MIRA INFORM REPORT

 

 

Report No. :

509231

Report Date :

28.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

ALWALAD TRADING CO.

 

 

Registered Office :

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

 

 

Country :

Palestine

 

 

Financials (as on) :

2017 (Summarized)

 

 

Year of Establishment :

2008

 

 

Legal Form :

Foreign Private Limited Company

 

 

Line of Business :

Subject is engaged in Traders, importers and marketers of pulses, rice, tea, juices.

 

 

No. of Employees :

6

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

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.

 

Company name and address

 

ALWALAD TRADING CO.

(Also trading as AL-WALD TRADING CO. LTD.*)

Telephone               972 4 250 30 20 / 972 59 920 41 52

Fax                         972 4 250 23 28

Email:                     alwalad@palnet.com

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.

According to subject’s website, continuing business activities from 2003 and earlier.

 

*Note: subject's Arabic name in English spelling is SHARIKAT AL WALD AL TIJARIAH. "Also, "TEA" is not part of subject's name (though commented that they import tea considerably from India).

 

 

SHARE CAPITAL

 

Data not forthcoming.

 

 

SHAREHOLDERS

 

Subject is fully owned by Ahmad Na’irath.

 

 

GENERAL MANAGER

 

Ahmad Na’irath.

 

 

BUSINESS

 

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

 

Purchasing is from import and from local suppliers (but have no Israeli suppliers).

 

Sole local importers and representatives (based on subject’s website) of, among others:

AWAL, of Bahrain

AL AIN, of the UAE.

 

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

Website: www.alwalad.ps

 

Having 6 employees (had 5 employees in 2017, had 6 employees in 2015 same as in 2014).

 

 

MEANS

 

Current inventory is valued at NIS 3,000,000.

 

Other financial data not forthcoming.

 

 

REVENUES

 

2015 sales claimed to be NIS 4,000,000.

2016 sales claimed to be NIS 4,000,000.

2017 sales claimed to be NIS 8,000,000. Subject’s general manager, Mr. Ahmad Na’irath, remarked that they experienced a significant rise in sales.

 

 

BANKERS

 

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

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

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

 

Good for trade engagements.

Maximum unsecured credit recommended US$ 30,000.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 68.26

UK Pound

1

INR 91.21

Euro

1

INR 79.88

ILS

1

INR 18.91

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIY

 

 

Report Prepared by :

DNS

 

 

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.