MIRA INFORM REPORT

Report Date :

03.12.2012

IDENTIFICATION DETAILS

Name :	DEPOTRON LTD.

Registered Office :	P.O. Box 399 (4310302) 10 Hamelacha Street Industrial Zone Ra'anana 4366105

Country :	Israel

Date of Incorporation :	16.11.2005

Legal Form :	Private Limited Company

Line of Business :	Importers and marketers of chemicals

No. of Employees :	03

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 :	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^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Israel

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

israel - ECONOMIC OVERVIEW

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

Source : CIA

Company Name and address

DEPOTRON LTD.

Telephone 972 9 741 19 88

Fax 972 9 741 20 21

P.O. Box 399 (4310302)

10 Hamelacha Street

Industrial Zone

RA'ANANA 4366105 ISRAEL

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-375128-9 on the 16.11.2005.

SHARE CAPITAL

Authorized share capital NIS 10,000.00, divided into -

10,000 ordinary shares of NIS 1.00 each, of which 120 shares amounting to NIS 120.00 were issued.

SHAREHOLDERS

Subject is fully owned by CHEMITRON TECHNOLOGIES (1999) LTD., owned by Ron family.

On 01.08.2006 Ron family reached full ownership of subject, after acquiring 50% from DEPOTCHEM LTD.

SOLE DIRECTOR & GENERAL MANAGER

Guy Ron.

Note: In practice, Usi Ron (father of Guy Ron) serves as Chairman of subject and CHEMITRON)

BUSINESS

Importers and marketers of chemicals.

All of subject’s suppliers are foreign.

Among clientele are leading firms such as: TAMBOUR, TZAH SERAFON, ZOHAR DALIA, HENKEL-SOAD, BROMINE COMPOUNDS, PAPER PRODUCTS INDUSTRIES, and more.

Operating from premises, owned by the shareholders, on an area of 180 sq. meters, in 10 Hamelacha Street, Industrial Zone, Ra'anana, and from warehouses, rented, in the Milu’ot Industrial Zone, Acre (South). Both premises serve the Group.

Having 3 employees in subject and 13 employees in the Group (same as in 2011).

MEANS

Current stock is valued at NIS 5,000,000.

Other financial data not forthcoming.

There are no charges registered on the company's assets.

REVENUES

2008 sales claimed to be NIS 11,000,000.

2009 sales claimed to be NIS 13,000,000.

2010 sales claimed to be NIS 18,000,000.

2011 sales claimed to be NIS 16,000,000.

Sales for the first 6 months of 2012 claimed to be NIS 9,000,000.

OTHER COMPANIES

CHEMITRON TECHNOLOGIES (1999) LTD., parent company, representatives in the transportation area, mainly trains (agent of BOMBARDIER Transportation, SAXONY ECONOMIC DEVELOPMENT CORPORATION - WSF),

CHEMITRON LTD., sister company, established in 1990, importers, marketers and agents in the chemical and raw materials field (paints, food, medicine, detergents, etc.).

BANKERS

Bank Hapoalim Ltd., Hapark Branch (No. 757), Ra'anana, account No. 330002.

A check with the Central Bank database did not reveal anything detrimental on subject’s a/m account.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

CHEMOTRON Group is a veteran family business of 5 generations, well-known in their fields. The Group, via parent company CHEMITRON TECHNOLOGIES, supplied ISRAEL RAILWAYS with 126 Bombardier Double Deck coaches (in volume of well over €100 million).

We are informed by subject's General Manager that subject's sales are from stock, and CHEMITRON LTD's sales are on commission basis.

According to the Central Bureau of Statistics, import of chemical raw materials for the local industries in 2011 increased by close to 17% from 2010, with value of imported chemical raw materials reaching US$ 4,942 million. This marks a continuing growth trend from 2010, when import rose by 18% from 2009 as the markets recovered from the crisis in 2009 (when import decreased by 18.5% comparing to 2008).

SUMMARY

Good for trade engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.52
UK Pound	1	Rs.87.48
Euro	1	Rs.70.89

INFORMATION DETAILS

Report Prepared by :

SDA

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.