MIRA INFORM REPORT

Report Date :

07.04.2011

IDENTIFICATION DETAILS

Correct Name :	ARGAL SERVICE HOTEL AND RESTAURANT SUPPLIES LTD.

Registered Office :	P.O. Box 8261, Tel Aviv (61082), 20 Kibbutz Galuyot Street, Argal House

Country :	Israel

Date of Incorporation :	08.04.1981

Legal Form :	Private Limited Company

Line of Business :	Importers, Traders and Marketers of Equipment.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 400,000

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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Israel

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

ARGAL SERVICE HOTEL AND RESTAURANT SUPPLIES LTD.

(Also trading as ARGAL SERVICE LTD.)

Telephone 972 3 682 99 99

Fax 972 3 682 30 80

P.O. Box 8261, Tel Aviv (61082)

20 Kibbutz Galuyot Street

Argal House

TEL AVIV 68166 ISRAEL

HISTORY & LEGAL FORMATION

Originally established in 1974 as a partnership.

Converted into a private limited company and registered as such as per file
No. 51-088280-6 on the 08.04.1981.

SHARE CAPITAL

Authorized share capital NIS 20.00, divided into:- 2,000 management shares (3 shares issued), 18,000 ordinary shares (200 shares issued), all of NIS 0.001 each, of which shares amounting to NIS 0.203 were issued.

SHAREHOLDERS

1. Igal Amit, holding 50% of management shares and 42.5% of ordinary shares,

2. Arieh Raps, holding 50% of management shares and 42.5% of ordinary shares,

3. AMIT SHAKED INVESTMENTS LTD., 15% of ordinary shares, owned by Roy Amit.

DIRECTORS & JOINT GENERAL MANAGERS

1. Igal Amit,

2. Arieh Raps.

BUSINESS

Importers, traders and marketers of equipment and supplies for hotels, restaurants, banquet halls, catering companies, fast food outlets, etc.

Subject supplies to thousands of clients.

Products include: furniture, carpets, electrical appliances, wall coverings, textiles, tabletop ware, kitchenware, etc.

Most purchases are imports. Also purchase from local suppliers.

Among local suppliers: OR PLAST, PLASGAD PLASTIC PRODUCTS, KETER PLASTIC, ELECTRO STAR, SILKO, etc.

Main local exclusive representation:

BAUSCHER, TAFELSTERN, ROSENTHAL HOTEL, all of Germany,

LIBBEY, of the USA,

ABERT, of Italy.

Also sole local representatives of:

HUTSCHENREUTHER, HEPP, FZ, LAUTERJUNG, SOLICUT, ALFI, FRILICH, all of Germany,

CARLISLE, GLASS, TRAEX, CARLISLE, FALCON, ARCHITECTURAL, SERVICE IDEAS, LANCASTER, LODGE, TEXAS BASKETS, FORBES INDUSTRIES, METRO, all of the USA,

MEPRA, BROGGI, ELEKTROSUISSE, PIAZZA, FRETTE, METAL CARRELLI, POVONI, DECORLINE, ITALO OTTINETI, FOUNDERIE, VANERRI, all of Italy,

G.N. BURGESS, of the UK,

STOCKLI, ZWIESEL, both of Switzerland,

JACKSTACK, of Belgium,

GUERY, COMBRICHON, MAUVIEL, CADDIE, PLATEX, all of France,

ROYAL LEERDAM, of Holland,

KAYALAR, of Turkey,

SICO, of Portugal.

Operating from:

1. An owned premises (offices, showrooms), on an area of some 900 sq. meters, in 20 Kibbutz Galuyot Street (Argal House), Tel Aviv,

2. Rented warehouse, on an area of 3,500 sq. meters, in Zeitan, a locality near Lod,

3. Rented warehouse on an area of 500 sq. meters in Haifa,

4. A retail store in 20 Hamessila Street, Haifa,

5. "Argal Express", a retail store in Sheerit Israel Street, Tel Aviv, on an area of 500 sq. meters.

Having 82 employees (had 71 employees in 2010 and 60 employees in mid 2009).

MEANS

Current stock valued at NIS 13,500,000 (was valued at NIS 12,000,000 in mid 2010, same as in 2009).

In November 2001, subject acquired a floor, on an area of 760 sq. meters in 20 Kibbutz Galuyot Street, Tel Aviv, for a sum of US$ 1.7 million.

There are 25 charges for unlimited amounts and 2 charges for total sum of
NIS 3,900,000.00 registered on the company’s assets (financial and fixed assets), in favor of Mizrahi Tefahot Bank Ltd., Israel Discount Bank Ltd., Mercantile Discount Bank Ltd., Bank Leumi Le’Israel Ltd. and leasing companies.

ANNUAL SALES

2007 sales claimed to be NIS 70,000,000.

2008 sales claimed to be NIS 80,000,000.

2009 sales claimed to be NIS 72,000,000.

2010 sales claimed to be NIS 75,000,000.

OTHER COMPANIES

ARGAL PROCUREMENT AND PROJECT SERVICES LTD., investments in Israeli real estate project abroad.

BANKERS

Israel Discount Bank Ltd., Hamasger Branch (No. 088), Tel Aviv, account No. 000167.

A check with the Central Banks' database did not reveal anything detrimental on subject’s a/m account.

Mercantile Discount Bank Ltd., Givatayim Branch (No. 666), Givatayim.

Bank Leumi Le'Israel Ltd., Hacharoshet Business Branch (No. 651), Holon.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject is a long established business, and one of the leading companies in their field in Israel.

Previous years we received positive suppliers’ opinions on subject:

SILKO officials told us they are working with subject for many years, supplying them with disposable utensils. Subject was described as a good client who always pays on time.

ELECTRO STAR officials told us they are working with subject since September 2004, supplying them with domestic electrical appliances. Dealings were estimated at NIS 25,000 per month. Subject was described as a good client who always pays on time.

SUMMARY

Good for trade engagements.

Maximum unsecured credit recommended US$ 400,000.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.20
UK Pound	1	Rs.72.24
Euro	1	Rs.63.09

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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