MIRA INFORM REPORT

Report Date :

17.05.2011

IDENTIFICATION DETAILS

Name :	CAHSAREL FINE INDUSTRIES LTD.

Registered Office :	16 Jabotinsky Street, Gedera 70700

Country :	Israel

Date of Incorporation :	30.05.1991

Legal Form :	Private Limited Company

Line of Business :	Designers, manufacturers, exporters and marketers of gold and diamond jewelry.

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory

Payment Behaviour :	Usually 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.

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

CAHSAREL FINE INDUSTRIES LTD.

Telephone 972 8 869 32 28

Fax 972 8 869 31 99

16 Jabotinsky Street

GEDERA 70700 ISRAEL

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-157461-8 on the 30.05.1991.

SHARE CAPITAL

Authorized share capital NIS 14,000.00 divided into -

14,000 ordinary shares of NIS 1.00 each,

of which 100 shares amounting to NIS 100.00 were issued.

SHAREHOLDERS

1. Yosef Kashi, 99%,

2. Moshe Kashi, 1%.

SOLE DIRECTOR & GENERAL MANAGER

Yosef Kashi.

BUSINESS

Designers, manufacturers, exporters and marketers of gold and diamond jewelry.

Some 20% - 30% of sales are export.

Sales are to many retail jewelry shops.

Among suppliers: B. BRIZA COLORS, GIVEON NISAN & SONS, LICAST TOOLS, and more.

Operating from premises, owned by shareholders, on an area of 1,000 sq. meters (600 sq. meters built), in 16 Jabotinsky Street, Gedera.

Having 15 employees.

MEANS

Property owned by shareholders in 16 Jabotinsky Street, Gedera (where subject is operating from) is valued at US$ 1,300,000.

Other financial data not forthcoming.

There are 4 charges for unlimited amounts registered on the company's assets (financial assets and vehicles), in favor of Mizrahi Tefahot Bank Ltd. and Bank Hapoalim Ltd. (last charge placed in December 2009).

ANNUAL SALES

2009 sales claimed to be US$ 2,000,000.

2010 sales claimed to be US$ 2,000,000.

BANKERS

Mizrahi Tefahot Bank Ltd., Hachashmonaim Branch (No. 494), Tel Aviv.\

Bank Hapoalim Ltd., Bat Yam Branch (No. 642), Bat Yam.

Bank Leumi Le'Israel Ltd., Gedera Branch (No. 928), Gedera.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject is a veteran business, and Yosef Kashi is an offspring of the well-known Kashi family, whose jewelry business founded in 1880 (family’s business split along the years).

Goldsmith and Silversmith branch in 2010 reached US$ 435.7 million, down from US$ 450.2 million in 2009 (3.2% decrease) and up from US$ 335 million in 2008 and US$ 390 million in 2007.

The division in export in 2008 was 62.7% for gold and bronze jewelry, 16.3% fashion jewelries and 21% of silver jewelries. In addition, Israeli manufacturers exported US$ 22.56 million of gold and silver crafting items.

There are some 250 jewelry manufacturers, 200 of which are exporters, manufacturing gold jewelry, silver jewelry and other fashionable jewelry.

Most exports are to the USA and Canada and Western Europe

SUMMARY

Good for trade engagements.

Maximum unsecured credit recommended US$ 50,000.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.07
UK Pound	1	Rs.72.97
Euro	1	Rs.63.57

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.