MIRA INFORM REPORT

Report Date :

19.11.2014

IDENTIFICATION DETAILS

Name :	DANUBE BUILDING MATERIALS FZCO

Registered Office :	Plot No. EWTA 105, Warehouse S10834, Sheikh Zayed Road, Roundabout No. 5/6, Jebel Ali Free Zone, PO Box: 18022, Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2013

Date of Incorporation :	13.07.2003

Com. Reg. No.:	137

Legal Form :	Free Zone Company - FZCO

Line of Business :	Subject is engaged in the import and distribution of building materials and construction equipment, such as tools and hardware, sanitary ware, marble and granite, plywood, redwood, whitewood, merranti, teak, and MDF boards.

No. of Employees :	180

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 : DANUBE BUILDING MATERIALS FZCO

Country of Origin : Dubai, United Arab Emirates

Legal Form : Free Zone Company - FZCO

Registration Date : 13^th July 2003

Commercial Registration Number : 137

Trade Licence Number : 2914

Chamber Membership Number : 79246

Issued Capital : UAE Dh 1,000,000

Paid up Capital : UAE Dh 1,000,000

Total Workforce : 180

Activities : Distributors of building materials and construction equipment

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Rama Swamy, Finance Manager

COMPANY NAME

DANUBE BUILDING MATERIALS FZCO

ADDRESS

Registered & Physical Address

Location : Plot No. EWTA 105, Warehouse S10834

Street : Sheikh Zayed Road, Roundabout No. 5/6

Area : Jebel Ali Free Zone

PO Box : 18022

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 8871234 / 8872800 / 8085599 / 3073104

Facsimile : (971-4) 8871235 / 8872225 / 8816409 / 3073150

Mobile : (971-50) 4580593

Email : info@aldanube.com / reception@aldanube.com / sales@aldanubee.com /

ramaswamy@aldanubee.com

Premises

Subject operates from a suite of offices and a warehouse covering an area of 225,000 square metres that are rented and located in the Jebel Ali Free Zone.

KEY PRINCIPALS

Name Nationality Position

· Sajan Rizwan Askar Ali Indian Managing Director

· Anis Askar Ali Sajan Indian Director

· Tamim Hussian - General Manager

· Ansari Tamim Ansari - Commercial Manager

· Rama Swamy - Finance Manager

· Terry Thomas - Assistant Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : 13^th July 2003

Legal Form : Free Zone Company – FZCO

Commercial Reg. No. : 137

Trade Licence No. : 2914

Chamber Member No. : 79246

Issued Capital : UAE Dh 1,000,000

Paid up Capital : UAE Dh 1,000,000

Name of Shareholder (s) Percentage

· Sajan Rizwan Askar Ali 50%

· Anis Askar Ali Sajan 50%

AFFILIATED COMPANIES

Subject is a member of the Danube Group of companies, which includes the following concerns:

· Al Danube Building Materials Trading Co LLC

Rashid Abdullah Al Reshaidan Building

Al Rigga Street

Al Muraqqabat

PO Box: 50804

Dubai

Tel: (971-4) 2256512 / 2256514

Fax: (971-4) 2255412

Email: aldanube@emirates.net.ae

· Danube Dekor FZCO

Sheikh Zayed Road

Jebel Ali Free Zone

PO Box: 18022

Dubai

Tel: (971-4) 8871234

Fax: (971-4) 8871235

· Danube Ceiling Factory LLC

Sharjah

· Arabian Gulf Wood Industries LLC

Sharjah

· Al Bustan General Trading FZCO

Dubai

OPERATIONS

Activities: Engaged in the import and distribution of building materials and construction equipment, such as tools and hardware, sanitary ware, marble and granite, plywood, redwood, whitewood, merranti, teak, and MDF boards. Subject’s product range consists of 15,000 items.

Danube has supplied products for prestigious projects including Emaar projects such as Emirates Hills, the Burj Al Arab, Shangrila Hotel, Grand Hyatt, and a private palace in Muscat

Import Countries: Europe, China and the Far East.

Operating Trend: Steady

Subject has a workforce of 180 employees. The Danube Group employs approximately 350 people.

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 1,725,000,000 UAE Dh 1,840,000,000

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

The above figures were provided by Mr Rama Swamy, Finance Manager

BANKERS

· HSBC Bank Middle East

Deira Souk Branch

PO Box: 66

Dubai

Tel: (971-4) 2535000

· Standard Chartered Bank

Jebel Ali Free Zone

PO Box: 999

Dubai

Tel: (971-4) 8856600

· United Arab Bank

Jebel Ali Free Zone

PO Box: 16823

Jebel Ali

Tel: (971-4) 8816445

Fax: (971-4) 8816845

Acc No. 282 7600 81016

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Danube Building Materials FZCO was registered in July 2003 and is a leading supplier of building materials and construction equipment, such as tools and hardware, sanitary ware, marble and granite, plywood, redwood, whitewood, merranti, teak, and MDF boards.

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.61.81
UK Pound	1	Rs.96.77
Euro	1	Rs.77.09

INFORMATION DETAILS

Analysis Done by :	KAR

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.