MIRA INFORM REPORT

Report Date :

16.02.2012

IDENTIFICATION DETAILS

Name :	SABACH AGENCIES LTD.

Registered Office :	P.O. Box 85, Mishmar Hashiva (50297) Logistic Park, warehouse No. 107 Tzrifin 60930

Country :	Israel

Year of Establishment :	1971

Legal Form :	Private Limited Company

Line of Business :	Traders, importers and marketers of plumbing products and sanitary ware.

No. of Employees :	30

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$ 200,000.
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, 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 and address

SABACH AGENCIES LTD.

Telephone 972 8 924 93 15

Fax 972 8 924 94 58

P.O. Box 85, Mishmar Hashiva (50297)

Logistic Park, warehouse No. 107

TZRIFIN 60930 ISRAEL

HISTORY & LEGAL FORMATION

Originally established as a sole proprietorship in 1971 by Ben Zion Sabach.

Converted into a private limited company and registered as such as per file

No. 51-102047-1 on the 28.03.1984.

SHARE CAPITAL

Authorized share capital NIS 236.00, divided into -

236,000 ordinary shares of NIS 0.001 each,

of which 1,001 shares amounting to NIS 1.001 were issued.

(Note: The currency in share capital was originally in Old Israeli Shekel whose nominal value was 1 thousandth of the current New Israeli Shekel (NIS), converted in 1986).

SHAREHOLDERS

1. Ben Zion Sabach, (practically fully owns subject)

2. Ms. Shoshana Sabach, holding 1 single ordinary share.

SOLE DIRECTOR

Ben Zion Sabach.

JOINT GENERAL MANAGERS

1. Ben Zion (Bentzi) Sabach,

2. Uri Sabach, son of Ben Zion Sabach.

BUSINESS

Traders, importers and marketers of plumbing products and sanitary ware.

Sales are to traders, retailers, institutions, hotels, etc.

Among clientele: MEIR HAMHAIR.

50% of purchase is from import.

Among local suppliers: HAMAT SANITARY FITTINGS, HARSA STUDIO, PLASSON, ORGAL, and more.

Operating from rented premises, on an area of 1,000 sq. meters, in the Logistic Park, warehouse No. 107, Tzrifin.

Having 30 employees.

MEANS

Current stock is valued at NIS 3,000,000.

Other financial data not forthcoming.

There are 6 charges for unlimited amounts, as well as 1 charge for the sum of NIS 159,000.00 registered on the company's assets (financial assets and vehicles), in favor of Bank Leumi Le'Israel Ltd., The First International Bank of Israel Ltd., Bank of Jerusalem Ltd. and a leasing company (last charge placed August 2010).

REVENUES

2009 sales claimed to be NIS 32,000,000.

2010 sales claimed to be NIS 35,000,000.

2011 sales claimed to be NIS 40,000,000.

BANKERS

The First International Bank of Israel Ltd., Kiryat Hamelacha Branch (No. 055), Tel Aviv.

Mercantile Discount Bank Ltd., Tel Aviv Main Branch (No. 654), Tel Aviv.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject is a veteran business.

The general improvement in local economy in 2010 was felt in the building sector. Investment in the local building branch rose by 5.9% in 2010. Investment in construction for dwelling rose by 4.1% in 2009 and by 13.8% in 2010, in annual calculation. These positive signs appeared after over the last several years gross domestic investment in building and other construction works was stagnant (after rising trends in 2006 and 2007). Gross domestic investment in building and other construction works grew by some 10% in 2010 (in current prices) after it increased in 2009 by less than 1% from 2008, mainly in private construction (less in public construction and in other construction).

Consumption expenditure of households in 2010 on Housing and on Housing Equipment grew by 2.5% and by 7.5%, respectively, in annual calculation.

Volume of building starts for dwelling in 2010 reached a decade record of 39,000 new apartments, 7% higher than 2009 (which marked 6.5% rise from 2008 and similar level to previous year). Total number of transactions in dwellings in 2010 also rose from 2009, continuing the growing trend from 2008, albeit in lower ratio (less than 1% rise in 2010).

In the first half of 2011, number of building starts rose by 15% from 2010, thanks to the Government marketing efforts, however cooled down in 2011 2^nd half, which generally characterized the stagnation and even retreat in the local real estate market, chiefly apparent in the contraction in the number of transactions.

Housing prices over the last years kept rising due to the shortage in supply of new apartments, while demand kept rising, much due to structural fault in the allocation of plots in State hands. In view of avoiding a real estate bubble and allowing cheaper housing prices, the Israeli Government initiated recent reforms, designed to drive prices down in one hand, and increase supply on the other. Indeed, since mid 2011 there has been drop in prices in many areas. Buyers have been waiting prices to fall further while contractors await the prices to pick-up again. Demand fell due to the negative economic climate, and in the supply side the banks are shutting down credit to contractors.

SUMMARY

Good for trade engagements.

Maximum unsecured credit recommended US$ 200,000.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.29
UK Pound	1	Rs.77.45
Euro	1	Rs.64.89

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.