MIRA INFORM REPORT

Report Date :

09.01.2013

IDENTIFICATION DETAILS

Name :	KAFR EL ZAYAT PESTICIDES AND CHEMICALS CO SAE (KZPC)

Registered Office :	61 El Hussein Street, Dokki, Giza, Cairo

Country :	Egypt

Financials (as on) :	31.12.2012

Year of Establishment :	1955

Com. Reg. No.:	49640, Gharbeya

Legal Form :	Egyptian Joint Stock Company

Line of Business :	Production and marketing of chemicals

No. of Employees :	580 Employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
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 30^th, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Egypt

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 : KAFR EL ZAYAT PESTICIDES AND CHEMICALS CO SAE (KZPC)

Country of Origin : Egypt

Legal Form : Egyptian Joint Stock Company

Registration Date : 1955

Commercial Registration Number : 49640, Gharbeya

Authorised Capital : £E 200,000,000

Issued Capital : £E 80,030,000

Paid up Capital : £E 80,030,000

Total Workforce : 580

Activities : Production and marketing of chemicals.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

KAFR EL ZAYAT PESTICIDES AND CHEMICALS CO SAE (KZPC)

COMPANY ADDRESS

Registered & Physical Address

Street : 61 El Hussein Street

Area : Dokki, Giza

Town : Cairo

Country : Egypt

Telephone : (20-2) 37614362

Facsimile : (20-2) 37614362

Email : info@kz-chemicals.com / sales@kz-chemicals.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

· El Sharekat Street Factory premises

Kafr El Zayat

Gharbeya

Tel: (20-40) 2542444 / 2542761 / 2548253

Fax: (20-40) 3305631 / 2557403

· 21 Ahmed Kamha Street Office premises

Alexandria

Tel: (20-3) 5934020

· 1^st Industrial Zone Factory premises

Alexandria Desert Road, Km 79

Beheira

Tel: (20-45) 2634475

Fax: (20-45) 2634475

KEY PRINCIPALS

Name Position

· Essam Albert El Dabaa Chairman

· El Sayed Abd El Moneim Al Sharkawy Vice Chairman

· Allam El Sayed Allam Director

· Seif Ahmed Seif Director

· Moawad Hassan Hussein Director

· Mohamed Sayed Mahmoud Wahba Director

· Nehad Ezz El Din El Sayed Ramadan Director

· Nadine Albert George El Dabaa Director

· Hamada Abd El Latif Hassan Ebada Sales Manager

· Mohamed Ahmed Abd El Samad Gohar Public Relations Manager

· Ibrahim El Naggar Quality Manager

LEGAL FORM & OWNERS

Date of Establishment : 1955

Legal Form : Egyptian Joint Stock Company

Commercial Reg. No. : 49640, Gharbeya

Authorised Capital : £E 200,000,000

Issued Capital : £E 80,030,000

Paid up Capital : £E 80,030,000

Name of Shareholder (s)

· Albert for Pesticides & Chemicals

· Essam Albert El Dabaa

· Nadine Albert George El Dabaa

· Karim Essam Albert El Dabaa

· Misr Banque Investment Account No. 2

· Ahlya Insurance

· Investment Funds

· International Egyptian Fund

· Employee Shareholders Association

· Public Sector Business

· Local businessmen and private investors

OPERATIONS

Activities: Engaged in the production and marketing of chemicals for agricultural and hygiene purposes. The product

range includes: agricultural pesticides, insecticides, fungicides, herbicides, rodenticides, fertilisers,

household and hygienic cleaning detergents.

Subject is ISO 9001 & ISO 14001 accredited.

Production Capacity: 60,000 tonnes per annum

Import Countries: United Kingdom, France, Italy, United States of America, India, Hong Kong, and Japan.

International Suppliers:

· Sumitomo Japan

· Zenica United Kingdom

· Agrivo France

· Rohm & Hass Italy

· Rotam Hong Kong

· Fikom India

· Drexel United States of America

Export Countries: Saudi Arabia, United Arab Emirates, Jordan, Iraq, Yemen, Sudan, Libya, Zimbabwe, Uganda,

Ethiopia, Cyprus, Greece and Macedonia.

Brand Names: KZ

Operating Trend: Steady

Subject has a workforce of approximately 580 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 190,392,710 £E 211,000,000

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

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

BANKERS

· Banque Misr

151 Mohamed Farid Street

Cairo

Tel: (20-2) 33912711 / 33912106

Fax: (20-2) 33919779

· National Bank of Egypt

Abdel Hai Khalil Street

El Mahala El Kobra

Gharbeya

Tel: (20-40) 22230565 / 22245127

Fax: (20-40) 22234065

· Bank of Alexandria

Main Branch

Cairo

Tel: (20-2) 24824056 / 24836073

Fax: (20-2) 24837468

· Commercial International Bank (CIB)

Nile Tower Building

21-23 Giza Street

PO Box: 2430

Cairo

Tel: (20-2) 25703043

Fax: (20-2) 25703172 / 25072691

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Kafr El Zayat Pesticides And Chemicals Co SAE (KZPC) is a leading concern in the production of chemicals in Egypt. It specialises in the agro and hygiene chemicals, such as pesticides, insecticides, fungicides, herbicides, rodenticides, and fertilisers.

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.54.97
UK Pound	1	Rs.88.10
Euro	1	Rs.71.66

INFORMATION DETAILS

Report Prepared by :

NLM

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.