MIRA INFORM REPORT

Report Date :

19.11.2014

IDENTIFICATION DETAILS

Name :	INTER EQUIPMENT CO LTD

Registered Office :	Junction No. 13, Plot No. M0429 / M0430 / M0431, Sheikh Zayed Road, Road No. 732, Jebel Ali Free Zone, P O Box: 18200, Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2013

Date of Incorporation :	09.10.1999

Legal Form :	Branch of a Foreign Registered Corporation

Line of Business :	Subject is engaged in the import and distribution of construction, oil & gas and industrial products, including the following: - Tubular & structural products - Flanges & Fittings - Bolting & gaskets - Valves - Special piping products - Piping equipment & tools - Industrial safety products - Welding equipment & accessories - Tools & consumables - Lifting equipment - Workshop & rescue apparatus - Sandblasting & airless spray painting equipment - Used machinery & spares

No. of Employees :	150

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 : INTER EQUIPMENT CO LTD

Country of Origin : Isle of Man

Legal Form : Branch of a Foreign Registered Corporation

Registration Date : 9^th October 1999

Trade Licence Number : 1950

Chamber Membership Number : 56485

Total Workforce : 150

Activities : Import and distribution of construction, oil & gas and industrial products.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Rajesh Motwani, Finance Manager

COMPANY NAME

INTER EQUIPMENT CO LTD

ADDRESS

Registered & Physical Address

Location : Junction No. 13, Plot No. M0429 / M0430 / M0431

Street : Sheikh Zayed Road, Road No. 732

Area : Jebel Ali Free Zone

PO Box : 18200

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 8816000

Facsimile : (971-4) 8810100

Email : sales@interequipment.com / intereqp@emirates.net.ae

Premises

Subject operates from a medium sized suite of offices, a warehouse and a showroom that are rented and located in the Jebel Ali Free Zone.

Other Locations

Location Description

· PO Box: 9004 Rented office & showroom

Dubai

Tel: (971-4) 2821400

Fax: (971-4) 2821600

· Mussafah Industrial Area, M14, Sector No. 36 Rented office, showroom & warehouse

PO Box: 9779

Abu Dhabi

Tel: (971-2) 5546600

Fax: (971-2) 5546646

KEY PRINCIPALS

Name Position

· Zafar Iqbal General Manager

· Mohan Kasargod Sales Manager

· Shafqat Ali Marketing Manager

· Rajesh Motwani Finance Manager

· Dawood Bhatty Commercial Manager

· Biju George Warehousing Manager

LEGAL FORM & OWNERS

Date of Establishment : 9^th October 1999

Legal Form : Subject is the United Arab Emirates registered branch of Inter Equipment Co Ltd, a Limited

Liability Company incorporated in the British Virgin Islands.

Inter Equipment Co Ltd in the United Arab Emirates, operates as a Branch of a Foreign

Registered Corporation.

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 the British Virgin Islands.

Trade Licence No. : 1950 (Expires 30/04/2015)

Chamber Member No. : 56485

OPERATIONS

Activities: Engaged in the import and distribution of construction, oil & gas and industrial products, including the

following:

- Tubular & structural products

- Flanges & Fittings

- Bolting & gaskets

- Valves

- Special piping products

- Piping equipment & tools

- Industrial safety products

- Welding equipment & accessories

- Tools & consumables

- Lifting equipment

- Workshop & rescue apparatus

- Sandblasting & airless spray painting equipment

- Used machinery & spares

Subject’s clients are based in the following sectors: Oil & Gas industry, engineering & construction, refineries and power plants, marine and shipbuilding, food and beverages, government and semi-government organisations.

Subject’s operations are ISO 9002 accredited.

Import Countries: Europe, Japan and the United States of America.

International Suppliers:

· KF Industries United States of America

· Greeninjer United States of America

· Serco Energy United States of America

· Sumitomo Japan

· Tubos Reunidos SA Spain

· Terwisga BV Netherlands

· Norexco Denmark

· Siebe Gorman & Co Ltd United Kingdom

· Kaddas Oil Services United Arab Emirates

· Jerab Industrial United Arab Emirates

Export Countries: Subject exports to approximately 20 countries, with its main markets including Algeria, Nigeria, Sudan, Kenya, Turkey, Pakistan, Kazakhstan, Iran, Saudi Arabia and Yemen.

Operating Trend: Steady

Subject has a workforce of approximately 150 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 Revenue UAE Dh 113,445,000 UAE Dh 90,388,043

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

The above figures were provided by Mr Rajesh Motwani, Finance Manager

BANKERS

· Habib Bank Ltd

Murshid Bazaar

PO Box: 888

Dubai

Tel: (971-4) 2221281

Fax: (971-4) 2284631

· HSBC Bank Middle East

Deira Souk Branch

PO Box: 66

Dubai

Tel: (971-4) 2535000

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction February 2003 June 2006 June 2008

Credit amount 60,000 54,000 65,000

Amount overdue 0 0 0

Payment terms 30 days 90 days 90 days

Payment Method Letters of Credit Letters of Credit Letters of Credit

Paying record No Complaints No Complaints No Complaints

Currency Euros Pounds Sterling Euros

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.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%)

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.