MIRA INFORM REPORT

Report Date :

25.04.2011

IDENTIFICATION DETAILS

Name :	ARAB IRON & STEEL CORPORATION

Registered Office :	Al Khawlany Building, F5h Floor, Ring Road, P.O. Box 15028, Sana'a

Country :	Yemen

Date of Incorporation :	21.03.2004

Com. Reg. No.:	73

Legal Form :	Closed Joint Stock Company

Line of Business :	Producers of TMT steel

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	YR 100,000,000
Status :	Satisfactory
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)

Yemen

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

Company NAME

Arab Iron & Steel Corporation (Correct)

ARAB IRON STEEL CO. (Requested)

Company ADDRESS

Building : Al Khawlany Building, F5h Floor

Street : Ring Road

P.O. Box : 15028

Town : Sana'a

Country : Yemen Republic

Telephone : (967 1) 212 227 / 212 228 / Mobile (967 771) 110 1900 (Ahmed Bazara)

Fax : (967 1) 471 548

E-mail : chirmain@aisco-yemen.com

Website : www.aisco-yemen.com

Also Known as : Arab Iron Steel Co.

SENIOR COMPANY PERSONNEL

Name Position

1. Ahmed Abu Baker Bazara Chairman

2. Sugavanam Rajanam Chief Executive Officer

3. Mohammed Akkasa Finance Manager

Total Employees : 550

PAYMENTS

No complaints have been heard regarding payments from local suppliers

or banks.

We consider it is acceptable to deal with subject for LARGE amounts,

however it is normal accepted practice for international suppliers to

deal on secured terms with Yemen importers.

Opinion on the maximum credit : YR 100,000,000

Trade risk assessment: Normal

PRINCIPAL BANKERS

NAME : SHAMIL BANK OF YEMEN AND BAHRAIN

Branch : Sitteen Street

Area : Round Aser Area

P.O. Box : 19382

Town : Sanaa

Telephone : (967 1) 538 384

Fax : (967 1) 538 385

The Company also has an account with:

Arab Bank PLC

Zubairi Road

PO Box 475 / 1301

Sana'a

Telephone: (967 1) 276 585

Fax : (967 1) 276 583

FINANCIAL INFORMATION

Private companies in Yemen Republic are not required to publish or

disclose balance sheets. However, the subject interviewed offered

the following information :

Sales Turnover : US DLRS 40,000,000 - 2009 - exact

: US DLRS 45,000,000 - 2010 - exact

Net Profit : not given but stated to be 10%-15% of sales turnover

Financial year ends 31 December.

LEGAL STATUS AND HISTORY

Date Started : 21 March 2004

C.R. No. : 73 (Aden)

Authorised Capital : US DLRS 37,000,000

Paid-Up Capital : US DLRS 37,000,000

Closed Joint Stock Company with the following directors and shareholders :

Directors

Ahmed Bazara

(Yemeni national)

Percentage

1. Ahmed Abu Baker Bazara 51%

(Yemeni national)

2. Mohammed Salem Bahubaish }

(Yemeni national) }

}

3. Salem Salem Baazeem }

(Yemeni national) }

}

4. Omar Saleh Babaker }

(Saudi Arabian national) }

}

5. Shamil Bank Of Yemen And Bahrain } 49%

Shamil Bank of Yemen and Bahrain Building }

Sitteen Street }

Round Aser Area }

PO Box 19382 }

Sanaa }

Telephone : (967 1) 538 384 / 538 385 }

Fax : (967 1) 538 364 }

E-mail : info@sbyb.net }

Website : www.sbyb.net }

ACTIVITIES

The Company is involved in the following activities :

Producers of TMT steel.

Trading as importers and distributors of medical gas and power houses.

Subject production of TMT Steel ranging from 8mm to 35mm with a production of 7,500 tons per month.

Subject has a production capacity of 8,000 tons per month.

Subject is ISO 9001:2006 certified.

NACE Code : 2410

Imports row materials from India and China.

Exports to UAE, Oman and Sudan.

FACILITIES

The Company has the following facilities :

Rented premises comprising administrative offices located at the heading address as well as a 105,000 sq. m. owned production plant with warehousing facilities located elsewhere in Adan (see Branch Office section below).

BRANCH OFFICE

Free Zone Area

PO Box 374

Aden

Telephone : (967 1) 440 124 / 420 601

Fax : (967 1) 420 666

SPECIAL NOTES

You enquired on : ARAB IRON STEEL CO. Please note that subject is also known by this name. Subject's correct registered name is as per heading.

The postal address given by you: PO BOX 374, ADEN applies to subject’s Aden manufacturing plant PO Box. Please note that subject’s administrative office PO Box number is as per heading.

Interviewed : Ahmed Abu Baker Bazara (Chairman).

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.30
UK Pound	1	Rs.72.92
Euro	1	Rs.64.69

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%)

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.