MIRA INFORM REPORT

Report Date :

23^rd February, 2007

IDENTIFICATION DETAILS

Name :	CHANNEL DISTRIBUTION FZE
Registered Office :	Ajman Port Area, PO Box: 5797, Ajman, United Arab Emirates
Country :	United Arab Emirates
Date of Incorporation :	December 2005
Legal Form :	Mouassasat Al Mintaka Al Horra (Free Zone Establishment - FZE)
Line of Business :	Engaged in the import and distribution of duty free products, including alcoholic beverages and tobacco.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	US$ 100,000
Status :	New Company
Payment Behaviour :	Usually Correct
Litigation :	Clear

SUMMARY

Company Name	CHANNEL DISTRIBUTION FZE
Country of Origin	Ajman, United Arab Emirates
Legal Form	Free Zone Establishment - FZE
Registration Date	December 2005
Trade Licence Number	874
Issued Capital	UAE Dh 1,000,000
Paid up Capital	UAE Dh 1,000,000
Total Workforce	5
Line of Business	Distributors of duty free products, including alcoholic beverages and tobacco.
Financial Condition	Undetermined
Payments	Nothing detrimental uncovered

COMPANY NAME

CHANNEL DISTRIBUTION FZE

ADDRESS

Registered & Physical Address

Location : Ajman Port Area

PO Box : 5797

Town : Ajman

Country : United Arab Emirates

Telephone : (971-6) 7457173

Facsimile : (971-6) 7457175

Email : info@channeldistribution.ae

Premises

Subject operates from a small suite of offices and a warehouse that are rented and located in the Port Area of Ajman.

KEY PRINCIPALS

· Ajay Bhatia Managing Director

· Leonard Menezes General Manager

LEGAL FORM & OWNERS

Date of Establishment : December 2005

Legal Form : Mouassasat Al Mintaka Al Horra (Free Zone Establishment - FZE)

Trade Licence No. : 874

Issued Capital : UAE Dh 1,000,000

Paid up Capital : UAE Dh 1,000,000

Name of Shareholder (s) Percentage

· Ajay Bhatia 100%

Note to the Legal Form

A Free Zone Establishment - or FZE - is an establishment formed and registered within the Free Zones and regulated solely by the Free Zone authorities.

Such establishments must have a capital of at least UAE Dh 1 million and liability will be limited to the amount of paid-up capital. A FZE need only have a single shareholder and is an independent legal entity.

This legal form allows for 100 percent foreign ownership within the United Arab Emirates and allows foreign companies to maintain a presence in the UAE (within the free zone), without the usual requirement of a local sponsor that would hold majority ownership, i.e. minimum of 51 % equity in the capital.

LINE OF BUSINESS

Operations: Engaged in the import and distribution of duty free products, including alcoholic beverages and tobacco.

Import Countries: Europe and the Far East.

Subject has a workforce of 5 employees.

FINANCIAL HIGHLIGHTS

Subject is a newly formed business and as a result financial information is not currently available.

BANKERS

· HSBC Bank Middle East

Main Branch

Ajman

Tel : (971-6) 5537222

Fax : (971-6) 5537880

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Opinion on the credit figure of US$ 150,000:

Investigations undertaken in Ajman did not reveal any sign of payment defaults or delays during initial trading stages, and subject is believed to meet its payment obligations in a timely manner, nevertheless, and in view of the company’s infancy and the lack of a more consistent payment and financial record, a measure of caution is advisable and a close monitoring of subject’s business development is recommended.

Maximum suggested credit figure: US$ 100,000

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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