MIRA INFORM REPORT

Report Date :

21.01.2011

IDENTIFICATION DETAILS

Name :	PETROCHEM MIDDLE EAST FZE

Registered Office :	Sheikh Zayed Road, Roundabout No. 7 Jebel Ali Free Zone, Lob No. 4, Office No. 4G-18 PO Box 17028 & 34479 Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2009

Date of Incorporation :	20.06.1995

Legal Form :	Free Zone Establishment - FZE

Line of Business :	Import, export, marketing and distribution of chemicals

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 :	EUR 500,000

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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

UAE

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

SUMMARY

Company Name : PETROCHEM MIDDLE EAST FZE

Country of Origin : Dubai, United Arab Emirates

Legal Form : Free Zone Establishment - FZE

Registration Date : 20^th June 1995

Commercial Registration Number : 130

Trade Licence Number : 7177

Chamber Membership Number : 34479

Issued Capital : UAE Dh 2,000,000

Paid up Capital : UAE Dh 2,000,000

Total Workforce : 120

Activities : Import, export, marketing and distribution of chemicals

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : EUR 500,000

COMPANY NAME

PETROCHEM MIDDLE EAST FZE

ADDRESS

Registered & Physical Address

Street : Sheikh Zayed Road, Roundabout No. 7

Area : Jebel Ali Free Zone, Lob No. 4, Office No. 4G-18

PO Box : 17028 & 34479

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 8839222 / 8835871

Facsimile : (971-4) 8834133

Email : logistics@petrocheme.com

Premises

Subject operates from a suite of offices and warehousing facilities with a storage capacity of 11,000 metric tonnes that are rented and located in the Jebel Ali Free Zone.

Branch Offices

Location Description

· Dubai Office premises

Tel: (971-4) 3329192

Fax: (971-4) 3329200

KEY PRINCIPALS

Name Position

· Yogesh Mehta Managing Director

· Hussaini Wasi Finance Manager

· Venu Gopal Nayar Sales Manager

· Satyabrata Mukherjee Terminal Manager

· Nazir Batri Logistics Manager

· R Mahjan Operations Manager

· Mr Udayakumar IT Manager

LEGAL FORM & OWNERS

Date of Establishment : 20^th June 1995

Legal Form : Free Zone Establishment – FZE

Commercial Reg. No. : 130

Trade Licence No. : 7177 (Expires 31^st March 2011)

Chamber Member No. : 34479

Issued Capital : UAE Dh 2,000,000

Paid up Capital : UAE Dh 2,000,000

Name of Shareholder (s) Percentage

· Petrochem Gulf Holdings Ltd 100%

Bermuda

AFFILIATED COMPANIES

· Petrochem Middle East LLC

City Tower II, Office No. 1603

Sheikh Zayed Road

PO Box: 23910

Dubai

Tel: (971-4) 3329192

Fax: (971-4) 3329200

Email: sales@petrocheme.com

Membership No. 34789

OPERATIONS

Activities: Engaged in the import, export, marketing and distribution of chemicals, raw materials, oil field supplies, industrial solvents, paints and varnishes, as well as construction chemicals. Subject has a product range of over 180 types of chemicals and exports over 120,000 metric tonnes per annum.

The company are distributors for:

- ARCO Chemicals - Petro SA

- Cray Valley - Lyondell

- KAO Chemicals - Anupam

- Tego Chemie - Merisol

- Sasol Solvents - Petro SA

- Borealis BP - Polimeri Europa

- Reliance India - Shell

Subject is ISO 9001 & 4001 accredited.

Import Countries: Europe, Asia and the United States of America

Export Countries: Subject exports chemicals to approximately 25 countries throughout the GCC region, Middle East, India, Asia and Europe.

Operating Trend: Steady

Subject has a workforce of 120 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

Year Ending 31/12/08: Year Ending 31/12/09:

Total Sales UAE Dh 40,175,000 UAE Dh 42,600,000

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

The above financial figures are based on estimations by our local sources.

BANKERS

· The Standard Chartered Bank

Jebel Ali Free Zone

PO Box: 999

Dubai

Tel: (971-4) 8856600

Acc No. 01-70935945-01

· HSBC Bank Middle East

Deira Souk Branch

PO Box: 66

Dubai

Tel: (971-4) 2535000

Acc No. 020-154795-100 & 020-154795-001

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction November 2005 January 208

Credit amount 250,000 150,000

Amount overdue 0 0

Payment terms 30 days 60 days

Payment Method Letters of Credit Letters of Credit

Paying record No Complaints No Complaints

Currency US Dollars US Dollars

GENERAL COMMENTS

Petrochem Middle East FZE was established in 1995 and specialises in the import, export, marketing and distribution of various chemicals. It deals with a number of well known international suppliers and exports over 120,000 metric tonnes of products per annum.

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.58
UK Pound	1	Rs.72.73
Euro	1	Rs.61.45

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.