MIRA INFORM REPORT

Report Date :

15.05.2012

IDENTIFICATION DETAILS

Name :	ETA MELCO ELEVATOR CO LLC

Registered Office :	ETA Star House Salahuddine Street Al Mateena PO Box 11058 Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2011

Year of Establishment :	1975

Com. Reg. No.:	40884, Dubai

Legal Form :	Limited Liability Company - LLC

Line of Business :	Import, distribution, installation, maintenance and repair of elevators and escalators

No. of Employees :	1,700

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

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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

UAE

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

SUMMARY

Company Name : ETA MELCO ELEVATOR CO LLC

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Start Date : 1975

Registration Date : 5^th October 1981

Commercial Registration Number : 40884, Dubai

Trade Licence Number : 206731

Chamber Membership Number : 8451

Issued Capital : UAE Dh 10,000,000

Paid up Capital : UAE Dh 10,000,000

Total Workforce : 1,700

Activities : Import, distribution, installation, maintenance and repair of elevators and escalators

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Salem Khan, Assistant Finance Manager

COMPANY NAME

ETA MELCO ELEVATOR CO LLC

ADDRESS

Registered & Physical Address

Building : ETA Star House

Street : Salahuddine Street

Area : Al Mateena

PO Box : 11058

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 2359595

Facsimile : (971-4) 2725121 / 2359783

Mobile : (971-50) 2885196

Email : etamelco@eta-ascon.com / etamelco@etamelcom.com

Premises

Subject operates from a large suite of offices and a warehouse that are leased and located in the Industrial Area of Dubai.

Branch Office (s)

Location Description

· Gulf Air Building Office premises

PO Box: 11058

Dubai

Tel: (971-4) 2716655 / 2715109

· PO Box: 3967 Office premises

Abu Dhabi

Tel: (971-2) 6349534

Fax: (971-2) 6347282

KEY PRINCIPALS

Name Nationality Position

· Sayed Mohamed Salahuddin Indian Managing Director

· Abdullah Bin Ahmed Al Ghurair Emirati Director

· S Shankran - General Manager

· Khaja Moeen Eddine - Finance Manager

· Abdulaziz Mohamed - Maintenance Manager

· Shiva Kumar - Installations Manager

· Salem Khan - Assistant Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : Subject’s operations date back to 1975, however it was registered on 5^th October 1981

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 40884, Dubai

Trade Licence No. : 206731 (Expires 04/10/2012)

Chamber Member No. : 8451

Issued Capital : UAE Dh 10,000,000

Paid up Capital : UAE Dh 10,000,000

Name of Shareholder (s) Percentage

· Abdullah Bin Ahmed Al Ghurair 51%

· Mitsubishi Corp Ltd 30%

Japan

· Amana Investments Ltd 19%

Hong Kong

AFFILIATED COMPANIES

Subject is a member of the Al Ghurair Group, which has a turnover over in excess of UAE Dh 3 billion (US$ 850 million). The group has a diversified range of interests spanning real estate, finance and industry, with specialist operations in banking, trading and shipping.

Some of the very successful industries that it operates today in the United Arab Emirates, include the National Flour Mills Co Ltd, National Cement Company, Gulf Extrusions at Jebel Ali, Masafi Mineral Water Co LLC, National Mosaic Tiles, Arabian Packaging Co and Al Ghurair Publishing and Printing. In the banking sector, the Ghurairs are owners of the UAE’s largest private bank, the Dubai-based Mashreq Bank, which is one of the Group’s most successful ventures and operates from branches both within and outside the UAE.

The Al Ghurair Group is active in London, New York, Cairo, Khartoum, Istanbul, Bombay, Doha, Colombo, Karachi and Lahore.

In real estate the Al Ghurair Centre has become a prominent landmark in Dubai. It was built at a cost of more than US $ 150 million and is now home to most of the city’s top retailers.

The Al Ghurair Group comprises the following concerns:

· Emirates Trading Agency LLC (ETA)

· Al Ghurair Holdings (Private) Ltd

· Gulf Extrusions Ltd

· Arabian Aluminium Company

· Al Ghurair Publishing & Printing House

· Union Mosaic & Marble Company

· Al Ghurair Centre

· Arabian Mix

· National Cement Company Ltd

· Arabian Packing Company

· Gulf Utensils

· Gulf Import & Export Co

· House of Perfume

· Computer Intelligence and Communications Ltd

· Gulf Confectionery & Biscuit Company

· Oman Insurance Co Limited

· Mashreq Bank

· Al Ghurair Enterprises

· Al Ghurair Exchange

· National Flour Mills Company Ltd

· National Concrete Company Ltd

· Masafi Mineral Water Co LLC

· Associated Construction & Investment Co LLC (ASCON)

· Al Ghurair Fieness Perry & Partners

· Pak Arab Traders

· Al Ghurair Real Estate

· Al Khaleej Sugar Co WLL

· Central Electric Equipment Co LLC (CEEC)

· National Oman Marble Company

· Rawda Quarries Ltd

· Ghurair Tarmac

· Oman Finance Company

· Ghurair Crown (Engineering) Ltd

· Al Ghurair Industries (Pvt) Ltd

OPERATIONS

Activities: Engaged in the import and distribution of elevators, escalators and related spare parts.

Subject as sole agents for Mitsubishi Elevators & Escalators.

Subject also offers installation, maintenance and repair of elevators and escalators. It has approximately 8,000 elevators under comprehensive maintenance contracts.

The company's installations at the Emirates Tower, Burj Al Arab and the new terminal at the Dubai International Airport were rated among the world's best projects by the top international elevators magazine "The Elevator World."

800 units per year are being sold in the UAE by ETA-Melco and the company has a market share of around 55 percent.

Subject obtained the prestigious ISO-9001 Certificate in 1999.

Import Countries: Japan, Germany and Sweden

International Suppliers:

· Mitsubishi Electric Corporation Japan

· Alcan Singen GmbH Germany

· Besam AB Sweden

Export Countries: Qatar, Oman, Kuwait, Turkey, Sri Lanka, Maldives, India, Bangladesh and Russia.

Operating Trend: Steady

Subject has a workforce of approximately 1,700 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

Year Ending 31/12/10: Year Ending 31/12/11:

Total Sales UAE Dh 1,070,128,124 UAE Dh 1,119,611,693

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

The above figures were provided by Mr Salem Khan, Assistant Finance Manager

BANKERS

· Mashreq Bank Plc

Deira Branch

PO Box: 1250

Dubai

Tel: (971-4) 2229131 / 2221134

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction July 2008

Credit amount 150,000

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency US Dollars

GENERAL COMMENTS

Established in 1975, subject is involved in the import and distribution of elevators, escalators and related spare parts. Subject also operates and elevator and escalator contractors.

This is a well established company, part of the Al Ghurair Group which is deemed trustworthy for respecting its financial trade commitments. Payment obligations are reportedly met in a prompt and timely manner and local sources advise that subject is a sound trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.71
UK Pound	1	Rs.86.34
Euro	1	Rs.69.22

INFORMATION DETAILS

Report Prepared by :

PRL

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%)

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