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Report Date : |
17.10.2012 |
IDENTIFICATION DETAILS
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Name : |
EASTERN COMPANY SAE |
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Registered Office : |
450 Al Ahram Street Pyramids, Giza PO Box 1543 Cairo |
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Country : |
Egypt |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
12.07.1920 |
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Com. Reg. No.: |
4884, Giza |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Manufacturers of cigarettes and tobacco. |
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No. of Employees : |
13,640 |
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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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
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Egypt |
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 |
EGYPT - ECONOMIC OVERVIEW
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.
Source : CIA
Company Name : EASTERN COMPANY SAE
Country of Origin : Egypt
Legal Form : Egyptian Joint Stock Company
Registration Date : 12th July 1920
Commercial Registration Number : 4884, Giza
Authorised Capital : £E 1,500,000,000
Issued Capital : £E 750,000,000
Paid up Capital : £E 750,000,000
Total Workforce : 13,640
Activities : Manufacturers of cigarettes and tobacco.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
COMPANY NAME
EASTERN COMPANY SAE
Street : 450 Al Ahram
Street
Area : Pyramids,
Giza
PO Box : 1543
Town : Cairo
Country : Egypt
Telephone : (20-2) 35703326
/ 35724711 / 35724965 / 35724424 / 35724945
Facsimile : (20-2)
35687434 / 35684734
Email : eastern@easternegypt.com
Subject operates from a large suite of offices, a factory and a
warehouse that are owned and located in the Suburban Business Area of Cairo.
Branch Office (s)
Location Description
· 91 Suez Canal
Street Owned factory premises
Moharam Bey
Alexandria
Tel: (20-3)
4221427
· 38 Nabil El Waqad
Street Owned
factory premises
El Rasafa
Moharam Bey
Alexandria
Tel: (20-3)
4911868
· Assiut Owned
factory premises
· Menoufeya Owned
factory premises
· Gharbeya Owned
factory premises
Subject owns 11 factories in total and has a strong
and well-established distribution network spanning the whole of Egypt,
totalling in excess of 300 sites.
Name Position
· Nabil Abd El Aziz
Abd El Meguid Mohsen Chairman
& Managing Director
· Mahmoud Abd El
Rahman Director
· Mohamed Gamal
Moharam Director
· Talaat Araby
Ismail Mohamed Director
· Magdy Korany El
Sherbini Director
· Ossama Saad Hassan Financial
Manager
· Mohamed Osman
Khalil Marketing
Manager
· Zeinab El
Samandouny Legal
Manager
· Abd El Halem
Habashy Technical
Affairs Manager
· Mahmoud Lotfy Laboratories
Manager
· Abd El Rahman
Eissa Investor
Relations Manager
· Mahmoud Mohamed
Gad Allam Human
Resources Manager
· Mohamed Ali Ahmed
Abd El Aal IT
Manager
· Naeem Hassan
Tawfik Public
Relations Manager
Date of
Establishment : 12th
July 1920
History : Subject’s operations
date back to 1920, however it was nationalised in 1963. Between 1963
and 1984, when its
monopoly over the local cigarette market was established, it was merged
with
10 other local tobacco manufacturers, including the merger of El Nasr Tobacco and
Eastern Tobacco Company.
Legal Form : Egyptian Joint
Stock Company
Commercial Reg.
No. : 4884, Giza
Authorised Capital : £E 1,500,000,000
Issued Capital : £E 750,000,000
Paid up Capital : £E 750,000,000
· Holding Co for
Chemical Industries Group 55.0%
· Free Float
32.42%
· Lazard Emerging
Market Equity Portfolio 7.11%
United States of America
· Shareholders
Employees Association
5.47%
Activities: Manufacturers of cigarettes, moassel, pipe tobacco, roll-your-own
tobacco, cigars and Toscani.
Subject is Egypt’s main cigarette
manufacturer. In addition to manufacturing its own brands, which
command a 94 percent market share, the company
retails 17 international brands under licence from Philip Morris, BAT, RJ
Reynolds and Rothmans.
Subject is ISO 9001 accredited.
Production
Capacity : 75 billion cigarettes per year.
Import Countries: Brazil, China, Thailand, Mali and Italy.
Export Countries: Japan, Saudi Arabia, Kuwait, Libya, Qatar and
Georgia.
Brand Names: CLEOPATRA FAMILLES, CLEOPATRA GOLDEN KING,
CLEOPATRA BOX, CLEOPATRA SUPER, BOSTON, MONDIAL RED, MONDIAL BLUE, BELMONT,
LIGHTS, LIGHT, CIGAR, MOASSEL, CIGARILLOS and CAPTAIN.
Operating Trend: Steady
Subject has a workforce of approximately 13,640 employees.
Financial highlights provided by local sources are given below:
Currency: Egyptian Pounds (£E)
Year
Ending 30/06/10: Year
Ending 30/06/11:
Total Sales £E
3,967,915,000 £E
4,274,144,000
Local sources consider subject’s financial condition to be Good.
The above financial figures are based on estimations by our local
sources.
·
National Bank of Egypt
24 Sherif Street
Cairo
Tel: (20-2)
33924175
Fax:
(20-2) 33924143
·
Banque Misr
151 Mohamed Farid
Street
Cairo
Tel: (20-2)
33912711 / 33912106
Fax: (20-2)
33919779
·
Misr International Bank (MIBANK)
14 Alfy Street
PO Box :
631
Cairo
Tel:
(20-2) 35931002
Fax:
(20-2) 35912306
·
Scotia Bank
3 Ahmed Nessim
Street
Giza
PO Box: 656
Cairo 11511
Tel: (20-2)
33365734 / 33365731
Fax: (20-2)
33365730
No complaints regarding subject’s payments have been reported.
Credit amount 100,000 208,000 150,000
Amount overdue 0 0 0
Payment terms 60
days 60 days 60 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency US
Dollars Pounds
Sterling US Dollars
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.52.82 |
|
|
1 |
Rs.84.96 |
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Euro |
1 |
Rs.68.61 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
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.