MIRA INFORM REPORT

Report Date :

08.12.2014

IDENTIFICATION DETAILS

Name :	THE LIBYAN IRON AND STEEL COMPANY
Registered Office :	Kasr Ahmad Areas, Misurata
Country :	Libya
Date of Incorporation :	18.09.1979
Legal Form :	State Corporation
Line of Business :	Subject operate as a steel making company
No of Employees :	10,000

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
Libya	C1	C1

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

LIBYA - ECONOMIC OVERVIEW

Libya's economy is structured primarily around the nation's energy sector, which generates about 95% of export earnings, 80% of GDP, and 99% of government income. Substantial revenue from the energy sector coupled with a small population give Libya one of the highest per capita GDPs in Africa, but Tripoli largely has not used its significant financial resources to develop national infrastructure or the economy, leaving many citizens poor. In the final five years of QADHAFI's rule, Libya made some progress on economic reform as part of a broader campaign to reintegrate the country into the international fold. This effort picked up steam after UN sanctions were lifted in September 2003 and after Libya announced in December 2003 that it would abandon programs to build weapons of mass destruction. The process of lifting US unilateral sanctions began in the spring of 2004; all sanctions were removed by June 2006, helping Libya attract greater foreign direct investment, especially in the energy and banking sectors. Libyan oil and gas licensing rounds drew high international interest, but new rounds are unlikely to be successful until Libya establishes a more permanent government and is able to offer more attractive financial terms on contracts and increase security. Libya faces a long road ahead in liberalizing its primarily socialist economy, but the revolution has unleashed previously restrained entrepreneurial activity and increased the potential for the evolution of a more market-based economy. The service and construction sectors expanded over the past five years and could become a larger share of GDP if Tripoli prioritizes capital spending on development projects once political and security uncertainty subside. Climatic conditions and poor soils severely limit agricultural output, and Libya imports about 80% of its food. Libya's primary agricultural water source is the Great Manmade River Project.

Source : CIA

SUBJECT'S NAME
Registered Name:	THE LIBYAN IRON AND STEEL COMPANY
Requested Name:	THE LIBYAN IRON AND STEEL COMPANY
Other Names:	LIBYAN IRON AND STEEL COMPANY
Initials:	LISCO
ADDRESS AND TELECOMMUNICATION
Physical Address:	Kasr Ahmad Areas, Misurata
Country:	Libya
Phone:	218-512619680/2613698/2613712/13/2613794/ 2742621/2619680/2613810
Fax:	218-512613777/2742880/2613/2742622/2613698/ 2619680/2613810/2741522
Email:	chairman@libyansteel.com/info@libyansteel.com/ purchasing@libyansteel.com/ materials@libyansteel.com/ marketing@libyansteel.com
Website:	www.libyansteel.com
LEGAL
Legal Form:		State Corporation
Date Incorporated:		18-Sept-1979
Reg. Number:		Libya
Nominal Capital		LYD. 1,000,000
Subscribed Capital		LYD. 1,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Dr. Mohamed A. Elfighi		Chairman
Eng. Sliman A. Biram		Director
Eng.Mohamed I. Alraeid		Director
Eng.Naji M. Bunaama		Director
Eng. Hassan M. Debbek		Director
Mr. Ali M. Aldharat		Manager
Eng. Abdulkadir I. Darwish		Manager
Eng. Walid Blablo		Manager
Government of Libya		Parent		100%
Government of Libya		Parent company.
None		Subsidiary company.
None		Affiliated company.
None		Shareholder of subject firm.
None		Branches of the firm
OPERATIONS
Registered to operate as a steel making company
Imports:		Asia, Middle East
Exports:		Worldwide
Trademarks:		None
Terms of sale:		Cash (40%) and 25-90 days (60%), invoices.
Main Customers:		Industries,firms and organizations
Employees:		10,000 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Libya
Location:		Owned premises, 12,000 Ha
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Libyan Dinar (LYD.)
Approx. Ex. Rate:		1 US Dollar = 1.32 Libyan Dinar
Fiscal Year End:		December 31, 2013
Inflation:		According to information given by independent sources, the inflation at December 31st, 2013 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in USD.)
			2013
Sales			45,000,000
BANK
Bank Name:		LIBYAN ARAB FOREIGN BANK SAL
Branch:		Libya
Comments:		None
TRADE REFERENCES
Experiences:		Good
NOTARIAL BONDS
		None
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject. In regards to the guarantee offered by the Government, we are rechecking on this and we shall revert as soon as this information in confirmed.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.85
UK Pound	1	Rs.96.73
Euro	1	Rs.76.53

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	SMN

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.