MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	ASIA ELECTRO MECHANICAL CO LTD

Registered Office :	Sheikh Zayed Road, Jebel Ali Free Zone, PO Box : 61007, Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2013

Date of Incorporation :	01.02.1994

Com. Reg. No.:	LOC-933, Dubai

Legal Form :	Branch of a Foreign Registered Corporation

Line of Business :	Subject is engaged in the import and distribution of pipes and fittings

No. of Employees :	81

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 :	Branch of Foreign Registered Corporation
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, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

United Arab Emirates

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 : ASIA ELECTRO MECHANICAL CO LTD

Country of Origin : Kuwait

Legal Form : Branch of a Foreign Registered Corporation

Registration Date : 1^st February 1994

Commercial Registration Number : LOC-933, Dubai

Trade Licence Number : 933

Chamber Membership Number : 31822

Issued Capital : UAE Dh 1,200,000

Paid up Capital : UAE Dh 1,200,000

Total Workforce : 81

Activities : Distributors of pipes and fittings.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

ASIA ELECTRO MECHANICAL CO LTD

ADDRESS

Registered & Physical Address

Street : Sheikh Zayed Road

Area : Jebel Ali Free Zone

PO Box : 61007

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 8818383

Facsimile : (971-4) 8815060

Email : asiamc@emirates.net.ae

Premises

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

KEY PRINCIPALS

Name Nationality Position

Abdul Rahman Al Meshaan Al Khudair Kuwaiti Managing Director

Mikhael Georges Nakhoul Shaheen Lebanese Director

Georges Elias Nasr Lebanese Director

Sunder V Singh - Finance Manager

Anil Mathew - Sales Manager

LEGAL FORM & OWNERS

Date of Establishment : 1^st February 1994

Legal Form : Subject is the United Arab Emirates registered branch of Asia Electro Mechanical Co Ltd, a Limited Liability Company incorporated in Kuwait.

Asia Electro Mechanical Co Ltd in the United Arab Emirates, operates as a Branch of a Foreign Registered Corporation with its registered office located at the following address :

Asia Electro Mechanical Co Ltd

Marzouk Tower, 10^th Floor

Abu Bakr Al Saddiq Street

Al Qibla

PO Box: 24354

Safat 13104

Kuwait

Tel: (965) 22401320

Fax: (965) 22450172

A Branch of a Foreign Registered Corporation is not a legal entity in its own right. Responsibility for payments lays in the hands of the company where it is originally registered.

Under these circumstances, we strongly advise that any international trade credit should only be written under the name of the main company where the subject holds its registered office, in this case Kuwait.

Commercial Reg. No. : LOC-933, Dubai

Trade Licence No. : 933 (Expires 31/05/2015)

Chamber Member No. : 31822

Issued Capital : UAE Dh 1,200,000

Paid up Capital : UAE Dh 1,200,000

OPERATIONS

Activities: Engaged in the import and distribution of pipes and fittings, including:

Black Steel Pipes & Fittings

Galvanized Steel Pipes & Fittings

Stainless Steel Pipes & Fittings

Copper Pipes & Fittings

Ductile Iron Pipes & Fittings

Valves & Strainers

Relief Valves

Hangers & Threaded Rods

Flanges

Vibration Isolators

Thermometers, Pressure Gauges

Air Conditioning & Ref. Spare Parts

Bolts, Nuts & Gaskets

Pressure Reducing & Relief Valves

Expansion Tank

Pressuration Unit

Grooved Fittings

Air Separators

Agencies Held:

AMERICAN CAST IRON PIPE CO. – U.S.A.

- DUCTILE IRON PIPES & FITTINGS

VICTAULIC - USA

- UL/FM GROOVED FITTINGS & VALVES

HEBEI SMART STEEL PIPE MILL CO. LTD. – CHINA

- BLACK & GALVANISED SEAMLESS STEEL PIPE

CRANE FLUID SYSTEM – UK

- VALVES & MALLEABLE FITTINGS

SIAM CAST IRON WORKS CO. LTD. – THAILAND

- DUCTILE & CAST IRON VALVES (UL/FM APPROVED)

VTS - POLAND

- AIRHANDLING UNITS, FAN COIL UNITS

AQUAMETRO –SWITZERLAND

- WATER METERS

FLAMCO – HOLLAND / GERMANY

- PIPE HANGERS & EXPANSION TANK & AIR SEPERATORS

TOZEN CO. LTD. – JAPAN

- FLEXIBLE CONNECTOR & VALVES

SURYA ROSHNI LTD. – INDIA

- ERW BLACK & GALVANISED PIPES (UL APPROVED)

INTERFIT TECHNO PRODUCTS LTD.(NATIONAL) – INDIA

- UL/FM APPROVED GROOVED FITTINGS

TTU INDUSTRIAL CORP. LTD. – THAILAND

- BLACK STEEL SEAMLESS FITTINGS

MUELLER BRASS – U.S.A.

- COPPER PIPES & FITTINGS

SHANGHAI FLOW VALVE & FITTING CO. LTD. – CHINA

- VALVES & FLEXIBLE CONNECTORS

SHANGHAI VISION MECHANICAL JOINT CO. LTD.

- UL/FM APPROVED GROOVED FITTINGS

WUXI TAIHU STEEL CO LTD. - CHINA

- BLACK & GALVANISED SEAMLESS STEEL PIPES

Import Countries: Europe and the Far East.

International Suppliers:

Surya Steel India

Operating Trend: Steady

Subject has a workforce of 81 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

Year Ending 31/12/12: Year Ending 31/12/13:

Total Sales UAE Dh 13,500,000 UAE Dh 14,275,000

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

The above financial figures are based on estimations by our local sources.

BANKERS

National Bank of Abu Dhabi

Deira Souk Branch

PO Box: 4436

Dubai

Tel: (971-4) 2226141

Fax: (971-4) 2226145

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.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	NNA

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.