MIRA INFORM REPORT

Report No. :	505606
Report Date :	26.04.2018

IDENTIFICATION DETAILS

Name :	METITO (OVERSEAS) LTD (MOL)
Registered Office :	Al Sayegh Tower, 14^th Floor Corniche Road Buheria Area PO Box 22701 Sharjah
Country :	United Arab Emirates
Financials (as on) :	31.12.2017 (Consolidated)
Date of Incorporation :	15.06.1993
Com. Reg. No.:	24000
Legal Form :	Limited Liability Company – LLC
Line of Business :	Subject is engaged as general contractors, specialising in the construction of waste water treatment plants, sewage works, water treatment and desalination units, as well as distributors of swimming pool equipment and supplies, water treatment chemicals, pumps and pumping equipment, reverse-osmosis equipment and chlorine gas injection apparatus.
No. of Employees :	300

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
United Arab Emirates	A2	A2

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 from the oil and gas sector to 30%.

Since the discovery of oil in the UAE nearly 60 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 2008-09, 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 Government that was refinanced in March 2014.

The UAE’s dependence on oil is a significant long-term challenge, although the UAE is one of the most diversified countries in the Gulf Cooperation Council. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.

Source : CIA

SUMMARY

Company Name : METITO (OVERSEAS) LTD (MOL)

Country of Origin : Sharjah, United Arab Emirates

Legal Form : Limited Liability Company – LLC

Start Date : 1958

Registration Date : 15^th June 1993

Commercial Registration Number : 24000, Sharjah

Trade Licence Number : 215824

Chamber Membership Number : 31992

Issued Capital : UAE Dh 20,000,000

Paid up Capital : UAE Dh 20,000,000

Total Workforce : 300

Activities : General contractors, specialising in the construction of waste water

treatment plants and sewage works

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

METITO (OVERSEAS) LTD (MOL)

ADDRESS

Registered & Physical Address

Building : Al Sayegh Tower, 14^th Floor

Street : Corniche Road

Area : Buheria Area

PO Box : 22701

Town : Sharjah

Country : United Arab Emirates

Telephone : (971-6) 5561818

Facsimile : (971-6) 5564777

Email : infouae@metito.com

Premises

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

Branch Office (s)

Location Description

· Techno Park Factory premises

Dubai

Tel: (971-4) 8103333

Fax: (971-4) 8103300

KEY PRINCIPALS

Name Position

· Fadi Al Jouz Managing Director

· Farooq Ghandour Director

· Mutaz Ghandour Director

· Walid Madawar General Manager

· Bassem Halabi Business Development Manager

· Akram Dawood Finance Manager

LEGAL FORM & OWNERS

Date of Establishment : Subject’s operations date back to 1958, however it was registered on 15^th June 1993

Legal Form : Limited Liability Company - LLC

Commercial Reg. No. : 24000, Sharjah

Trade Licence No. : 215824

Chamber Member No. : 31992

Issued Capital : UAE Dh 20,000,000

Paid up Capital : UAE Dh 20,000,000

Name of Shareholder (s) Percentage

· Metito Ltd 100%

United Kingdom

AFFILIATED COMPANIES

· Metito Chemical Industries Ltd

Metito Building

Prince Messaoud Ibn Abdulaziz Street

Suleimaniyah

PO Box: 58515

Riyadh 11515

Saudi Arabia

Tel: (966-1) 4787721

Fax: (966-1) 4794250

· Arabian Trading & Chemical Industries Co (ATCI)

Prince Messaoud Ibn Abdulaziz Street

Suleimaniyah

PO Box: 58515

Riyadh 11515

Saudi Arabia

Tel: (966-1) 4771628

Fax: (966-1) 4782560

· Metito Arabia Industries Ltd

Metito Building “A”

Prince Musaed Bin Abdul Aziz Street

Suleimaniyah

PO Box: 6133

Riyadh 11442

Saudi Arabia

Tel: (966-1) 4787001

Fax: (966-1) 4794250

· Metito Overseas Ltd

PO Box: 47881

Abu Dhabi

United Arab Emirates

Tel: (971-2) 6333942

Fax: (971-2) 6332257

· Metito Egypt Ltd

14 Ghaza Street, 1^st Floor, Apt No. 2

Mohandessin, Giza

Cairo

Egypt

Tel: (20-2) 33042797 / 33044696

Fax: (20-2) 33044697

· Metito Lebanon Sarl

Ghandour Building

Beirut

Lebanon

Tel: (961-1) 814028

Fax: (961-1) 603029

OPERATIONS

Activities: Engaged as general contractors, specialising in the construction of waste water treatment plants,

Sewage works, water treatment and desalination units, as well as distributors of swimming pool equipment and supplies, water treatment chemicals, pumps and pumping equipment, reverse-osmosis equipment and chlorine gas injection apparatus.

Clients include Sabic, Coco Cola, Bechtel, Enppi, Jumeirah, Hilton, BP & Petrofac.

Current Projects:

Project Name Country Value Status

ADMA OPCO - Das Island Water Treatment Plant UAE USD  21,000,000 Ongoing

Kuwait MEW - Shuwaikh Desalination Plant Kuwait USD 320,000,000 Ongoing

MISC - Sohar Desalination Plant Oman USD  37,120,000 Ongoing

Palm Water - JAFZA Water and Waste Water Plants UAE USD 550,000,000 Ongoing

Water solutions provider Metito has won a contract from the Abu Dhabi National Oil Company (ADNOC) to develop a US$54mn sewage treatment project for its Ruwais Housing Complex Housing Complex, developed by ADNOC for its employees, has 1,357 residential units. Metito will design and construct a new sewage treatment plant, sewage receiving and pumping stations, irrigation lines and a storage tank at the site, 240km west of Abu Dhabi. The new plant will treat up to 25,000 cubic metres of raw sewage each day and is expected to be extended to treat up to 30,000 cubic metres of waste in the future. The treated water can be re-used for irrigation and landscaping within the housing complex. Metito has earlier worked on two sewage treatment plant projects in the Ruwais Housing Complex. The Ruwais Housing Complex, developed by ADNOC for its employees, has around 1,357 residential units. The site also houses shopping centres, schools, mosques, medical centres, sports and recreation centres, banking and postal services, and a TV and video station, covering six square kilometre of area.

Import Countries: United Kingdom, Netherlands, United States of America and Canada.

Operating Trend: Steady

Subject has a workforce of approximately 300 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: United States Dollars (US$)

Year Ending 31/12/16: Year Ending 31/12/17:

Consolidated Total Sales US$ 200,000,000 US$ 201,800,000

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

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

BANKERS

· HSBC Bank Middle East

Al Arooba Street

PO Box: 25

Sharjah

Tel: (971-6) 5537222

Fax: (971-6) 5537880

· Banque Libanaise pour le Commerce SA

Al Arooba Street

PO Box: 854

Sharjah

Tel: (971-6) 5354561

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Established in 1958, Metito (Overseas) Ltd (MOL) is a leading concern for the provision of wastewater treatment, desalination and water supply projects. It has completed work on over a 1,000 installations since trading began.

Its clients include Municipalities, Oil and Petrochemical Companies, Industries (food & beverage, textile, paper & pulp to name a few), Tourism Sector and various government departments and agencies.

The subject and its shareholders/owners have been searched in the following databases; Office of Foreign Assets Control (OFAC), United Nations Security Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse could be found on the exact names listed within the report.

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	INR 66.70
UK Pound	1	INR 93.14
Euro	1	INR 81.43
UAE DH	1	INR 18.15

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.