MIRA INFORM REPORT

Report Date :

31.10.2013

IDENTIFICATION DETAILS

Name :	BROMINE COMPOUNDS MARKETING (2002) LTD.

Registered Office :	P.O. Box 180 (8410101), Maklef House, 12 Kroitzer Menachem Street

Country :	Israel

Financials (as on) :	31.12.2012

Date of Incorporation :	25.12.2002

Legal Form :	Private Limited Company

Line of Business :	Marketers and exporters of parent company BROMINE COMPOUNDS's products in Israel and abroad. Products include bromine compounds and other industrial chemicals based on minerals extracted from the Dead Sea, the world’s largest bromine source (methyl bromide, sodium, potassium and ammonium bromides, etc.), for agricultural and industrial purposes, mainly plastics industry and chemicals for oil/gas drilling, etc. and are also used as flame retardants, mainly for the electronics industries

No. of Employees :	12,020 employees in ICL Group

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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. 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, and production from the Tama field is expected to meet all of Israel''s natural gas demand beginning mid-2013. 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

BROMINE COMPOUNDS MARKETING (2002) LTD.

Telephone 972 8 629 76 00

Fax 972 8 628 04 44; 629 78 46

P.O. Box 180 (8410101)

Maklef House

12 Kroitzer Menachem Street

BEER SHEVA 8489425 ISRAEL

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-334776-5 on the 25.12.2002.

SHARE CAPITAL

Authorized share capital NIS 1,000.00, divided into - 100,000 ordinary shares of NIS 0.01 each, of which 100 shares amounting to NIS 1.00 were issued.

SHAREHOLDERS

Company is fully owned by BROMINE COMPOUNDS LTD., fully owned by DEAD SEA BROMINE COMPANY LTD. (DSBG), a fully owned subsidiary of ISRAEL CHEMICALS LTD. (ICL), a public limited company whose shares are traded on the Tel Aviv Stock Exchange (TASE).

ICL is controlled (51.8%) by The ISRAEL CORPORATION LTD. (TIC), also publicly traded on TASE, controlled (51.5%) by OFER Group, owned by Ofer family, and controlled by Idan Ofer (some 90%) and Udi Angel.

POTASH CORPORATION OF SASKATCHEWAN (PCS) holds 13.71% of ICL (during March 2010 invested some NIS 1.5 billion in 2.5% of ICL shares).

DIRECTORS

1. Roni Shamir,

2. Shmuel Daniel.

GENERAL MANAGER

Charles Weidhas (heads the Industrial Products segment).

BUSINESS

Marketers and exporters of parent company BROMINE COMPOUNDS's products in Israel and abroad.

BROMINE COMPOUNDS is part of ICL Industrial Products (ICL-IP), headed by the DEAD SEA BROMINE GROUP (DSBG). ICL-IP sales comprised 21.5% of ICL total 2012 sales.

Products include bromine compounds and other industrial chemicals based on minerals extracted from the Dead Sea, the world’s largest bromine source (methyl bromide, sodium, potassium and ammonium bromides, etc.), for agricultural and industrial purposes, mainly plastics industry and chemicals for oil/gas drilling, etc. and are also used as flame retardants, mainly for the electronics industries. Most of the bromine extracted is for ICL own production (76%), the rest is sold to 3^rd parties.

97% of BROMINE COMPOUNDS sales are to overseas markets.

Subject, BROMINE COMPOUNDS and DSBG are operating from head offices in Maklef House, 12 Kroitzer Menachem Street, Industrial Zone, Beer Sheva.

There are 12,020 employees in ICL Group (of which some 5,500 employees in Israel), of which 2,660 employees in ICL IP Division, to which subject belongs.

MEANS

Financial data is included in the consolidated B/S of ("grand") parent company, ISRAEL CHEMICALS LTD., which shows:

US$ (thousands)

ASSETS 31.12.2012 30.06.2013

Current assets:

Cash and cash equivalents 206,067 238,998

Investments, deposits and short term loans 142,689 101,137

Customers 1,034,668 1,237,634

Other receivables and assets 273,490 283,783

Stock 1,430,151 1,369,415

3,087,065 3,230,967

Non-current assets:

Investments and other non-current assets 425,652 401,972

Fixed assets 3,097,385 3,353,936

Intangible assets 734,809 768,690

4,257,846 4,524,598

7,344,911 7,755,565

======== ========

LIABILITIES

Current liabilities 1,809,198 2,094,564

Non-current liabilities 2,147,449 2,001,065

Equity 3,388,264 3,659,936

7,344,911 7,755,565

======== ========

ICL’s current market value US$ 10,220.8 million.

