MIRA INFORM REPORT

 

 

Report No. :

335400

Report Date :

07.08.2015

 

IDENTIFICATION DETAILS

 

Name :

ALATRASH MODERN INVESTMENT LTD.

 

 

Registered Office :

Al Fahes Industrial Zone, Hebron West Bank, Palestinian Authority

 

 

Country :

Israel

 

 

Year of Establishment :

2007

 

 

Legal Form :

Foreign Private Limited Company

 

 

Line of Business :

Importers and Marketers of Marble, Stone, Tiles.

 

 

No. of Employees :

40-50 Employees in Group (Subject and Sister Company)

 

 

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 :

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Israel

B1

B1

 

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 2013, 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. 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 expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost 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 and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. 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

 

                ALATRASH MODERN INVESTMENT LTD.

                Telephone           972 2 223 42 60

                Fax                    972 2 223 42 01

                Email:                 info@atrashstone.com

                Al Fahes Industrial Zone

                HEBRON WEST BANK PALESTINIAN AUTHORITY

 

 

HISTORY & LEGAL FORMATION

 

A foreign private limited company, established in 2006-2007 and registered in the Palestinian Authority as per file No. 56-252216-9.

 

 

SHARE CAPITAL

 

Data not forthcoming.

 

 

SHAREHOLDERS

 

Subject is fully owned by Rouhe Alatrash.

(Note: private name may also be pronounced "Rawakhi")

 

 

MANAGEMENT

 

1.    Rouhe Alatrash, General Manager,

2.    Muhammad Alatrash (son of Rouhe Alatrash), Deputy General Manager.

 

 

BUSINESS

 

Importers and marketers of marble, stone, tiles.

 

All purchase is import.

 

Sales are in the Palestinian Authority territories, as well as in Israel.

 

Operating from premises, owned by shareholders, on an area of 4,000 sq. meters, in Al Fahes Industrial Zone, Hebron, West Bank, Palestinian Authority. Premises is shared with sister company.

 

Having 40-50 employees in Group (subject and sister company), same as in the beginning of 2015, had 40 employees in the end of 2013.

 

 

MEANS

 

Financial data not forthcoming.

 

 

REVENUES

 

Subject's (solo) sales:

2014 sales claimed to be NIS 18,000,000.

Sales for the first 6 months of 2015 claimed to be NIS 10,000,000.

 

 

OTHER COMPANIES

 

ALATRASH CO. FOR MARBLE AND STONES LTD., sister company, founded in 2001, incorporated 2003, importers, processors and marketers of marble, stone, tiles, etc.

LABERLA LTD., traders in granite, marble, etc.

 

 

BANKERS

 

Jordan National Bank (Jordan Ahli Bank), Hebron Branch (Al-Salam St., P.O. Box 718), Hebron, West Bank, Palestinian Authority.

Arab Bank Plc, Hebron Branch (Al-Salam St.), Hebron, West Bank, Palestinian Authority.

 

Also working with:

Bank Hapoalim Ltd., Israel, branch data not forthcoming.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

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, 6.3% in 2012, down to 1.9% in 2013 and negative growth (-1%) in 1stQ 2014.  Much of the growth was attributed to the foreign aid received, which due to several reasons (including geo-political changes in the Arab world) there has been delays in the transfer of the promised donations (in 2011 & 2012 it received outside support of US$ 1.5 billion & US$ 1.78 billion, respectively, though much less than expected). The World Bank forecasted in September 2014 a 4% withdraw in growth in 2014: -15% in Gaza Strip and +0.5% in the West Bank.

 

The fear of the Palestinian governmental/public sector to collapse exists, which may drag banking and financial sectors down and eventually reach the private sector (which feels the crisis to less extent, yet still has significant impact).

 

Other current indicators are still alarming, mainly in the Gaza Strip, such as high unemployment rates: 17.7% in the West Bank in 2014, around 44% in Gaza in 2014), and poverty (70% in Gaza). Gaza Strip population account for 40% of the Palestinian population and 24% of Palestinian GDP in 2013 (indications are on decrease to 12% of the GDP in 2014).

 

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, but 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

 

Good for trade engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.76

UK Pound

1

Rs.99.60

Euro

1

Rs.69.71

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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