MIRA INFORM REPORT

Report Date :

15.03.2011

IDENTIFICATION DETAILS

Name :	QATAR PETROCHEMICAL CO LTD (QAPCO)

Registered Office :	Qapco Building, C Ring Road, P O Box 756, Doha

Country :	Qatar

Financials (as on) :	31.12.2008

Year of Establishment :	1974

Com. Reg. No.:	141, Doha

Legal Form :	Qatari Joint Stock Company

Line of Business :	Manufacturers of Ethylene and LDPE

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	US$ 4,000,000
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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

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 PETROCHEMICAL CO LTD (QAPCO)

Country of Origin : Qatar

Legal Form : Qatari Joint Stock Company

Registration Date : 1974

Commercial Registration Number : 141, Doha

Issued Capital : QR 436,000,000

Paid up Capital : QR 436,000,000

Total Workforce : 910

Activities : Manufacturers of Ethylene and LDPE.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : US$ 4,000,000

COMPANY NAME

QATAR PETROCHEMICAL CO LTD (QAPCO)

company address

Registered & Physical Address

Building : Qapco Building

Street : C Ring Road

PO Box : 756

Town : Doha

Country : Qatar

Telephone : (974) 4242444 / 4321105 / 4323805

Facsimile : (974) 4324700 / 4772674

Email : information@qapco.com.qa

Premises

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

Branch Office (s)

Location Description

· Industrial City Owned production plant

PO Box: 50155

Mesaieed

Tel: (974) 4777111

Fax: (974) 4771346 / 4770459

KEY PRINCIPALS

Name Position

· H.E. Abdullah Bin Hamad Al Attiyah * Chairman

· Hamad Rashid Al Mohannadi Vice Chairman & General Manager

· Rashid Ali Al Mohannadi Director

· Ahmed Mohamed Ahmed Darwish Director

· Sultan Khalifa Al Banali Director

· Mohamed Jasem Al Baker Director

· Francis Raatz Director

· Dr Mohamed Yousef Al Mulla Director

· Graeme Burnett Director

· Abdullah Al Musallam Finance Manager

· Mansour Rashid Al Wadaani Administration Manager

· Pfeiffer Jean Claude Jacques Technical Manager

· Abdulrahman Ali Al Abdullah Marketing Manager

· Mohamed Jassim Al Naama Public Relations Manager

· Saleh Mohamed Al Halki Production Manager

· Mohamed Al Mulla Maintenance Manager

· Nabil Rahmattula IT Manager

· Fahd Zaimal Human Resources Manager

* H.E. Abdullah Bin Hamad Al Attiyah is the Minister of Energy, Industry, Electricity & Water.

LEGAL FORM & OWNERS

Date of Establishment : 1974 (under Emiri Decree 109) Production began in 1981

History : Subject was originally incorporated in 194 as a Qatari Joint Stock Company between the following shareholders :

1. Qatar General Petroleum Corp (QGPC) 84 %

2. Elf Atochem SA 16 %

In September 1990, and as part of the programme to double production capacity, a new

shareholder was introduced, namely Enichem SpA of Italy, who shared a 20% stake in the company with France’s Elf Atochem SA.

During 2002, Enichem SpA of Italy sold its stake in the company to France’s Atochem SA.

Legal Form : Qatari Joint Stock Company

Commercial Reg. No. : 141, Doha

Issued Capital : QR 436,000,000

Paid up Capital : QR 436,000,000

Name of Shareholder (s) Percentage

· Industries Qatar 80 %

Al Sadd Plaza

West Bay

PO Box: 3212

Doha

Tel: (974) 4491491

Fax: (974) 4831125

· Total Petrochemicals (Formerly Atochem SA) 20 %

4, Cours Michelet, La Defense 10, Cedex 42

Paris 92091

France

Tel: (33-1) 49008080

Fax: (33-1) 49008386

AFFILIATED COMPANIES

· Qatar Vinyl Company (QVC)

· Qatar Plastic Products Company (QPPC)

· Qatofin

· Ras Laffan Olefins Company Ltd

OPERATIONS

Activities: The main products of the company are Ethylene and LDPE. Solid sulphur is generated as a by-product in the process. The required feedstock, Ethane gas, is supplied by the state-owned Qatar Petroleum (QP) for the production of Ethylene, a significant part of which is then used in the production of various grades of LDPE, marketed under the ‘LOTRENE’ brand name.

