MIRA INFORM REPORT

 

 

Report Date :

04.02.2013

 

IDENTIFICATION DETAILS

 

Name :

EGYPTIAN SWEDISH WELDING ELECTRODES (ESWECO)

 

 

Registered Office :

Alexandria - Cairo Desert Road, Km. 23, Mergham 3, Amreya, PO Box      1915 & 27, Alexandria

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1984

 

 

Com. Reg. No.:

111681

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacturers of various kinds of welding wires.

 

 

No. of Employees :

300

 

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Egypt

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

SUMMARY

 

Company Name                                     : EGYPTIAN SWEDISH WELDING ELECTRODES (ESWECO)

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1984

Commercial Registration Number                        : 111681, Alexandria

Issued Capital                                        : £E 47,850,290

Paid up Capital                                      : £E 47,850,290

Total Workforce                                     : 300

Activities                                               : Manufacturers of various kinds of welding wires.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 


COMPANY NAME

 

EGYPTIAN SWEDISH WELDING ELECTRODES (ESWECO)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Alexandria - Cairo Desert Road, Km. 23

Area                 : Mergham 3, Amreya

PO Box             : 1915 & 27

Town                 : Alexandria

Country             : Egypt

 

Telephone         : (20-3) 4701187 / 4701016

Facsimile          : (20-3) 4702048 / 4700031

Email                : hdkoalex@intouch.com

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Suburban Business Area of Alexandria.

 

Branch Office (s)

 

Location                                                                                  Description

 

1 Guirguis El Tawil                                                                     Rented office premises

Mansheya

Alexandria

Tel: (20-3) 4700030 / 4840341 / 4871981 / 4865810

Fax: (20-3) 4700034 / 4840341

 

 

KEY PRINCIPALS

 

            Name                                                                           Position

 

Yasser Ibrahim Ismail Mohamed                                                  Chairman

 

Adel Seddik                                                                               Chief Executive Officer

 

Ahmed Mohamed Abdallah                                                         Managing Director

 

Tamer Ibrahim Ismail Mohamed                                                   Director

 

Ahmed Shalabi Toubar                                                               Director

 

Tarek Gaber                                                                              Accounts Manager

 

Mohamed Gomaa Aboud                                                            Investor Relations Manager

 

Moustafa Yaccout                                                                      Finance Manager

 

Mokhles Amin                                                                           Production Manager

 

Ashraf Awad                                                                              Operations General Manager

 

Ahmed Said                                                                              Export Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1984

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 111681, Alexandria

 

Issued Capital              : £E 47,850,290

 

Paid up Capital            : £E 47,850,290

 

Name of Shareholder (s)                                            Percentage

 

Yasser Ibrahim Ismail Mohamed                                      76.38%

 

Tamer Ibrahim Ismail Mohamed                                       22.56%

 

Laila Abd El Qader Hassan                                               0.50%

 

Hebatallah Ibrahim Ismail Mohamed                                   0.41%

 

Nasr Mohamed Mansour                                       0.15%

 

 

OPERATIONS

 

Activities:                     Engaged in the manufacture and export of various kinds of welding wires, standard and coated, as well as air compressors and welding powders.

 

                                    Subject is ISO 9002 accredited

 

Production Capacity:   10,000 tonnes per annum

 

Import Countries:         Europe, China and India.

 

Export Countries:         Saudi Arabia, Jordan, United Arab Emirates, Kuwait, Libya, Algeria, Morocco, Kenya, Sudan, Tunisia, Syria, Malta, and France.

 

Brand Names:              ESWECO

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 300 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

                                                                                                                                   

Currency: Egyptian Pounds (£E)

 

                                                Year Ending 31/12/11:              Year Ending 31/12/12:

 

Total Sales                                £E 45,943,931                           £E 52,515,742

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

Commercial International Bank (CIB)

61 Sultan Hussein Street

Alexandria

Tel: (20-3) 4824643 / 4834255

Fax: (20-3) 4832240

 

National Bank of Abu Dhabi

28 Salah Salem Street

Alexandria

Tel: (20-3) 4829175

Fax: (20-3) 4847114

 

Al Watany Bank of Egypt

601 Horreya Road

Alexandria

Tel: (20-3) 5745621

Fax: (20-3) 5703282

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

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.53.32

UK Pound

1

Rs.84.60

Euro

1

Rs.72.63

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.