MIRA INFORM REPORT

Report Date :

09.11.2012

IDENTIFICATION DETAILS

Name :	TECHNICAL OILFIELD SUPPLIES CENTRE LLC (TOSC)

Registered Office :	Mina Free Port Area, Warehouse No. 229, P O Box 2647, Abu Dhabi

Country :	United Arab Emirates

Financials (as on) :	31.12.2011

Date of Incorporation :	19.11.1975

Com. Reg. No.:	15863, Abu Dhabi

Legal Form :	Limited Liability Company

Line of Business :	Import and distribution of engineering and oilfield equipment

No. of Employees :	65 employees

RATING & COMMENTS

MIRA’s Rating :

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

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^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

United Arab Emirates

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

United Arab Emirates - ECONOMIC OVERVIEW

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE''s strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

Source : CIA

SUMMARY

Company Name : TECHNICAL OILFIELD SUPPLIES CENTRE LLC (TOSC)

Country of Origin : Abu Dhabi, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Registration Date : 19^th November 1975

Commercial Registration Number : 15863, Abu Dhabi

Trade Licence Number : 1002691

Chamber Membership Number : 868

Issued Capital : UAE Dh 3,000,000

Paid up Capital : UAE Dh 3,000,000

Total Workforce : 65

Activities : Import and distribution of engineering and oilfield equipment.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Joy Mathew, Accountant

COMPANY NAME

TECHNICAL OILFIELD SUPPLIES CENTRE LLC (TOSC)

company ADDRESS

Registered & Physical Address

Location : Mina Free Port Area, Warehouse No. 229

PO Box : 2647

Town : Abu Dhabi

Country : United Arab Emirates

Telephone : (971-2) 6732140 / 6734042

Facsimile : (971-2) 6734041 / 6731664

Mobile : (971-50) 7514327

Email : tosca@emirates.net.ae

Premises

Subject operates from a medium sized suite of offices and a warehouse that are rented and located in the Industrial Area of Abu Dhabi.

Branch Office (s)

Location Description

· Mussaffah Industrial Zone, M17 Owned workshop premises

Abu Dhabi

Tel: (971-2) 5550751

Fax: (971-2) 5535001

· Luli Centre, 4^th Floor Rented office premises

Al Salam Street

PO Box: 337

Abu Dhabi

Tel: (971-2) 6723863 / 6732863 / 6732200

Fax: (971-2) 6732177

KEY PRINCIPALS

Name Nationality Position

· Ajay Bhagwandas Karani Indian Managing Director

· Manish Bhagwandas Bhatia Indian Director

· Khalid Ahmed Rahim Mohamed Emirati Director

· Amitav Mukherjee - General Manager

· Thomas Varghese - Finance Manager

· Ashok Bhatia - Commercial Manager

· Edward Alba - Sales Manager

· Joy Mathew - Accountant

LEGAL FORM & OWNERS

Date of Establishment : 19^th November 1975

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 15863, Abu Dhabi

Trade Licence No. : 1002691

Chamber Member No. : 868

Issued Capital : UAE Dh 3,000,000

Paid up Capital : UAE Dh 3,000,000

Name of Shareholder (s)

· Ajay Bhagwandas Karani

· Manish Bhagwandas Bhatia

· Khalid Ahmed Rahim Mohamed

AFFILIATED COMPANIES

Subject is a member of the Bhatia Brothers Group of Companies, which comprises the following concerns:

· Bhatia Brothers LLC

Moza Mohamed Al Menaei Building

Al Nakheel Street

Naif

PO Box: 1275

Dubai

United Arab Emirates

Tel: (971-4) 2267225 / 3331696

Fax: (971-4) 2268339

Email: bbisdxb@emirates.net.ae

· Technical Parts Co

Abdullah Abdul Jalil Building

Hamdan Street

PO Box: 337

Abu Dhabi

United Arab Emirates

Tel: (971-2) 6771500

Fax: (971-2) 6771958

· Oilfield Supply Centre (OFSC)

Darsait

Ruwi

PO Box: 5855

Muscat

Oman

Tel: (968) 705077 / 708908 / 794382

Fax: (968) 708169

· Sea Side Supply

PO Box: 275

Dubai

United Arab Emirates

Tel: (971-4) 2229670

· Bhatia Engineering Co

PO Box: 3675

Dubai

United Arab Emirates

Tel: (971-4) 2223225

Fax: (971-4) 2268339

· Super General Trading Co

Murshid Bazaar

Deira

PO Box: 1275

Dubai

United Arab Emirates

Tel: (971-4) 2245387

Fax: (971-4) 2246078 / 2245717

OPERATIONS

Activities: Engaged in the import and distribution of engineering and oilfield equipment.

Subject’s product range covers industrial mechanical, HVAC (Central A/C Materials), electrical, oilfield

equipment, drilling chemicals, and instrumentation.

TOSC is one of the largest suppliers to oil and gas, refineries, marine, power plants, petrochemical

complexes, construction and other related industries in the UAE.

Subject is ISO 9001:2000 certified.

Import Countries: United States of America, Japan, Singapore, India, South Africa, United Kingdom, Germany and Hungary.

International Suppliers:

· Aeroquip Corporation United States of America

· Columbus Mckinon United States of America

· First Brands Corporation United States of America

· Kito Corporation Japan

· Nippon Steel Japan

· Band-It Clamps (Pte) Ltd Singapore

· Dalal Consultants & Engineers India

· Flexitallic South Africa

· Aeroflex Turkey

· Bourdon Sedene France

· Citex Netherlands

· CRC Chemicals Belgium

· Kaesser Kompressoren Germany

· Magnaflux Limited United Kingdom

· Spirax Sarco Ltd United Kingdom

· Burton Drilling Pole Co United Kingdom

Brand Names: GODREJ

Operating Trend: Steady

Subject has a workforce of 65 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 40,000,000 UAE Dh 42,250,000

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

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

BANKERS

· HSBC Bank Middle East

PO Box: 242

Abu Dhabi

Tel: (971-2) 8004440 / 6147259

Fax: (971-2) 331564

· Abu Dhabi Commercial Bank

Abu Dhabi Commercial Bank Building

Al Salam Street

PO Box: 939

Abu Dhabi

Tel: (971-2) 6962222 / 6962222

Fax: (971-2) 6776499 / 6776499

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction May 2004

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency Canadian Dollars

GENERAL COMMENTS

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.54.44
UK Pound	1	Rs.87.00
Euro	1	Rs.69.43

INFORMATION DETAILS

Report Prepared by :

MNL

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.