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Report No. : |
304089 |
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Report Date : |
23.01.2015 |
IDENTIFICATION DETAILS
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Name : |
ROYAL INDUSTRIAL TRADING CO. |
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Registered Office : |
P.O. Box 51841, Jerusalem (9151702), Israel, P.O. Box 258, Hebron, Al-Rama Suburb Street, Industrial Zone Hebron West Bank Palestinian Authority |
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Country : |
Israel |
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Date of Incorporation : |
1993 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers and marketers of P.V.C., P.P. and P.E. pipes, a wide
range of plumbing and installation products: fittings, water tanks. |
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No. of Employee : |
600 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Israel |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 |
ROYAL INDUSTRIAL
TRADING CO.
Telephone 972 2
221 98 00
Fax 972
2 222 01 27
Email: info@royal.ps
P.O. Box 51841, Jerusalem (9151702), ISRAEL
P.O. Box 258, Hebron
Al-Rama Suburb Street
Industrial Zone
Hebron West Bank Palestinian Authority
A foreign private limited company registered
in the Palestinian Authority as per file No. 56-240938-3 in 1993.
Data not
available.
SHAREHOLDERS
1.
Nabil Suleiman Zghier,
2.
Mazen Zghier,
3.
Nafez Zghier,
4.
Monzer Zghier,
5.
Mutea Zghier,
6.
Majdi Zghier.
All
above 6 shareholders are brothers.
(Note: Surname
Zghier also pronounced Zreir)
1. Nabil Suleiman Zghier,
2. Mutea Zghier
Manufacturers and
marketers of P.V.C., P.P. and P.E. pipes, a wide range of plumbing and
installation products: fittings, water tanks. (over 400 products) – some 50% of
sales.
Also importers and
marketers of domestic sanitary ware: faucets, shower stalls & cubicles,
sanitary ware & fittings – this comprises other 50% of sales.
Sales are to
Israel and the Palestinian Authority.
Subject’s goods
are also sold via sister company retail store "Home Plaza" (which
also sells home textile goods).
Importing raw
materials (metals and plastic) from Europe and Israel.
Amongst Israeli
suppliers: JAMES PELS.
Operating from
premises (including offices, storage facilities and a large plant), on an area
of 33,000 sq. meters (24,750 sq. meters built), owned by the shareholders and
subject, in Al-Rama Suburb Street, Industrial Area, Hebron, West Bank,
Palestinian Authority, and from a branch in Jordan.
Group is also
operating a retail store "Home Plaza" in Hebron Industrial Area.
Having 600
employees (same as in mid 2013, had 380 employees in the beginning of 2011).
Current
stock is valued at NIS 50,000,000 (same as in mid 2013).
Other financial
data not forthcoming.
2007 sales claimed to be over NIS 100,000,000 (exact sales figures not
forthcoming).
2008 sales not forthcoming.
2009 sales claimed to be NIS 96,000,000.
2010 sales claimed to be NIS 96,000,000.
2011 sales claimed to be NIS 130,000,000.
2012 sales claimed to be NIS 150,000,000.
2013 sales claimed to be NIS 150,000,000.
2014 sales claimed to be NIS 150,000,000.
HOME PLAZA LTD.,
(trading as HOME PLAZA CO.), sister company, established 2004, importers and
marketers of household artifacts, DIY products, home textiles, gardening
products, etc. Also operating a retail store named "Home Plaza" for
selling theirs and subject’s products.
WELL INTERNATIONAL LTD., fully owned by Majdi Muhammad Zghier,
established 2011, manufacturers, importers and marketers of home textile
products.
AL-JAZEERA FOR SANITARY PRODUCTS, subject's branch in Amman, Jordan.
Zghier family owns a trading business in the USA (no other information
available).
Bank Hapoalim
Ltd., East Jerusalem Branch (No. 696), Jerusalem.
Nothing
unfavorable learned.
In past we
obtained favorable opinion on subject's payment, describing them as a reliable
company.
Part of subject’s
products is “Palestinian Quality Certified”: PS21 and PS 22.
Subject is ISO
9001:2000 certified.
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.
Note: Since February
2013 Israel Post has started using a new area code method of 7 digits (the old
method of 5 digits is no longer valid).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
|
|
1 |
Rs.93.33 |
|
Euro |
1 |
Rs.71.49 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.