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Report Date : |
30.11.2013 |
IDENTIFICATION DETAILS
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Name : |
SONS OF GEORGE SHUKHA LTD. |
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Registered Office : |
10 Hamashbir Street, Check Post Junction, HAIFA 3295310 |
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Country : |
Israel |
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Date of Incorporation : |
1930 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importers and marketers of foodstuffs (packed and canned foodstuffs,
rice, cheese, spices & herbs, yeast, beans, pulses & legumes, coffee,
edible oil, tuna fish |
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No. of Employees : |
70 |
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 : |
-- |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
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.
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Source
: CIA |
SONS OF GEORGE SHUKHA LTD.
Telephone 972 4 841 40 82
Fax 972 4 841 97 85
P.O. Box 33325 (3133202)
10 Hamashbir Street, Check Post Junction, HAIFA 3295310 ISRAEL
Originally established in 1930, by the late George Shukha.
Converted into a general partnership and registered as such as per file No.
54-011047-5 on the 26.08.1973.
Later converted into a private limited company and registered as such as
per file No. 51-094308-7 on the 06.08.1982.
Originally registered under the name A.I.R.H. MANAGEMENT AND INVESTMENTS
LTD., which changed to SONS OF GEORGE SHUKHA (HOLDINGS) LTD. on the 04.10.1984,
which changed to the present name on the 29.11.1984.
Authorized share capital NIS 2,500.00, divided into -
2,500 ordinary shares of NIS 1.00
each,
of which 360 shares amounting to NIS 360.00 were issued.
1. Hisham Shukha, 20.83%,
2. Riad Shukha, 20.83%,
3. George Shukha, 20.83%,
4. Wahil Shukha, 14.58%,
5. Ihab Shukha, 14.58%,
6. Hulud Shukha, 8.33%.
Subject itself is also registered as a shareholder.
1. Riad Shukha, General Manager,
2. Hisham Shukha.
Importers and marketers of foodstuffs (packed and canned foodstuffs,
rice, cheese, spices & herbs, yeast, beans, pulses & legumes, coffee,
edible oil, tuna fish.
Sales are to Israeli food marketing chains (BLUE SQUARE, HATZI HINAM,
SUPERZOL), wholesalers and retailers (A.L. SPICE MANUFACTURE AND MARKETING,
SHASHA YEHORAM), as well as to the Palestinian Territories (among Palestinian
clients: ADEL SHAHROURI & SONS).
90% of purchases are imports.
Among foreign suppliers (non-exclusively):
HERBA, DSM BAKERY, both of Spain,
BOMBA, INDUS VALLEY, both of India,
RICE GROWERS, of Australia,
BEL, TOUPNOT, LESIEUR, all of France,
GENERAL MILLS, of the USA,
FRICO, of Italy,
ALTUNYAG, of Turkey,
LISKO FAMELISKO (Cyprus), JASMINE RICE
Among local suppliers: GALAXY TRADE, BAR LAKOL
Among service providers: CAV SYSTEMS.
Operating from premises owned by shareholders, as follows:
Offices and warehouse in 10 Hamashbir Street, Check Post Commerce Area,
Haifa, on an area of 8,500 sq. meters,
Warehouse in Har Yona Industrial Zone, Nazareth Illit (Upper Nazareth),
on an area of 18,000 sq. meters (of which 8,500 sq. meters built).
Having 70 employees (had 65 in the 1st half of 2013, 60
employees in 2011 and in the beginning of 2012).
Current sock is valued at circa NIS 32,000,000 (similar to previous
years).
Properties owned by the shareholding Shukha family, which serve subject,
are valued as follows:
1. Property in Check Post Commerce Area, Haifa, is valued at US$
6,000,000.
2.Property in Har Yona Industrial Zone, Nazareth Illit, is valued at US$
5,000,000.
Shukha family owns other real estate properties.
