subject ended 2016 with a net profit of NIS 2,001,000.
Sales for the first 6 months of 2017 were NIS 7,458,000, making a gross
profit of
NIS 3,710,000 and an operating profit of NIS 2,331,000.
Later sales data not forthcoming.
ALL
– IN TRADE ISRAEL LTD
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2014 2015 2016
Revenues 46,200 69,963 102,045
Gross profit 11,168 16,890 20,982
Operating profit 826 5,237 6,203
Profits before taxes on income 22 3,788 4,526
Net profit (loss) (83) 3,108 3,736
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ALL – IN TRADE consolidated revenues for the first 9 months of
2017 were
NIS 49,584,000 (26% increase compared to parallel
period in 2016), making a gross profit of NIS 13,471,000, an operating income
of NIS 4,814,000, and a net income of NIS 3,272,000.
Later revenue data not forthcoming.
OTHER COMPANIES
ALL TRADE DIRECT LTD. 100%, part of the
Recycling Segment.
ALL – IN TRADE ISRAEL LTD., parent company,
heads the Group, besides subject’s segments also operates in the Computer
Segment, which includes ALL – IN TRADE itself, KESHET and CHAYON COMPUTERS,
importers, exporters purchase, refurbishing, integration and marketing of
computers and allied equipment and accessories including software:
ALL – IN TRADE holds (100% unless otherwise
stated):
CHAYON COMPUTERS LTD.,
KESHET EL NINIO SYSTEMS LTD.
Also having several non-active companies.
BANKERS
According to our records (since so far
subject’s officials did not disclose data, we are unable to verify the u/m bank
details):
Bank Leumi Le'Israel Ltd., branch data not
forthcoming.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Despite our efforts, we were unable to speak with subject's General
Manager as he was always unavailable. We left messages which so far remain
unanswered.
Subject operates the largest electronic
recycling plant in Israel, holding 20% of market share.
ALLTRADE Group was established in 1937 by
the grandfather of Gadi Riechman, and also operates in other fields, such as a
TOYOTA cars dealership and real estate holding.
In July 2012 it
was reported that subject recycled MIFAL HAPAIS's (Israel Lottery) old lottery
machines, in volume of NIS 500,000.
In 2014 subject
completed the erection of its recycling plant in Barkan.
In October 2015
ALL – IN TRADE completed the acquisition of CHAYON COMPUTERS (established 1985)
from the Receiver (for reported sum of NIS 1.5 million), after CHAYON
encountered grave financial difficulties.
In July 2017
subject signed an agreement to erect a PV solar system on its Barkan Plant.
The Central Bureau of Statistics (CBS) data reveals that investments (capital
formation) by the local manufacturing industries in machinery & equipment
(M&E) in 2017 (quantity change compared to the previous year) rose by 7.9%
in 2017, after rise by 18.1% in 2016 and by 1.2% in 2015. The investments whose
source was from import, which comprised 75% of total investment by the
industries in M&E, rose by 11.3% in 2017 (after +28.6% in 2016, +0.6% in
2015), while investments whose source was from domestic production decreased by
1.3% in 2017 (-3.9% in 2016, +2.5% in 2015).
Gross
investment in machinery & other equipment in 2017
reached NIS 53,605 million in current prices (NIS 49,659 million in 2016), of
which NIS 40,739 million was from imported production (NIS 36,601 in 2016
million) and NIS 12,890 million from domestic production (NIS 13,058 million in
2016).
Export by local
Manufacturing of Basic Metals saw 14.8% increase in 2017 from 2016 to US$ 626.4
million, a change in trend after consecutive years of decrease in export since
2012. Export by the local non-metalic mineral products manufacturing in 2017
also recorded an increase of 4.7% to US$ 454.1 million, after steady trend in
the last several years.
SUMMARY
Notwithstanding
the lack of updated data from subject's officials, considered 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 |
INR 68.02 |
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1 |
INR 91.25 |
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Euro |
1 |
INR 80.07 |
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ILS |
1 |
INR 19.12 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VAR |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.