MIRA INFORM REPORT

Report Date :

18.12.2014

IDENTIFICATION DETAILS

Name :	TWISTING FACTORIES LTD.

Registered Office :	18 Hatomer Street, Ramat Hasharon 4728125

Country :	Israel

Date of Incorporation :	18.01.2012

Com. Reg. No.:	51-472432-7

Legal Form :	Private Limited Company

Line of Business :	Manufacturers, exporters and marketers of yarns for the tea industry.

No of Employees :	12

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow But Correct

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 Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 & ADDRESS

TWISTING FACTORIES LTD.

Telephone 972 3 547 73 66

Fax 972 3 547 73 67

18 Hatomer Street

RAMAT HASHARON 4728125 ISRAEL

HISTORY & LEGAL FORMATION

A private limited company, incorporated as per file No. 51-472432-7 on the 18.01.2012.

We presume subject assumed the activities of KASEM TWISTERS LTD., established 1985, however, Mordechai Kaminer, subject's General Manager, refused to elaborate on this matter (he stated that KASEM TWISTERS is inactive since 1998).

SHARE CAPITAL

Authorized share capital NIS 100,000.00, divided into -

100,000 ordinary shares of NIS 1.00 each,

of which 1,000 shares amounting to NIS 1,000.00 were issued.

SHAREHOLDERS

1. Mordechai Kaminer, 50%,

2. Shadi Sarsur, 50%.

DIRECTORS & JOINT GENERAL MANAGERS

1. Mordechai (Motti) Kaminer,

2. Shadi Sarsur.

BUSINESS

Manufacturers, exporters and marketers of yarns for the tea industry.

98% of sales are export.

Marketing is via sister company K.I.T. TEX INTERNATIONAL LTD.

Among local clientele: WISSOTZKY TEA ISRAEL.

Operating from office premises, at the private residence of Kaminer Family (house owned by the family), in 18 Hatomer Street, Ramat Hasharon (serving also sister company K.I.T. TEX), and from a rented plant on an area of 1,500 sq. meters, in Industrial Zone, Brakan.

Having 12 employees (had 15 employees in the first half of 2014).

MEANS

Financial data not forthcoming.

Subject's officials said that US$ 2 million were invested in the erection of subject's plant in Barkan Industrial Zone in 2011 (area of 2,500 sq. meters, leased).

There are 4 charges for unlimited amounts, as well as a charge for the sum of US$ 43,000 registered on the company's assets (financial assets), in favor of Bank Hapoalim Ltd. and Mizrahi Tefahot Bank Ltd. (charges placed November 2013-October 2014).

REVENUES

2012 sales claimed to be NIS 7,000,000, 98% were for export.

2013 sales claimed to be NIS 7,000,000, 98% were for export.

2014 sales claimed to be NIS 7,000,000, 98% were for export.

OTHER COMPANIES

Mordechai Kaminer also owns:

K.I.T. TEX INTERNATIONAL LTD., established 1997, operating in the following line of activities:

Dealers and exporters of yarns for the food industries abroad.

Importers and marketers of raw materials for the textile industry.

Exporters of seeds to Turkey.

Marketers and exports of tea bag strings manufactured by subject.

K.Y.T. INTERNATIONAL TRADE COMPANY LTD.

KASEM TWISTERS LTD., equally owned by Mordechai Kaminer and Ahmed Muhammad Sarsur, inactive.

BANKERS

Bank Hapoalim Ltd., Ramat Hasharon Branch (No. 630), Ramat Hasharon, account No. 696861.

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's activities are veteran.

(Note: with no relation to subject itself) In 2005 Bank Leumi Le'Israel Ltd. requested the court to issue a receivership order for Mr. Mordechai Kaminer’s assets due his guarantee to debt amounting to NIS 1.53 million in favor of WINE KIYOSK– WINE CENTER LTD., in which Mr. Kaminer and Mr. Amit Slovatic were managers and shareholders in the company (a request for receivership against Mr. Slovatic was filed earlier in April).

We found no further data on that matter.

According to Central Bureau of Statistics (CBS) data, investments in machinery & equipment from import for the manufacturing of Textiles in 2013 fell 43.8% (in quantity terms) from 2012 and summed up to NIS 36.9 million (after 2.7% increase in 2012).

SUMMARY

Good for trade engagements.

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 :	DIV

Report Prepared by :	DPT

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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