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Report Date : |
31.10.2014 |
IDENTIFICATION DETAILS
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Name : |
NTC NATIONAL TEXTILE CO. LTD. |
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Registered Office : |
P.O. Box 15 Al Sahel Street Beit Jala West Bank Palestinian Authority |
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Country : |
Israel |
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Date of Incorporation : |
1962 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, marketers and distributors of undergarments, socks,
underwear. |
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No. of Employees : |
22 employees. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
NTC NATIONAL TEXTILE CO. LTD.
Telephone 972
2 274 26 22
Fax 972
2 277 08 91
P.O. Box 15
Al Sahel Street
BEIT JALA WEST
BANK PALESTINIAN AUTHORITY
A foreign private limited company, registered in the Palestinian in
1962, as per file No. 56-242869-8.
Subject is also using the styles "THE NATIONAL TEXTILE CO."
and "FARID ABU RUMAN & SONS", or "NATECO" in short.
Data not forthcoming.
1. Farid Abu Rumman (father
of the u/m shareholders),
2. Scandar Abu Rumman,
3. Majdi Abu Rumman,
4. Henry Abu Rumman.
Majdi Abu Rumman.
Manufacturers, marketers and distributors of undergarments, socks,
underwear.
All sales are in the Palestinian Authority.
Operating from premises (offices, plant and warehouses), a four storey
building on an area of 3,200 sq. meters (each floor 800 sq. meters), owned by
the shareholders, in Al Sahel Street (opposite the Al-Hussein Hospital), Beit
Jala (which is close to Bethlehem), West Bank, Palestinian Authority.
Having 22 employees.
Financial data not forthcoming.
2006 sales claimed to be NIS 3,500,000.
2007 sales claimed to be NIS 3,500,000.
Later sales data not forthcoming.
Arab Bank Plc, Bethlehem Branch (El Mahd St., Nazzal Bldg.), Bethlehem,
West Bank, Palestinian Authority.
Nothing unfavorable learned.
Subject's General Manager refused to update financial data.
This is a very long established family company.
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.
Notwithstanding the refusal to disclose financial details, considered
good for trade engagements.
DIAMOND INDUSTRY – INDIA
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From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
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The achievement of the Indian diamond industry was possible
only due to combination of the manufacturing skills of the Indian workforce and
the untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
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Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
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The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a global
voluntary regulatory standard on bank capital adequacy, stress testing and
market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.32 |
|
|
1 |
Rs.99.00 |
|
Euro |
1 |
Rs.78.14 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
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|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
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.