MIRA INFORM REPORT

 

 

Report Date :

06.06.2013

 

IDENTIFICATION DETAILS

 

Name :

ELECTRO CABLE EGYPT SAE

 

 

Registered Office :

6th of October Road (Ismailia Canal Road), Km 4.6,  Mostorod Industrial Zone, Shubra El Kheima, Kaliubeya, P O Box 208, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishments:

1954

 

 

Com. Reg. No.:

1650, Shubra El Kheima

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacturers of electric cables.

 

 

No. of Employees :

1650

 

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 :

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 – 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 saless. 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                                     : ELECTRO CABLE EGYPT SAE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1954

Commercial Registration Number            : 1650, Shubra El Kheima

Industrial Registration Number                 : 0076080

Import Registration Number                     : 0001486

Issued Capital                                        : £E 496,388,000

Paid up Capital                                      : £E 496,388,000

Total Workforce                                     : 1,650

Activities                                               : Manufacturers of electric cables.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 


COMPANY NAME

 

ELECTRO CABLE EGYPT SAE

 

 

company ADDRESS

 

Registered & Physical Address

Street               : 6th of October Road (Ismailia Canal Road), Km 4.6

Area                 : Mostorod Industrial Zone, Shubra El Kheima, Kaliubeya

PO Box             : 208

Town                 : Cairo

Country             : Egypt

Telephone         : (20-2) 42205085 / 42205848 / 42205822 / 42202147 / 42207310 / 44756219

Facsimile          : (20-2) 22202103

Email                : ece1@soficom.com.eg

 

Premises

Subject operates from a large suite of offices, factory and warehousing facilities covering an area of 370,000 square metres that are owned and located in the Industrial Area of Cairo.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       40 Talaat Harb Street                                                                         Rented office premises

Cairo

     Tel: (20-2) 25745641 / 25755774

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Ahmed Mohamed Abdallah Al Husseiny                                              Chairman

 

·       Wedad Mohamed El Garby                                                                Director

 

·       Ali Abdallah Ali                                                                                 Director

 

·       Abd El Hady Swillam                                                                         Director

 

·       Abd El Wadoud Abd El Kader                                                            Director

 

·       Abd El Rahman Abd El Ghany                                                           Director

 

·       Mohamed Sultan Rahoma                                                                  Director

 

·       Fatma Shahat Salem                                                                         Director

 

·       Mohamed Zkreh                                                                                Director

 

·       Mohamed Kamal                                                                               Export Manager

 

·       Abd El Raouf Abd El Aleem Shokr                                                      Accounts Manager

 

·       Adel Meghawry                                                                                 Public Relations Manager

 

·       Hossney Khodeir                                                                               Planning Manager

 

·       Mohamed Shehata                                                                            Purchasing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1954

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 1650, Shubra El Kheima

 

Industrial Reg. No.       : 0076080

 

Import Reg. No.           : 0001486

 

Authorised Capital       : £E 850,000,000

 

Issued Capital              : £E 496,388,000

 

Paid up Capital            : £E 496,388,000

 

Name of Shareholder (s)                                                       Percentage

·       Egyptian businessmen and private investors                            86.00%

·       Misr Insurance                                                                        9.00%

·       Social Insurance Fund                                                             2.40%

·       Employee Shareholders Association                                         2.60%

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and export of all kinds of electric cables (such as ground, telephone, high and low voltage cables and air joints) and varnish insulated copper wires.

 

Subject is ISO 9001 and 9002 certified.

 

Import Countries: India, United Kingdom and Japan

 

Export Countries: United Arab Emirates, Saudi Arabia, Yemen, Tunisia, Algeria, Sudan, Syria, Kenya, Zimbabwe, Romania, Cyprus and Malta

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,650 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E 000’s)

 

Balance Sheet                                                 31/12/008          31/12/09            31/12/10

 

Fixed assets                                                     379,008 386,688 407,695

Long term investments                                       9,857                14,648              14,649

Inventories                                                         83,152              96,249              107,592

Cash                                                                 57,002              105,924 89,850

Current liabilities                                                102,196 90,741              133,319

Long term debt                                                  42,363              22,342              6,475

Total shareholders’ equity                                   505,741 589,522 628,497

 

Income Statement

 

Net turnover                                                       451,030 412,432 528,164

EBITDA                                                 57,870              85,917              97,697

EBIT                                                                 49,009              79,314              89,133

Net profit                                                           40,259              60,143              71,410

 

Company Financials for the year ending 31/12/11 

Annual (2011)

Income Statement

Sales/Total Sales

439,497  

EBITDA

48,643  

EBIT

52,007  

Net Income

40,039  

Balance Sheet

Total Current Assets

299,033  

Total Assets

726,549  

Current Liabilities

101,664  

Total Liabilities & Debt

104,516  

Total Equity

622,033  

Net profit for the year ending 31/12/12 was £E 1.90 million a 95% decline in profits.

 

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

 

 

BANKERS

 

·       Banque Misr

151 Mohamed Farid Street

Cairo

Tel: (20-2) 33912711 / 33912106

Fax: (20-2) 33919779

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

·       Bank of Alexandria

     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) 35703043

Fax: (20-2) 35703172 / 35072691

 

·       Misr Iran Development Bank

PO Box: 219

Cairo

Tel: (20-2) 35757311

Fax: (20-2) 35701185

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              October 2004

Amount overdue                                     0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

GENERAL COMMENTS

 

Subject is the largest diversified cables company in Egypt. It produces both power cables and telecommunication cables for local markets and for export as well. Approximately two thirds of saless are derived from power cables sales to the Electricity Sector and it supplies more than 50% of the requirements of the Egyptian Electricity Authority

 

During the course of this investigation nothing detrimental was uncovered regarding the manner in which payment obligations are fulfilled. The operating history is clear and the financial situation is satisfactory. As such we are of the opinion that the subject is a fair trade risk.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.42

UK Pound

1

Rs.86.54

Euro

1

Rs.73.86

 

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.