MIRA INFORM REPORT

 

 

Report Date :

05.07.2013

 

IDENTIFICATION DETAILS

 

Name :

ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

 

 

Registered Office :

Oriental Weavers Building, 8 Zakaria Khalil Street, Heliopolis, P O Box 2489, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

16.11.1981

 

 

Com. Reg. No.:

44139, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacturers of tapestries, carpets, rugs and mats

 

 

No. of Employees :

3500

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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.

 

Source : CIA

 

 


SUMMARY

 

Company Name                                    : ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 16th November 1981

Commercial Registration Number           : 44139, Cairo

Issued Capital                                       : £E 450,000,000

Paid up Capital                                     : £E 450,000,000

Total Workforce                                     : 3,500

Activities                                               : Manufacturers of tapestries, carpets, rugs and mats.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady


COMPANY NAME

 

ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

 

 

Company ADDRESS

 

Registered & Physical Address

Building            : Oriental Weavers Building

Street               : 8 Zakaria Khalil Street

Area                 : Heliopolis

PO Box            : 2489

Town                : Cairo

Country             : Egypt

Telephone         : (20-2) 22672121 / 22678226 / 22678225

Facsimile          : (20-2) 22672241 / 22678240 / 22672242

Email                : info@orientalweavers.com

 

Premises

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Cairo.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       El Horreya Street                                                                              Owned factory premises

Industrial Zone B1, Area No. VII

Sharkeya

PO Box: 128

Tenth of Ramadan City

Tel: (20-15) 366666

Fax: (20-15) 364498

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

·       Mohamed Farid Fouad Khamis                                                          Chairman

·       Mahmoud Fawzy Fouad Khamis                                                        Vice Chairman

·       Mohamed Katary Abd Allah                                                               Director

·       Mahmoud Rada Abdel Baki                                                               Director

·       Yasmine Mohamed Farid Khamis                                                      Director

·       Farida Mohamed Farid Khamis                                                          Director

·       Kamal Ali Mahmoud Al Raei                                                              Director

·       Abdel Hamid Fayad                                                                          Director

·       Mohamed Mahmoud Fawzy Khamis                                                   Director

 

·       Amr Mahmoud Fawzy Khamis                                                           Director

·       Mahmoud Amin Saad                                                                       Director

·       Mohamed Mohamed Ali Amer                                                           Director

·       Mohamed Mohamed Farid Khamis                                                    Director

·       Salah Abdel Aziz Abdel Motalab                                                        Chief Executive Officer

·       Moustafa Hanafi                                                                               Administration Manager

·       Mohamed Hosni Amer                                                                      Finance Manager

·       Mohamed Katary                                                                              Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 16th November 1981

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 44139, Cairo

 

Issued Capital              : £E 450,000,000

 

Paid up Capital            : £E 450,000,000

 

Name of Shareholder (s)                                               Percentage

·       Mohamed Farid Fouad Khamis                                     62.68%

 

·       Modern Carpet                                                            19.18%

Industrial Zone B1, Block No. VII

Osman Ibn Afan Street

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 366666

Fax: (20-15) 364498

 

·       Mahmoud Fawzy Fouad Khamis                                     4.90%

 

·       Egyptian businessmen and private investors                 13.24%

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Oriental Weavers Group, which consists of the following concerns:

 

·       Misr American Carpets Mills (MAC)

28 Sherif Street

PO Box: 3163

Cairo

Tel: (20-2) 33928380 / 33938864

Fax: (20-2) 33931217

Email: intlmktg@maccarpet.com

 

·       Oriental Weavers Fibres

Osman Moharam Street

First Industrial Zone A1

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 410167 / 410168 / 410169

Fax: (20-15) 410166

 

·       Oriental Weavers for Urban Development

     Oriental Weavers Building

     Airport Area, Heliopolis

     Cairo

     Tel: (20-2) 22671716 / 22671718 / 22675351

     Fax: (20-2) 22672248

 

·       Safa Industries Group

Industrial Zone B1

El Horreya Street

Sharkeya

PO Box: 69, El Asher

Tenth of Ramadan City

Tel: (20-15) 361969

Fax: (20-15) 363069

 

·       Egyptian Fibres EFCO

1st Industrial Zone A1, Area No. IIA

Osman Moharam Street

Sharkeya

PO Box: 188, El Asher

Tenth of Ramadan City

Tel: (20-15) 362287 / 362288

Fax: (20-15) 362286

 

·       Tenth of Ramadan Spinning Industries SAE

Industrial Zone A1, Area No. 3/3

       Sharkeya

Tenth of Ramadan City

Tel: (20-15) 363748

Fax: (20-15) 363746

 

·       Oriental International Trade

El Horreya Street

Industrial Zone B1, Area IXB

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 364703

Fax: (20-15) 364703

 

·       Seta Egypt SAE

     2 El Bustan Street

     Square 1112, Heliopolis

     Cairo

     Tel: (20-2) 22679122 / 22679133

     Fax: (20-2) 22679144

     Email: hq@setaegypt.com

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of tapestries, carpets, rugs and mats.

