MIRA INFORM REPORT

Report Date :

13.11.2013

IDENTIFICATION DETAILS

Name :	REEM BATTERIES & POWER APPLIANCES CO SAOC

Registered Office :	Rusayl Industrial Area, Road No. 7 PO Box 3 Rusayl 124 Sultanate of Oman

Country :	Oman

Financials (as on) :	31.12.2012

Date of Incorporation :	11.07.1982

Com. Reg. No.:	1/13775/1

Legal Form :	Omani Joint Stock Company-Closed

Line of Business :	Manufacture of automotive batteries, heavy duty industrial batteries and UPS systems.

No. of Employees :	420

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, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Oman

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

OMAN - ECONOMIC OVERVIEW

Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. However, increases in social welfare benefits, particularly since the Arab Spring, will challenge the government's ability to effectively balance its budget if oil revenues decline. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices through 2011 provided the government greater financial resources to invest in non-oil sectors. In 2012, continued surpluses resulting from sustained high oil prices and increased enhanced oil recovery allowed the government to maintain growth in social subsidies and public sector job creation. However, the Sultan made widely reported statements indicating this would not be sustainable, and called for expanded efforts to support SME development and entrepreneurship. Government agencies and large oligarchic group companies heeded his call, announcing new initiatives to spin off non-essential functions to entrepreneurs, incubate new businesses, train and mentor up and coming business people, and provide financing for start-ups. In response to fast growth in household indebtedness, the Central Bank reduced the ceiling on personal interest loans from 8 to 7%, lowered mortgage rates, capped the percentage of consumer loans at 50% of borrower's salaries for personal loans and 60% for housing loans, and limited maximum repayment terms to 10 and 25 years respectively. In 2012 the Central Bank also issued final regulations governing Islamic banking and two full-fledged Islamic banks held oversubscribed IPOs while four traditional banks opened sharia-compliant Islamic windows

Source : CIA

SUMMARY

Company Name : REEM BATTERIES & POWER APPLIANCES CO SAOC

Country of Origin : Oman

Legal Form : Omani Joint Stock Company-Closed

Registration Date : 11^th July 1982

Commercial Registration Number : 1/13775/1

Chamber Membership Number : 610

Issued Capital : RO 3,000,000

Paid up Capital : RO 3,000,000

Total Workforce : 420

Activities : Manufacture of automotive batteries, heavy duty industrial batteries and

UPS systems.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Srinivath Aponso, Finance Manager

COMPANY NAME

REEM BATTERIES & POWER APPLIANCES CO SAOC

ADDRESS

Registered & Physical Address

Location : Rusayl Industrial Area, Road No. 7

PO Box : 3

Town : Rusayl 124

Country : Sultanate of Oman

Telephone : (968) 24445200

Facsimile : (968) 24446190

Mobile : (968) 99386450

Email : reem@omzest.com / reembat@omzest.com

Premises

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

KEY PRINCIPALS

Name Position

· Ali Bin Hamed Bin Abdullah Al Hasani Chairman

· Col. Nasser Killabi Director

· D H Tambe Kumar Director

· Saleh Buothmani Director

· Kamel Mohamed Director

· V Venkat Raman Director

· Srinivathan Gopalan Chief Executive Officer

· Buddhen Misra Operations Manager

· Suresh Kumar Marketing Manager

· Srinivath Aponso Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : 11^th July 1982

Legal Form : Societe Anonyme Omani Close - SAOC (Omani Joint Stock Company-Closed)

Commercial Reg. No. : 1/13775/1

Chamber Member No. : 610

Issued Capital : RO 3,000,000

Paid up Capital : RO 3,000,000

Name of Shareholder (s) Percentage

· Omzest Group of Companies LLC 60%

· Dr Omar Abdulmoiem Al Zawawi 25%

· Approximately 325 private individuals 15%

AFFILIATED COMPANIES

Subject belongs to the Omzest Group of Companies, which contains the following concerns:

· Al Khuwair Development & Services Co SAOG

· Modern Exchange LLC

· Muscat Finance Co Ltd (SAOG)

