MIRA INFORM REPORT

 

 

Report Date :

30.11.2013

 

IDENTIFICATION DETAILS

 

Name :

SONS OF GEORGE SHUKHA LTD.

 

 

Registered Office :

10 Hamashbir Street, Check Post Junction, HAIFA 3295310

 

 

Country :

Israel

 

 

Date of Incorporation :

1930

 

 

Legal Form :

Private Limited Company

 

 

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

 

 

No. of Employees :

70

 

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 :

No complaints

 

 

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.

 

Source : CIA

 


Company name & address

 

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

 

 

HISTORY & LEGAL FORMATION

 

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.

 

 

SHARE CAPITAL

 

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.

 

 

SHAREHOLDERS

 

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.

 


DIRECTORS

 

1. Riad Shukha, General Manager,

2. Hisham Shukha.

 

 

BUSINESS

 

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).

 

MEANS

 

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).

 

REVENUES

 

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.

 

 

OTHER COMPANIES

 

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.

 

 

BANKERS

 

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.

 

 

CHARACTER AND REPUTATION

 

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.

 

 

SUMMARY

 

Good for trade engagements.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.39

UK Pound

1

Rs.102.06

Euro

1

Rs.84.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.