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Report Date : |
18.04.2013 |
IDENTIFICATION DETAILS
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Name : |
EZZ STEEL CO SAE |
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Formerly Known As : |
AL EZZ STEEL REBARS SAE |
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Registered Office : |
10 Shehab Street,
Mohandessin, Giza, Cairo |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2011 |
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Year of Establishments: |
1994 |
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Com. Reg. No.: |
472 |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Manufacturers of cold rolled steel sheets, strips and bars |
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No. of Employees : |
6,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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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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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 backtracked on economic
reforms, drastically increasing social spending to address public
dissatisfaction, but political uncertainty at the same time caused economic growth
to slow significantly, reducing the government's sales. Tourism, manufacturing,
and construction were among the hardest hit sectors of the Egyptian economy,
and economic growth is likely to remain slow during the next several years. The
government drew down foreign exchange reserves by more than 50% in 2011 and
2012 to support the Egyptian pound and the dearth of foreign financial
assistance - as a result of unsuccessful negotiations with the International
Monetary Fund over a multi-billion dollar loan agreement which have dragged on
more than 20 months - could precipitate fiscal and balance of payments crises
in 2013.
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Source : CIA |
Company Name : EZZ STEEL CO SAE
Previously Known As : AL EZZ STEEL REBARS SAE
Country of Origin : Egypt
Legal Form : Egyptian Joint Stock Company
Registration Date : 1994
Commercial Registration Number : 472
Issued Capital : £E 2,716,325,135
Paid up Capital : £E 2,716,325,135
Total Workforce : 6,000
Activities : Manufacturers of cold rolled steel sheets, strips and bars.
Financial Condition : Good
Payments : Nothing detrimental uncovered
Operating Trend : Steady
EZZ STEEL CO SAE
Registered &
Physical Address
Street : 10 Shehab Street
Area : Mohandessin, Giza
Town : Cairo
Country : Egypt
Telephone : (20-2) 37622144
Facsimile : (20-2) 37622188
Email : ir@ezzgroup.com
Premises
Subject operates from
a large suite of offices that are rented and located in the Central Business
Area of Cairo.
Branch Office (s)
Location Description
·
Plot
No. 129 Factory
premises
4th Industrial Area
Menoufeya
Tel: (20-48) 2600651
Fax: (20-48) 2600738
·
8 Amr
Street Office
premises
Mohandessin
Giza
Cairo
Tel: (20-2) 33030493
Fax: (20-2) 33058862
·
Industrial
Zone Factory
premises
Sharkeya
Tenth of Ramadan City
Tel: (20-15) 960651
Name Position
·
Paul
Chekaiban Chairman
·
Alaa
Abu El Kheir Director
·
Mohamed
El Berry Director
·
Raed El
Beblawy Director
·
Mamdouh
El Rouby Director
·
Gamal
Omar Director
·
Hassan
Nouh General
Manager
·
Hazem
Gouda Finance
Manager
·
Samir
Noaman Sales
Manager
·
George
Mata Marketing
Manager
·
Nabil
El Khatib Purchasing
Manager
·
Hany
Shawky IT
Manager
Date of Establishment : 1994
Legal Form :
Egyptian Joint Stock
Company
Commercial Reg. No. : 472
Issued Capital : £E 2,716,325,135
Paid up Capital : £E 2,716,325,135
Name of Shareholder
(s) Percentage
·
Ezz
Group Industry & Investment 60.6%
·
Local
businessmen and private investors 39.4%
Subject is a member of the El Ezz Group of companies, which has
diversified operations covering such sectors as shipping, steel production and
processing, building and construction materials. The group employs some 2,200
people and has a group turnover of approximately $ 470 million with total
investment in plants, equipment and fixed assets exceeding $ 600 million. The
El Ezz Group of companies includes the following concerns:
·
Al Ezz
Porcelain Company Sae (Gemma)
8 El Sad El Aaly Street
Fini Square
Dokki, Giza
Cairo
Tel: (20-2) 33600150 / 33365325 / 33365791
Fax: (20-2) 33365337 / 33600155
·
El Ezz
Shipping Lines Ltd
8 El Sad El Aaly Street
Dokki
Cairo
Tel: (20-2) 33600150
Fax: (20-2) 33300155
·
El Ezz
Foreign Trade
8 El Sad El Aaly Street
Fini Square
Dokki, Giza
Cairo
Tel: (20-2) 33600150
Fax: (20-2) 33300155
·
El Ezz
Reinforced Steel Industries
8 El Sad El Aaly Street
Dokki
Cairo
Tel: (20-2) 33600150
Fax: (20-2) 33300155
·
El Ezz
Heavy Industries SAE (EHI)
8 El Sad El Aaly Street
Dokki, Giza
Cairo
Tel: (20-2) 33365346 / 33600150 / 33369232
Fax: (20-2) 33600155
Activities: Engaged in the manufacture of cold rolled
steel sheets, strips and bars.
