MIRA INFORM REPORT

Report Date :

24.05.2013

IDENTIFICATION DETAILS

Name :	PHAROS FOR PAINTS & CHEMICAL INDUSTRIES
Registered Office :	El Kodaa Building, 314 Street, Area: Smouha, Alexandria
Country :	Egypt
Financials (as on) :	31.12.2012
Date of Incorporation :	21.10.2004
Com. Reg. No.:	1984
Legal Form :	Limited Liability Partnership
Line of Business :	Manufacturers of decorative and industrial paints
No. of Employees :	127

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 31^st, 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 : PHAROS FOR PAINTS & CHEMICAL INDUSTRIES

Country of Origin : Egypt

Legal Form : Limited Liability Partnership

Registration Date : 21^st October 2004

Commercial Registration Number : 1984

Tax Card Number : 208-170-499

Issued Capital : £E 11,500,000

Paid up Capital : £E 11,500,000

Total Workforce : 127

Activities : Manufacturers of decorative and industrial paints

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Ahmed Fathi, Finance Manager

COMPANY NAME

PHAROS FOR PAINTS & CHEMICAL INDUSTRIES

ADDRESS

Registered & Physical Address

Building : El Kodaa Building

Street : 314 Street

Area : Smouha

Town : Alexandria

Country : Egypt

Telephone : (20-3) 4210316 / 4210317

Facsimile : (20-3) 4210315

Email : yahia.ismail@midoco.com / marketing@midoco.com

Premises

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Alexandria.

Branch Office (s)

Location Description

· New Borg El Arab City Office and factory premises

2^nd Industrial Zone

Alexandria

Tel: (20-3) 4593555

Fax: (20-3) 4592655

KEY PRINCIPALS

Name Position

· Dr Ali Ghaly Managing Partner

· Omar Ali Ghaly Partner

· Mohamed Ali Ghaly Partner

· Ahmed Fathi Finance Manager

· Yahia Ismail Chief Financial Officer

· Yasser Salah Purchasing Manager

· Samy Galal Sales Manager

· Abdul Nabi Abu Qumsan Factory Manager

LEGAL FORM & OWNERS

Date of Establishment : 21^st October 2004

Legal Form : Limited Liability Partnership

Commercial Reg. No. : 1984

Tax Card No. : 208-170-499

Issued Capital : £E 11,500,000

Paid up Capital : £E 11,500,000

Name of Shareholder (s)

· Dr Ali Ghaly

· Omar Ali Ghaly

· Mohamed Ali Ghaly

AFFILIATED COMPANIES

· International Group For Modern Coating SAE

Alexandria

CR No. 117481

· Euro for Paints

Alexandria

CR No. 949

OPERATIONS

Activities: Engaged in the manufacture of decorative and industrial paints, including primers, alkyd paints, varnishes, synthetic products and universal colorants.

Import Countries: Europe and the Far East.

Export Countries: Turkey, China, GCC countries and Africa

Operating Trend: Steady

Subject has a workforce of 127 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 108,416,329 £E 123,888,475

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

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.55.99
UK Pound	1	Rs.84.19
Euro	1	Rs.71.86

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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