MIRA INFORM REPORT

 

 

Report Date :           

24.11.2011

 

IDENTIFICATION DETAILS

 

Name :

VELOCITY APPARELS COMPANY ESC

 

 

Registered Office :

Public Free Zone, Ismailia

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

January 2001

 

 

Legal Form :

Egyptian Shareholding Company

 

 

Line of Business :

Production of garments and clothing

 

 

No. of Employees :

3000 Persons

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 1,000,000

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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                                     : VELOCITY APPARELS COMPANY ESC

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Shareholding Company - ESC

Registration Date                                   : January 2001

Commercial Registration Number            : 36685, Ismailia

Issued Capital                                        : US$ 1,000,000

Paid up Capital                                      : US$ 1,000,000

Total Workforce                                     : 3,000

Activities                                               : Production of garments and clothing.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Recommended Credit Limit                     : US$ 1,000,000

Person Interviewed                                 : Umesh Koshki, Finance Manager

COMPANY NAME

 

VELOCITY APPARELS COMPANY ESC

 

 

Company ADDRESS

 

Registered & Physical Address

Location                : Public Free Zone

Town                   : Ismailia

Country             : Egypt

Telephone         : (20-64) 3324286 / 3481905 / 3481903

Facsimile          : (20-64) 3324286 / 3481907 / 3481909

Mobile               : (20-10) 5780002 / / 6664005

Email                : velocity@vogue-intl.com

 

Premises

Subject operates from a suite of offices and a factory covering an area of 21,000 square metres that are leased and located in the Industrial Area of Ismailia.

 

Branch Office (s)

Subject has distribution and marketing offices located in Morocco, Italy and the United States of America.

 

 

KEY PRINCIPALS

 

     Name                                                          Nationality                   Position

 

·       Man Mohan Sinha                                            Indian                         Managing Director

 

·       Sidharath Mohan Sinha                                     Indian                         Director

 

·       Sabina Sinha                                                   Indian                         Director

 

·       Vijendra Kumar                                                    -                            General Manager

 

·       Liyaqat Khan                                                       -                            Plant Manager

 

·       Reem Al Adawi                                                    -                            Administration Manager

 

·       Loura Girgis                                                         -                            Sales Manager

 

·       Umesh Koshki                                                     -                            Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : January 2001

 

Legal Form                  : Egyptian Shareholding Company - ESC

 

Commercial Reg. No.  : 36685, Ismailia

 

Tax Card No.               : 205-099-432

 

Issued Capital              : US$ 1,000,000

 

Paid up Capital            : US$ 1,000,000

 

Name of Shareholder (s)                             Percentage

 

·       Man Mohan Sinha                                         80%

 

·       Sidharath Mohan Sinha                                  10%

 

·       Sabina Sinha                                                10%

 

 

AFFILIATED COMPANIES

 

·       Vertical Jeans Company

     Industrial Area No. 1

     Private Free Zone

     Ismailia

     Egypt

     Tel: (20-64) 3324286

     Fax: (20-64) 3324286

     Mob: (20-12) 3185383

 

·       Vogue International Agency Ltd

PO Box: 24261

Sharjah

     United Arab Emirates

     Tel: (971-6) 5722224

     Fax: (971-6) 5722223

 

 

OPERATIONS

 

Activities: Subject is engaged in the production of garments and clothing, specialising in children’s clothing for ages of 2-3 years old.

 

     Subject also caters on a order basis for other types of clothing and garments.

 

The company utilises the latest machinery and technology from companies such as Vipmac and Cibrotech of Italy and Japanese companies.

 

Production Capacity: 30,000 pieces per day

 

Clients:

 

·       Wall Mart                 United States of America

·       K-Mart                      United States of America

·       GAP                                    United States of America

·       Liz Clairbone United States of America

 

Import Countries: Japan, the United Kingdom and Italy.

 

Export Countries: United States of America, Canada, Germany, Italy, Spain and the United Kingdom.

 

Brand Names: VOGUE

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,000 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

                                                Year Ending 31/12/09:                Year Ending 31/12/10:

 

Total Sales                                £E 41,350,000                           £E 44,800,000

 

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

 

The above financial figures were confirmed by Mr Umesh Koshki, Finance Manager

 

 

BANKERS

 

·       National Bank of Egypt

El Tahrir & Khaled Ibn El Waled Streets

Ismailia

Tel: (20-64) 3325900

Fax: (20-64) 3320386

 

·       National Societe Generale Bank

Panorama El Ismailia Tower

Ismailia

Tel: (20-64) 3391010

 

 

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.52.10

UK Pound

1

Rs.81.30

Euro

1

Rs.70.07

 

 

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.