MIRA INFORM REPORT

 

 

Report Date :

08.11.2013

 

IDENTIFICATION DETAILS

 

Name :

HIGH DAM ELECTRICAL & INDUSTRIAL PROJECT CO (HIDELECO)

 

 

Registered Office :

El Gabal El Akhadar Building, 10 El Nasr Road, Nasr City, P O Box 1205, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

July, 1971

 

 

Com. Reg. No.:

147571, Cairo

 

 

Legal Form :

Public Limited Company

 

 

Line of Business :

Construction of electrical and industrial projects

 

 

No. of Employees :

1,500

 

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

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                                     : HIGH DAM ELECTRICAL & INDUSTRIAL PROJECT CO (HIDELECO)

Country of Origin                                    : Egypt

Legal Form                                            : Public Limited Company

Registration Date                                   : July 1971

Commercial Registration Number            : 147571, Cairo

Exporters Registration Number                : 32008

Issued Capital                                        : £E 10,000,000

Paid up Capital                                      : £E 10,000,000

Total Workforce                                     : 1,500

Activities                                               : Construction of electrical and industrial projects

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady


 

COMPANY NAME

 

HIGH DAM ELECTRICAL & INDUSTRIAL PROJECT CO (HIDELECO)

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : El Gabal El Akhadar Building

Street               : 10 El Nasr Road

Area                 : Nasr City

 

PO Box             : 1205

 

Town                 : Cairo

Country             : Egypt

 

Telephone         : (20-2) 23420698 / 23423248

Facsimile          : (20-2) 23428129

 

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

 

·       4th Industrial Zone, Plot 46                                                                  Warehouse premises

6th of October City

Tel: (20-2) 38343364

Fax: (20-2) 38343364

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Ossama El Sayed Batah                                                                   Chairman

 

·       Ezzat Abd El Mola                                                                            Director

 

·       Samir Abd El Fattah                                                                          Director

 

·       Ahmed Mohamed Ahmed Hijazi                                                          Director

 

·       Mursi Elsayed Morsi Thomas                                                             Director

 

·       Medhat Kandil                                                                                   Finance Manager

 

·       Kamal Hussein                                                                                 Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : July 1971

 

Legal Form                  : Public Limited Company

 

Commercial Reg. No.  : 147571, Cairo

 

Exporter’s Reg. No.      : 32008

 

Issued Capital              : £E 10,000,000

 

Paid up Capital            : £E 10,000,000

 

Name of Shareholder (s)                                                      Percentage

 

·       Holding for Construction & Urbanization                                   100%

Cairo

 

 

OPERATIONS

 

Activities: Engaged in the construction of electrical and industrial projects, specialising in power stations and

     networks. Subject is ISO 9001:2000 accredited.

 

Subject’s activities include:

 

1-Execution of Electric power stations projects up to the capacity of 600 M.W.

These projects include:

 * Civil, foundations, mechanical, electrical works and control panels.

 

2-Execution of Overhead Transmission Lines up to 500 K.V.

These projects include:

 * Site preparation, survey, civil, erection of towers, conductors, final inspection of the line, final tests and connection of the line to the substation portals and electric power transmission works.

 

3-Execution of 220/66/11,66/11 kV. Substations

These projects include:

*  Site, excavation, foundations, plain and reinforced concrete, steel structure, building, erection of all equipment, testing and commissioning works.

 

4-Execution of 66 kV. Cable laying projects

These projects include:

*  Fixing warning signs,  survey, excavation, cable laying, junctions and terminals, testing and commissioning works.

 

5-Execution of Electrical Energy Distribution projects.

These projects include:

* 22, 11& 0.4 kV. Overhead Transmission Lines, medium Voltage Distributors, medium and Lower Voltage Distribution Networks.

 

6-Execution of City and village illumination projects and Rural Electrification

These projects include:

* Execution of electric power transmission for cities and villages by medium voltages overhead lines, transformers and internal networks.

* Conducting electric power connections for rural electrification projects, as irrigation pumps electrification, rural industries electrification, and agricultural development which include transmission lines and transformers.

 

7-Execution of Industrial Construction projects

These projects include:

* Mechanical and Electrical Constructions for Factories, University Hospitals, Pipe Networks, Storage Tanks, Central Air-Conditioning, Elevators, Industrial Gas Lines, Alarm Systems, Fire Fighting Networks, Illumination, Internal Broadcasting & Calling Units and Television Closed System Circuits, Steel Structure, Industrial Plants Equipment, Boards, Operation & Control Units, Measurement & Remote-Control Units, Sensors of all types, and their required Networks Cables Works.

* Maintenance and integrated overhaul works for power generation units of steam boilers, water purification stations, and sewerage.

* Execution of Communications Projects.

 

8-Transportation Works

The Company owns tremendous varieties of transportation equipment namely cranes, dampers, trailers, trucks and is entitled for loading, transportation and unloading of heavy equipment up to 300 tons and 180 meters length using heavy trucks and trailers with truck mounted cranes up to 150 tons.

