MIRA INFORM REPORT

Report Date :

29.11.2012

IDENTIFICATION DETAILS

Name :	A.R.I.Z. IMPORT AND MARKETING OF FOOD LTD

Registered Office :	P.O. Box 4604 (4914502), 23 Alexander Yanai Street, Segula Industrial Zone, Petach Tikva 4927723

Country :	Israel

Financials (as on) :	31.12.2010

Date of Incorporation :	19.02.1984

Legal Form :	Private Limited Company

Line of Business :	Importers and marketers of packaged food raw materials (sugar, flour, rice, etc.) for bakeries, candy plants, private labels, etc.

No. of Employees :	50 employees (same as in 2011).

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

(31.03.2012)

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 & address

A.R.I.Z. IMPORT AND MARKETING OF FOOD LTD.

Telephone 972 3 931 61 16

Fax 972 3 934 41 16

P.O. Box 4604 (4914502)

23 Alexander Yanai Street

Segula Industrial Zone

PETACH TIKVA-4927723-ISRAEL

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-101543-0 on the 19.02.1984.

Company took over the business activities of WEINTRAUB AVRAHAM LTD., established 1960.

SHARE CAPITAL

Authorized share capital NIS 10.00, divided into -

100 management shares (issued),

9,900 ordinary shares (1,900 shares issued), all of NIS 0.001 each,

of which shares amounting to NIS 2.00 were issued.

SHAREHOLDERS

1. Avraham Weintraub, 50% of management shares and 40% of ordinary shares,

2. Jacob Antwarg, 50% of management shares and 30% of ordinary shares,

3. Mrs. Raia Weintraub, wife of Abraham Weintraub, 30% of ordinary shares.

DIRECTORS & JOINT GENERAL MANAGERS

1. Avraham (Avi ) Weintraub,

2. Jacob Antwarg, Adv.

BUSINESS

Importers and marketers of packaged food raw materials (sugar, flour, rice, etc.) for bakeries, candy plants, private labels, etc.

Subject also imports and markets storage and packaging equipment.

Packaging activities are carried out by subject abroad.

Amongst clients: SHUFERSAL, THE CENTRAL BOTTLING CO (COCA COLA), ISRAEL BEER BREWERIES, MILCO INDUSTRIES (TARA DAIRIES), SCHKARACHI, RIO ICE CREAM, EINI BAKERY, ANGEL BAKERY, DAGAN, HAGAVIA, KAPULSKY, GALAM, MAN, RIO ICE CREAM, HASHAHAR HAOLEH, I. SHABI FOOD MARKETING, MANAMIM, etc.

Amongst suppliers: DAGAN FLOUR, SCHTIBL FLOUR, ROT FLOUR, DIZENGOFF TRADE, L.D.S., etc.

Sole local representatives of:

SUDZUCKER, of Germany,

CAULET, BOIRON, both of France,

CEPI, of Italy.

Operating from premises, on an area of 7,000 sq. meters, of which 3,200 are built (the built area is owned by subject, the plot is rented), in 23 Alexander Yanai Street, Segula Industrial Zone, Petach Tikva.

Having 50 employees (same as in 2011).

MEANS

Current stock is valued at NIS 30,000,000 (similar to mid 2011).

B/S shows: 31.12.2010

(NIS)

Current assets 50,413,530

Fixed assets 2,015,584

Investments 2,317,697

54,746,811

Current liabilities 48,837,589

Other liabilities 2,000,040

Non-current liabilities 2,487,403

Equity 1,421,779

54,746,811

There are 18 charges for unlimited amounts registered on the company's assets (financial assets, fixed assets and vehicles), in favor of Bank Leumi Le'Israel Ltd.

Union Bank of Israel Ltd., Mizrahi Tefahot Bank Ltd., The First International Bank of Israel Ltd., Bank of Jerusalem Ltd. and companies (latest charges placed in January and June 2012 on financial assets and on vehicles).

Sales

2009 sales claimed to be NIS 132,000,000.

2010 sales claimed to be NIS 114,000,000, making a net profit (after tax) of NIS 1,617,323.

2011 sales claimed to be NIS 115,000,000.

Sales for the first 9 months of 2012 sales were NIS 130,000,000.

OTHER COMPANIES

M. A. SUKOR TRADING CO. LTD.,

MAOR TRADE D. A. (1994) LTD., 67%, marketing company in Haifa, having 20 employees, 2010 sales claimed to be NIS 40,000,000.

ADAMOT KALANIT LTD., a real estate company controlled by subject’s shareholders,

A.R.I.Z. MARKETING & SUPPLY OF RAW MATERIALS (1988) LTD., marketers of flour, oil and sugar.

BANKERS

Mizrahi Tefahot Bank Ltd., Hafetz Haim Branch (No. 465), Petach Tikva, Account

No. 293193.

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, well known in its field.

The local market for food & beverages grew by 11.4% from 2008 to 2011, summing up to NIS 35.15 billion, around 4.5% increase (in money terms) in 2011 from 2010.

Import of food and beverages to Israel in 2011 summed up to US$ 2,358.2 million, rising by 18.7% from 2010, which comes after a by 15.5% increase in 2010 from 2009 (when import decreased by 9.4% comparing to 2008 due to the slow-down in local economy).

The Central Bureau of Statistics data shows that import of raw food products to Israel in 2011 summed up to US$ 2,062.6 million, 23% increase from 2010 (a similar growth trend to 2010 from 2009, a year which witnessed a 20% decrease from 2008). Over 50% of import is from the EU.

According to the CBS, the total household expenditure for private consumption in 2011 on food, beverage and tobacco rose 3.7% from 2010, after 4% rise in 2010 from 2009, reflecting an improvement trend in the loacl market after the general slow-down in economy in 2009.

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 2012).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.70
UK Pound	1	Rs.89.34
Euro	1	Rs.72.35

INFORMATION DETAILS

Report Prepared by :

MNL

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.