MIRA INFORM REPORT

Report Date :

09.04.2011

IDENTIFICATION DETAILS

Name :	JABAB EQUIPMENTS
Registered Office :	Post Box No 625, Above YSH School Complex, Thimphu: Bhutan.
Country :	Bhutan
Date of Incorporation :	07.06.1994
Legal Form :	Partnership Concern
Line of Business :	Importing Labour Saving Construction and Mining Equipment

RATING & COMMENTS

MIRA’s Rating :

B

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

Status :	Moderate
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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Bhutan	b2	b2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name & address

JABAB EQUIPMENTS

Post Box No 625,
Above YSH School Complex
Thimphu: Bhutan.
Phone No. +975 336637 , Fax No. +975 336638
Mobile No. + 975 17110340
Email ID: jababconst@gmail.com

Company summary

Year Established : 07.06.1994

Legal Status : Partnership

Name of Partners : Mr. Kinga Namgyel,

Mr. J. B , Nepal

Auditors : J. K. Thapa & Co., Bhutan

Staff : 40 nos.

Bankers : Bhutan Bank Ltd.

State Bank of Bhutan Ltd

Office Space : 1400 sq.ft. (Leasehold)

Business

The company has started businesses, the importing of labour saving under the name of JABAB EQUIPMENTS, in keeping the development objectives in line with the Royal Government of Bhutan. Bhutan is a developing nation; and it has a long term development strategy of developing Hydro power and high ways to connect different districts and villages of Bhutan. These are the two very important activities of the Royal Government of Bhutan apart from other development activities. These two businesses are going to be a long term business in Bhutan. The international financial institutions and many other developed nations have been graciously extending their financial support for the development of Bhutan.

Therefore, they have also spearheaded their business in importing labour saving Construction and Mining Equipment from out side Bhutan and supplying to various construction and mining companies. They are also a one of the reputed Construction Companies in Bhutan. They are mostly engaged in construction of Roads, Bridges and Buildings apart from supplying Construction and Mining equipments.

Under Jabab Equipment, they import and supply various construction and mining equipments to Government organisation and privates companies and provide after sales and service Under Jabab Construction, they take up construction of roads, Bridges and building from the Royal Government and execute as per plan.

The company is managed by the group of well qualified and experienced professionals. When they started the business in 1994 they had very few people and resources. Now the company has grown up substantially in terms of professional human resources, equipment and become financially stable.

Reference of Overseas Concerns : Germany, Korea, Taiwan, Switzerland.

Finance : Present Working Capital – Nu. 8.00 crores.

Sales (2009) : Nu. 10 crores. Sales (2010) : Nu. 12 crores.

Projected Sales (2011) : Nu. 14 crores.

Trading Terms : Purchase - L/C – 30 days

Credit – 30 days

Sales - L/C – 30 days

Credit – 30 days

Remarks : Partners are well experienced and active. Payments are

Reported to be correct and regular as per commitment.

Trade relations are fair.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.04
UK Pound	1	Rs.72.20
Euro	1	Rs.63.40

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

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.