MIRA INFORM REPORT

 

 

Report Date :

20.02.2014

 

IDENTIFICATION DETAILS

 

Name :

AWADA MARBLE AND GRANITE LTD.

 

 

Registered Office :

P.O. Box 123, New Industrial Zone, Kafar Kanna 1693000           

 

 

Country :

Israel

 

 

Date of Incorporation :

29.08.1999

 

 

Com. Reg. No.:

51-282273-5

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject operates in four lines of activities:-

·         Traders, importers and marketers of granite and marble boards, sold to marble and stone processing plants.

·         Operating a retail marble and stone boards store

·         Importers and marketers of domestic furniture, sold for the retail branch and for private customers.

·         Operating a furniture retail store.

 

 

No. of Employees :

Having 06 employees (had 7 employees in 2010)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 & address

 

AWADA MARBLE AND GRANITE LTD.

Telephone                         972 4 641 90 75 / 4

Fax                                   972 4 641 90 73

P.O. Box 123

New Industrial Zone

KAFAR KANNA                        1693000         ISRAEL

 

 

HISTORY AND LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-282273-5 on the 29.08.1999.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 28,000.00, divided into -

                28,000 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

 

 

SHAREHOLDERS

 

Subject is fully owned by Khaled Awada.

 

In October 2013, Nasser Awada, father of Khaled Awada, transferred his shares to Khaled. Nasser Awada still works in subject.

 

 

SOLE DIRECTOR & GENERAL MANAGER

 

Khaled Awada

 

 

BUSINESS

 

Subject operates in four lines of activities:

·         Traders, importers and marketers of granite and marble boards, sold to marble and stone processing plants.

·         Operating a retail marble and stone boards store

·         Importers and marketers of domestic furniture, sold for the retail branch and for private customers.

·         Operating a furniture retail store.

 

The marble and stone comprise 85% of subject's activities, furniture 15% of activities.

 

Having some 400 customers in the marble/ stone field.

Among main clients: SAFURI MARBLE, KHASHIBUN MARBLE, HAGALIL MARBLE, etc.

 

 

All purchasing is from import.

Sole local agents of several foreign manufactures and suppliers, main one being:

MARMOL COMPAC, of Spain.

 

Operating from premises (offices, warehouses, and stores) owned by the shareholders), on an area of 4,000 sq. meters, in New Industrial Zone, Kafar Kanna, an Arab populated town in the Galilee region, north of Israel.

 

Having 6 employees (had 7 employees in 2010).

 

 

MEANS

 

Current stock is valued at:

Marble and stone: NIS 3,000,000.

Furniture: NIS 500,000.

 

Property in Kafar Kanna, New Industrial Zone where subject is operating from (owned by the shareholders) is valued at NIS 6,000,000.

 

There are 5 charges for unlimited amounts registered on the company’s assets (financial asstes, fixed assets and vehicles), in favor of Mercantile Discount Bank Ltd., Arab Israel Bank Ltd. and an automobile agency company (last charge placed October 2012).

 

 

sales

 

·         2012 sales claimed to be NIS 7,500,000.

·         2013 sales claimed to be NIS 8,000,000.

 

 

BANKERS

 

Mercantile Discount Bank Ltd., Kafar Kanna Branch (No. 631), Kafar Kanna, account No. 479500.

 

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

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's General Manager informed us that subject recently acquired a plot of 3,700 sq. meters in Kafar Kanna, on which a retail furniture store is intended to be constructed in the near future.

 

From the Central Bureau of Statistics (CBS) data, investments in construction for dwelling in 2012 reached NIS 56.1 billion (which comprises 62% of total investment in construction), higher by 6% (in real terms) from 2011. Construction for dwelling fell by 0.3% in 2013 (despite the Government's efforts to increase investments). The fall in investment also lead to a rise in houses prices.

 

Investments in construction not for dwelling (public institutions, commerce, industry, etc.) and other construction works (e.g. roads, offices, industrial, institutional), summed up to NIS 37 billion in 2012, a 2.5% rise from 2011. Investments in infrastructures comprise 18% of total investments in construction.

 

Private consumption expenditure by households in 2012 on Housing and on Housing Equipment grew by 3% and fell by 2.7% from 2011, respectively, in annual calculation (grew by 2.8% and 20%, respectively, in 2011 from 2010).

 

The building sector indicators showed an improvement in activities in 2013, after ambiguous signs shown in the previous several years. Volume of building starts for dwelling (which is a dominant indicator for the trend in the building sector) in the first 3 quarters of 2013 rose by 5.5% comparing to 2012, a year in which a 13% decrease from 2011 was noted, with close to 40,000 new apartments built. The decline in 2012 came after a growth trend in building starts in the previous couple of years (9% in 2011 and 7% rise in 2009).

 

In the first 3Q-2013 there was also a 12.4% increase in apartments whose construction was finished.

 

Number of dwellings transactions rose by 19% in 2012 from 2011 (when it fell by 18% from 2010), and climbed by 9% in 2013 reaching total of 111 thousands transactions (rise in both new and second-hand apartments). In new apartments sold, a slight 0.3% rise noted in 2013 from 2012.

 

It should be noted that the number of apartments purchased for investment fell by 20% in 2012, due to several factors (tax policy, other investment channels, etc.).

 

Local furniture and allied accessories is valued at NIS 9 billion per annum (2012).

 

According to a survey in 2011, customers prefer mostly carpenters and small shops (65%), and large retail chains (35%, over 8% of which by DIY chain IKEA).

 

Import of furniture (excluding plastic furniture) in 2010 totaled US$ 227 million, 17.4% increase from 2009, of which 25% was from China, 19% from Italy.

 

According to CBS, import of consumer goods in 2013 marked a 2.2% increase continuing the rise of 1.9% in 2012 and 9.8% in 2011. In contrast, in the import of Furniture and Domestic Electrical Equipment a 3.6% decrease was marked in 2013 comparing to 2012.

 

Import of Furniture and Household Equipment in 2012 summed up to US$ 2,132 million, some 16% less than in 2011. In the first half of 2013 the trend reversed, with a rise by 4% (US$ 1,134 million) from the 1st half of 2012.

 

From the CBS National Accounts for 2012, it turns that in 2012 expenditure by local households on private consumption grew by 2.7% from 2011, after rising by 3.8% in 2011. Expenditure on durable goods decreased by 4% (after 10.5% rise in 2011 and 12% rise in 2010), although a breakdown shows that expenditure on furniture rose by 3%. 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 increased in 2012 by 0.9% (1.9% rise in 2011).

 

The local furniture branch is considered to be in relatively high risk branch.

 

According to a survey published in January 2012 by credit analysis firm for 2011, it turns that Wood & Furniture Manufacturing and Wholesale branch worst in the credit days outstanding in the various industrial branches (some 124 days credit days). The average credit days outstanding in practice (meaning credit days agreed plus unplanned delay) for Israeli suppliers in the first half of 2011 reached 96 days, making it well higher than average credit days outstanding in the developed world (around 50 days).

 

 

SUMMARY

 

Good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.12

UK Pound

1

Rs.103.93

Euro

1

Rs.85.17

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.