 

Production Capacity: 113 million square metres

 

Import Countries: Germany, Italy and France.

 

Export Countries: Europe, the United States of America and the Far East

 

Brand Names: ORIENTAL WEAVERS

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

Consolidated Balance Sheet                                         31/12/09                        31/12/08

 

Long Term Assets

Fixed Assets (Net)                                                         1 608 600 860                1 625 254 153

Projects in Progress                                                      232 255 334                  205 538 647

Investments - Available for Sale                                     70 531 751                    63 999 294

Goodwill                                                                       696 835 970                  696 835 970

Deffered Tax Assets                                                     -                                  17 902 286

Total Long Term Assets                                               2 608 223 915                2 609 721 943

 

Current Assets

Inventory                                                                       1 430 172 744                1 702 790 501

Trades & Notes Receivable                                            707 562 287                  742 183 232

Debtors and Other Debit Accounts                                 103 787 588                 109 507 262

Cash on Hand & at Banks                                              337 299 473                  191 771 336

Total Current Assets                                                     2 578 822 092                2 746 252 331

 

Current Liabilities

Banks - Credit Accounts                                                858 108 925                  941 844 583

Long Term Liabilities - Current Portion                            211 254 571                  117 056 884

Suppliers & Notes Payable                                            607 941 243                  554 866 122

Dividends Payable                                                        3 339 249                      5 175 004

Creditors & Other Credit Accounts                                  146 025 608                  157 111 159

Provisions                                                                    67 565 778                    67 162 650

Total Current Liabilities                                                1 894 235 374                1 843 216 402

Working Capital                                                           684 586 718                  903 035 929

Total Investment                                                          3 292 810 633                3 512 757 872

 

Financed as Follows

Shareholder's Equity

Issued and Paid Capital                                                 373 033 555                  373 033 555

Reserves                                                                      1 411 865 946                1 401 242 285

Unrealized Profits from Available for Sale Investment      451 625                         (6 282 832)

Retained Earnings                                                         463 861 007                  495 066 279

Net Profit for the Period                                                312 330 120                  311 126 390

Exchange Differences of Foreign Currency                     64 551 105                    69 913 763

Treasury Stocks                                                            (29 792 744)                  (1 295 095)

Attributable to Equity Holders of the Parent                 2 596 300 614                2 642 804 345

Minority Interest                                                            215 883 957                  229 003 437

Total Equity                                                                 2 812 184 571                2 871 807 782

 

Long - Term Liabilities

Long Term loans                                                           471 586 700                  624 835 268

Deferred Sales Taxes instalments                                  868 626                         2 213 663

Housing and Development Bank Loan                            705 090                         981 678

Creditors - Purchase of Fixed Assets                             6 618 447                      12 919 481

Total Long Term Liabilities                                          480 626 062                  640 950 090

Total Shareholder's Equity & Long Term Liabilities     3 292 810 633                3 512 757 872

 

Consolidated Income Statement

 

Sale                                                                             3 550 637 276                3 442 387 090

COGS                                                                           3 131 382 904                3 014 696 995

Gross Profit                                                                 419 254 372                  427 690 095

SG&A                                                                           103 637 992                  86 250 783

EBIT                                                                             315 616 380                  341 439 312

Investment Income                                                        -                                  1 751 250

Interest Income                                                              9 723 432                      4 367 063

Capital Gain                                                                  89 240                         425 757

Financing expenses                                                       (96 229 706)                  (82 352 103)

F/X Gain (Loss)                                                             6 945 615                      14 205 366

38,356,919 33,673,494

EBT                                                                              396 920 871                  401 914 824

Current Income Tax                                                        (43 093 154)                  (34 384 000)

Deferred tax                                                                  (2 652 416)                    (2 070 727)

Net Income pre-minority Interest                                  351 175 301                  365 460 097

Minority Interest                                                             38 845 181                    54 333 707

Net Income after-minority interest                                351 175 301                  365 460 097

Please note that more recent figures were not made available.

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

 

BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

·       Suez Canal Bank

PO Box: 2620

Cairo

Tel: (20-2) 25769296

Fax: (20-2) 25322064

 

·       Export Development Bank of Egypt

108 Mohi El Din Abu El Ezz Street

     Mohandessin

     Cairo 11111

     Tel: (20-2) 33619005 / 33385877

     Fax: (20-2) 33385940 / 33385938

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   November 2002            May 2006                      November 2008

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                                   Euros                           US Dollars                    US Dollars

 

 

GENERAL COMMENTS

 

Oriental Weavers Company For Carpets SAE is very well established in the local market with operations dating back to 1981.

 

Subject is a member of the Oriental Weavers Group, Egypt’s largest producer of machine woven carpets with an 80% share of the local market. It also has a 25% share of the US market, where it distributes through its subsidiary Oriental Weavers USA.

 

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.60.09

UK Pound

1

Rs.91.58

Euro

1

Rs.78.08

 

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

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.