Subject has been ISO 9002 certified since 2000.
Production
Capacity: 5.8 million tonnes
of steel per year.
Import
Countries: Europe, Brazil
and Canada
Export
Countries: Europe, United
States of America and GCC countries.
Brand Names: EZZ STEEL and EZZ DK
Operating Trend: Steady
Subject has a workforce
of approximately 6,000 employees.
Financial
highlights provided by local sources are given below:
Currency: Egyptian
Pounds (£E 000’s)
Consolidated
Balance Sheet 31/12/11 31/12/10
Long Term Assets
Fixed assets
(net) 9
936 876 9 566 984
Projects under
construction 3
557 555 3 318 753
Financial
investments in associates 115
116
Financial
investments available-for-sale 80
80
Payment under
purchase of investments 109
800 109 800
Long term lending
to others 5
083 3 384
Sales tax
installments 165
456 130 964
Long term trade
and notes receivable -
209
Goodwill 315
214 315 214
Total long term assets 14 090 179 13 445 504
Current Assets
Inventory 3
628 653 3 734 494
Trade and notes
receivable 122
186 184 938
Debtors and other
debit balances 627
564 586 039
Suppliers -
advance payments 134
883 47 518
Investments in
treasury bills 62
505 58 281
Cash and cash equivalents
1
170 964 1 414 853
Total current assets 5 746 755 6 026 123
Current Liabilities
Banks - overdraft
999
463 1 136 151
Loan instalments
and facilities due within one year 3
576 517 3 292 651
Bonds loan due
within one year 220
000 220 000
Trade and notes
payable 1
364 477 1 144 614
Trade receivables
- advance payments 235
376 410 353
Creditors and
other credit balances 1
176 933 676 707
Provisions 204
076 122 585
Total current liabilities 7 776 842 7 003 061
(Increase) of current liabilities over current assets (2 030 087) (976 938)
Total investment 12 060 092 12 468 566
Financed as follows:
Shareholders' Equity
Issued and paid -
up capital 2
716 325 2 716 325
Reserves 3
961 284 3 955 479
Retained earnings
1
438 393 1 405 152
Net profit for
the year 202
400 251 711
Treasury stocks (71
921) (71 921)
Translation
difference adjustments 183
836 104 173
8 430 317 8
360 919
The difference
resulting from the acquisition of additional
percentage in
subsidiaries' capital (3
599 573) (3 599 573)
Total holding company shareholders' equity 4 830 744 4
761 346
Non-controlling
interest 1
830 224 1 727 331
Total Shareholders' equity 6 660 968 6 488 677
Long Term Liabilities
Loans and credit
facilities 3
937 058 4 466 277
Other liabilities
238
207 204 795
Bonds loan 433
398 651 198
Deferred tax
liabilities 790
461 657 619
Total long term liabilities 5 399 124 5 979 889
Total equity and long term liabilities 12 060 092 12 468 566
Consolidated
Income Statement
Sales (net) 18
610 760 16 621 432
Less :
Cost of sales 16
403 725 14 697 822
Gross profit 2
207
035 1 923 610
Less:
Selling and
marketing expenses 113
323 154 341
General and
administrative expenses 296
851 235 290
Impairment loss
on assets 17
177 1 588
Provisions 81
491 95 429
Total expenses 508 842 486 648
Results from
operating activities 1
698 193 1 436 962
Add (Less):
Net finance cost
Interest &
finance expenses (764
067) (754 435)
Interest income 63
748 67 156
Amortization of
bonds issuance expenses (2
200) (2 200)
Foreign exchange
differences (20
457) 706
(722 976) (688
773)
Add :
Reversal of
impairment loss on assets 36
100
Other sales 52
889 23 272
Capital (loss)
gain (444)
673
(670 495) (664
728)
Net profit for the year before income tax 1 027 698 772
234
Less:
Current income
tax for the year (358
606) (170 764)
Deferred tax (132
842) (36 926)
Net profit for the year 536 250 564 544
Attributable to:
Equity holders of
the holding company 202
400 251 711
Non-controlling
interest 333
850 312 833
Net profit for the year 536 250 564 544
Local sources
consider subject’s financial condition to be Good.
·
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
No complaints
regarding subject’s payments have been reported.
Amount overdue 0
Payment terms 60
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency US
Dollars
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.53.94 |
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UK Pound |
1 |
Rs.82.77 |
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Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
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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.