MIRA INFORM REPORT

Report Date :

24.05.2013

IDENTIFICATION DETAILS

Name :	BAALBAKI GROUP SA (OFFSHORE) LTD

Registered Office :	Hamriyah Free Zone, Plot I J22-24, P O Box 42448, Sharjah

Country :	United Arab Emirates

Year of Establishments:	2001

Legal Form :	Branch of a Foreign Registered Corporation

Line of Business :	Distributors of pre-polymer and polyurethane systems

No. of Employees :	15

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 :	Branch of a Foreign Registered Corporation

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 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

United Arab Emirates

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 country 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. 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 : BAALBAKI GROUP SA (OFFSHORE) LTD

Country of Origin : Lebanon

Legal Form : Branch of a Foreign Registered Corporation

Registration Date : 2001

Total Workforce : 15

Activities : Distributors of pre-polymer and polyurethane systems

Financial Condition : Undetermined

Payments : Nothing detrimental uncovered

Person Interviewed : Faruk Riaz, Technical Manager

COMPANY NAME

BAALBAKI GROUP SA (OFFSHORE) LTD

Company ADDRESS

Registered & Physical Address

Location : Hamriyah Free Zone, Plot I J22-24

PO Box : 42448

Town : Sharjah

Country : United Arab Emirates

Telephone : (971-6) 5261788

Facsimile : (971-6) 5261799

Mobile : (971-50) 9427903

Email : friaz@baalbaki.com

Premises

Subject operates from a small suite of offices and a warehouse that are rented and located in the Hamriyah Free Zone Area of Sharjah.

KEY PRINCIPALS

Name Position

· Dr Ihsan Bin Omar Baalbaki Managing Director

· Karim Ihsan Bin Omar Baalbaki Chief Executive Officer

· Faruk Riaz Technical Manager

LEGAL FORM & OWNERS

Date of Establishment : 2001

Legal Form : Subject is the United Arab Emirates registered branch of Baalbaki Group SA, a Limited

Liability Company incorporated in Lebanon.

Baalbaki Group SA Ltd in the United Arab Emirates, operates as a Branch of a Foreign

Registered Corporation.

A Branch of a Foreign Registered Corporation is not a legal entity in its own

right. Responsibility for payments lays in the hands of the company where it is

originally registered.

Under these circumstances, we strongly advise that any international trade

credit should only be written under the name of the main company where the

subject holds its registered office, in this case Lebanon.

AFFILIATED COMPANIES

· Baalbaki Group

Baalbaki Building

Daraa Highway

PO Box: 5320

Damascus

Syria

Tel: (963-11) 6940801 / 5481719

Fax: (963-11) 6940806 / 5481996

· Baalbaki for Industry & Trade

Baalbaki Street

Mleiha Village

PO Box: 5320

Damascus

Syria

Tel: (963-11) 5481719 / 5481720 / 5481721 / 6940801

Fax: (963-11) 5481996 / 5481499

OPERATIONS

Activities: Engaged in the import and distribution of pre-polymer and polyurethane systems.

In December 2011, in a further step to fortify its position as the leading polyurethane systems and polyurethane raw material supplier in the Middle East, Baalbaki announced that it has commenced construction of its new 40,000 MT Polyester and Pre-polymer production plants on its existing 30,000 sqm industrial site at Hamriyah Free Zone, Sharjah UAE.

The new plant enables Baalbaki to serve the GCC, India, Pakistan and Iran with footwear, rigid, cold cure polyurethane systems, aromatic and aliphatic polyester polyols, as well as specialty polyurethane and food packaging adhesives.

Baalbaki is the pioneer in introducing aromatic and aliphatic polyester polyol technology including "green technology" to produce polyester polyols based on scrap PET, into the GCC. "Baalbaki remains the only manufacturer of this product in the Arab World and the largest manufacturer in the Middle East and Africa regions for this product range," commented Dr Ihsan Bin Omar Baalbaki, Chairman of Baalbaki Group.

Import Countries: Europe and GCC countries.

Subject has a workforce of 15 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

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

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.55.99
UK Pound	1	Rs.84.19
Euro	1	Rs.71.86

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.