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Report Date : |
17.08.2013 |
IDENTIFICATION DETAILS
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Name : |
BORG EL ARAB FOR COTTON SPINNING CO SAE (ESHRA TEX) |
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Registered Office : |
47 Sultan Hassan Street, El Azrita, Alexandria |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
1990 |
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Com. Reg. No.: |
129544 |
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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 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Egypt |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 revenues. 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.
|
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) 4842270 /
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$)
Year Ending 31/12/11: Year Ending 31/12/12:
Total Sales US$
45,000,000 US$ 47,000,000
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.61.82 |
|
|
1 |
Rs.96.57 |
|
Euro |
1 |
Rs.82.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.