MIRA INFORM REPORT

 

 

Report Date :

11.11.2013

 

IDENTIFICATION DETAILS

 

Name :

CARARA MARBLE & GRANITE CO. LTD.

 

 

Registered Office :

P.O. Box 3776 Ajouli Center Bituniya Industrial Zone Ramallah      West Bank Palestinian Authority

 

 

Country :

Israel

 

 

Date of Incorporation :

1992

 

 

Legal Form :

Foreign Private Limited Company

 

 

Line of Business :

·            Importers and marketers of stone, marble and granite porcelain tiles.

·            Importers and marketers of bathroom accessories.

 

 

No. of Employees :

35

 

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

 

Status :

Satisfactory

Payment Behaviour :

Slow but correct

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)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

Correct Name:   CARARA MARBLE & GRANITE CO. LTD.

(Name also referred as “CARRARAH”)

Telephone         972 2 295 65 84

Fax                   972 2 296 12 50

 

P.O. Box 3776 Ajouli Center Bituniya Industrial Zone Ramallah      West Bank Palestinian Authority

 

 

HISTORY & LEGAL FORMATION

 

A foreign private limited company, registered in the Palestinian Authority as per file No. 56-242088-5 in 1992.

 

 

SHARE CAPITAL

 

Data not forthcoming.

 

 

SHAREHOLDERS

 

1.         Hisham Al-Ajouli, 90%,

2.         Samer Al-Ajouli, 5% (son of Hisham),

3.         Mrs. Diveh Al-Ajouli, 5% (wife of Hisham).

 

 

GENERAL MANAGER

 

Hisham Al-Ajouli.

 

BUSINESS

 

Importers and marketers of stone, marble and granite porcelain tiles.

Also importers and marketers of bathroom accessories.

 

85% of sales are to the Palestinian Authority, the rest are in Israel.

 

Among Israeli clients: MASLAWI CONSTRUCTION CO., ROYAL GRANITE, etc.

 

Among Israeli suppliers: ELIAHU HASSON, DAN MARBLE, MARBLE & STONE INDUSTRIES, CAESAR STONE SDOT YAM, A. KOLODNI, etc.

 

Imports are mainly from India, China, South Africa, Brazil, Spain, Belgium, Italy and Turkey.

 

Operating from owned premises, on an area of 9,000 sq. meters, in Al-Ajjoli Center., Bituniya Industrial Zone, part of Ramallah, West Bank, Palestinian Authority.

 

Having some 35 employees (same as in 2009).

 

 

MEANS

 

Current stock is valued at NIS 10,000,000 (similar to 2009/ 2010 levels).

 

Owned property in Bituniya Industrial Zone (where subject is operating from) was valued at US$ 6,000,000 several years ago.

 

 

REVENUES

 

2011 sales claimed to be NIS 20,000,000.

2012 sales claimed to be NIS 20,000,000.

Projected 2013 sales are NIS 22,000,000.

 

 

OTHER COMPANIES

 

AMERICAN FURNITURE COMPANY LTD., a Palestinian company controlled by Al-Ajouli family, importers and marketers of furniture.

SARAR LTD., a Palestinian company controlled by Al-Ajouli family, importers and manufactures of men's clothing.

 

We were informed in 2007 that Mr. Hisham Al-Ajouli is himself also a building contactor, and has holdings in other companies as well.

 

 

BANKERS

 

Bank Hapoalim Ltd., Pisgat Zeev Branch (No. 699), Jerusalem, account No. 44489.

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

 

Bank of Palestine Plc, Main Branch (Branch No. 458, Ein Musbah, The Old Court St., P.O. Box 471), Ramallah, West Bank,. Palestinian Authority, account No. 220779.

Palestine Investment Bank Bituniya Branch (Branch No.900, Main Street, P.O. Box 3675), Ramallah, West Bank, Palestinian Authority.

 

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Mr. Hisham Al-Ajouli is a well-known businessman in the Palestinian Authority.

 

In 2009 we were informed by sources in the stone branch that subject has grown considerably.

 

In past, we received a most positive credit opinion on subject:

ELIYAHU HASSON’s official told us that they have been working with subject for many years, supplying them with “Caesar Stone” marble plates and accessories.

 

Subject was described as a good client with no payment problems (in past years we also received favorable opinions on subject’s payment morality).

 

During 2012, into 2013, the Palestinian Authority entered a serious credit crisis, with a dire shortage in cash, in fact on the verge of bankruptcy, where in periods 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 to local banks in volume of US$ 1.2 billion. In the first half of 2013 the Authority accumulated a debt of US$ 4.3 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. These figures include the West Bank and Gaza Strip, whose economy has been in different condition. GDP per capita in the West bank was US$ 1,900 in 2012 (was higher in 2010/11), while remains low in Gaza – around US$ 1,100 per capita in 2012.

 

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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.73

UK Pound

1

Rs.100.92

Euro

1

Rs.84.06

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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

 

--

 

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.