· Muscat Insurance Company SAOC

· Muscat Life Assurance Company SAOC

· Muscat National Holding Company SAOG

· Oman International Bank SAOG

· Oman Securities' Portfolio Co SAOG

· Omzest Investment Division

· Personal Investments

· Personal Real Estate Department

· United Business & Investment Co

· Wilayat Holding Co

· Wipro Holding Co

· Mideast Integrated Drilling & Well Services

· National Telephone Services Co LLC

· Qurum Contractors LLC

· Al Amal Industries Co (SAOG)

· Al Wardha Footwear & Leather Products Company

· Amiantit Oman SAOC

· Areej Vegetable Oils & Derivatives SAOG

· Bausher Chemicals SAOG

· Decorative Glass Manufacturing LLC

· Jyoti Sohar Switchgear LLC

· Keemya Oman SAOG

· Modern Poultry Farms Company SAOG

· National Heaters Industries Co LLC

· Oman Agriculture Development Company SAOG

· Oman Fiber Optic Co SAOG

· Oman Textile Mills Co SAOG

· Oman Water Pumps Mfg Co SAOG

· Oman Water Treatment

· Omani Marble Company LLC

· Protein Products International LLC

· Waleed Associates LLC

· Riyam Investment & Trading Est LLC

· Sadolin Paints (Oman) Ltd

· The National Detergent Company SAOG

· Advertising International Company SAOC

· Al-Rimah Medical Centre LLC

· Circle Freight International (Oman)

· Gulf of Oman Services

· Gulf Seagull Co

· Impact Films LLC

· Maersk Shipping Services & Co LLC

· Mezoon Travel LLC

· Muscat Contract Cleaning & Maintenance LLC

· Riyam Computer Services LLC

· Waleed Catering & Services Co LLC (WACASCO)

· YBA Kanoo (Oman)

· Areej Business Systems Co LLC

· Bishara Establishment LLC

· General Electronics & Trading Co

· Medical & Scientific Supplies LLC

· Muscat Cold Stores LLC

· National Oilfield Supply Co LLC

· Office Supplies Co LLC

· Oman Mechanical Services Co Ltd LLC (OMSC)

· Oman Services & Supply Organisation

· Omzest Beijing

· Omzest Business Division

· Reem Scientific & Energy Technologies & Trade LLC

· Riyam Engineering & Services LLC

· Riyam Marketing & Services Co LLC

· Waleed Communications Co (WACOM) Ltd

· Waleed Pharmacy LLC

· Waljat Modern Technology

· Zawawi Business Machines LLC

· Zawawi Trading Company LLC

OPERATIONS

Activities: Engaged in the manufacture and distribution of automotive batteries, heavy duty industrial batteries and UPS systems.

Subject was set up in technical collaboration with Johnson Controls Battery Group of the USA. It is ISO 9001:2000 accredited.

The company’s clients include defence forces in Oman, UAE, Qatar, Bahrain, and Syria.

Production Capacity: 1.75 million batteries per annum

Import Countries: United States of America and Europe

Export Countries: Subject’s exports account for 90% of its sales with markets throughout the Middle East, Europe,

Asia and Africa

Brand Names: ANTARA, ANTARA GOLD, POWERPACK, GULFSTAR and GULFRACER

Operating Trend: Steady

Subject has a workforce of approximately 420 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Riyal Omani (RO)

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

Total Sales RO 15,842,000 RO 16,538,000

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

The above figures were provided by Mr Srinivath Aponso, Finance Manager

BANKERS

· Standard Chartered Bank

PO Box: 2353

Ruwi 112

Tel: (968) 24703999 / 24703796 / 24703574

Fax: (968) 24796864

· Oman Arab Bank

Muttrah Business District

PO Box: 2010, Ruwi 112

Muscat

Tel: (968) 24700161 / 24706265 / 24706267

Fax: (968) 24797736

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction October 2006

Credit amount 10,000

Amount overdue 0

Payment terms 180 days

Payment Method Letters of Credit

Paying record No Complaints

Currency Pounds Sterling

GENERAL COMMENTS

Established in 1982, subject belongs to the Omzest group of companies, a very large and well-known group that contains some of the leading Omani companies. Reem Batteries & Power Appliances Co SAOC is the largest dry charged battery manufacturing company in the Middle East.

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.63.59
UK Pound	1	Rs.101.56
Euro	1	Rs.85.15

INFORMATION DETAILS

Report Prepared by :

NIS

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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