MIRA INFORM REPORT

Report No. :	337093
Report Date :	17.08.2015

IDENTIFICATION DETAILS

Name :	ELECON MIDDLE EAST FZCO

Registered Office :	Dubai Airport Free Zone, Plot No. 5EA 420, PO Box 54754, Dubai

Country :	United Arab Emirates

Financials (as on) :	31.12.2014

Date of Incorporation :	06.10.2005

Legal Form :	Free Zone Company

Line of Business :	Engaged in the import and distribution of gearboxes, couplings, material handling equipment and related products.

No. of Employees :	5

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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. The country's free trade zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis of 2008, 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 and ultimately a $20 billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that was refinanced in March 2014. 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 economic diversification and creating more job opportunities for nationals through improved education and increased private sector employment.

Source : CIA

SUMMARY

Company Name : ELECON MIDDLE EAST FZCO

Country of Origin : Dubai, United Arab Emirates

Legal Form : Free Zone Company - FZCO

Registration Date : 6^th October 2005

Trade Licence Number : 834

Issued Capital : UAE Dh 500,000

Paid up Capital : UAE Dh 500,000

Total Workforce : 5

Activities : Distributors of gearboxes, couplings, material handling equipment and

COMPANY NAME

ELECON MIDDLE EAST FZCO

ADDRESS

Registered & Physical Address

Location : Dubai Airport Free Zone, Plot No. 5EA 420

PO Box : 54754

Town : Dubai

Country : United Arab Emirates

Telephone : (971-4) 6091424 / 3510251

Facsimile : (971-4) 6091426 / 3510461

Mobile : (971-50) 1424059

Email : rajen@elecon.com

Premises

Subject operates from a small suite of offices that are rented and located in the Dubai Airport Free Zone Area.

KEY PRINCIPALS

Name Position

T V Patel Chairman

Kalyan Kar Chief Executive Officer

Rajen Kavani General Manager

Nirav Shah Sales Manager

Rohit Bandhari Financial Manager

LEGAL FORM & OWNERS

Date of Establishment : 6^th October 2005

Legal Form : Free Zone Company - FZCO

Trade Licence No. : 834 (Expires 07/10/2015)

Issued Capital : UAE Dh 500,000

Paid up Capital : UAE Dh 500,000

Name of Shareholder (s) Percentage

Elecon Engineering Co Ltd 100%

India

OPERATIONS

Activities: Engaged in the import and distribution of gearboxes, couplings, material handling equipment and related products.

Import Countries: Europe and the Far East

Operating Trend: Steady

Subject has a workforce of 5 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United Arab Emirates Dirham (UAE Dh)

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

Total Sales UAE Dh 16,595,000 UAE Dh 17,000,000

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

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

BANKERS

Dubai Islamic Bank

PO Box: 1080

Dubai

Tel: (971-4) 2953000

Fax: (971-4) 2954111

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.12
UK Pound	1	Rs.101.62
Euro	1	Rs.72.55

INFORMATION DETAILS

Analysis Done by :	KAS

Report Prepared by :	TPT

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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