MIRA INFORM REPORT

Report Date :

28.06.2007

IDENTIFICATION DETAILS

Name :	JOTUN UAE LTD (LLC)
Registered Office :	Jotun Building, Airport Road, Rashidiya, Al Quoz Industrial Area, P O Box - 3671, Dubai
Country :	United Arab Emirates
Financials (as on) :	31.12.2006
Date of Incorporation :	07.05.1975
Com. Reg. No.:	40697, Dubai
Legal Form :	Sharikat Thet Massouliya Mahdoudeh (Limited Liability Company - LLC)
Line of Business :	Manufacture of paints and related products

RATING & COMMENTS

MIRA’s Rating :

Aaa

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

Maximum Credit Limit :	US$ 3,000,000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUMMARY

Company Name : JOTUN UAE LTD (LLC)

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Registration Date : 7^th May 1975

Commercial Registration Number : 40697, Dubai

Trade Licence Number : 300204

Membership Number : 1363

Issued Capital : UAE Dh 10,000,000

Paid up Capital : UAE Dh 10,000,000

Total Workforce : 300

Line of Business : Manufacture of paints and related products.

Financial Condition : Good

Payments : Prompt

Operating Trend : Steady

COMPANY NAME

JOTUN UAE LTD (LLC)

ADDRESS

Registered & Physical Address

Building : Jotun Building

Street : Airport Road

Area : Rashidiya, Al Quoz Industrial Area

PO Box : 3671

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 2857651 / 2851515 / 2851514 / 3395000

Facsimile : (971-4) 2859051 / 2853549 / 3380666

Email : jotunadh@emirates.net.ae

Premises

Subject operates from a large suite of offices, a factory and warehousing facilities covering an area of 11,000 square metres that are owned and located in the Industrial Area of Dubai.

KEY PRINCIPALS

Sheikh Hamdan Bin Rashid Al Maktoum Chairman

Abdul Ghaffar Hussain Vice Chairman

Erik Reinholt Aaberg Managing Director

Odd Gleditsch Jnr Director

Anwar Sultan Director

Arve Hemansen General Manager

Kjell Gundersen Operations Manager

Arne Skjonberg Production Manager

Jayaraman Swaminathan Accounts Manager

R. Sundaram Financial Controller

Peter Mcmorrow Technical Manager

Aners Braekje Marketing Manager

Niru Naik Brand Manager

Age Holst Sales Manager – Decorative Products

John C. Swan Sales Manager – Heavy Duty Paints

Bjorn Tveitan Sales Manager – Marine products

Profile on Sheikh Hamdan Bin Rashid Al Maktoum

Sheikh Hamdan Bin Rashid Al Maktoum, a United Arab Emirates politician, was born in 1945 and is the second son of Sheikh Rashid Al Maktoum. He was the Deputy Prime Minister of the UAE from December 1971 to December 1973; President of the Dubai Municipal Council and a member of the Governing Board of Rashid Port, Dubai until 1973. He then moved to become the Chairman of Dubai Aluminium Co and UAE Representative at IMF, OPEC and to Arab States and held the post of Chairman of United Arab Emirates Currency Board from 1973 to 1980; Governor of the Islamic Development Bank, Jeddah, Saudi Arabia and the Minister of Finance and Industry of the UAE in 1973, a position he still holds today.

LEGAL FORM & OWNERS

Date of Establishment : 7^th May 1975

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

Commercial Reg. No. : 40697, Dubai

Trade Licence No. : 300204 (Expires 19^th February 2010)

Membership No. : 1363

Issued Capital : UAE Dh 10,000,000

Paid up Capital : UAE Dh 10,000,000

Name of Shareholder (s) Percentage

Sheikh Hamdan Bin Rashid Al Maktoum 51.0%

Jotun Paints A/S 41.5%

PO Box : 2021

Hasle

N-3235 Sandefjord

Norway

Tel : (47-33) 457000

Fax : (47-33) 464613

W J Towell & Company LLC 7.5%

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

Jotun UAE Ltd (LLC) is a member of the well known Jotun A/S of Norway, which is one of the world’s leading industrial and heavy duty marine paints and coatings manufacturers and suppliers. The group operates in 5 continents and in over 40 countries.

