MIRA INFORM REPORT

Report Date :

08.10.2012

IDENTIFICATION DETAILS

Name :	YAZD INDUSTRIAL AND CONSTRUCTIONAL STEEL ROLLED COMPANY
Registered Office :	No.321, Foulad Building, corner of Social insurance, Azadi Ave.Tehran
Country :	Iran
Date of Incorporation :	27.06.1996
Com. Reg. No.:	123064
Legal Form :	Private Joint Stock Company.
Line of Business :	Manufacturer of steel, Iron, beam wire, Gear Wheels, Hydraulic Car Lifts, Round Bars.
No. of Employees :	680

RATING & COMMENTS

MIRA’s Rating :

Ba

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 (31.03.2011)	Current Rating (30.06.2012)
Iran	B1	B1

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

IRAN - ECONOMIC OVERVIEW

Iran's economy is marked by statist policies and an inefficient state sector, which create major distortions throughout the system, and reliance on oil, which provides the majority of government revenues. Price controls, subsidies, and other rigidities weigh down the economy, undermining the potential for private-sector-led growth. Private sector activity is typically limited to small-scale workshops, farming, and services. Significant informal market activity flourishes and corruption is widespread. Tehran since the early 1990s has recognized the need to reduce these inefficiencies, and in December 2010 the legislature passed President Mahmud AHMADI-NEJAD's Targeted Subsidies Law (TSL) to reduce state subsidies on food and energy. This was the most extensive economic reform since the government implemented gasoline rationing in 2007. Over a five-year period the bill will phase out subsidies that previously cost Tehran $60-$100 billion annually and mostly benefited Iran's upper and middle classes. Cash payouts of $45 per person to more than 90% of Iranian households mitigated initial widespread resistance to the TSL program, though popular acceptance remains vulnerable to rising inflation. A rise in world oil prices in 2011 increased Iran's oil export revenue by roughly $28 billion over 2010, easing some of the financial impact of international sanctions. However, expansionary fiscal and monetary policies, government mismanagement, the sanctions, and a depreciating currency are fueling inflation, and GDP growth remains stagnant. Iran also continues to suffer from double-digit unemployment and underemployment. Underemployment among Iran''s educated youth has convinced many to seek jobs overseas, resulting in a significant "brain drain."

Source : CIA

Company Details

Company Name: Yazd Industrial and constructional steel rolled

Company

Also Known as: YAZD ROLLING MILL COMPANY

Farsi Name: شرکت نورد فولاد یزد

Address: No.235, Foulad building, next to Qane-ei St, between Khosh and

Behboudi, Azadi Ave.

Tehran 14579 66191

Iran

P.O.Box: 15875-4671

Telephone: +98 21 66937999, 66436208-11

Fax: +98 21 66424755, 66937969

Website: www.yazdrollingmill.com

E-mail: contact@yazdrollingmill.com

Registration & Legal Details

Current Legal Form: Private Joint Stock Company. Registration Address: No.321, Foulad Building, corner of Social insurance, Azadi Ave.

Tehran, Iran

Start Date: 27/06/1996

Registration Number: 123064

Registration Date: 27/06/1996

Registration Town: Tehran

National Code ID: 10101665531

Note:

The registered name of company is Yazd Industrial and constructional steel rolled company.

Capital

Currency: Iranian Rials

Nominal capital: 1,200,000,000,000

shareholders

Shareholder Names	% of Voting/Non-Voting Capital
Ehramiyan Family	100%

Principals

Name: Mr. Seyed Mohammad Ehramiyan

Position within the company: Chairman

Country of Birth: Iran

Nationality: Iranian

Can fluently speak: Farsi- English

National Code ID: 4431232184

Name: Mr. Seyed Bahador Ehramiyan

Position within the company: Vice Chairman

Country of Birth: Iran

Nationality: Iranian

Can fluently speak: Farsi- English

National Code ID: 0061938912

Name: Mr. Seyed Babak Ehramiyan Position within the company: Managing Director

Country of Birth: Iran

Nationality: Iranian

Can fluently speak: Farsi- English

National Code ID: 0047766670

Name: Mr. Seyed Bardiya Ehramiyan

Position within the company: Member

Country of Birth: Iran

Nationality: Iranian

Can fluently speak: Farsi- English

National Code ID: 0062898655

Name: Mrs. Fatimh Nazmeyan Yazdi Position within the company: Member

Country of Birth: Iran

Nationality: Iranian

Can fluently speak: Farsi- English

National Code ID: 4431366334

Name: Mr. Akbar Farnadi Position within the company: Member

Country of Birth: Iran

Nationality: Iranian

Can fluently speak: Farsi- English

National Code ID:

Company Activities

Manufacturer of steel, Iron, beam wire, Gear Wheels, Hydraulic Car Lifts, Round Bars.

Note:

Yazd Rolling Mill is a member of Foulad Yazd Manufacturing Group of companies

Note:

the subject has before- sales service and Time- sales service & after- sales service in

Iran.

Branch:

1. Address: After Yazd Fouad industrial and production group Cargo Terminals, 17 km in

Yazd Kerman bypass of new ring road.

Yazd, Iran

Premised: Owned- Factory

Tel: + 98 351 7216611-12

Fax: + 98 351 7212713

Operations

EMPLOYEES

Company Employs: 680

HQ PREMISES

Operates from: Owned, Offices, Warehouses, Workshops, Libratory, and Factory.

Location: Central Business Area, Main Road

IMPORTS

Imports : Finished Goods

Import%: 30%

Import from: Europe, Russia, Central Asian states

Import terms: letters of credit

Additional: Balance of 70 % purchased via local market

EXPORT

Export : Finished Goods

Export %: 15%

Export from: Far East

TRADING & SELLING

Territory: 85 % Nationality, 15% International

Type of Customer: Group Companies, Retailers, Wholesalers.

Terms of sales: letters of credit

Vehicles: Total number of vehicles: 35

Related Companies

Name: Foulad Yazd Manufacturing Group (Related Company)

Note:

Yazd Foulad Manufacturing Group

The following companies operate under the YFM Group.

Yazd Foulad	( Established 1979)
Yazd Pipe Fittings	( Established 1980)
Yazd Gear Drive	( Established 1982)
Yazd Hydraulics	( Established 1992)
Yazd Rolling Mill	( Established 1998)

Banks

Bank Saderat

Branch: Sharif Industrial University

Financial Information

Solicitor: Asadoullah Neli Esfehani. (National Code ID: 1286342341)

Auditors: Sokhan Hagh Management Services& Auditing Institute.

(National Code ID: 10100553250)

Payments

Subject's payments reported to be: Non- Complaint

interview & reporter comments

Name/Title: Mr. Seyed Babak Ehramiyan - Managing Director

Local Reputation: The company being investigated is considered by local reporters to be a 

Normal Trade Risk and to be fair.

Owner/Shareholders Comments:

All of owners involved in the running of the business

Age of Business: Old Family Business.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.62
UK Pound	1	Rs.83.57
Euro	1	Rs.67.17

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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