MIRA INFORM REPORT

Report Date :

20.12.2014

IDENTIFICATION DETAILS

Name :	EMIRATES REFRESHMENTS PSC

Registered Office :	Helal Salem Bin Taraf Building, 2^nd Floor, Sheikh Zayed Road, P O Box: 5567, Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2013

Date of Incorporation :	01.01.1980

Legal Form :	Public Shareholding Company

Line of Business :	Production of plastic bottles as well as filling and marketing mineral water.

No. of Employees :	250

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

United Arab Emirates

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 : EMIRATES REFRESHMENTS PSC

Country of Origin : Dubai, United Arab Emirates

Legal Form : Public Shareholding Company

Registration Date : 1^st January 1980

Trade Licence Number : 300050

Chamber Membership Number : 8044

Issued Capital : UAE Dh 30,000,000

Paid up Capital : UAE Dh 30,000,000

Total Workforce : 250

Activities : Producers of plastic bottles as well as filling and marketing mineral water.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

EMIRATES REFRESHMENTS PSC

ADDRESS

Registered & Physical Address

Building : Helal Salem Bin Taraf Building, 2^nd Floor

Street : Sheikh Zayed Road

PO Box : 5567

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 3335566 / 8523228 / 3210706

Facsimile : (971-4) 3335558 / 8523228 / 3210717

Email : kamal.ibrahim@erc.ae / jeema_mw@emirates.net.ae

Premises

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

Branch Offices

Location Description

· Hatta Bottling plant

Jeema Region

· Dibba Bottling plant

· Saya Street Bottling plant

Industrial Area 2, Ras Al Khor

Dubai

KEY PRINCIPALS

Name Position

· Ali Humaid Al Owais Chairman

· Manea Mohamed Saeed Al Mulla Vice Chairman

· Majid Mohamed Ebrahim Obaid Allah Director

· Nerag Fohra Director

· Abdullah Al Qubaisi Director

LEGAL FORM & OWNERS

Date of Establishment : 1^st January 1980

History : Subject was previously called “Jeema Mineral Water PSC” but changed its name to

“Emirates Refreshments PSC” on 20^th June 2010.

Legal Form : Public Shareholding Company

Trade Licence No. : 300050

Chamber Member No. : 8044

Issued Capital : UAE Dh 30,000,000

Paid up Capital : UAE Dh 30,000,000

Name of Shareholder (s) Percentage

· Government of Dubai 20.00%

· Dubai Refreshments Co 14.46%

· Mohammed & Obaid Al Mulla 14.20%

· Ali Humaid Al Owais 8.52%

· Fatimah Abdullah 5.66%

· Mozah S Saeed 5.66%

· Local businessmen and private investors 31.50%

OPERATIONS

Activities: Engaged in the production of plastic bottles as well as filling and marketing mineral water.

Import Countries: Europe and GCC countries.

Operating Trend: Steady

Subject has a workforce of approximately 250 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

Balance Sheet 31/12/13 31/12/12 31/12/11

Assets

Non-current assets

Property, plant and equipment 29,429,701 31,121,142 35,245,515

Investment property - - 3,757,075

Available for sale investments 2,984,438 3,235,449 8,189,425

Long-term prepayment 1,098,000 1,159,000 1,220,000

Non-current portion of fixed deposits with banks - 3,000,000 4,200,000

Total non-current assets 33,512,139 38,515,591 52,612,015

Current assets

Inventories 9,978,370 9,440,514 7,681,248

Trade and other receivables 10,797,946 8,596,188 8,284,951

Due from a related party - 697,163 1,336,674

Cash in hand and at bank 10,636,959 18,000,279 16,882,697

Total current assets 31,413,275 36,734,144 34,185,570

Total assets 64,925,414 75,249,735 86,797,585

Equity

Share capital 30,000,000 30,000,000 30,000,000

Statutory reserve 9,129,782 9,075,242 8,998,499

Obligatory reserve 1,500,000 1,500,000 1,500,000

Fair value reserve 2,357,604 1,497,098 960,586

Retained earnings / (accumulated losses) 269,917 (220,944) (911,628)

Total equity 43,257,303 41,851,396 40,547,457

Liabilities

Non-current liabilities

Provision for staff terminal benefits 1,679,392 1,319,221 1,229,605

Bank loans, non-current portion - 7,000,000 10,200,000

Total non-current liabilities 1,679,392 8,319,221 11,429,605

Current liabilities

Trade and other payables 14,378,399 12,005,149 18,912,187

Short-term portion of long-term bank loans - 3,200,000 3,200,000

Bank overdraft 5,610,320 9,873,969 12,708,336

Total current liabilities 19,988,719 25,079,118 34,820,523

Total liabilities 21,668,111 33,398,339 44,560,128

Total equity and liabilities 64,925,414 75,249,735 86,797,585

Statement of Income

Revenue 68,756,237 55,667,920 48,808,982

Cost of sales (46,486,215) (37,721,683) (36,739,726)

Gross profit 22,270,022 17,946,237 12,069,256

Selling and distribution expenses (14,791,680) (12,096,254) (12,710,806)

Administrative and general expenses (6,825,027) (5,437,962) (13,018,935)

Profit on disposal of available for sale investments 193,436 1,168,582 17,341,397

Loss on disposal of investment property - (462,564) -

Finance cost (653,143) (1,023,992) (1,364,836)

Finance income 209,975 410,430 630,146

Other income 141,818 262,950 883,577

Profit / (loss) for the year 545,401 767,427 3,829,799

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

BANKERS

· Emirates National Bank of Dubai

Baniyas Street

PO Box: 777

Dubai

Tel: (971-4) 2222241

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.63.07
UK Pound	1	Rs.98.73
Euro	1	Rs.77.46

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIT

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.