MIRA INFORM REPORT

Report Date :

02.10.2013

IDENTIFICATION DETAILS

Name :	INDUSTRIAL MATERIAL & SERVICES CO LTD (INMA)

Registered Office :	Faisal Bin Fahd Street (Pepsi Street) PO Box 31775 Al Khobar 31952

Country :	Saudi Arabia

Financials (as on) :	31.12.2012

Date of Incorporation :	01.04.1987

Com. Reg. No.:	2051007271

Legal Form :	Limited Liability Partnership

Line of Business :	Subject’s operations as : · Oil & Gas Division · Power Division · Telecom Division · Construction Division · Lumber Division

No. of Employees :	120

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)

Saudi Arabia

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

SAUDI ARABIA - ECONOMIC OVERVIEW

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 17% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Over 5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in 2005. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infrastructure projects to advance Saudi Arabia''s economic development

Source : CIA

SUMMARY

Company Name : INDUSTRIAL MATERIAL & SERVICES CO LTD (INMA)

Doing Business As : INMA TRADING CO LTD

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Partnership

Registration Date : 1^st April 1987

Commercial Registration Number : 2051007271

Chamber Membership Number : 495

Issued Capital : SR 7,850,000

Paid up Capital : SR 7,850,000

Total Workforce : 120

Activities : Subject operates several divisions (see below for details)

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Naeem Ahmed, Financial Controller

COMPANY NAME

INDUSTRIAL MATERIAL & SERVICES CO LTD (INMA)

DOING BUSINESS AS

INMA TRADING CO LTD

ADDRESS

Registered & Physical Address

Location : Faisal Bin Fahd Street (Pepsi Street)

PO Box : 31775

Town : Al Khobar 31952

Country : Saudi Arabia

Telephone : (966-3) 8877960 / 8877961 / 8877962

Facsimile : (966-3) 8877967

Email : khalid.latif@inma.com / info@inmatrading.com.sa

Premises

Subject operates from a medium sized suite of offices that are owned and located in the Industrial Area of Al Khobar.

Branch Office (s)

Location Description

· Al Musanidah Industrial Area, Block 5B Office premises

Corner of 124 & 145 Street

Jubail

Tel: (966-3) 3415627

· Abu Hadriyah Road Office premises

Dammam

Tel: (966-3) 8374988

Fax: (966-3) 8374944

Subject also has branch offices located in Jeddah, Yanbu and Madina.

KEY PRINCIPALS

Name Position

· Khalid Ali Abdulrahman Al Turki Managing Partner

· Rami Khalid Ali Abdulrahman Al Turki Partner

· Thamer Mohamed Nasser General Manager

· Khalid Latif Commercial Manager

· Ibrahim Al Amet Warehouse Manager

· Thamer Nasser Finance Manager

· Khalid Al Ghamdi Supply Chain Manager

· Naeem Ahmed Financial Controller

LEGAL FORM & OWNERS

Date of Establishment : 03/08/1407 Hijri (corresponding to 1^st April 1987)

Legal Form : Limited Liability Partnership

Commercial Reg. No. : 2051007271

Chamber Member No. : 495

Issued Capital : SR 7,850,000

Paid up Capital : SR 7,850,000

Name of Partner (s)

· Khalid Ali Abdulrahman Al Turki

· Rami Khalid Ali Abdulrahman Al Turki

AFFILIATED COMPANIES

Subject is a member of the A A Turki Group of Companies, which includes the following concerns:

· Sagr Al Baydaa Trading Agencies Co Ltd

PO Box: 3501

Al Khobar 31952

Tel: (966-3) 8648644

Fax: (966-3) 8649945

· Al Sagr Saudi Insurance Co

PO Box: 3501

Al Khobar 31952

Tel: (966-3) 8595363 / 8596124

Fax: (966-3) 8595490

· East & West Express

PO Box: 718

Dammam 31421

Tel: (966-3) 8332339

Fax: (966-3) 8339881

· Arabian Business Forms Co

Al Khobar-Dammam Highway

Al Khalideya Area

PO Box: 718

Dammam 31421

Tel: (966-3) 8588322 / 8330508 / 8335588 / 8332329

Fax: (966-3) 8588316

· Keller Turki Co Ltd

Saudi Arabia

· Honeywell Turki Arabia Ltd

PO Box: 718

Dammam 31421

Tel: (966-3) 8342442

Fax: (966-3) 8342828

· Redland Industrial Services (Arabia) Ltd

PO Box: 718

Dammam 31421

Tel: (966-3) 8343343 / 8343113 / 8342937

· ATCO Marine Services EC

Bahrain

· ATCO Development Ltd

               42 Albemarle Street

               London W1X 3FE

               United Kingdom

               Tel: (44-207) 4913664

Fax: (44-207) 6291120

· ATCO Development Inc

11777 Katy Freeway, Suite 300S
Houston

Texas 77079

United States of America

Tel: (1-281) 8701500

Fax: (1-281) 5316000

· Inma Woodwork Factory

Industrial Area

PO Box: 10310

Jubail 31961

Tel: (966-3) 3415627

Fax: (966-3) 3418230

· Khalid Ali Al Turki & Sons

PO Box: 31775

Al Khobar 31952

Tel: (966-3) 8820415

Fax: (966-3) 8822037

OPERATIONS

Activities: Subject’s operations are performed through the following divisions:

· Oil & Gas Division

Distributors of chemicals and lubricants.

· Power Division

Specialises in power solution products, including DC power supply and chargers.

· Telecom Division

Distributors of communication and telecom products.

· Construction Division

Suppliers of construction materials.

· Lumber Division

The Lumber Division has grown to become one of the leading suppliers of lumber in Saudi Arabia. It has six branches located throughout Dammam, Riyadh and Jeddah).

With a wide-ranging inventory of softwoods, hardwoods, plywood and treated wood from the USA, Canada, South America, Europe, and the Far East, the subject can meet virtually any requirement from the industrial, construction and manufacturing sectors across the Kingdom.

Approved vendor for firms like ARAMCO and PETROKEMYA among others.

Import Countries: Europe and GCC countries

Operating Trend: Steady

Subject has a workforce of 120 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR)

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

Total Sales SR 26,180,000 SR 28,000,000

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

The above figures were provided by Mr Naeem Ahmed, Financial Controller

BANKERS

· National Commercial Bank

PO Box: 58

Jubail 51951

Tel: (966-3) 3612896

Fax: (966-3) 3611750

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction March 2008

Credit amount 492,950

Amount overdue 0

Payment terms 60 days

Payment Method Letters of Credit

Paying record No Complaints

Currency Canadian Dollars

GENERAL COMMENTS

Established in 1987, subject is involved in the import and distribution of chemicals, lubricants and drilling equipment.

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.62.36
UK Pound	1	Rs.101.20
Euro	1	Rs.84.54

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.