Subject’s manufacturing facilities consist of an Ethylene plant with a designed annual capacity of 525,000 MT, two LDPE plants with a total annual capacity of 360,000 MT and a Sulphur plant with an annual rated capacity of 70,000 MT.

Import Countries: United States of America and Europe

Export Countries: QAPCO distributes its products in competitive markets in 35 different countries, through a network of distributors supplying over 4000 customers world-wide. Its main markets are South East Asia

Brand Names: LOTRENE

Operating Trend: Steady

Subject has a workforce of approximately 910 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Qatari Riyals (QR)

Consolidated Income Statement 31/12/07 31/12/08

Sales 2,691,486,271 3,726,909,279

Cost of goods sold (612,126,037) (872,275,190)

Gross Profit 2,079,360,234 2,854,634,089

Other income 47,245,131 61,881,200

Selling expenses (79,797,616) (99,301,694)

Administration expenses (135,860,224) (166,881,525)

Interest income 82,824,412 94,366,842

Share of results of associates 54,515,273 100,639,180

Profit for the year 2,071,136,093 2,767,536,581

Consolidated Balance Sheet 31/12/07 31/12/08

ASSETS

Non current assets

Property, plant and equipment 1,218,924,665 1,363,774,619

Projects under development 1,475,130,967 2,174,740,492

Investments in associates 388,316,786 488,955,966

Intangible assets 90,390,904 89,634,174

Advances to suppliers 1,902,001 -

Total non current assets 3,174,665,323 4,117,105,251

Current assets

Inventories 248,225,897 255,421,321

Accounts receivable & prepayments 901,071,797 889,788,268

Bank balances and cash 2,227,687,115 3,145,993,164

Total current assets 3,376,985,809 4,291,202,753

TOTAL ASSETS 6,551,651,132 8,408,308,004

EQUITY AND LIABILITIES

Equity

Share capital 436,000,000 436,000,000

Legal reserve 87,200,000 87,200,000

Cumulative changes in fair values (28,041,413) (127,077,740)

Retained earnings 2,805,386,226 4,861,915,968

Proposed dividend 856,319,319 -

Total Equity 4,156,864,132 5,258,038,228

Non-current liabilities

Employees’ end of service benefits 57,808,597 64,417,604

Long term syndicated loans 962,641,086 1,459,582,794

Interest rate swap 28,041,413 127,077,740

Total non-current liabilities 1,048,491,096 1,651,078,138

Current liabilities

Due to related parties 254,737,577 422,037,673

Accounts payable and accruals 430,313,746 366,147,126

Income tax payable 661,244,581 711,006,839

Total current liabilities 1,346,295,904 1,499,191,638

Total liabilities 2,394,787,000 3,150,269,776

TOTAL EQUITY AND LIABILITIES 6,551,651,132 8,408,308,004

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

Figures for the year ending 31^st December 2009 were not available.

BANKERS

· Commercial Bank of Qatar Ltd (QSC)

PO Box: 3232

Doha

Tel: (974) 4490222

Fax: (974) 4438182

· HSBC Middle East Bank

PO Box: 57

Doha

Tel: (974) 4382100

Fax: (974) 4416353

Acc No. 001135888063

· Qatar National Bank

Government House Road

PO Box: 1002

Doha

Tel: (974) 4413511 / 4407407

Fax: (974) 415020

· Banque Paribas

PO Box: 2636

Doha

Tel: (974) 4430346 / 4430344

Fax: (974) 4430121

· Arab Bank

PO Box: 172

Doha

Tel: (974) 4437979 / 4422814

Fax: (974) 4410774

· Standard Chartered Bank

Abdullah Bin Jassim Road

PO Box: 29

Doha

Tel: (974) 4414252

Fax: (974) 4413739

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction August 2001 August 2006

Credit amount 13,000 7,000

Amount overdue 0 0

Payment terms 30 days 30 days

Payment Method Letters of Credit Letters of Credit

Paying record Prompt Prompt

Currency US Dollars Pounds Sterling

GENERAL COMMENTS

Qatar Petrochemical Co Ltd (QAPCO) was established in 1974 and is engaged in the production of ethylene, low density Polyethylene (LDPE) and solid sulphur.

The company is 80% owned by Industries Qatar, which in turn is wholly owned by the government of Qatar. The company has the full support of its main shareholder, and as such is deemed reliable for respecting its financial trade commitments.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.15
UK Pound	1	Rs.72.59
Euro	1	Rs.62.95

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.