There are 9 charges for unlimited amounts registered on the company's
assets (financial assets and fixed assets), in favor of Israel Discount Bank
Ltd. and Bank Hapoalim Ltd. (last charge placed October 2007).
In the years 2003 - 2006 annual sales claimed to be circa NIS
260,000,000, ending with a net profit.
2007 sales unavailable, estimated to be higher than the previous years.
2008 sales claimed to be above NIS 300,000,000.
2009 sales claimed to be above NIS 300,000,000.
2010 sales claimed to be NIS 300,000,000.
2011 sales claimed to be NIS 300,000,000.
2012 sales claimed to be NIS 320,000,000.
Projected 2013 sales are NIS 315,000,000.
GABI INDUSTRIAL CO. NAZARETH LTD., 33%, importers and marketers of
foodstuffs.
SONS OF GEORGE SHUKHA FOODSTUFF IMPORT 1991 LTD., 33% owned by subject
and the rest held by subject’s shareholders, deals in foodstuffs,
EUROFOOD MARKETING (2001) LTD., 50%, importers of foodstuff,
SISLEY CHEESE IMPORT LTD., 100%, importers and marketers of foodstuffs
and cheeses.
The remaining shares of a/m companies are held by the members of Shukha
family.
SHUKHA TRADING COMPANY LTD., sister company registered in Ramallah, in
the same line of business as subject.
Israel Discount Bank Ltd., Main Haifa Branch (No. 070), Haifa, account
No. 3050.
Bank Hapoalim Ltd., Nazareth Branch (No. 726), Nazareth, account No.
11535.
A check with the Central Bank database did not reveal anything
detrimental regarding subject a/m accounts.
Nothing unfavorable learnt (subject was and has been involved in several
legal procedures, though none appear to be of significance).
Subject is a very long established family company.
It is one of the largest foodstuff importers in Israel, and according to
reports the largest rice importer with 44% of the rice market in 2007
(subject's rice import is valued at US$ 26 million).
In October 2002, it was reported that the Shukha Family acquired a
20,000 sq. meter plot in Nazareth Illit, for a sum of US$ 2.4 million, erecting
a warehouse at the place.
After several years of constant growth, the consumer
products market, which includes food, beverages and household and personal care
goods, ended 2012 with fixation and even decrease in sales, according to Nilsen Market
Research. The decrease intensified over the last quarter of 2012, but was
compensated by prices rise. In money terms, the market grew by mere 0.7%, lest
than the population growth rate (2% per annum), reflecting the slow-down trend
in the local economy which started in 2011 2nd half. Sales in the
bar-coded consumer market reached NIS 40.4 billion. Sales of food in 2012 grew
by 1.1%, reaching NIS 29.8 billion, while in the beverage market sales fell by
2% to NIS 5.1 billion. Volume of personal care
goods rose by 3% to NIS 3 billion, while sale of household increased by 1.5% to NIS 2.7 billion.
According to Central Bureau of Statistics (CBS), import of food and beverages to Israel in 2012 summed up to NIS 6,898 million,
rising by 13.8% from 2011 (a 5.5% rise in $ terms), continuing the upward
growth trend from 2011 and 2010.
From the CBS National Accounts for 2012, it turns that expenditure by
local households on private consumption grew by 2.7% from 2011, after rising by
3.8% from 2010. Expenditure on food, beverage
& tobacco increased by 3.4% (after 4% rise in 2011). Expenditure on
private consumption continued to grow in 2013: it rose by 5.6% in 3rdQ 2013,
after a 6.2% increase in the 2ndQ 2013.
Per capita expenditure for private
consumption on non-durable goods rose in 2012 by 1.4% per-capita (1.3%
rise in 2011). This rise reflects increases by 1.3% in expenditure on food, beverage & tobacco and 4.5% expenditure on clothing, footwear and personal effects.
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 |
Rs.62.39 |
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|
1 |
Rs.102.06 |
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Euro |
1 |
Rs.84.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.