MIRA INFORM REPORT

Report Date :

12.06.2007

IDENTIFICATION DETAILS

Name :	ETA MELCO ELEVATOR CO LLC
Registered Office :	Sheikh Saoud Saqer Al Qasimi Building, Salah Al Din Street, Al Mateena, P O Box 5239, Dubai
Country :	United Arab Emirates
Date of Incorporation :	1975
Com. Reg. No.:	40884, Dubai
Legal Form :	Limited Liability Company – LLC
Line of Business :	Engaged in the import and distribution of elevators, escalators and related spare parts.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 1,500,000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

SUMMARY

Company Name : ETA MELCO ELEVATOR CO LLC

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Start Date : 1975

Registration Date : 5^th October 1981

Commercial Registration Number : 40884, Dubai

Trade Licence Number : 206731

Membership Number : 8451

Issued Capital : UAE Dh 8,000,000

Paid up Capital : UAE Dh 8,000,000

Total Workforce : 1,700

Line of Business : Elevators and escalators.

Financial Condition : Undetermined

Payments : Nothing detrimental uncovered

COMPANY NAME

ETA MELCO ELEVATOR CO LLC

ADDRESS

Registered & Physical Address

Building : Sheikh Saoud Saqer Al Qasimi Building

Street : Salah Al Din Street

Area : Al Mateena

PO Box : 5239

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 2729999 / 2729899

Facsimile : (971-4) 2725121

Email : etamelco@eta-ascon.com

Premises

Subject operates from a large suite of offices and a warehouse that are leased and located in the Industrial Area of Dubai.

Branch Office (s)

Location Description

· Gulf Air Building Office premises

PO Box: 11058

Dubai

Tel: (971-4) 2716655 / 2715109

· PO Box: 3967 Office premises

Abu Dhabi

Tel: (971-2) 6349534

Fax: (971-2) 6347282

KEY PRINCIPALS

Name Nationality Position

· Sayed Mohamed Salahuddin Indian Managing Director

· Abdullah Bin Ahmed Al Ghurair Emirati Director

· V. K. Kumar - General Manager

· Ahmed Meeran - Sales Manager

LEGAL FORM & OWNERS

Date of Establishment : Subject’s operations date back to 1975, however it was registered on 5^th October 1981.

Legal Form : Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)

Commercial Reg. No. : 40884, Dubai

Trade Licence No. : 206731 (Expires 21^st September 2007)

Membership No. : 8451

Issued Capital : UAE Dh 8,000,000

Paid up Capital : UAE Dh 8,000,000

Name of Shareholder (s) Percentage

· Abdullah Bin Ahmed Al Ghurair 51%

· Mitsubishi Corp Ltd 30%

Japan

· Amana Investments Ltd 19%

Hong Kong

Note to the Legal Form

A Limited Liability Company (LLC) is defined in the Company Law as a company incorporated with not less than two and not more than fifty shareholders, each responsible only for the liabilities of the company to the extent of their share participation in the capital of the company.

The Company Law provides that the capital of a Limited Liability Company (LLC) should not be less than UAE Dh 300,000, which should be divided into equal shares of a value not less than UAE Dh 100 each.

This type of company may engage in any form of legitimate business, with the exception of insurance, banking and investment of funds.

Non UAE Participation

The participation of non-Emirati in a trade or business in the United Arab Emirates is governed by the Foreign Business Investment Law, which sets capital requirements and requires 51 percent Emirati participation in capital and profits.

It is common for the 51 percent to be held by the UAE national on paper only with the foreign partner(s) providing all the capital requirements for the company and paying an annual fee to the local partner.

Under this arrangement the above ownership may not reflect the actual profit distribution within the company, as the company may have internal management agreements in place that provides full management of the company in return for a share of the company’s assets and profits. This internal relationship may or may not be recognised by law depending on the way the internal agreement is made.

