MIRA INFORM REPORT

Report Date :

28.02.2013

IDENTIFICATION DETAILS

Name :	RAS AL KHAIMAH PORCELAIN LLC

Formerly Known As :	RAK PORCELAIN LLC

Registered Office :	Industrial Area PO Box 30113 Ras Al Khaimah

Country :	United Arab Emirates

Financials (as on) :	31.12.2011

Date of Incorporation :	01.11.2003

Com. Reg. No.:	19856, Ras Al Khaimah

Legal Form :	Limited Liability Company - LLC

Line of Business :	Production and marketing of porcelain products

No. of Employees :	230

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 :	Good
Payment Behaviour :	Regular
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)

UAE

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

UAE - 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 : RAS AL KHAIMAH PORCELAIN LLC

Also Known As : RAK PORCELAIN LLC

Country of Origin : Ras Al Khaimah, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Registration Date : 1^st November 2003

Commercial Registration Number : 19856, Ras Al Khaimah

Trade Licence Number : 20915

Chamber Membership Number : 89767

Issued Capital : UAE Dh 50,000,000

Paid up Capital : UAE Dh 50,000,000

Total Workforce : 230

Activities : Production and marketing of porcelain products

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Bhart Sampath, Finance Manager

COMPANY NAME

RAS AL KHAIMAH PORCELAIN LLC

ALSO KNOWN AS: RAK PORCELAIN LLC

ADDRESS

Registered & Physical Address

Location : Industrial Area

PO Box : 30113

Town : Ras Al Khaimah

Country : United Arab Emirates

Telephone : (971-7) 2445046 / 2447758 / 2434683

Facsimile : (971-7) 2445227 / 2447201 / 2447759 / 2434220 / 2447503

Email : rakporcelain@rakceramic.com

Premises

Subject operates from a suite of offices and a factory, covering 60,000 sqm that are owned and located in the Industrial Area of Ras Al Khaimah.

KEY PRINCIPALS

Name Position

· Sheikh Omar Bin Saqr Al Qassimi Managing Director

· Sheikh Faisal Bin Saqr Al Qassimi Director

· Sheikh Ahmed Bin Humaid Al Qassimi Director

· Sheikh Sultan Saqr Sultan Saqr Al Qassimi Director

· Nawaf Ghobash Director

· Sayed Ahmed Ghobash Director

· Ali Salim Al Kabi Director

· Abdallah Massaad CEO

· Renu Omman General Manager

· Peruma Reddy Production Manager

· Bhart Sampath Finance Manager

· Sunita Cruz Accountant

LEGAL FORM & OWNERS

Date of Establishment : 1^st November 2003, however full production began on 28^th January 2006

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 19856, Ras Al Khaimah

Trade Licence No. : 20915

Chamber Member No. : 89767

Issued Capital : UAE Dh 50,000,000

Paid up Capital : UAE Dh 50,000,000

Name of Shareholder (s) Percentage

· Ras Al Khaimah Ceramics Co PSC 50.0%

Ajman Dubai Highway

Al Jezirah Area

PO Box: 4714

Ras Al Khaimah

Tel: (971-7) 2445046

Fax: (971-7) 2445270

Email: rakceram@emirates.net.ae

· Sheikh Omar Bin Saqr Al Qassimi 6.0%

· Sheikh Ahmed Bin Humaid Al Qassimi 5.4%

· Sheikh Sultan Saqr Sultan Saqr Al Qassimi 4.0%

· Jibca Ltd 4.0%

· Hameed Reza Hashem Nia 4.0%

· Abdullah Hameed Al Moosa 3.0%

· Ali Hassan Al Dahan 3.0%

· Sheikh Faisal Bin Saqr Al Qassimi 3.0%

· Nawaf Ghobash 3.0%

· Sayed Ahmed Ghobash 3.0%

· Ahmed Iss Al Naeem 2.0%

· Ali Salim Al Kabi 1.0%

· Abdullah Khalfan Mohamed Al Mehrazi 1.0%

· Hamd Abdullah Salman 1.0%

· Mohamed Jassim Al Mizaki 1.0%

· Azmi Mohamed Awad 1.0%

· Mohamed Hamd Mohamed Hussain Al Shali 1.0%

· Local businessmen and private investors 3.6%

AFFILIATED COMPANIES

· RAK Glass LLC

Ajman Dubai Highway

Al Jezirah Area

PO Box: 3248

Ras Al Khaimah

Tel: (971-7) 2446600

Fax: (971-7) 2446611

Email: manalgls@emirates.net.ae

· Al Hamra Fort Hotel

PO Box: 1468

Ras Al Khaimah

Tel: (971-7) 2446666

Fax: (971-7) 2446677

Email: hamfort@emirates.net.ae

OPERATIONS

Activities: Engaged in the production and marketing of porcelain products, ceramic tiles, mosaics and sanitary ware products.

Production Capacity: 15 million pieces per year

Import Countries: Europe and GCC countries

Export Countries: Europe (40%), Middle East & Africa (35%) and the rest of the world (25%).

Operating Trend: Steady

Subject has a workforce of approximately 230 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Egyptian Pounds (£E)

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

Total Sales £E 105,680,921 £E 111,941,610

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

The above figures were provided by Mr Pankaj Bansal, Finance Manager

BANKERS

· Mashreq Bank

Al Boorj Avenue

Sharjah

Tel: (971-6) 5351366 / 5354873

Fax: (971-6) 5372903

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction March 2006

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

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.53.83
UK Pound	1	Rs.81.24
Euro	1	Rs.70.38

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.