MIRA INFORM REPORT

 

 

Report Date :

15.10.2014

 

IDENTIFICATION DETAILS

 

Name :

HATEM KAMAL SALAME AL AI

 

 

Registered Office :

Al Zawyeh Market, Gaza Gaza Strip Palestinian Authority

 

 

Country :

Israel

 

 

Year of Establishment :

1987

 

 

Legal Form :

Foreign Sole Proprietorship

 

 

Line of Business :

Manufacturers and Marketers of Snacks (Waffles, Popcorn, Peanut Snacks).

 

 

No. of Employees :

50 Employees.

 

 

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 :

Unknown

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. 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. 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. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. 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. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

 

Source : CIA

 


Company Name and Address

 

HATEM KAMAL S AL ALI

 

Correct Name:            HATEM KAMAL SALAME AL AI

                                 (Also known as AL QUDS SNACKS STORE)

                                 Telephone           972 8 284 00 11

                                 Mobile`               972 59 891 03 03

                                 Fax                     972 8 284 00 11

                                 Al Zawyeh Market

                                 GAZA GAZA STRIP PALESTINIAN AUTHORITY

 

 

HISTORY & LEGAL FORMATION

 

A foreign sole proprietorship, established in 1987 in the Palestinian Authority.

 

Operating under Dealer License No. 926110727.

 

 

OWNER

 

Hatem Kamal Salame Al Ai.

 

 

GENERAL MANAGER

 

Hatem Kamal Salame Al Ai

 

 

BUSINESS

 

Manufacturers and Marketers of Snacks (Waffles, Popcorn, Peanut Snacks, etc.).

 

Using brand name 'Al Quds Snacks Store'

 

Operating from rented premises (office, small plant and shop), on an area of 400 sq. meters in Al Zawyeh Market, Gaza, and from an owned plant, on an area of 1,000 sq. meters in Jabeliya, both in Gaza Strip, Palestinian Authority.

 

Having 50 employees.

 

 

MEANS

 

Financial data not forthcoming.

 

 

REVENUES

 

Sales data not forthcoming.

 

 

BANKERS

 

Bank of Palestine, Gaza Main Branch (Omar EI-Mukhtar St., P.O. Box 50), Gaza, Gaza Strip, Palestinian Authority.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's owner refused to disclose financial data.

 

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 (grew to US$ 4,800 million in 2013), 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 several years ago years, following the rising of the Hamas government in Gaza Strip in 2007, which led to internal conflict between Hamas supporters and those of the Phatah movement, which controls the West Bank. While the political situation has been stable in the West Bank, leading to economic growth in recent years, the condition in the Gaza Strip deteriorated drastically, as result of military clashes with Israel, and also due to the blockage on goods movement in and out the Strip for long period. The situation in Gaza Strip improved drastically in 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), and deteriorated again in late 2012 a result of another military fight with Israel. Situation was quiet for a year and a half, but during July-August 2014 the fighting with Israel resumed, causing destruction to extensive parts in Gaza, practically paralyzing the Gaza economy during that period, and it would now take years to recover.

 

 

SUMMARY

 

Notwithstanding the refusal to disclose financial details, considered good for trade engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.11

UK Pound

1

Rs.98.15

Euro

1

Rs.77.60

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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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