MIRA INFORM REPORT

 

 

Report Date :           

25.03.2011

 

IDENTIFICATION DETAILS

 

Name :

COMMON SENSE LTD.

 

 

Registered Office :

P.O. Box 3567, 7 Haeshel Street, Industrial Park, Caesarea 30889           

 

 

Country :

Israel

 

 

Date of Incorporation :

17.06.1999

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Developers, Manufactures, Exporters and Marketers of non-intrusive, home tests for classification of common abnormal vaginal discharges and for detection of amniotic fluid leakage.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 20,000

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

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address

 

COMMON SENSE LTD.

Telephone    972 4 627 71 01

Fax              972 4 627 71 03

P.O. Box 3567

7 Haeshel Street

Industrial Park

CAESAREA 30889-ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-279296-1 on the 17.06.1999.

 

Subject was originally established as a company under the auspices of the NAYOT Technological Incubator of the Israeli government for its first 2 years.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 20,000,000.00, divided into -

          50,000,000 preference A A shares (10,485,368 issued), of NIS 0.01 each,

          50,000,000 ordinary B shares (110,000 issued), of NIS 0.01 each,

          4,649 preference A1 shares, of NIS 1.00 each,

          7,105,436 preference A (4,975,813 issued), of NIS 1.00 each,

          11,889,915 ordinary shares (636,501 issued), of NIS 1.00 each,

of which shares amounting to NIS 5,718,267.68 were issued.

 

 

SHAREHOLDERS

 

Subject is owned by several venture capital funds and investors (companies and private individuals), mainly:

1.    Stanley Sanders and Sanders Family (via SANDERS FAMILY PARTNERS LLC, a foreign firm), holds 60% of subject,

2.    COSTODIAN F B O STANLEY EQUITY TRUST COMPANY,

3.    Prof. Alex Schoenfeld,

4.    LATAR-TECH HOLDINGS LTD.,

5.    ISRAEL PARTNERS LP,

6.    Mage Brit Rosenbaum,

6.    MICRO-DENT LTD., a local venture capital firm controlled by Eitan Wertheimer,

7.    FISHMAN FAMILY ESTATE MANAGEMENT (1988) LTD., owned by the Eliezer Fishman Family,

8.    Roni Naftali.

 

According to reports, among investors in subject are BIOMEDICAL INNOVATIONS and OFER TECHNOLOGIES.

 

 

DIRECTORS

 

1.       Dan Koren, Chairman,

2.       Manashe Terem, General Manager,

3.       Prof. Alex Schoenfeld,

4.       Tal Menipaz,

5.       Stanley Sanders,

6.       Michael Rosenbaum,

7.       Sanders Craig,

8.       Mreylbeth Viener.

 

 

BUSINESS

 

A start-up company. Developers, manufactures, exporters and marketers of non-intrusive, home tests for classification of common abnormal vaginal discharges and for detection of amniotic fluid leakage.

 

Most of sales are for export.

Sales are to over 20 countries including US, Europe, Asia, & Australia.

 

Among clientele: MACCABI HEALTH SERVICES, DURAMED PHARMACEUTICALS, etc.

 

Among suppliers: ELIAS MACHINES INDUSTRY, etc.

 

Operating from rented premises (offices, development facilities), on an area of 500 sq. meters, in 7 Haeshel Street, Industrial Park, Caesarea.

 

Having 20 employees.

 

 

MEANS

 

Current stock is valued at US$ 250,000.

 

According to a report subject raised US$ 4 million in 2000, from several investors. In October 2003, reportedly subject was in process of raising further US$ 1 – US$ 3 million from private investors.

 

Other financial data not forthcoming.

 

There are 3 charges for unlimited amounts registered on the company's assets, in favor of The First International Bank of Israel Ltd. (last charge placed in June 2007).

 

 

ANNUAL SALES

 

2009 sales claimed to be US$ 500,000, of which 80% were for export.