Total assets of ICL-IP as of 31.12.2012 summed up to US$ 1,750.2 million (was US$ 1,643.3 million as of 31.12.2011).

There is 1 charge (placed July 2010) for an unlimited amount registered on the company’s assets, in favor of a foreign company CRYSTAL PURCHASING LTD.

REVENUES

ICL-IP Div. sales:

2009 sales were US$ 1,015.1 million, making a gross profit of US$ 236.5 million and an operating profit of US$ 20.9 million.

2010 sales were US$ 1,313.2 million, operating profit of US$ 206.6 million.

2011 sales were US$ 1,513 million, operating profit of US$ 297.7 million.

2012 sales were US$ 1,436.6 million, operating profit of US$ 230.7 million.

Sales for the first 6 months of 2013 were US$ 691 million (8% decrease from 1stH 2012), operating profit of US$ 98 million.

DSBG ended 2010 with a consolidated net profit of US$ 73,699,000.

DSBG ended 2011 with a consolidated net profit of US$ 175,086,000.

DSBG ended 2012 with a consolidated net profit of US$ 144,860,000.

ISRAEL CHEMICALS LIMITED

Consolidated Statement of Income

US$ (thousands)

Year ended 31.12

2010 2011 2012

Sales 5,691,537 7,067,834 6,672,241

Gross profit 2,432,076 3,155,663 2,757,179

Operating income 1,346,127 1,925,965 1,576,515

Income before taxes on income 1,295,423 1,871,708 1,526,159

Net income 1,028,617 1,523,016 1,305,133

======== ======== ========

ICL consolidated sales for the first 6 months of 2013 were US$ 3,410.5 million (similar to the parallel period in 2012), making a gross profit of US$ 1,377 million, an operating profit of US$ 756 million and a net income of US$ 622.3 million.

OTHER COMPANIES

BROMINE COMPOUNDS LTD., parent company, manufacturers, exporters and marketers of bromine compounds and other industrial chemicals based on minerals extracted from the Dead Sea. Owns: TETRABROM TECHNOLOGIES LTD., 100% and CHEMADA FINE CHEMICALS LTD., 26%.

Also part of ICL Industrial Products and DSBG, headed by parent company DEAD SEA BROMINE COMPANY LTD. (among others):

TAMI IMI INSTITUTE FOR RESEARCH &DEVELOPMENT LTD.,

DEAD SEA PRICLASE FUSED PRODUCTS, General Partnership,

ICL-IP AMERICA INC., USA, owns HY YIELD BROMINE, 80%, USA.

ICL-IP JAPAN LTD., Japan,

LANDCAM LIMITED, South Africa,

BROMINE & CHEMICALS LIMITED, UK,

EUROCLEARON B.V., the Netherlands, owns CLEARON CORP., USA,

ICL-IP EUROPE B.V., the Netherlands, holds several subsidiaries, including BROMOCHEMIE HOLDINGS B.V., ICL IP TERNEUZEN B.V., SINOBROM (75%, China), LIANYONGANG DEAD SEA BROMINE COMPOUNDS LTD (60%, China), BROMISA INDUSTRIAL E COMERCIAL LTDA (Brazil), and others.

ROTEM AMFERT NEGEV B.V., Holland.

Other companies part of the ICL Group, among many others:

ICL Fertilizers Division:

ROTEM AMFERT NEGEV LTD., producers, exporters and marketers of a varitey of products based on phosphate rock mined in the Negev Desert, including phosphate fertilizers, phosphoric acid and specialty fertilizers.

FERTILIZERS AND CHEMICALS LTD., manufacturers, importers and marketers of fertilizers and chemicals, mainly for the agriculture sector, nitrogen and phosphorus fertilizers, industrial chemicals, feed additives, etc.

DEAD SEA WORKS LTD., producers, manufacturers, exporters and marketers of potash and other chemicals from the Dead Sea Holds 100%, among others, in ICL IBERIA SCS, GRUPO EMPRESARIAL AGROMEDITERRANO S.A and IBER POTASH S.A., both of Spain, CLEAVLAND POTASH LIMITED of the U.K., ASHLEY CHEMICALS (HOLLAND) B.V.

MIFALEI TOVALA LTD., land transportation, bulk transportation,

EUROCHIL HOLDINGS B.V. (ICL FERTILIZERS EUROPE), Holland, marketing arm in Europe, holds ICL FI POTASH B.V. and many others subsidiaries.

