MIRA INFORM REPORT

 

 

Report No. :

349849

Report Date :

20.11.2015

 

IDENTIFICATION DETAILS

 

Name :

AL-WALD TRADING CO. LTD.

 

 

Registered Office :

P.O. Box 36,  Abu Baker Street, Jenin West Bank Palestinian Authority

 

 

Country :

Israel

 

 

Year of Establishment  :

2008

 

 

Com. Reg. No.:

56-212432-1

 

 

Legal Form :

A Foreign Private Limited Company

 

 

Line of Business :

Subject is traders, importers and marketers of pulses, rice, tea

 

 

No. of Employee :               

6

 

 

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 – 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

 


Note:

 

Given Name: SHARIKAT AL WALD AL TIJARIAH (This is the English spelling of subject's Arabic name, whereas the common Latin name is as below)

 

 

Company name and address

 

AL-WALD TRADING CO. LTD.

 

(Also trading as AL-WALAD TRADING CO.)

Telephone      972 4 250 30 20

Fax                972 4 250 23 28

P.O. Box 36

Abu Baker Street

JENIN WEST BANK PALESTINIAN AUTHORITY

 

 

HISTORY & LEGAL FORMATION

 

A foreign private limited company, established in 2008 and registered in the Palestinian Authority as per file No. 56-212432-1.

 

 

SHARE CAPITAL

 

Data not forthcoming.

 

 

SHAREHOLDERS

 

Subject is fully owned by Ahmad Ner'ad.

 

 

GENERAL MANAGER

 

Ahmad Ner'ad.

 

 

BUSINESS

 

Traders, importers and marketers of pulses, rice, tea.

Note: subject ceased to import and market coffee.

 

Operating from rented premises (office and sales store), on an area of 120 sq. meters, in Abu Bakker Street, and from an owned warehouse, on an area of 800 sq. meters, in a nearby location, both in Jenin, West Bank, Palestinian Authority.

 

Having 6 employees (same as in the beginning of 2014).

 

 

MEANS

 

Financial data not forthcoming.

 

 

REVENUES

 

Sales data not forthcoming.

 

 

BANKERS

 

Arab Bank Plc, Jenin Branch (Abu Baker Street), Jenin, Palestinian Authority.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's General Manager refused to disclose financial data.

 

During 2012, into 2013, the Palestinian Authority entered a serious credit crisis, with a dire shortage in cash, and was on the verge of bankruptcy (delay in payment of US$ 500,000 to the private and public sectors, fear it will be unable to redeem loans to local banks in volume of US$ 1.2 billion, trade deficit of US$ 4 billion - 50% of GDP). However, there has been a clear division between the West Bank and the Gaza Strip economies.

The Palestinian economy in the West Bank grew in average of 7.5% in the years 2004-2013, though 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 (donating countries committed to give Gaza US$ 3.5 billion till 2017). 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.

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

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.11

UK Pound

1

Rs.101.03

Euro

1

Rs.70.78

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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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