MIRA INFORM REPORT

Report Date :

04.01.2011

IDENTIFICATION DETAILS

Name :	QATAR TELECOM QSC (Q-TEL)

Registered Office :	Q-Tel Tower, West Bay, P O Box 217, Doha

Country :	Qatar

Financials (as on) :	31.12.2009

Date of Incorporation :	20.07.1987

Legal Form :	Qatari Shareholding Company (QSC)

Line of Business :	Providers of national and international public telecommunication services

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	US$ 7,500,000
Status :	Good
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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Qatar

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

SUMMARY

Company Name : QATAR TELECOM QSC (Q-TEL)

Country of Origin : Qatar

Legal Form : Qatari Shareholding Company (QSC)

Registration Date : 20^th July 1987

Issued Capital : QR 1,466,667,000

Paid up Capital : QR 1,466,667,000

Total Workforce : 2,000

Activities : Providers of national and international public telecommunication

services

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : US$ 7,500,000

COMPANY NAME

QATAR TELECOM QSC (Q-TEL)

company ADDRESS

Registered & Physical Address

Building : Q-Tel Tower

Area : West Bay

PO Box : 217

Town : Doha

Country : Qatar

Telephone : (974) 4400290 / 4400222 / 4400431 / 4400641 / 4400363

Facsimile : (974) 4830060 / 4413904

Email : info@qtel.com.qa

Premises

Subject operates from a large suite of offices that are leased and located in the Central Business Area of Doha.

KEY PRINCIPALS

Name Position

· Sheikh Abdullah Bin Mohamed Bin Saud Al Thani Chairman

· Sheikh Mohamed Bin Suhaim Al Thani Vice Chairman

· Mohamed Bin Eisa Al Muhannadi Director

· Saad Mohamed Al Rumaihi Director

· Dr Abdullah Al Kubaisi Director

· Abdullah Zaid Al Talib Director

· Ali Sharif Al Emadi Director

· Harib Masoud Al Darmaki Director

· Hamad Saeed Al Badi Director

· Hamad Abdullah Al Shamsi Director

· Dr Nasser Marafih Chief Executive Office

· Ajay Bahri Finance Manager

· Jassim Mohamed Al Mansoori Human Resources Manager

· Waleed Mohamed Al Sayed Customer Services Manager

LEGAL FORM & OWNERS

Date of Establishment : 20^th July 1987

Legal Form : Qatari Shareholding Company (QSC)

Issued Capital : QR 1,466,667,000

Paid up Capital : QR 1,466,667,000

Name of Shareholder (s) Percentage

· Government of Qatar 55%

· Cable & Wireless Plc 1%

Mercury House

Theobalds Road

London WC1X 8RX

United Kingdom

Tel: (44-207) 3154000

· Private investors and local businessmen 44%

AFFILIATED COMPANIES

Name Share Held

· Qtel Investment Holdings BSC 100.00%

· TDC – Qtel MENA Investcom BSC 79.00%

· Indosat 65.00%

· Omani Qatari Telecommunications Company SAOC 55.00%

· Navlink Inc 38.16%

OPERATIONS

Activities: Engaged in the provision of national and international public telecommunication services in Qatar,

including local and long distance telephone, cellular mobile telephone, data communications, radio-

paging, facsimile, telegram, telex, electronic fund transfer and pay telephone services and ISDN services. Subject has a customer base of over 67 million.

Operating Trend: Steady

Subject has a workforce of approximately 2,000 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Qatari Riyals (QR’000s)

Consolidated Balance Sheet 31/12/08 31/12/09

ASSETS

Non-current assets

Property, plant and equipment 23,480,143 29,597,692

Intangible assets 33,819,101 34,104,052

Investment in associates 1,873,892 1,944,635

Available-for-sale investments 1,916,947 1,698,758

Other non-current assets 792,167 1,274,514

Deferred tax asset 435,664 353,202

62,317,914 68,972,853

Current assets

Inventories 272,257 254,531

Accounts receivable and prepayments 3,862,268 4,199,699

Bank balances and cash 7,845,307 11,511,570

11,979,832 15,965,800

TOTAL ASSETS 74,297,746 84,938,653

EQUITY & LIABILITIES

Equity

Share capital 1,466,667 1,466,667

Legal reserve 6,494,137 6,494,137

Fair value reserve (458,678) (185,501)

Translation reserve 248,907 955,055

Retained earnings 5,532,674 6,875,150

13,283,707 15,605,508

Minority interests 15,677,925 13,826,899

Total equity 28,961,632 29,432,407

Non-current Liabilities

Interest bearing loans and borrowings 20,155,201 33,798,433

Employees benefits 501,627 605,490

Deferred tax liability 468,407 1,530,687

Other non-current liabilities 3,446,131 3,520,481

24,571,366 39,455,091

Current liabilities

Accounts payable and accruals 9,709,397 9,959,801

Current account with State of Qatar 1,896,176 2,803,015

Deferred income 746,650 1,012,438

Interest bearing loans and borrowings 7,820,082 1,884,409

Income tax payable 592,443 391,492

20,764,748 16,051,155

Total liabilities 45,336,114 55,506,246

TOTAL EQUITY AND LIABILITIES 74,297,746 84,938,653

Consolidated Income Statement 31/12/08 31/12/09

Sale 20,318,927 24,025,256

Other income 540,568 1,198,054

General and administrative expenses (9,278,363) (12,639,901)

Other operating expenses (5,428,700) (5,949,402)

(Loss) gain on foreign currency exchange (net) (443,548) 563,343

(Loss) profit on disposal of available-for-sale

Investments (6,249) 16,398

Impairment loss on intangibles and available

for-sale investments (131,321) (386,766)

Finance costs (1,595,998) (1,944,868)

Share of results of associates (50,579) 9,358

Royalties (825,911) (393,235)

Profit Before Tax 3,098,826 4,498,227

Income tax (256,339) (617,102)

PROFIT FOR THE YEAR 2,842,487 3,881,125

Attributable to:

Equity holders of the parent 2,277,212 2,779,909

Minority interests 565,275 1,101,216

2,842,487 3,881,125

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

BANKERS

· Qatar National Bank SAQ

Main Branch

PO Box: 1002

Doha

Tel: (974) 4413511

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Established in 1987, subject is involved in the provision of national and international public telecommunication

services in Qatar.

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.67
UK Pound	1	Rs.69.45
Euro	1	Rs.59.37

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.