MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	EL SEWEDY ELECTRIC SAE
Registered Office :	Plot No. 27, 1^st District, 5^th Complex, P O Box 311, Cairo
Country :	Egypt
Financials (as on) :	30.09.2010
Year of Establishment :	1938
Legal Form :	Egyptian Joint Stock Company
Line of Business :	Manufacture and export of electric cables and copper rods

RATING & COMMENTS

MIRA’s Rating :

A

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

Maximum Credit Limit :	US$ 2,000,000
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 – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Egypt	a2	a2

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

SUMMARY

Company Name : EL SEWEDY ELECTRIC SAE

Country of Origin : Egypt

Legal Form : Egyptian Joint Stock Company

Start Date : 1938

Registration Date : 2006

Issued Capital : £E 1,000,000

Paid up Capital : £E 1,000,000

Total Workforce : 10,000

Activities : Manufacture and export of electric cables and copper rods.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Recommended Credit Limit : US$ 2,000,000

COMPANY NAME

EL SEWEDY ELECTRIC SAE

company ADDRESS

Registered & Physical Address

Location : Plot No. 27, 1^st District, 5^th Complex

PO Box : 311

Town : Cairo

Country : Egypt

Telephone : (20-2) 27599700 / 27599701

Facsimile : (20-2) 27599769 / 27599731 / 27599726

Email : info@elsewedy.com

Premises

Subject operates from a medium sized suite of offices and a factory that are owned and located in the Industrial Area of the Tenth of Ramadan City.

Branch Office (s)

Location Description

· 68 El Tayaran Street Rented sales office

Nasr City

Cairo

Tel: (20-2) 24010119 / 226907511

Fax: (20-2) 22618908 / 226907512

KEY PRINCIPALS

Name Position

· Ahmed Ahmed Sadek El Sewedy Managing Director

· Sadek Ahmed El Sewedy Director

· Mohamed Ahmed Sadek El Sewedy Director

· Ibrahim Kiwan Accounts Manager

· Sherif Bassiouny Sales Manager

· Mohamed Ragab Purchasing Manager

LEGAL FORM & OWNERS

Date of Establishment : 1938, however subject was registered in 2006

Legal Form : Egyptian Joint Stock Company

Issued Capital : £E 1,000,000

Paid up Capital : £E 1,000,000

Name of Shareholder (s) Percentage

· Private investors & Egyptian businessmen 25%

· Sadek Ahmed El Sewedy 24%

· Ahmed Ahmed Sadek El Sewedy 23%

· Mohamed Ahmed Sadek El Sewedy 17%

· Members of the Sewedy family 9%

· Mohamed Hassan Abdel Salam 2%

OPERATIONS

Activities: Engaged in the manufacture and export of electric cables and copper rods.

Production Capacity: Cables - 120,000 tons per year

Copper Rods – 120,000 tons per year

Import Countries: Italy, Germany and India

Export Countries: Ghana, Iran, Syria, and Jordan

Operating Trend: Steady

Subject has a workforce of approximately 10,000 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Egyptian Pounds (£E 000’s)

Consolidated Balance Sheet 31/12/08 31/12/09 30/09/10

Fixed assets 2,758,299 3,728,647 3,792,465

Investments 414,266 372,687 25,670

Other long term assets & goodwill 68,843 524,281 460,401

Total long term assets 3,241,408 4,625,616 4,278,536

Inventories 3,170,071 2,779,135 3,527,733

Receivables 1,846,734 2,037,296 3,437,076

Other debt balance 791,988 618,223 712,246

Due from related parties 64,388 293,465 270,845

Cash 1,318,371 1,026,687 1,095,088

Total current assets 7,191,554 6,754,807 9,042,989

Bank overdraft & short term loans 4,090,553 3,624,386 4,509,937

Accounts payable 466,052 994,881 1,093,273

Other credit balance 501,862 765,229 949,975

Due to affiliates 25,394 72,584 147,712

Provisions 221,233 94,696 95,196

Total current liabilities 5,305,096 5,551,778 6,796,093

Working capital 1,886,458 1,203,028 2,246,896

Total investments 5,127,867 5,828,644 6,525,432

Minority interest 317,937 377,023 370,202

Parent’s shareholder equity 3,858,366 4,206,616 4,860,324

Total equity 4,176,303 4,583,640 5,230,526

Long term loans 754,652 988,582 1,096,766

Other long term liabilities 196,910 256,421 198,140

Total long term liabilities 951,563 1,245,004 1,294,907

Consolidated Income Statement

Sales 11,445,888 9,290,741 9,211,550

Cost of goods sold 9,785,144 7,555,248 7,717,724

Gross profit 1,660,744 1,735,493 1,493,826

Net income 896,916 630,731 726,794

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

BANKERS

· Commercial Bank of Egypt

21/33 Charles de Gaulle Street

Giza

PO Box: 2430

Cairo

· Arab African Bank

5 El Saraya El Kobira Square

PO Box : 60, Magles El Shaab

Cairo

Tel : (20-2) 33545094

Fax : (20-2) 33558493

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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

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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