2010 sales claimed to be US$ 500,000, of which 80% were for export.

2011 projected sales are US$ 2,200,000, of which 95% for export.

 

 

OTHER COMPANIES

 

CS-USA INC., 100%, marketing arm in North America.

 

Among subject’s shareholding firms and individuals known to have holdings and investments in many other companies.

 

LATAR-TECH HOLDINGS LTD., a private venture-capital company for investments in pre-seed innovative technologies in Communications, Biotechnology, Engineering materials and Smart Home Products.

 

MICRO-DENT LTD., a local venture capital firm led by Eitan Wertheimer, president of ISCAR Group, invests in high-tech companies and innovative markets, value propositions and technology.

 

 

BANKERS

 

The First International Bank of Israel Ltd., Ramat Gan Branch (No. 041), Ramat Gan.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Subject's officials informed us that they are still a start up, and though they are sales there are in development stages (of other products).

 

Subject is ISO-13485 certified.

 

Among the investors/ shareholders in subject are well-known Israeli business figures:

 

Eitan Wertheimer is considered one of the wealthiest persons in Israel (him and his father, founder of ISCAR, world's 2nd largest manufacturer in the metals cutting tools, sold 80% of ISCAR to Warren Buffett’s BERKSHIRE HATHAWAY in 2006 for US$ 4 billion in cash). Mr. Wertheimer invests in start-ups mainly via venture capital fund MICRO-DENT.

 

The FISHMAN GROUP is controlled by Eliezer Fishman, a leading local businessman and entrepreneur, one of the most influential figures in the local business and commercial community. The Group controls and manages companies in retail, real estate, finance, industry, hi-tech, media, in Israel and overseas.

 

Roni Naftali is also a well known businessman whose main holdings is in Israel’s largest mineral water producer EDEN SPRINGS LTD., in BIG SHOPPING CENTERS (2004) LTD., operating open shopping centers countrywide, in military and defense MIKAL GROUP LTD., and in CANIEL packaging manufacturing Group.

 

In October 2003 it was reported that subject signed distribution agreements with local distributors in 14 European countries, the first one in Holland, and that till then subject distributed 100,000 units.

 

In April 2005 it was reported that subject received and FDA approval for its VI-SENSE product.

 

Israel is considered one of the leading countries in the world in terms of investment in the Life Science and Biotechnology industry. In 2008 Israel was ranked 4th in investments in Biotechnology/GDP, while being among the leaders in the areas of investments and patents in Medical Device and Bio-Pharma fields.

 

During 2008 total of US$ 87 million were given to local Life Science firms by the Chief Scientist Office.

 

According to the Israeli Export Institute, 2008 exports of medical and electronic equipment and instrumentation (excl. medical software) amounted to US$ 1,500 million, similar to 2007, which comes after several years of continuing growth. Sales for export fell in 2009 by some 15% to around US$ 1,300 million as part of the effects of the global economic crisis, and fell down further by some 0.5% (though still some recovery overall) in 2010 1st half (comparing to 2009 1st half).

Geographical division of the export is mainly to the USA.

 

Export of Communication, Medical & Scientific Equipment rose in 2010 by 12.4% from 2009 to US$ 7,567 million, also reflecting the recovery in global markets.

 

There are over 33,000 employees in the Life Science industries, in some 920 companies, of which 57% deal in medical devices, 16% in pharmaceuticals, 16% in biotechnology and 7% in medical computerization.

 

According to the Israel Venture Capital research firm survey, Israeli Life Science firms raised US$ 272 million in 2009, after raising 318 million in 2008, and US$ 351 million from VC funds in during 2007.

 

Like in 2009, the local Venture Capital industry kept suffering in 2010, due to the effects of the global economic crisis.

 

 

SUMMARY

 

Good for trade engagements.

Maximum unsecured credit recommended US$ 20,000.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.77

UK Pound

1

Rs.72.66

Euro

1

Rs.63.06

 

 

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.