MIRA INFORM REPORT

Report Date :

08.11.2013

IDENTIFICATION DETAILS

Name :	GULF METAL FOUNDRY LLC
Registered Office :	Plot No. 447B, Sheikh Zayed Road, Al Quoz Industrial Area, 325 & 48839, Dubai
Country :	United Arab Emirates
Financials (as on) :	31.12.2012
Date of Incorporation :	30.08.1993
Com. Reg. No.:	40724, Dubai
Legal Form :	Limited Liability Company
Line of Business :	Manufacturers of steel, steel alloys, stainless steel and heat resistant steel castings.
No. of Employees :	150

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 – March, 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
United Arab Emirates	A2	A2

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 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 : GULF METAL FOUNDRY LLC

Country of Origin : Dubai, United Arab Emirates

Legal Form : Limited Liability Company - LLC

Registration Date : 30^th August 1993

Commercial Registration Number : 40724, Dubai

Trade Licence Number : 300723

Chamber Membership Number : 27956

Issued Capital : UAE Dh 6,000,000

Paid up Capital : UAE Dh 6,000,000

Total Workforce : 150

Activities : Manufacturers of steel, steel alloys, stainless steel and heat resistant steel castings.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Dhan Raj, Finance Manager

COMPANY NAME

GULF METAL FOUNDRY LLC

ADDRESS

Registered & Physical Address

Location : Plot No. 447B

Street : Sheikh Zayed Road

Area : Al Quoz Industrial Area

PO Box : 325 & 48839

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 3470561 / 3470581 / 2279666

Facsimile : (971-4) 3470354 / 3470854

Email : foundry@emirates.net.ae / mail@foundry.ae / raj@foundry.ae

Premises

Subject operates from a large suite of offices factory that are rented and located in the Industrial Area of Dubai.

KEY PRINCIPALS

Name Nationality Position

· Maryam Easa Saleh Al Gurg Emirati Managing Director

· Mona Easa Saleh Al Gurg Emirati Director

· Raja Easa Saleh Al Gurg Emirati Director

· Hamed Saleh Easa Saleh Al Gurg Emirati Director

· Dana Saleh Easa Saleh Al Gurg Emirati Director

· Reem Saleh Easa Saleh Al Gurg Emirati Director

· T Radha Krishnan - General Manager

· Dhan Raj - Finance Manager

· Deep Kumar - Production Manager

LEGAL FORM & OWNERS

Date of Establishment : 30^th August 1993

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 40724, Dubai

Trade Licence No. : 300723 (Expires 09/04/2016)

Chamber Member No. : 27956

Issued Capital : UAE Dh 6,000,000

Paid up Capital : UAE Dh 6,000,000

Name of Shareholder (s) Percentage

· Easa Saleh Al Gurg Group LLC 99.9%

PO Box: 325

Dubai

Tel: (971-4) 2279666

Fax: (971-4) 2278620

· Easa Saleh Al Gurg LLC 0.1%

PO Box: 325

Dubai

Tel: (971-4) 2258900

Fax: (971-4) 3522518

AFFILIATED COMPANIES

Subject is a member of the Easa Saleh Al Gurg Group which consists of the following concerns:

· Al Gurg Stationery

Oud Metha Road

Dubai

Tel: (971-4) 3348708

Fax: (971-4) 3351894

· Interiors

Umm Hurair Road

PO Box: 325

Dubai

Tel: (971-4) 3370116

Fax: (971-4) 3367657

Email: intrs@emirates.net.ae

· Al Gurg Building Services Ltd Co LLC

Al Ramool Area

Rashidiya

Dubai

Tel: (971-4) 2857770

Fax: (971-4) 2858713

· Al Gurg Communications

Khalid Bin Walid Street

Dubai

Tel: (971-4) 3512173

Fax: (971-4) 3512121

· Al Mashrabia Furniture Industry

Al Awir Industrial Area

PO Box: 325

Dubai

Tel: (971-4) 3330883 / 3338379

Fax: (971-4) 3522518

· Al Gurg Fosroc Co LLC

Umm Ramool, Plot No. 202

PO Box: 657

Dubai

Tel: (971-4) 2858606 / 2858787

Fax: (971-4) 2859649 / 2852023

Email: agfdxb@emirates.net.ae

OPERATIONS

Activities: Engaged in the manufacture of steel, steel alloys, stainless steel and heat resistant steel castings for the petrochemical and engineering industries. Subject specializes in the manufacture of valve component castings, gate valves, check valves, globe valves, ball valves, butterfly valves, pressure seal valves, well head equipment and other applications in the pressure range of 150 PSI to 10,000 PSI. Subject also manufactures castings for wear resistant applications in high chromium iron and manganese steel for use in cement plants, quarries and crushers.

Import Countries: Europe and the Far East.

Operating Trend: Steady

Subject has a workforce of 150 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

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

Total Sales UAE Dh 31,481,607 UAE Dh 35,736,225

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

The above figures were provided by Mr Dhan Raj, Finance Manager

BANKERS

Commercial Bank of Dubai

Baniyas Street

Deira

PO Box: 1709

Dubai

Tel: (971-4) 2227121 / 2253222

Fax: (971-4) 2220943 / 2254565

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.62.57
UK Pound	1	Rs.100.63
Euro	1	Rs.84.62

INFORMATION DETAILS

Report Prepared by :

NIA

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.