MIRA INFORM REPORT

Report Date :

18.12.2014

IDENTIFICATION DETAILS

Name :	DAHAN PROSPER LTD.

Registered Office :	P.O. Box 53091, Jerusalem (9153002) Har Tuv B Industrial Zone Nocham Enterprises Har Tuv 9980101

Country :	Israel

Date of Incorporation :	2006

Legal Form :	Private Limited Company

Line of Business :	Importers and marketers of bed ware.

No. of Employees :	08

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

DAHAN PROSPER LTD.

Telephone 972 2 533 26 89; 563 51 87

Mobile 972 54 247 01 36

Fax 972 2 533 26 89

P.O. Box 53091, JERUSALEM (9153002)

Har Tuv B Industrial Zone

Nocham Enterprises Har Tuv 9980101 Israel

HISTORY & LEGAL FORMATION

Originally established in 2006 as a sole proprietorship under the name PROSPER DAHAN – STOCK CENTER GLOBAL.

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

No. 51-485868-7 on the 02.01.2013.

SHARE CAPITAl

Authorized share capital 0.00 (no face value), divided into:-

1,000,000 ordinary shares of 0.00 each (no face value),

of which 100 shares were issued.

SHAREHOLDERS

1. Prosper Dahan, 51%,

2. Ms. Racheli Dahan, 49%.

SOLE DIRECTOR & GENERAL MANAGER

Prosper Dahan.

BUSINESS

Importers and marketers of bed ware.

Sales are to retail stores and wholesalers (according to our from 2011, to some 100).

90% of purchase is import.

Operating from rented premises, on an area of 700 sq meters, in Hartuv B industrial Zone, Nocham Enterprises Har Tuv, situated near Beit Shemesh.

Having 8 employees (had 2 employees in 2010).

MEANS

Current stock is valued at NIS 3,500,000.

Other financial data not forthcoming.

There are 3 charges for unlimited amounts registered on the company's assets (financial assets, fixed assets and vehicles), in favor of The First International Bank of Israel Ltd. and Mizrahi Tefahot Bank Ltd. (last 2 charges placed July-October 2014 on vehicles).

REVENUES

2013 sales claimed to be NIS 7,500,000.

2014 sales claimed to be NIS 11,500,000.

BANKERS

The First International Bank of Israel Ltd., Talpiyot Branch (No. 074), Jerusalem.

Bank Leumi Le'Israel Ltd., Givat Oranim Branch (No. 074), Jerusalem.

CHARACTER AND REPUTATION

Nothing unfavorable learned.

From the Central Bureau of Statistics (CBS) National Accounts for 2013, it turns that expenditure by local households on private consumption grew by 3.7% from 2012, after rising by 3.2% in 2012 and by 3.8% in 2011. Per-capita expenditure increased in 2013 by 1.8%.

Consumption expenditure by households on durable goods rose by 3.7% from 2012 (after remaining level in 2012 and rising 7.9% rise in 2011), although a breakdown shows that expenditure on furniture and jewelry rose by 3.5%, in contrast to a 0.9% decrease in electric appliances and other equipment.

Per capita expenditure for private consumption on durable goods rose in 2013 by 1.8% (after 1.7% decrease in 2012 and 5.9% rise in 2011). Breakdown reveals that expenditure on electrical domestic appliances fell by 2.7% per capita, while purchase of furniture and jewelry rose by 1.5% per capita.

The local household products market is considered highly competitive after reaching market saturation. It includes household textile, tableware and kitchenware and utensils, bath accessories and ornaments &decorative items, ceramic and glass ware, etc. According to estimations, the local household products market volume reaches NIS 2.5 – 3 billons annually (of which circa NIS 1 billion for “home textile”), and includes retail, wholesale, institutional markets.

According to the CBS, import of consumer goods in 2013 marked a 2.2% increase (in local NIS terms, 9.2% in US$ terms), continuing the rise of 1.9% in 2012 and 9.8% in 2011. Most of the rise was in durable goods (4.1%), which comprising some 40% of the import volume, while import non-durable goods rose by mere 0.9% from 2012. Main rise in non-durable goods derived from import of Household Utensils in 2013 which rose by 2.5% from 2012, summing up to NIS 2,546 million (in NIS terms, 9.5% in $ terms), after 1.7% in 2012.

Import of consumer goods continued its rise –by 3% (in NIS terms, 9.6% in US$ terms) in the first 8 months of 2014, compared to the parallel period n 2013.

SUMMARY

Good for trade engagements.

Note: Prosper Dahan informed us he is not familiar with the number 137 (which you wrote in the Address line in your enquiry).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.58
UK Pound	1	Rs.99.98
Euro	1	Rs.79.39

INFORMATION DETAILS

Analysis Done by :	SUB

Report Prepared by :	NIS

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.