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Report Date : |
01.11.2012 |
IDENTIFICATION DETAILS
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Name : |
BORG EL ARAB FOR COTTON SPINNING CO SAE
(ESHRA |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Year of Establishment : |
1990 |
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Com. Reg. No.: |
129544, Alexandria |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Spinning of cotton and polyester |
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No. of Employees : |
315 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. Despite the relatively high levels of economic growth in recent years, living conditions for the average Egyptian remained poor and contributed to public discontent. After unrest erupted in January 2011, the Egyptian Government drastically increased social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction are among the hardest hit sectors of the Egyptian economy, and economic growth is likely to remain slow at least through 2012. The government is utilizing foreign exchange reserves to support the Egyptian pound and Egypt may seek a loan from the International Monetary Fund.
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Source : CIA |
Company Name : BORG EL ARAB FOR COTTON SPINNING CO SAE (ESHRA TEX)
Country of Origin : Egypt
Legal Form : Egyptian Joint Stock Company
Start Date : 1990
Registration Date : 2006
Commercial Registration Number : 129544, Alexandria
Issued Capital : US$ 35,000,000
Paid up Capital : US$ 35,000,000
Total Workforce : 315
Activities : Spinning of cotton and polyester.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Ahmed Amin, Finance Manager
BORG EL ARAB FOR
COTTON SPINNING CO SAE (ESHRA TEX)
Registered &
Physical Address
Street : 47 Sultan Hassan Street
Area : El Azrita
Town : Alexandria
Country : Egypt
Telephone : (20-3) 4842271 / 4842272
Facsimile : (20-3) 4842273
Email : info@eshratex.com / m.eshra@eshratex.com
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Alexandria.
Branch Office (s)
Location Description
·
New
Borg El Arab City, 2nd Industrial Zone Factory premises covering
30,000m2
Block 34, Piece No. 3 & 4
Alexandria
Tel: (20-3) 4598336
Fax: (20-3) 4598335
Name Position
·
Hassan
Abdullatif Eshra Chairman
·
Mohamed
Hassan Abdullatif Eshra Vice
Chairman
·
Mostafa
Azmi Factory
Manager
·
Ahmed
Amin Finance
Manager
Date of Establishment : 1990, however
subject was registered in 2006
Legal Form :
Egyptian Joint Stock
Company
Commercial Reg. No. : 129544,
Alexandria
Issued Capital : US$ 35,000,000
Paid up Capital : US$ 35,000,000
Name of Shareholder
(s)
·
Hassan
Abdullatif Eshra
·
Mohamed
Hassan Abdullatif Eshra
Activities: Engaged in the spinning of cotton and
polyester.
Subject is ISO 1400:2004, ISO 9001:2008 accredited.
Export
Countries: Turkey, Italy,
Portugal, Czech Republic and the United Arab Emirates.
Operating Trend: Steady
Subject has a
workforce of approximately 315 employees.
Financial
highlights provided by local sources are given below:
Currency: United
States Dollars (US$)
Year
Ending 31/12/10: Year
Ending 31/12/11:
Total Sales US$ 38,800,000 US$ 45,000,000
Local sources
consider subject’s financial condition to be Good.
The above figures
were provided by Mr Ahmed Amin, Finance Manager
·
HSBC
Bank
47 Sultan Hassan Street
El Azrita
Cairo
Tel: (20-3) 4872949
Fax: (20-3) 4872925
No complaints
regarding subject’s payments have been reported.
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.54.12 |
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UK Pound |
1 |
Rs.87.08 |
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Euro |
1 |
Rs.70.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.