The Jotun Group in the Middle East includes the following concerns :

Jotun (Muscat) LLC

Rusayl Industrial Estate

PO Box : 1672

Muscat

Oman

Tel : (968-24) 626100

Red Sea Paints Co Ltd

PO Box : 34698

Jeddah 21478

Saudi Arabia

Tel : (966-2) 6361271

Fax : (966-2) 6362483

Ratinjat Saudia Co Ltd

PO Box : 34698

Jeddah 21478

Saudi Arabia

Tel : (966-2) 6361271

Fax : (966-2) 6362483

Corro-Coat Saudi Arabia Ltd

PO Box : 10830

Dammam 31443

Saudi Arabia

Tel : (966-3) 8121259

Fax : (966-3) 8121226

Jotun Powder Coatings UAE (LLC)

PO Box : 51033

Dubai

United Arab Emirates

Tel : (971-4) 3472515

Fax : (971-4) 3472815

Jotun Saudi Arabia Ltd

Al Gosaibi Building

PO Box : 2038

Jeddah 21451

Saudi Arabia

Tel : (966-2) 6532968

Jotun Polymer Inc

Jebel Ali Free Zone

Dubai

United Arab Emirates

Tel : (971-4) 8835215

Fax : (971-4) 8835887

Jotun Paints

Al Moayyed Building

Manama

Bahrain

Tel : (973-17) 533944

Fax : (973-17) 533482

Jotun Paints

Industrial Zone

Ismailia

Egypt

Tel : (20-64) 327860

Fax : (20-64) 320946

Hepworth Plastic Gulf (HPG)

Al Ramoul Industrial Area

PO Box : 2345

Dubai

United Arab Emirates

Tel : (971-4) 2852670

Fax : (971-4) 2857553

Bin Ham Hepworth Plastic Gulf

PO Box : 6820

Abu Dhabi

United Arab Emirates

Tel : (971-2) 727585

Ajay Enterprises-Hepworth Plastic Gulf

PO Box : 1667

Jeddah

Saudi Arabia

Tel : (966-2) 6990890

Y K Al Moayyed & Sons Hepworth Plastic Gulf

PO Box : 143

Manama

Bahrain

Tel : (973-17) 211518

LINE OF BUSINESS

Operations : Engaged in the manufacture of lacquers, paints, primers, oil based synthetics, chlorinated rubber, heat resistant and powdered black lead fire retarding paint, antibacterial and insecticide paints, luminous electrostatic coatings and road luminous marking paints, anti rust and metal varnishes.

Subject is ISO 9001 certified

Import Countries : United States of America, United Kingdom and Norway.

International Suppliers :

Imperial Chemical Industries (ICI) Plc United Kingdom

Dow Chemicals Co Ltd United Kingdom

Brand Names : PENGUIN PAINTS and JOTUN

Operating Trend : Steady

Subject has a workforce of approximately 300 employees.

FINANCIAL HIGHLIGHTS

Financial highlights provided by outside sources are given below :

Currency : United Arab Emirates Dirham (UAE Dh)

Year Ending 31/12/05: Year Ending 31/12/06:

Total Revenue UAE Dh 112,650,000 UAE Dh 117,280,000

Local sources consider subject’s financial condition to be Good.

BANKERS

National Bank of Dubai

Baniyas Street

PO Box : 777

Dubai

Tel : (971-4) 2222241

Citibank

Khalid Bin Waleed Street

Bur Dubai

PO Box : 749

Dubai

Tel : (971-4) 2522100

Fax : (971-4) 2524942

PAYMENT HISTORY

Subject’s payment record is reported to be met in a generally prompt manner.

Date of transaction March 2007

Credit amount 50,000

Amount overdue 0

Payment terms 90 days

Payment Method Letters of Credit

Paying record No Complaints

Currency Pounds Sterling

GENERAL COMMENTS

Since its inception some 32 years ago, Jotun UAE Ltd (LLC), has produced more than 300 million litres of paint. It is the largest paint producer in the United Arab Emirates has a market share of approximately 40 percent.

Subject is partly owned by Sheikh Hamdan Bin Rashid Al Maktoum, the UAE Minister of Finance & Industry, and the well known Norwegian Jotun Group and it deals with several leading international suppliers.

According to local sources subject’s financial position is healthy and profitable with payment obligations met in a timely manner. As such the company is deemed trustworthy for respecting its financial trade commitments.

Maximum suggested credit figure: US$ 3,000,000

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