MIRA INFORM REPORT

Report Date :

20.12.2012

IDENTIFICATION DETAILS

Name :	Y. POLAD SILK PRINTING LTD.

Registered Office :	28 Hamerkava Street, Industrial Zone, Holon 5885931

Country :	Israel

Date of Incorporation :	15.12.2002

Legal Form :	Private Limited Company

Line of Business :	Subject is involved in textile printing house, performing digital silk printing on textile, apparel, advertizing products, etc.

No. of Employees :	40

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

Y. POLAD SILK PRINTING LTD.

Telephone 972 3 558 26 65

Fax 972 3 558 25 47

28 Hamerkava Street

Industrial Zone

Holon 5885931 Israel

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-333808-7 on the 15.12.2002,

Subject is continuing the activities of a sole proprietorship established by Yossi Polad in 1994 under the name POLAD EMBROIDERIES AND PRINTING, itself continuing activities of a non registered partnership established 1989, by Yossi Polad and his brother Jacob Polad, under the name POLAD EMBROIDERY AND SCREEN PRINT ENTERPRISES.

Subject converted into a private limited company as part of the entrance of Zion David as a partner (50%) in the beginning of 2003.

SHARE CAPITAL

Authorized share capital NIS 10,000.00, divided into -

9,900 ordinary shares (1,000 shares issued),

100 management shares (issued), all of NIS 1.00 each,

of which shares amounting to NIS 1,100.00 were issued.

SHAREHOLDERS

According to the Registrar of Companies:

1. Yossi Polad, 50%,

2. Zion David, 50%.

Although a notice for this effect has yet to be recorded in the Registrar of Companies' files, we are informed that in practice Zion David fully owns subject after in 2007 he acquired the shares of Yossi Polad (we are told that the change should appear in the Registrar shortly).

SOLE DIRECTOR & GENERAL MANAGER

Zion David.

BUSINESS

A textile printing house, performing digital silk printing on textile, apparel, advertizing products, etc.

Sales are to apparel manufacturers and stores, institutions, companies, sport clubs, businesses, schools, organizations, advertizing companies, etc.

Among clientele: FOX WIZEL, DELTA TEXTILE, HONIGMAN, TAMNOON (all 4 retail apparel chain stores), Israeli Defense Force, MACCABI HAIFA FOOTBALL CLUB, MACCABI TEL AVIV, and more.

Operating from rented premises (plant and store), on an area of 1,500 sq. meters, in 28 Hamerkava Street, Industrial Zone, Holon.

Having 40 employees.

MEANS

Current stock is valued at NIS 700,000.

Other financial data not forthcoming.

There are 8 charges for unlimited amounts registered on the company's assets (financial assets, equipment and a vehicle), in favor of Bank Hapoalim Ltd. (last charge placed May 2012).

REVENUES

2010 sales claimed to be NIS 6,000,000.

2011 sales claimed to be NIS 8,000,000.

2012 sales claimed to be NIS 7,000,000.

BANKERS

Bank Hapoalim Ltd., Ramat Gan Branch (No. 613), Ramat Gan, account

No. 1111225.

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

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject is a veteran business.

SUMMARY

Good for trade engagements.

Note: Since the beginning of 2012 Israel Post started using a new area code method of 7 digits (the old method of 5 digits will still be valid till end of January 2013).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.73
UK Pound	1	Rs.89.02
Euro	1	Rs.72.48

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.