MIRA INFORM REPORT

 

 

Report Date :

21.05.2013

 

IDENTIFICATION DETAILS

 

Name :

United company for foundries SAE

 

 

Registered Office :

A1, 3rd Industrial Zone, Plot 2/4, Sharkeya, P O Box: 356, Tenth of Ramadan

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1989

 

 

Com. Reg. No.:

5601, Sharkeya

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacture of castings and foundry products.

 

 

No. of Employees :

900

 

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

B1

B1

 

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 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


SUMMARY

 

Company Name                                     : UNITED COMPANY FOR FOUNDRIES SAE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1989

Commercial Registration Number            : 5601, Sharkeya

Industrial Registration Number                 : 21779

Issued Capital                                        : £E 290,000,000

Paid up Capital                                      : £E 290,000,000

Total Workforce                                     : 900

Activities                                               : Manufacture of castings and foundry products.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 


COMPANY NAME

 

UNITED COMPANY FOR FOUNDRIES SAE

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : A1, 3rd Industrial Zone, Plot 2/4

Area                 : Sharkeya

 

PO Box             : 356

 

Town                 : Tenth of Ramadan

Country             : Egypt

 

Telephone         : (20-15) 410504 / 410505 / 410507 / 410508

Facsimile          : (20-15) 410510

Email                : asecpdd@soficom.com.eg

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of the Tenth of Ramadan city.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       3 Swiss Company Street                                                                   Sales Office

Maadi

     Cairo

     Tel: (20-2) 25191232 / 25191237

     Fax: (20-2) 25191235

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Mohamed Khaled El Sebaie                                                               Chairman

 

·       Salwa Abdel Fattah                                                                           Managing Director

 

·       Ahmed Haikal                                                                                   Director

 

·       Lobna El Desouky                                                                             Director

 

·       Hesham Gabr                                                                                   Director

 

·       Rezk Hassan                                                                                    Director

 

·       Abd El Razek Mohamed Mashaly                                                       Finance Manager

 

·       Mohamed Sherif                                                                                Sales Manager

 

·       Nohair Mohamed Shafik                                                                     Export Manager

 

·       Mohamed Kamal Samy                                                                     Factory Manager

 

·       Nabil Hussein Abd El Halim                                                               Marketing Manager

 

·       Fathi Sayed                                                                                      Office Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1989

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 5601, Sharkeya

 

Industrial Reg. No.       : 21779

 

Authorised Capital       : £E 500,000,000

 

Issued Capital              : £E 290,000,000

 

Paid up Capital            : £E 290,000,000

 

Name of Shareholder (s)                                                       Percentage

 

·       Citadel for Financial Investment                                              49.29%

 

·       Holding International Co                                                         33.17%

 

·       Mansour & Maghrabi                                                               1.17%

 

·       Local businessmen and private investors                                 16.37%

 


 

AFFILIATED COMPANIES

 

·       Amreya Metal SAE

 

·       Alexandria Automotive Casting

 

 

OPERATIONS

 

Activities:                     Engaged in the manufacture of castings and foundry products.

 

                                    Subject is ISO 9001, 9002 and 14001 accredited.

 

Production Capacity: 52,000 tons per year

 

Import Countries:         India, China, Syria and Tunisia

 

Export Countries:         China, Spain and GCC countries

 

Operating Trend:         Steady

 

Subject has a workforce of approximately 900 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 172,654,314                         £E 179,092,164

 

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

 

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

 

 

BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

·       National Societe Generale Bank SAE

5 Champollion Street

Cairo

Tel: (20-2) 27707777

Fax: (20-2) 27707799

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              October 2007

Credit amount                                        100,000

Amount overdue                         0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

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.55.04

UK Pound

1

Rs.83.61

Euro

1

Rs.70.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.