MIRA INFORM REPORT

Report Date :

25.09.2012

IDENTIFICATION DETAILS

Name :	AL BUHEIRA LACNOR DAIRIES CO LTD

Registered Office :	Green Belt Street, Sharjah Industrial Area No. 4, P O Box 5983, Sharjah

Country :	United Arab Emirates

Date of Incorporation :	25.01.1978

Com. Reg. No.:	2742, Sharjah

Legal Form :	Limited Liability Company

Line of Business :	Production and marketing of dairy products as well as fruit juices and drinks

No. of Employees :	650 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 – March 31^st, 2012

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 : AL BUHEIRA LACNOR DAIRIES CO LTD

Country of Origin : Sharjah, United Arab Emirates

Legal Form : Limited Liability Company

Registration Date : 25^th January 1978

Commercial Registration Number : 2742, Sharjah

Trade Licence Number : 10358

Chamber Membership Number : 4054

Issued Capital : UAE Dh 2,000,000

Paid up Capital : UAE Dh 2,000,000

Total Workforce : 650

Activities : Production and marketing of dairy products as well as fruit juices and

drinks.

Financial Condition : Undetermined

Payments : Nothing detrimental uncovered

Person Interviewed : M K Pardeep, Accountant

COMPANY NAME

AL BUHEIRA LACNOR DAIRIES CO LTD

company ADDRESS

Registered & Physical Address

Street : Green Belt Street

Area : Sharjah Industrial Area No. 4

PO Box : 5983

Town : Sharjah

Country : United Arab Emirates

Telephone : (971-6) 5331551

Facsimile : (971-6) 5336102 / 5394109

Email : lacnor@emirates.net.ae / aneel.kumar@nfpc.net

Premises

Subject operates from a large suite of offices, a factory and distribution facilities that are owned and located in the Industrial Area of Sharjah.

Branch Office (s)

Location Description

· Mussafah Industrial Area, M1 Distribution centre

Abu Dhabi

Tel: (971-2) 5582808

· Ajman Distribution centre

· Al Ain Distribution centre

KEY PRINCIPALS

Name Nationality Position

· Fady Gargas Antonious Lebanese Managing Director

· Farag Ali Bin Hamoodah Emirati Director

· Anil Kumar - Chief Financial Officer

· M K Pardeep - Accountant

· Azmi Yagi - Administration Manager

· Nabil Jaber - Commercial Manager

· Fleming Brikmos - Factory Manager

· Mohamed Al Attari - Financial Controller

LEGAL FORM & OWNERS

Date of Establishment : 25^th January 1978

Legal Form : Limited Liability Company

Commercial Reg. No. : 2742, Sharjah

Trade Licence No. : 10358

Chamber Member No. : 4054

Issued Capital : UAE Dh 2,000,000

Paid up Capital : UAE Dh 2,000,000

Name of Shareholder (s) Percentage

· Farag Ali Bin Hamoodah 51%

· Fady Gargas Antonious 49%

AFFILIATED COMPANIES

· Bin Hamoodah Trading & General Services Co (Bin Hamoodah Automotive)

Bin Hamoodah Building

Old Airport Road

PO Box: 203

Abu Dhabi

Tel: (971-2) 4448888

Fax: (971-2) 4449073

· Alpha Data LLC

Alpha Data Megastore

Airport Road

PO Box: 45384

Abu Dhabi

Tel: (971-2) 6333644

Fax: (971-2) 6211924 / 6392192

Email: vijay@alpha.co.ae

· Gulf Automation Services & Oil Field Supplies (GASCO)

· National Food Products

· Sahara Transport & Contracting Co

· Tareef Trading Co

· Howard Al Geemi & Partners

OPERATIONS

Activities: Engaged in the production and marketing of dairy products as well as fruit juices and drinks.

Import Countries: Germany, the United Kingdom and Australia.

Brand Names: BUHEIRA LACNOR

Subject has a workforce of approximately 650 employees.

FINANCIAL DATA

Companies registered in Sharjah, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

BANKERS

· National Bank of Sharjah

Al Boorj Avenue

PO Box: 4

Sharjah

Tel: (971-6) 5547747

· Arab Bank Plc

PO Box: 130

Sharjah

Tel: (971-6) 5353994

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction January 2002 June 2006

Amount overdue 0 0

Payment terms 90 days 60 days

Payment Method Letters of Credit Letters of Credit

Paying record No Complaints No Complaints

Currency Euros US Dollars

GENERAL COMMENTS

Al Buheira Lacnor Dairies Co Ltd is very well established in the local market with operations dating back to 1978. It is engaged in the production and marketing of dairy products as well as fruit juices and drinks, operating branches in Sharjah, Abu Dhabi, Ajman and Al Ain.

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.53.29
UK Pound	1	Rs.86.44
Euro	1	Rs.68.95

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%)

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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.