MIRA INFORM REPORT

Report Date :

02.03.2011

IDENTIFICATION DETAILS

Name :	GROOPY GIFTS LTD.

Registered Office :	19 Imber Street, Kiryat Arie Industrial Zone, Petach Tikva 49511

Country :	Israel

Date of Incorporation :	10.01.2005

Legal Form :	Private Limited Company

Line of Business :	Importers, traders and Marketers of household products and giftware

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$ 100,000.

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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Israel

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

Company name & address

GROOPY GIFTS LTD.

Telephone 972 3 579 79 11

Fax 972 3 572 27 76

19 Imber Street

Kiryat Arie Industrial Zone

PETACH TIKVA-49511-ISRAEL

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-363524-3 on the 10.01.2005.

SHARE CAPITAL

Authorized share capital NIS 100.00, divided into: –

100 ordinary shares of NIS 1.00 each,

fully issued.

SHAREHOLDERS

1. Mrs. Sigal Nof-Cohen, 50%,

2. Oren Cohen, 50%, husband of Sigal.

DIRECTORS AND JOINT JENERAL MANAGERS

1. Mrs. Sigal Nof-Cohen.

2. Oren Cohen.

BUSINESS

Importers, traders and marketers of household products and giftware.

Purchasing is mostly from import.

Among clientele are giftware stores and household chain stores, e.g. HAPPENING, bookstore chains, e.g. STEIMATZKI and more.

Operating from premises (offices and warehouse), owned by the shareholders, on an area of 1,000 sq. meters, in 19 Imber Street, Kiryat Arie Industrial Zone, Petach Tikva (to where they moved a month and a half ago from 28B Lehi Street, Bnei Brak). Premises also serve sister company NICI REPRESENTATIVE ISRAEL.

Having 40 employees in Group (subject and sister company), (had 20 employees as of mid 2009).

MEANS

Financial data not forthcoming.

There are 3 charges for unlimited amounts registered on the company’s assets (financial and fixed assets), in favor of Bank Leumi Le'Israel Ltd., Mizrahi Tefahot Bank Ltd. and Bank of Jerusalem Ltd.

ANNUAL SALES

Group’s consolidated (subject and NICI REPRESENTATIVE ISRAEL LTD.) sales:

· 2006 sales claimed to be NIS 8,000,000.

· 2007 sales claimed to be NIS 10,000,000.

· 2008 sales claimed to be NIS 10,000,000.

· 2009 sales claimed to be NIS 15,000,000.

· 2010 sales claimed to be NIS 17,000,000.

OTHER COMPANIES

NICI REPRESENTATIVE ISRAEL LTD., fully owned by Sigal Nof. Representative of NICI giftware brand in Israel, importer and marketer of gift artifacts and operating a store in 3 Shenkin Street, Tel Aviv under the style "Concept".

TRENDY SHOP LTD., sister company, operating 5 retail stores in the giftware field.

BANKERS

· Bank Leumi Le'Israel Ltd., Arlozorov Branch (No. 808), Tel Aviv.

· Mizrahi Tefahot Bank Ltd., Kiryat Arie Branch (No. 519), Petach Tikva.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject's General Manager refused to disclose financial data, besides sales figures.

The local household products market is considered highly competitive after reaching market saturation. It includes household textile, tableware and kitchenware and utensils, bath accessories and ornaments &decorative items, ceramic and glass ware, etc. According to estimations, the local household products market volume reaches NIS 2.5 – 3 billons annually (of which circa NIS 1 billion for “home textile”), and includes retail, wholesale, institutional markets (Retail chains capture 30% of the market share, specialization stores 20%, while the institutional and workers unions sector has 50% share).

According to the Central Bureau of Statistics (CBS), current spending for private consumption in 2009 on equipment and items for domestic use decreased by 3.5% from 2008, after a 2% fall from 2007 (after several years of constant rise). That was part of the general trend in the market due to the slow down in local markets, mainly during the 1^st half 2009. Local per capita expenditure on private consumption kept the rising trend from previous years, yet in a much slower pace – it rose by less than 2% in 2009 from 2008 (when it rose 6.5% from 2007).

In general, local market has been in a recovery trend since mid 2009, continuing into the 1^st half of 2010 and indicators prove that: Expenditure per capita on private consumption rose 7% comparing to 2009 1^st half.

From CBS data, import of Household Utensils in 2009 summed up to US$ 474.2 million, comparing to US$ 531.9 million in 2009, representing 10.8% decrease (after a 179% increase in 2008 from 2007). The trend reversed in 2010 1^st half, with 22% increase in import (to US$ 271.3 million), comparing to 1stH 2009.

SUMMARY

Good for trade engagements.

Maximum unsecured credit recommended US$ 100,000.

NOTES:

Please refer to the new premises address of subject (on which we were not aware of in the intermediate report). Another change occurred in subject’s banks – due to the shift, they also shifted to a new branch of Mizrahi Tefahot Bank.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.12
UK Pound	1	Rs.73.43
Euro	1	Rs.62.32

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

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.