AMSTERDAM FERTILIZERS B.V., Holland, owns ICL FERTILIZERS EUROPE CV, ROTEM TURKEY, AMSTERDAM FERTILIZERS DEUTSCHLAND OHG (AMFERT GERMANY), ICL FERTILIZERS DEUTSCHLAND,

EVERRIS INTERNATIONAL B.V., Holland,

P.M. CHEMICALS SRL, Italy,

ICL ASIA LTD.,

ZUARI ROTEM SPECIALTY FERTILIZERS, 50%, India.

ROTEM BKG LLC, USA,

ROTEM DU BRAZIL LTD, ICL BRAZIL LTDA, both of Brazil,

ICL FERTILIZERS (INDIA) PRIVATE LIMITED, India,

ICL Performance Products Div.:

ICL PERFORMANCE PRODUCTS INC.,

B.K. GIULINI GmbH, a subsidiary in Germany,

BKG PURIPHOS B.V.,

PEKAFERT B.V., holds EUROCIL LUXEMBOURG,

ASTARIS INC. of the U.S.A. and Brazil,

ICL NORTH AMERICA INC, USA.

ICL Metallurgy, headed by DEAD SEA MAGNESIUM LTD., producers, manufacturers, exporters and marketers of magnesium and related products, producing magnesium from the Dead Sea.

Others:

I.D.E. TECHNOLOGIES LTD., 50%, desalination facilities and water treatment,

ICL FINANCE B.V., The Netherlands, ICL FINANCE INC., USA, ICL FINANCE & ISSUING LTD., ICL FINE CHEMICALS LTD., TWINCAP FOERSAEKRINGS AB (Sweden), and many others, incl. companies in ICL and ISRAEL CORP.

BANKS

Subject's bank data not disclose, but we assume to be working with parent's

BROMINE COMPOUNDS bankers:

Bank Leumi Le’Israel Ltd., Beer Sheva Branch (No. 921), Beer Sheva.

Bank Hapoalim Ltd., Beer Sheva Branch (No. 631), Beer Sheva.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

BROMINE COMPOUNDS, established in 1961, is a leading company in its fields. It meets ISO 9000, ISO 14000 quality standards.

DSBG is considered of the world’s leading company in the bromine market, with estimated production capacity of 40% of the total bromine production in the world and lead in the bromine-based flame retardant products market. Imports amount to US$ 100 million per annum. In addition, it is a world’s leading producer of specialty phosphates based on purified phosphoric acid.

ICL is a multi-national concern, among the world's leading suppliers of minerals and one of the largest industrial concerns in Israel. It is ranked as the world's 6^th largest potash manufacturer (9% market share in 2011), the world's largest producer of PK fertilizers (compound of potash and phosphate fertilizers), and leading producer of specialty phosphates based on purified phosphoric acid.

ISRAEL CORP. (TIC), current market value US$ 5,083 million, part of OFER Group, is Israel’s largest holding company, one the largest and most influential groups in the Israeli market, operating worldwide also in the fields of energy, shipping, high tech & electronics and real estate.

Canadian PCS, which holds some 14% in ICL, is the world’s largest potash producer (20% market share). In October 2012 TIC announced on negotiations with PCS on a merger deal, where PCS will take over full ownership of ICL in a shares swap deal (TIC will become a shareholder in PCS). PCS is publicly traded on NYSE and Toronto (TSX: POT, NYSE: POT) with market value of US$ 27.26 billion. Under the circumstances, TIC would have become the major shareholder in PCS with some 20% stake. Such a transaction requires the State of Israel authorization, which holds a golden share in ICL that acquires it veto rights, as ICL has concession to Israel's natural resources (potash, phosphates, bromine). After the Minister of Finance expressed his resistance to such transaction, in April PCS announced it withdraws its intention to pursuit with the merger at this time.

ICL Group, including BROMINE COMPOUNDS's ICL-IP Div., was adversely hit by the global economic crisis (thus BROMINE COMPOUNDS's markets, such as the electronics, construction, automotive, oil drilling got hurt). ICL took massive cost saving steps to face the depression. Yet, since 4^thQ-2009 worlds markets recovered and financial results improved (ICL-IP 2011 sales reached all-time record), although a certain decrease is witnessed in the first half of 2013.