AFFILIATED COMPANIES

Subject is a member of the Al Ghurair Group, which has a turnover over in excess of UAE Dh 3 billion (US$ 850 million). The group has a diversified range of interests spanning real estate, finance and industry, with specialist operations in banking, trading and shipping.

Some of the very successful industries that it operates today in the United Arab Emirates, include the National Flour Mills Co Ltd, National Cement Company, Gulf Extrusions at Jebel Ali, Masafi Mineral Water Co LLC, National Mosaic Tiles, Arabian Packaging Co and Al Ghurair Publishing and Printing. In the banking sector, the Ghurairs are owners of the UAE’s largest private bank, the Dubai-based Mashreq Bank, which is one of the Group’s most successful ventures and operates from branches both within and outside the UAE.

The Al Ghurair Group is active in London, New York, Cairo, Khartoum, Istanbul, Bombay, Doha, Colombo, Karachi and Lahore.

In real estate the Al Ghurair Centre has become a prominent landmark in Dubai. It was built at a cost of more than US $ 150 million and is now home to most of the city’s top retailers.

The Al Ghurair Group comprises the following concerns :

· Emirates Trading Agency LLC (ETA)

· Al Ghurair Holdings (Private) Ltd

· Gulf Extrusions Ltd

· Arabian Aluminium Company

· Al Ghurair Publishing & Printing House

· Union Mosaic & Marble Company

· Al Ghurair Centre

· Arabian Mix

· National Cement Company Ltd

· Arabian Packing Company

· Gulf Utensils

· Gulf Import & Export Co

· House of Perfume

· Computer Intelligence and Communications Ltd

· Gulf Confectionery & Biscuit Company

· Oman Insurance Co Limited

· Mashreq Bank

· Al Ghurair Enterprises

· Al Ghurair Exchange

· National Flour Mills Company Ltd

· National Concrete Company Ltd

· Masafi Mineral Water Co LLC

· Associated Construction & Investment Co LLC (ASCON)

· Al Ghurair Fieness Perry & Partners

· Pak Arab Traders

· Al Ghurair Real Estate

· Al Khaleej Sugar Co WLL

· Central Electric Equipment Co LLC (CEEC)

· National Oman Marble Company

· Rawda Quarries Ltd

· Ghurair Tarmac

· Oman Finance Company

· Ghurair Crown (Engineering) Ltd

· Al Ghurair Industries (Pvt) Ltd

LINE OF BUSINESS

Operations : Engaged in the import and distribution of elevators, escalators and related spare parts.

Subject also offers installation, maintenance and repair of elevators and escalators. It has approximately 8,000 elevators under comprehensive maintenance contracts.

The company's installations at the Emirates Tower, Burj Al Arab and the new terminal at the Dubai International Airport were rated among the world's best projects by the top international elevators magazine "The Elevator World."

800 units per year are being sold in the UAE by ETA-Melco and the company has a market share of around 55 percent.

Subject obtained the prestigious ISO-9001 Certificate in 1999.

Import Countries: Japan, Germany and Sweden

International Suppliers:

· Mitsubishi Electric Corporation Japan

· Alcan Singen GmbH Germany

· Besam AB Sweden

Export Countries: Qatar, Oman, Kuwait, Turkey, Sri Lanka, Maldives, India, Bangladesh and the CIS countries.

Subject has a workforce of approximately 1,700 employees.

FINANCIAL HIGHLIGHTS

Companies registered in Dubai, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

BANKERS

· Mashreq Bank Plc

Deira Branch

PO Box : 1250

Dubai

Tel : (971-4) 2229131 / 2221134

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Established in 1975, subject is involved in the import and distribution of elevators, escalators and related spare parts. Subject also operates and elevator and escalator contractors.

This is a well established company, part of the Al Ghurair Group which is deemed trustworthy for respecting its financial trade commitments. Payment obligations are reportedly met in a prompt and timely manner and local sources advise that subject is a sound trade risk.

Maximum suggested credit figure: US$ 1,500,000

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