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Report Date : |
27.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
FARIS SHAMAS |
|
|
|
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Registered Office : |
Ras Al Jora Street, Hebron, West Bank, Palestinian Authority |
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Country : |
Israel |
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Date of Incorporation : |
1990 |
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|
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Importers, manufacturers (via sister company in Vietnam see more below), exporters and
marketers of sacks (mainly large size) and nets. |
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No of Employees : |
3 |
RATING & COMMENTS
|
MIRAs 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 : |
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 |
FARIS SHAMAS
Telephone 972 2 221 74 68
Mobile 972 59 931 46 92
Fax 972 2 229 06 50
Email: faris134@hotmail.com
Ras Al Jora Street
HEBRON WEST BANK PALESTINIAN AUTHORITY
A foreign sole proprietorship, established in
Operating under License dealer No. 985555234.
Faris Shamas.
Faris Shamas.
Importers, manufacturers (via sister company in Vietnam see more below), exporters and
marketers of sacks (mainly large size) and nets.
Subject started to transfer all manufacturing activities to sister
company BAYAN FOR PLASTIC PACKING, located in Vietnam, in August 2013. Vietnam
plant started operating in August 2014.
Operating from rented premises (offices, manufacturing and storage
facilities), on an area of 120 meters, in Ras Al Jora Street Hebron, from
rented warehouse, on an area of 1,000 sq. meters, in Beit Kahel (a locality
near Hebron), both in West Bank, Palestinian Authority.
Also operating from rented plant, on an area of 2,200 sq. meters serving
sister company in Vietnam.
Having 3 employees in subject (had 20 employees in 2012). Decrease is
due to transferring manufacturing activities to Vietnam.
Having 40 employees in sister company in Vietnam.
Current Stock is valued at US$ 400,000.
Other financial data not forthcoming.
2008 sales claimed to be NIS 2,500,000.
2009 sales claimed to be NIS 2,500,000.
2010 sales claimed to be NIS 2,500,000.
2011 sales claimed to be NIS 2,500,000.
2012 and 2013 sales not forthcoming.
Faris Shamas informed us that during the transfer of plant to Vietnam
sales volume was low.
August-September 2014 sales were in volume of US$ 35,000 monthly.
BAYAN FOR PLASTIC PACKING LTD., sister company, Vietnam, manufacturers
of sacks.
Bank of Palestine Plc, Hebron Branch (Al-Salam St.), Hebron, West Bank,
Palestinian Authority.
Arab Bank Plc, Hebron Branch (Al-Salam St., P.O. Box 601), Hebron, West
Bank, Palestinian Authority.
Note: Subject does not work with Bank of Palestine Plc, Omar
EI-Mukhtar Branch, Gaza, Gaza Strip, Palestinian Authority.
Nothing unfavorable learned.
This is a veteran business.
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.
Good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.24 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SMN |
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 SCs
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.