MIRA INFORM REPORT

 

 

Report Date :           

26.04.2011

 

IDENTIFICATION DETAILS

 

Name :

ELEGANT HOME CO. LTD.

 

 

Registered Office :

Al Sekkah Street, Nablus, West Bank Palestinian Authority

 

 

Country :

Israel

 

 

Year of Establishment :

1999

 

 

Legal Form :

Foreign Private Limited Company

 

 

Line of Business :

Importers and marketers of home textile

 

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

 

Maximum Credit Limit :

US$ 50,000.

 

 

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, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

Israel

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name & address 

 

ELEGANT HOME CO. LTD.

Telephone                972 9 235 24 14

Fax                         972 9 235 24 33

Al Sekkah Street

NABLUS                 WEST BANK  PALESTINIAN AUTHORITY

 

 

HISTORY & LEGAL FORMATION

 

A foreign private limited company, established in 1999 and registered in the Palestinian Authority as per file No. 56-213501-2.

 

 

SHARE CAPITAL

 

Data not forthcoming.

 

 

SHAREHOLDERS

 

1.  Omar Al Asfahani, 50%,

2.  Saiyeq Al Asfahani, 50%, brother of Omar.

 

 

JOINT GENERAL MANAGERS

 

1.  Omar Al Asfahani,

2.  Saiyeq Al Asfahani.

 

 

BUSINESS

 

Importers and marketers of home textile.

 

All sales are in the Palestinian territories.

 

Operating from rented premises (offices, store and warehouse), on an area of 2,700 sq. meters, in Al Sekkah Street, Nablus, West Bank, Palestinian Authority.

 

Having 42 employees.

MEANS

 

Financial data not forthcoming.

 

 

ANNUAL SALES

 

2009 sales claimed to be NIS 15,000,000.

2010 sales claimed to be NIS 15,000,000.

 

 

BANKERS

 

Arab Islamic Bank, Nablus Branch (Sufian St., P.O. Box 486), Nablus, West Bank, Palestinian Authority.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject’s officials refused to disclose financial data, besides sales figures.

 

According to World Bank and Palestinian Investment Promotion Agency, total GDP of the Palestinian Economy in 2008 was US$ 4.6 billion, and GDP per capita is US$ 1,290 (was US$1,272 in 2006). Generally, by 2006 the GDP per capita dropped by 40% since 1999, following unstable political situation, but has been recovering since 2009 as political climate has stabilized. These figures include the West Bank and Gaza Strip, whose economy has been in different condition. GDP per capita in the West bank has climbed to US$ 2,800 by 2009, while remains low in Gaza – around US$ 1,000 per capita.

 

In terms of foreign trade, a growth tendency is noticed: Total Import in 2007 summed up to US$ 3,141 million (up from US$ 2,760 million in 2006), while Total Export reached US$ 513 million (up from US$ 367 million in 2006). 80% of imported goods to the Palestinian Territories are carried out via Israel.

 

Yet, other current indicators are still alarming, mainly in the Gaza Strip, such as high unemployment rates (18% in the West Bank, 35%-40% in Gaza) and poverty (70% in Gaza).

 

The Palestinian economy suffered a set back in recent years, following the rising of the Hamas government in Gaza Strip in 2007, which led to internal conflict and clashes between the Hamas supporters and those of the Phatah movement.

 

While the political situation has been stable in the West Bank (controlled by Phatah) leading to economic growth in recent years, the condition in the Gaza Strip deteriorated drastically (including the blockage on goods movement in and out the Strip for long period), mainly after the fighting of Hamas militias with Israeli Forces. With the end of fighting in Gaza Strip in early 2009, the recovery efforts are ongoing with donation received from overseas, as well as the partial lift of goods blockage in 2010, resulting in some improvement in Gaza economy as well – Gaza Strip economy grew by 16% in 2010 1st half (1% in 2009) according to the International Monitory Fund (IMF), though situation is still critical.

 

The Palestinian economy in the West Bank grew in 2009 by 8.5% and by 9% in the first half of 2010. Palestinian economy grew as a whole by 9% in 2010, after 3% growth in 2008 and nearly zero in 2007. Much of the growth is attributed to the foreign aid they receive (donation scheduled are up to US$ 7.7 billion in 3 years), and the relative calm in the political environment, mainly in the West Bank. The Palestinian Authority reports on growth in taxes collection (which has always been a major problem due to the lack of enforcement capabilities), with expected over US$ 2 billion in 2010 (was US$ 1.688 billion in 2009), while the deficit (dropped from US$ 1.8 billion in 2008 to US$ 1.2 billion in 2010) to be covered by the donating countries.

 

 

SUMMARY

 

Good for trade engagement.

Maximum unsecured credit recommended US$ 50,000.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.45

UK Pound

1

Rs.73.35

Euro

1

Rs.64.78

 

 

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

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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%)

 

 

 

 

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.