MIRA INFORM REPORT

Report No. :	314991
Report Date :	03.04.2015

IDENTIFICATION DETAILS

Name :	FLOWSERVE AL RUSHAID CO LTD

Registered Office :	El Amir Hamoud Street, El Akrabih District, PO Box : 31197 & 31685, Al Khobar 31952

Country :	Saudi Arabia

Date of Incorporation :	22.08.2006

Com. Reg. No.:	2051033018, Al Khobar

Legal Form :	Limited Liability Company

Line of Business :	Subject is engaged in the production and distribution of pumps and pipes for oil and gas petrochemical services.

No. of Employee :	100

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Saudi Arabia

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

SAUDI ARABIA - ECONOMIC OVERVIEW

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 16% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Over 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. As part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in 2005. The government has begun establishing six "economic cities" in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010 and 2014 on social development and infrastructure projects to advance Saudi Arabia's economic development.

Source : CIA

SUMMARY

Company Name : FLOWSERVE AL RUSHAID CO LTD

Country of Origin : Saudi Arabia

Legal Form : Limited Liability Company

Registration Date : 22^nd August 2006

Commercial Registration Number : 2051033018, Al Khobar

Issued Capital : SR 2,000,000

Paid up Capital : SR 2,000,000

Total Workforce : 100

Activities : Production and distribution of pumps and pipes for oil and gas

petrochemical services

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

FLOWSERVE AL RUSHAID CO LTD

ADDRESS

Registered & Physical Address

Street : El Amir Hamoud Street

Area : El Akrabih District

PO Box : 31197 & 31685

Town : Al Khobar 31952

Country : Saudi Arabia

Telephone : (966-13) 8685110 / 8933333

Facsimile : (966-13) 8583551

Email : info@flowserve.com

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Al Khobar.

Branch Offices

Location Description

· Jubail Office premises

· Yanbu Office premises

KEY PRINCIPALS

Name Position

· Abd Allh Bin Rushaid Al Rushaid Chairman

· Husam Tantawy Sales Manager

· Andrew Arlilntro Commercial Manager

LEGAL FORM & OWNERS

Date of Establishment : 22^nd August 2006

Legal Form : Limited Liability Company

Commercial Reg. No. : 2051033018, Al Khobar

Issued Capital : SR 2,000,000

Paid up Capital : SR 2,000,000

Name of Shareholder (s) Percentage

· Al Rushaid Petroleum Investment Group 50%

PO Box: 31685

Al Khobar 31952

Tel: (966-13) 8983551

· Flowserve Corporation 50%

United States of America

AFFILIATED COMPANIES

· Al Rushaid Trading Company

Al Rushaid Building

Prince Hamoud Street

Akrabiya District

PO Box: 31685 & 31684

Al Khobar 31952

Tel: (966-13) 8933333

Fax: (966-13) 8953328 / 8647320

OPERATIONS

Activities: Engaged in the production and distribution of pumps and pipes for oil and gas petrochemical services.

Import Countries: Europe and the Far East.

Local Clients:

· Saudi Aramco

· SABIC

Operating Trend: Steady

Subject has a workforce of 100 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Saudi Riyals (SR)

Year Ending 31/12/13: Year Ending 31/12/14:

Total Sales SR 31,300,000 SR 32,650,000

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

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

BANKERS

· National Commercial Bank

PO Box: 1

Al Khobar 31952

Tel: (966-13) 8949669

Fax: (966-13) 8646474

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.62.51
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	ASH

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.