MIRA INFORM REPORT

Report No. :	504877
Report Date :	27.04.2018

IDENTIFICATION DETAILS

Name :	SILAT AL-THAHER TRADING CO.

Registered Office :	Main Street Silat Al-Thaher West Bank Palestinian Authority

Country :	Palestine

Date of Incorporation :	1995

Legal Form :	Private limited company

Line of Business :	Importers and marketers of foodstuff, e.g. canned tuna, rice, popcorn, chocolate, biscuits

No. of Employees :	41

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Palestine

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

Company Name

SILAT AL-THAHER TRADING CO.

(In Arabic: SHAREKAT MOJAMA SILAT AL-THAHER ALTEJARY)

Telephone 972 4 250 57 18

Mobile 972 59 977 29 32 (Mahmoud Khanfar)

Fax 972 4 250 57 17

Email: info@shaddad.ps

Main Street

SILAT AL-THAHER WEST BANK PALESTINIAN AUTHORITY

HISTORY & LEGAL FORMATION

A foreign private limited company, established in 1995 and registered in the Palestinian Authority as per file No. 56-211989-1.

SHARE CAPITAL

Data not forthcoming.

SHAREHOLDERS

1. Mahmoud Khanfar, 33.33%,

2. Tysir Khanfar, 33.33%,

3. Shadad Khanfar, 33.33%.

GENERAL MANAGER

Mahmoud Khanfar.

BUSINESS

Importers and marketers of foodstuff, e.g. canned tuna, rice, popcorn, chocolate, biscuits, etc.

All purchasing is import (China, India, Jordan, Saudi Arabia, Morocco, Thailand and Turkey). Subject does not purchase in Israel.

Operating from premises (office and warehouse), owned by shareholders, on an area of 5,000 sq. meters, and an additional building (at same premises) of 1,000 sq. meters, in Main Street, Silat Al-Thaher Village (a locality near Jenin), West Bank, Palestinian Authority.

Website: http://shaddad.ps

Having 41 employees (had 42 employees in the end of 2016).

MEANS

Stock was valued at NIS 20,000,000 in the end of 2016, current value not forthcoming.

Other financial data not forthcoming.

REVENUES

2015 sales claimed to be NIS 70,000,000.

2016 sales claimed to be NIS 70,000,000.

Later sales data not forthcoming.

BANKERS

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

Quds Bank, Jenin Branch (Abu Baker Street), Jenin, West Bank, Palestinian Authority.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject’s Deputy General Manager refused to update financial data.

Mr. Mahmoud Khanfar, subject’s General Manager, is currently abroad.

This is a veteran business.

During 2012, into 2013, the Palestinian Authority entered a serious credit crisis, with a dire shortage in cash, suffering a chronic deficit, 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.

After the Palestinian economy in the West Bank grew in average of 7.5% in the years 2004-2013, the World Bank reports on a decrease trend in per-capita GDP in the West Bank and Gaza witnessed since 2013. Economic growth in the West Bank expects to grow 1.8% in 2015, but population grow 3%. In Gaza, growth was forecasted at 6.5%, but it is calculated based on the depression point of the fight with Israel in summer 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 and keeps contracting.

Other current indicators are still alarming, mainly in the Gaza Strip, such as high unemployment rates (18% in the West Bank, close to 50% in Gaza) and poverty (25% of population live in poverty, 14% in the West Bank, 39% in Gaza). Gaza Strip population account for 40% of the Palestinian population but their part of the Palestinian GDP is far below.

According to the Palestinian Central Bureau of Statistics (CBS) data, GDP of the Palestinian Economy in 2016 was circa US$ 13,400 million in current prices, up from US$ 12,670 million in 2015 (was US$ 7.700 million in 2015 and US$ 7,460 million in 2014 at constant prices, where 2004 is the base year).

GDP per capita in the West Bank stands on US$ 4,000, however well lower in Gaza Strip, whose economy has been in different condition Jointly, GDP per capita stood on close to US$ 2,960 in 2016, US$ 2,860 in 2015 in current prices, based on CBS data, or circa US$ 1,740 in 2015 & 2014 at constant prices).

In terms of foreign trade, Total Import in 2013 summed up to US$ 4,800 million. Over 80% of imported goods to the Palestinian Territories are carried out via Israel.

SUMMARY

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.83
UK Pound	1	INR 93.17
Euro	1	INR 81.38
ILS	1	INR 18.61

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VAR

Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.