MIRA INFORM REPORT

Report Date :

29.11.2011

IDENTIFICATION DETAILS

Name :	GOLYAN GIFTS LTD.

Formerly Known As :	GOLYAN MORRIS GIFTS.

Registered Office :	31 Hahalutzim Street, Tel Aviv 66523

Country :	Israel

Date of Incorporation :	26.04.1999

Legal Form :	Private Limited Company

Line of Business :	Importers and marketers of gifts and household goods

No. of Employees :	14 Persons

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$ 85,000

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 – September 30^th, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Israel

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

Company name & address

GOLYAN GIFTS LTD.

Telephone 972 3 681 91 14

Fax 972 3 682 62 21

31 Hahalutzim Street

TEL AVIV 66523 -ISRAEL

HISTORY & LEGAL FORMATION

Originally established in 1989 as a sole proprietorship, under the name GOLYAN MORRIS GIFTS.

Converted into a private limited company, and registered as such as per file No. 51-277210-4 on the 26.04.1999.

(Note: Subject does not have a registered Latin Name, therefore both spelling “GOLYAN” and “GOLIAN” are acceptable).

SHARE CAPITAL

Authorized share capital NIS 36,000.00, divided into –

6,000 control shares (100 shares issued),

30,000 ordinary shares (101 shares issued), all of NIS 1.00 each,

of which shares amounting to NIS 201.00 were issued.

SHAREHOLDERS

1. Morris Golyan,

2. Ms. Miriam Golyan, holding 1 single ordinary share.

SOLE DIRECTOR AND GENERAL MANAGER

Morris Golyan.

BUSINESS

Importers and marketers of gifts and household goods.

Among clients: LIBERO, TEZUGAT RIENEH VEHICLES, HATZI HINAM, etc.

All purchasing is from import, from the Far East.

Operating from premises (offices, retail store), owned by the shareholders, on an area of 220 sq. meters, in 31 Hahalutzim Street, Tel Aviv, and from a warehouse, owned by the shareholders, on an area of 2,500 sq. meters in Kiryat Ekron.

Having 14 employees.

MEANS

Current stock is valued at NIS 2,000,000 (similar to previous years).

There are 5 charges for unlimited amounts, as well as 1 charge for the sum of NIS 185,850.00 registered on the company's assets (financial assets and vehicles), in favor of Bank Leumi Le’Israel Ltd., Israel Discount Bank Ltd. and Mizrahi Tefahot Bank Ltd. (last 3 charges placed May – July 2010).

SALES

· 2006 sales claimed to be NIS 16,000,000.

· 2007 sales claimed to be NIS 16,000,000.

· 2008 sales claimed to be NIS 16,000,000.

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

· 2010 sales claimed to be NIS 15,000,000.

· 2011 projected sales are NIS 15,000,000.

OTHER COMPANIES

· G.M. DESIGNED ARTIFACTS LTD., sister company, operating 2 retail stores of gifts and household goods.

· M.G.D. OFEK INVESTMENTS LTD., sister company, a real estate company.

BANKERS

· Bank Leumi Le’Israel Ltd., Florentin Branch (No. 805), Tel Aviv, account No. 346600/71.

· Israel Discount Bank Ltd., Kikar Hamoshavot Branch (No. 014), Tel Aviv, account No. 368660.

A check with the Central Banks' database did not reveal any negative information regarding subject's a/m accounts.

CHARACTER AND REPUTATION

It was reported that in April 2008, NAAMAN PORCELAIN LTD., a local publicly traded company, importers, marketers, distributors and retailers of household goods, filed a lawsuit to the Tel Aviv District Court against subject and its shareholder and manager, Mr. Morris Golyan, claiming the defendants import and sell imitations of NAAMAN tableware products, on which also NAAMAN trademark appears.

Reportedly, NAAMAN approached subject asking them to cease from selling the imitations and for compensations, but subject refused to do so.

No further data was found on matter.

Apart from that, nothing unfavorable learned.

According to the Central Bureau of Statistics (CBS), import of Household Utensils in 2010 rose by 15.8% from 2009 summing up to US$ 549.3 million, comparing to US$ 474.2 million in 2009 and similar to 2008 level. The growth trend continued in the first 8 months of 2011 –close to 8% rise (compared with 2010), totaling US$ 406.3 million.

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).

The total giftware market in Israel is estimated at NIS 1.4 billion (including holidays presents) according to a report from September 2006. The market is divided into perfumes (31%), flowers and flowerpots (19%), books (17%), household & tableware goods (17%), pleasure gifts (8%), wine (6%) and others.

SUMMARY

Good for trade engagements.

Maximum unsecured credit recommended US$ 85,000.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.98
UK Pound	1	Rs.80.59
Euro	1	Rs.69.12

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%)

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