MIRA INFORM REPORT

Report Date :

02.03.2011

IDENTIFICATION DETAILS

Name :	NORDIA SPRINGS - ACS LTD.

Registered Office :	Nordia 42954

Country :	Israel

Date of Incorporation :	01.01.2006

Legal Form :	Agricultural Cooperative Society

Line of Business :	Manufacturers, marketers and exporters of wire and steel industrial springs

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$ 200,000

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 & address

NORDIA SPRINGS - ACS LTD.

(Trading as: NORDIA SPRINGS LTD.)

Telephone 972 9 889 30 00

Fax 972 9 889 30 19; 889 30 16

E-mail: info@nordia.co.il

NORDIA 42954-ISRAEL

HISTORY & LEGAL FORMATION

An Agricultural Cooperative Society (ACS), incorporated as per file No. 57-004584-9.

Subject started to operate on the 01.01.2006, after taking over all activities of the limited partnership NORDIA SPRINGS INDUSTRY (Reg. No. 55-000356-0, established 1960, was also known as NORDIA METAL WORKS SPRINGS INDUSTRY), which became non active.

OWNERSHIP

Subject is fully owned by Moshav Nordia (NORDIA COOPERATIVE SOCIETY OF VETERAN SOLDIERS LTD., an agricultural cooperative society), with some 130 families.

DIRECTORS

1. David Frum, Chairman,

2. Itzhak Zait,

3. Lion Margalit,

And several others.

GENERAL MANAGER

Ram Keren.

BUSINESS

Manufacturers, marketers and exporters of wire and steel industrial springs.

Sales are to the aircraft, automotive, defense, electronics and computers industries, as well as the agricultural field.

Some 20% of sales are for export.

Among foreign clients: OPEL, PEUGEOT-CITROEN, KNORR-BREMSE, WABCO.

Among local clients: NAAN DAN JAIN, ISRAEL AEROSPACE INDUSTRY, ISRAEL MILITARY INDUSTRY, Ministry of Defense, BERMAD, DOROT VALVES, ELGO IRRIGATION, RAVIV, GALTRONICS, MOTOROLA ISRAEL, ELBIT SYSTEMS, MAGAL SECURITY SYSTEMS, MUL-T-LOCK, NISKO Group, FISHMAN ENGINEERING, etc.

Operating from premises (offices, warehouses and plant), owned by Moshav Nordia, on an area of 4,000 sq. meters, in Nordia Village (“Moshav Nordia”, where “moshav” is a local typical village or settlement, in particular a type of cooperative agricultural community of individual farms), situated near Netanya.

Having 150 employees (had 105 in mid 2009, had 120 employees in early 2008, 180 employees in mid 2007).

MEANS

Stock was valued at NIS 6,000,000 in mid 2009 (similar to 2008 and 2007).

Balance Sheet to the 31.12.2007 totaled NIS 34,975,000.

Equity to the 31.12.2007 was NIS 4,495,000.

Later B/S data not forthcoming.

ANNUAL SALES

2006 sales claimed to be NIS 45,000,000, of which 20% were for export.

2007 sales claimed to be NIS 51,000,000, of which 23% were for export. Subject ended 2007 with a net profit of NIS 3,232,000.

2008 sales claimed to be NIS 50,000,000, of which NIS 12,500,000 were for export.

2009 sales claimed to be NIS 38,117,000, of which 20% were for export.

2010 sales claimed to be NIS 44,926,000, of which 20% were for export.

OTHER COMPANIES

A.I.C. ANGLO ISRAEL COMPONENTS LTD., 50%, manufacturers and distributors of metal products for electricity and electronics.

ADVANCED METAL TECHNOLOGIES LTD., 49%, non-active.

Moshav Nordia also controls:

NORDIA HATCHERIES ACS LTD., chicken hatchery.

SPRINCO LTD., manufacturers and marketers of springs.

NORDIA HOLDINGS ACS LTD. and several further agricultural cooperative societies.

NORDIA SPRINGS INDUSTRY, non-active.

BANKERS

· Bank Hapoalim Ltd., Netanya Business Branch (No. 167), Netanya, account No. 202189.

· Bank Leumi Le'Israel Ltd., Hadera Business. Branch (No. 639), Hadera, account No. 224000/87.

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

CHARACTER AND REPUTATION

Nothing unfavorable learned on subject.

Moshav Nordia was established in 1948. They cultivate circa 2.5 million sq. meters of land. They are also involved in real estate projects.

The Nordia Village is also involved in real estate deals.

This is a very long established business. Subject is the largest company in the industrial spring's field in Israel.

Subject meets the Institute of Spring Technology (IST) and QS 9000 standards (ISO-9000).

According to reports, the local automotive industry has been flourishing in recent years, and reached annual sales, almost all for export, of US$ 800 million, supplying to global automotive manufacturers and sub-contractors to this industry. However, those industries, especially in the USA though also in Europe, have been negatively affected by the present economic slow-down in global markets, following the financial and credit crisis.

According to the Israel Export & International cooperation Institute, 2009 Q1 export was US$ 100 million compared to US$ 150 in Q1 2008, a 30% decline, forecasting a total decline of US$ 200 million in 2009's total export.

The Chinese market is viewed as a potential new market for the Israeli automotive industry, producing 9.5 million cars a year.

There are some 150 local plants in the automobile industry, with employs around 12,000 employees, manufacturing mainly advanced technology made spare parts, mechanical assemblies, equipment, components and alike.

According to the Chairman of the Metal and Electricity sectors at the Manufacturers’ Association, sales of the various metal and electricity related industrial sectors fell by 20% in 2009 (from 2008, when sales reached NIS 70 billion) due to the significant slow-down in the local economy, affected by the global financial and economic crisis.

Overall sales were forecasted to reach

NIS 55.26 billion, of which NIS 30.76 sales to the local market (20% decrease from 2008) and US$ 6.85 billion sales for export (20% decrease from US$ 10 billion in 2008).

The above industries contracting trend was evident in 2008 after the long and significant growth trend since 2004 (in 2007 the sectors’ overall sales reached a climex of NIS 75.7 billion). The sectors have been witnessing a gradual recovery that started in mid 2009, into 2010, paralell to the improvement in the global markets.

According to the Central Bureau of Statistics (CBS), import of raw materials for the local metal sector in 2009 was as follows: Iron and Steel - US$ 1,349.1 million (38% decrease from 2008), Precious Metals - US$ 117.5 million (35.3% decrease from 2007), Non-ferrous Metals - US$ 584.4 million (44.3% decrease from 2007).

Import of raw materials for the local metal sector in the first half of 2010 shows improvement in all segments comparing to 2009 1^st half: an increase by 47.5%, 39% and 44% in the segments of Iron and Steel, Precious Metals and Non-ferrous Metals, respectively.

CBS data on capital formation (investment) in imported machinery and other equipment for the manufacturing industry in 2009 (comparing to 2008): investments in the manufacture of metal products was NIS 900 million (31% down) (rose 22% in 2008 from 2007); investments in the manufacture of basic metal products was NIS 135 million, 48% down from 2007 (45% rise in 2007 from 2006).

SUMMARY

Good for trade engagements.

Maximum unsecured credit recommended US$ 200,000.

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%)

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