MIRA INFORM REPORT

Report Date :

17.12.2014

IDENTIFICATION DETAILS

Name :	ALPHA LOGICA ISRAEL LTD.

Registered Office :	P.O. Box 117, Lod - Ben Gurion Air Port (7015002), 6 Gazit Street, Shoham 6082017

Country :	Israel

Date of Incorporation :	09.04.1998

Legal Form :	Private Limited Company

Line of Business :	Manufacturers (via sub-contractors) and marketers of accessories and promotional items for local cosmetics companies.

No. of Employees :	3

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. 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. 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. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. 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. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

Source : CIA

Company Name and address

ALPHA LOGICA ISRAEL LTD.

Telephone 972 3 974 13 33

Fax 972 3 974 14 78

P.O. Box 117, Lod - Ben Gurion AirPort (7015002)

6 Gazit Street

Shoham 6082017 Israel

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-262322-4 on the 09.04.1998.

SHARE CAPITAL

Authorized share capital NIS 35,700.00, divided into -

35,700 ordinary shares of NIS 1.00 each, of which 1,001 shares amounting to NIS 1,001.00 were issued.

SHAREHOLDERS

Subject is fully owned by ALSYS S.A., of Belgium.

SOLE DIRECTOR

Charles Avned, of Belgium.

GENERAL MANAGER

Ms. Ronena Laron.

BUSINESS

Manufacturers (via sub-contractors) and marketers of accessories and promotional items for local cosmetics companies.

All manufacturing is carried out via sub-contractors in China and in India as well.

Among clients: S. SCHESTOWITZ, UNILEVER ISRAEL, LOREAL ISRAEL, DEAD SEA LABORATORIES, DIPLOMAT DISTRIBUTORS, SABON SHEL PAAM, DR. OR, etc.

Operating from rented office premises, on an area of 100 sq. meters, in 6 Gazit Street, Shoham.

Having 3 employees (same as in 2012 – 2013).

MEANS

Work is according to orders.

Financial data not forthcoming. Subject's officials refused to provide B/S data.

There are 8 charges for unlimited amounts registered on the company's assets (financial assets and a vehicle), in favor of Bank Hapoalim Ltd. and a leasing company (last charge placed July 2014 on a vehicle, prior charge in 2010 on financial assets).

REVENUES

2010 sales claimed to be NIS 4,000,000.

2011 sales claimed to be NIS 6,000,000.

2012 sales claimed to be NIS 6,500,000.

2013 sales claimed to be NIS 6,000,000.

2014 sales claimed to be NIS 6,000,000.

BANKERS

Bank Hapoalim Ltd., Kfar Shemaryahu Branch (No. 680), Kfar Shemaryahu, account No. 410082.

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

CHARACTER AND REPUTATION

Nothing unfavorable learned.

Subject's General Manager, Ms. Ronena Laron, refused to disclose financial data, besides sales figures.

Subject's clients are leading local companies in the cosmetics and toiletries industries. These sectors have been experiencing a growing trend in recent years.

SUMMARY

Good for trade engagements.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.41
UK Pound	1	Rs.99.30
Euro	1	Rs.79.00

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	NIT

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.