 

9-Manufacturing of Lattice Towers, Electric Boards and Trailers

These projects include:

* Steel structure and equipment required for industrial constructions.

* Lattice towers and their supplements, and lighting columns.

* Low voltage boards, distribution boxes and electrical watt-hour meters.

* Power factors improvement boards.

* Electrical cables ladders.

* Water and cables truck trailers.

 

Import Countries: Europe, GCC countries and the United States of America.

 

Clients:

 

·         VA TECH Escher Wyss GmbH Germany

·         MAN B&W Diesel Germany

·         EVT ENERGIE- UND Germany

·         Techno Commerz Germany

·         Siemens Germany

·         Sulzer Pumps GmbH Germany

·         VOITH Germany

·         Lahmeyer International Germany

·         Public Electricity Corporation Yemen

·         Fichtner Consultancy Germany

·         Al-Ahram Trading Company (Ltd.) Yemen

·         Wartsila Finland

·         Burmeister & Wain Scandinavian Contractor Denmark

·         ABB USA

·         Alstom Power Inc. USA

·         Cegelec France

·         Cobra Spain

·         Enel Power France

·         Agiba Petroleum Company Egypt

·         Egyptian Tank Plant Factory 200 Egypt

·         Arab Contractors Egypt

·         Egyptian Electricity Authority (EEA) Egypt

·         Egyptian Electricity Transmission Company (EETC) Egypt

·         Egyptian Electricity Holding Company  Egypt

·         El-Nasr Co. for Basic Chemicals Manufacturing Egypt

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E 000’s)

 

Balance Sheet                                30/06/08     30/06/09       30/06/10      30/06/11         30/06/12

Long Term Assets

 

 

 

 

 

Net Fixed Assets

15275

14313

15039

16503

15007

Under Execution Projects

636

833

2188

529

445

Long Term Investments

747

549

549

549

549

Long term loans and debit balances

0

0

0

0

0

Total long term assets (1)

16658

15695

17776

17581

16001

Floating Assets

 

 

 

 

 

Stock

44220

46066

60292

72212

83312

Customers , Hold in papers and Debit accounts

314847

308942

319284

348154

358758

 Investments & securities

0

0

0

0

0

Cash in banks & funds

38188

27953

42049

78397

65080

Total floating assets

397255

382961

421625

498763

507150

Floating Obligations

 

 

 

 

 

Allocations

3945

4331

5278

5728

6167

Credit banks

46258

32382

3449

3123

2849

Suppliers, payment bills and credit accounts

333312

330113

381744

456757

461742

Total floating obligations

383515

366826

390471

465608

470758

Net Working Capital (2)

13741

16135

31154

33155

36391

Total investments (1+2) to be financed as the following:

30398

31830

48930

50736

52392

Property Rights:

 

 

 

 

 

Paid up capital+Reserves , Profit / Losses

30398

31830

48930

50736

52392

Total Property Rights (3)

30398

31830

48930

50736

52392

Long term Obligations

 

 

 

 

 

Long term loans

0

0

0

0

0

Total long term obligations (4)

0

0

0

0

0

Total investment financing (3+4)

30398

31830

48930

50736

52392

 

 

Income Statement

 

Current activity revenue

130101

123252

125136

139383

127157

to be deducted there of:

 

 

 

 

 

Production Cost

112477

108871

107868

125142

116773

Marketing Cost

0

0

0

0

0

Activity Revenues

17624

14381

17268

14241

10384

donations and subventions to be added there to

0

0

0

0

0

Net profits

17624

14381

17268

14241

10384

To be added to:-

 

 

 

 

 

Investment revenues

102

152

333

403

461

Other revenues and profits

5035

6485

1851

1316

1492

To be deducted there of

 

 

 

 

 

Administrative expenses & other expenses

12453

12100

9406

8745

10305

Burdens and losses

2220

5838

4621

3474

3300

Activity net profits before financing expenses and credit interests

8088

3080

5425

3741

(1268)

( - )  Financial expenses

7606

5003

2243

1781

(470)

( + ) Credit interests

1247

950

447

2615

4324

Activity Net Profits

1729

(973)

3629

4575

2586

To be added (deducted) there of:

 

 

 

 

 

Profits (losses) exchange rate differences

935

598

88

2318

(479)

 (Previous years revenues expenses)

(1125)

(893)

(1393)

(4386)

665

Capital profits (losses)

0

3209

1001

0

0

 (Irregular revenues & profits losses)

51

235

50

0

91

Net profits before Income Tax

1590

2176

3375

2507

2863

Minus

 

 

 

 

 

To be deducted there of:

Income tax

364

748

1271

701

1207

Net profits

1226

1428

2104

1806

1656

 

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

 

 

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.62.57

UK Pound

1

Rs.100.63

Euro

1

Rs.84.62

 

 

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%)

 

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.