ICL has suffered a major blow in end of July 2013 with the announcement of URALKALI on its intention to cease selling potash via the marketing company BCP (means the dismantling of the Russian potash cartel which may lead to the drop of potash prices in world markets in the short term and loss of revenues). Consequently, ICL market value dropped significantly, though recovered to some extent recently following rumors on renewal of the Cartel.

DSBG signed long term cooperation agreement with the DOW CHEMICALS, including with subsidiary DOW AGROSCIENCE (in value of US$ 100 million per annum). Also signed a joint venture agreement with the Chinese leading chemical company SHANDONG HAIHUA SHAREHOLDING COMPANY LTD., for a joint establishment of a manufacturing and marketing plant in China for bromine compounds, with investment of US$ 30 million (equally split).

DSBG also signed in 2001 an agreement with one of the largest Japanese companies, D.K. (manufacturers and marketers of chemical products), for the formation of a joint venture, for manufacturing and marketing of delaying combustion chemical products for the Far East market.

In September 2005, ICL acquired ASTARTIS, producers of phsphate-based products of the USA and Brazil, for a sum of US$ 255 million.

In early 2007 ICL acquired also the assets and activities of Canadian FIRETROL, which develops phosphoric based products for fire extinguishing (in forests, etc.).

In August 2007 ICL acquired American SUPRESTA, manufacturers of phosphorus products for fire safety, in consideration of US$ 352 million (by ICL own finance). SUPRESTA is the leading company in its field in the world. ICL's products for fire safety were so far based on bromine, and the purchase expands this line of products to the new area.

In November 2007, ICL-IP Div. acquired BIOGEMA of France, producers of fire extinguishing products, for several US$ million and in January 2008 acquired the water treatment activities of the HENKEL, for US$ 89 million. Also as part of ICL strategy to expand its Industrial Products and Performance Products market share, during 2009 ICL acquired of 6 European companies in the fields of water purification (MEDENTECH of Ireland) and hygiene (including PRIMALAB of France, HYPROCLEAN of Germany and EKULINE’s cleaning products Div.), for estimated total sum of US$ 40 million.

In May 2010 it was reported that DSBG is benefiting from the decrease in bromine salt levels in China's bromine production sites which led to lower Chinese production and higher bromine prices. Hence, in the beginning of 2010 BROMINE COMPOUNDS moved to produce to 85%-90% of its production capacity, compared with some 46% in 2009.

ICL Group's plants started to benefit from the shift of Group's use in natural gas as energy source (replacing the ISRAEL ELECTRICITY CORP. conventional electricity power) from the end of 2008. ICL expected to save US$ 100 million per year due to the shift of energy source. In July 2012 ICL announced on investing US$ 320 million in the erection of a new 250mW natural gas-based power station in Sodom site. The project, expected to end by 2015 2^nd half, is designed to meet the forecasted growth in demand for ICL potash and bromine production capacity, while saving electricity costs.

In December 2010 the Israeli Parliament voted to cancel ICL Group's special tax benefits (hundreds NIS millions), as part of a revision concerning royalties from State resources (has been enjoying both from low royalties rate and tax benefits), with view of elevating the fees collected by the State. The State claimed that ICL also paid less than it had to and has to compensate the State. That will have certain negative implications on Group’s future results. A long mediation process has been taking place, and royalties for certain minerals were already elevated.

Government officials claim the fee is still too low and consider much higher rate.

Among latest ICL acquisitions in the specialty fertilizers field: In February 2011 acquired EVERRIS (formerly SCOTTS GLOBAL), for US$ 270 million. In April 2011 acquired Spain's largest specialty chemical manufacturer FUENTES MENDEA, for US$ 122 million. In July 2011 acquired Mexican COSMOCEL QUIMICA, food additives and specialty chemicals manufacturers, for US$ 35 million.

In December 2011 BROMINE COMPOUNDS bought CHEMTURA’s 50% share in their TETRABROM TECHNOLOGIES bromine compounds joint venture, the world's largest flame retardants manufacturer, becoming the sole owner of the operation.

The Chemical sector recovered in 2010, where export of Industrial Chemicals rose by 34.3% from 2009, kept rising in 2011(by 18.6%), but fell by 9% in 2012. Sales for export in 2012 reached US$ 15.1 billion (of which US$ 6.85 billion were of pharmaceuticals).

SUMMARY

Good for trade engagements.

Note: Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.49
UK Pound	1	Rs.98.71
Euro	1	Rs.84.49

INFORMATION DETAILS

Report Prepared by :

PDT

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.