MIRA INFORM REPORT
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Report Date : |
27.05.2013 |
IDENTIFICATION DETAILS
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Name : |
ALSHARK ELECTRODE COMPANY LTD. |
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Registered Office : |
P.O. Box 9 180 Al-Salam Street Hebron West Bank Palestinian Authority |
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Country : |
Israel |
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Date of Incorporation : |
1972 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers and marketers of arc welding electrodes, CO2 welding
wire, tie wire and steel nails. |
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No. of Employees : |
55 |
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its
major imports include crude oil, grains, raw materials, and military equipment.
Cut diamonds, high-technology equipment, and pharmaceuticals are among the
leading exports. Israel usually posts sizable trade deficits, which are covered
by tourism and other service exports, as well as significant foreign investment
inflows. 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. The economy has
recovered better than most advanced, comparably sized economies. In 2010,
Israel formally acceded to the OECD. Israel's economy also has weathered the
Arab Spring because strong trade ties outside the Middle East have insulated
the economy from spillover effects. Natural gasfields discovered off Israel's
coast during the past two years have brightened Israel's energy security
outlook. The Leviathan field was one of the world's largest offshore natural
gas finds this past decade, and production from the Tama field is expected to
meet all of Israel's natural gas demand beginning mid-2013. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands.
|
Source
: CIA |
Company name and address
ALSHARK ELECTRODE COMPANY LTD.
Telephone 972 2 222 74 60
Fax 972 2 222 94
77
Email: info@alshark-co.com
P.O. Box 9
180 Al-Salam Street
HEBRON WEST BANK PALESTINIAN
AUTHORITY
HISTORY & LEGAL FORMATION
A foreign private limited company, established in 1973 and registered in
the Palestinian Authority as per file No. 56-260015-5, continuing activities which
originally began in 1972.
Note: Subject is also a registered company in Jordan.
SHAREHOLDERS
Subject is owed by some 300 shareholders, and is controlled by Hassouneh
family.
DIRECTORS
Kamal Hassouneh, Joint General Manager,
Yosef Hassouneh, son of Kamal, Joint General Manager,
Nazem Hassouneh, brother of Kamal,
Jaudat Hassouneh, brother of Kamal,
Muhamad Nasser A-Din,
Husam Hijawi,
Khaled Nasser A-Din.
BUSINESS
Manufacturers and marketers of arc welding electrodes, CO2 welding wire,
tie wire and steel nails.
According to our, most of the raw materials used are imported from more
than 20 companies worldwide, especially European countries and Australia.
According to our, sales are to wholesalers in the Palestinian Authority
and Jordan.
Operating from a plant, owned by shareholders, on an area of 7,500 sq.
meters (4,500 built), owned by the shareholders, in 180 Al-Salam Street,
Hebron, West Bank, Palestinian Authority.
Having 55 employees.
MEANS
Current stock is valued at US$ 1,000,000.
Premises owned by shareholders (we assume by the Hassouneh family) in 180 Al Salam Street, Hebron, West
Bank, Palestinian Authority, where subject is
operating from was valued at US$ 1,000,000 several years ago.
REVENUES
2011 sales claimed to be US$ 4,000,000
2012 sales claimed to be US$ 4,000,000
OTHER COMPNIES
According to our records from the past, Kamal Hassouneh & family
have also couple of other companies/ businesses (we were unable to confirm
that).
BANKERS
Arab Bank Plc., Hebron Branch (Al-Salam St. P.O. Box 601), Hebron, West
Bank, Palestinian Authority.
Palestine Investment Bank, Hebron Branch (Al Manara Square, P.O. Box
782), Hebron, West Bank, Palestinian Authority.
CHARACTER AND REPUTATION
Nothing unfavorable learned.
Subject is a veteran business.
Subject has been awarded the ISO 9002 certificate in 1997 by Lloyds,
U.K., and quality approval from Oerlikon Swiss Company.
The Palestinian Authority has been in a state of crisis, with a dire
shortage in cash, in fact on the verge of bankruptcy, where the authorities are
unable to pay salaries, delay in payment of US$ 500,000 to the private and
public sectors, and fear it will be unable to redeem loans in volume of US$ 1.2
billion. With a trade deficit of US$ 4 billion (50% of GDP), the Palestinian
economy, which grew by an average of 9% in the years 2008-2010 (was nearly zero
in 2007), show clear signs of slow-down in the macro aspect, with 5.8% growth
in 2011 in the West Bank (figures for 2012 are ambiguous).
Much of the growth was attributed to the foreign aid received, though
over the last period there have been delays in the transfer of the promised
donation - in 2011 & 2012 it received outside support of US$ 1.5 billion
& US$ 1.78 billion, respectively, though much less than expected.
It should be noted that according to reports, on the private business
level, the crisis is less felt at this stage in the Palestinian city's streets,
though if the governmental/public sector collapses – as such warnings exists –
that may drag the banking and financial sector down and eventually reach the
private sector.
Other current indicators are still alarming, mainly in the Gaza Strip,
such as high unemployment rates (19% in the West Bank in 2012, over 30% in Gaza),
and poverty (70% in Gaza).
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$1,272 in 2006). These figures include the West Bank
and Gaza Strip, whose economy has been in different condition. GDP per capita
(or average annual income per capita) in the West bank has climbed to US$ 2,800
by 2009 and around US$ 3,000 in 2010/11, while remains low in Gaza – around US$
1,000 per capita
In terms of foreign trade, Total Import in 2007 summed up to US$ 3,141
million, while Total Export reached US$ 513 million. 80% of imported goods to
the Palestinian Territories are carried out via Israel.
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, also due to the blockage on goods movement
in and out the Strip for long period. The situation in Gaza Strip improved
drastically since 2010, with overseas donation and the partial lifting of goods
blockage – Gaza Strip economy grew by 26% in the first 3Q of 2011 (16.5% in
2010, 1% in 2009) according to the International Monitory Fund (IMF), though
situation is still critical. Yet, deterioration occurred due to the military
fight with Israel in late 2012.
SUMMARY
Good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.55.61 |
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|
1 |
Rs.83.98 |
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Euro |
1 |
Rs.71.94 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.