MIRA INFORM REPORT

 

 

Report Date :

16.11.2013

 

IDENTIFICATION DETAILS

 

Name :

EMAK FOR PAPER MANUFACTURING CO

 

 

Registered Office :

City Centre Tower, 10th Floor 3 Makram Ebeid Street Nasr City Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1998

 

 

Com. Reg. No.:

357552, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacture of duplex paper and all kinds of cardboard

 

 

No. of Employees :

400

 

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                                    : EMAK FOR PAPER MANUFACTURING CO

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 1998

Commercial Registration Number           : 357552, Cairo

Tax Card Number                                  : 205-071-864

Issued Capital                                       : £E 200,000,000

Paid up Capital                                     : £E 200,000,000

Total Workforce                                     : 400

Activities                                               : Manufacture of duplex paper and all kinds of cardboard

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 


 

COMPANY NAME

 

EMAK FOR PAPER MANUFACTURING CO

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : City Centre Tower, 10th Floor

Street               : 3 Makram Ebeid Street

Area                 : Nasr City

Town                : Cairo

Country             : Egypt

 

Telephone         : (20-2) 26709420 / 26709424 / 26709426 / 26709428 / 26709411 / 26709412

Facsimile          : (20-2) 26709410 / 26709412

 

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

 

·       Ezz Zone, El Ein El Sokhna                                                               Factory premises

Ataka

     Suez

     Tel: (20-62) 3250414 / 3250413 / 3250419

     Fax: (20-62) 3250427

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ibrahim El Sayed Ibrahim Saleh                                                         Chairman

 

·       Nasser Mohamed A El Mohsen El Kharafi                                          Director

 

·       Gasem Mohamed Ahmed A El Mohsen El Kharafi                              Director

 

·       Fawzy Mohamed Ahmed A El Mohsen El Kharafi                               Director

 

·       Loaai Gasem Mohamed Ahmed A El Mohsen El Kharafi                     Director

 

·       Marzouk Nasser Mohamed Ahmed A El Mohsen El Kharafi                 Director

 

·       Taha Abd Rabou                                                                              General Manager

 

·       Ashraf Badr                                                                                      Finance Manager

 

·       Ahmed Moubarak                                                                             Accounts Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1998

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 357552, Cairo

 

Tax Card No.                : 205-071-864

 

Issued Capital              : £E 200,000,000

 

Paid up Capital            : £E 200,000,000

 

Name of Shareholder (s)                                                                    Percentage

 

·       Nasser Mohamed A El Mohsen El Kharafi                                                      27%                                         

 

·       Gasem Mohamed Ahmed A El Mohsen El Kharafi                                          27%

 

·       Fawzy Mohamed Ahmed A El Mohsen El Kharafi                                           27%     

 

·       Mohamed Mohamed A El Mohsen El Kharafi and Sons General Trade 15%     

     Kuwait

 

·       Loaai Gasem Mohamed Ahmed A El Mohsen El Kharafi                                   2%

 

·       Marzouk Nasser Mohamed Ahmed A El Mohsen El Kharafi                               2%

 

 

AFFILIATED COMPANIES

 

Subject is a member of the Kharafi Group which is a multinational, multi-faceted group with a variety of interests. These interests cover activities such as construction, manufacturing and commerce. The Kharafi Group also has the largest food company throughout the Middle East, an airline and investments which include Kuwait's leading financial institutions and other companies listed on the stock exchange

 

The Kharafi Group's roots have been in Kuwait for more than 100 years, but it has operations worldwide. It is one of the largest companies in the Middle East with an annual turnover in excess of US$ 2.2 billion.

 

The Kharafi Group includes the following concerns :

 

·       National Electro Mechanical Co                                 Kuwait

·       National Piling Co                                                     Kuwait

·       Kuwait British Ready-mix Co                                     Kuwait

·       Aluminium Industries                                                 Kuwait

·       Terrazzo Factory                                                       Kuwait

·       International Contracting Co                                      Kuwait

·       Sitar Sun Protection Co                                            Kuwait

·       Isofoam Insulating Material Co                                  Kuwait

·       Al Salihiya Exchange Co                                           Kuwait

·       Sabhan Steel Reinforcement Co                                Kuwait

·       Kuwait Insurance Co                                                 Kuwait

·       Al Ahlia Insurance Co                                                Kuwait

·       Gulf Real Estate Investment Co                                 Kuwait

·       Kuwait Real Estate Investment Co                             Kuwait

·       National Industries Co                                               Kuwait

·       Kuwait Cement Co                                                    Kuwait

·       Kuwait Timber Co                                                     Kuwait

·       Kuwait Fisheries                                                       Kuwait

·       Kuwait Foundry Co                                                   Kuwait

·       Gulf Cable & Electrical Industries                               Kuwait

·       Cold Storage Co                                                      Kuwait

·       Kuwait Hotels Co                                                      Kuwait

·       Al Qabas Daily Newspaper                                        Kuwait

·       Dar Al Qabas Printing & Publishing Co                      Kuwait

·       Kuwait Oil Tanks Co                                                  Kuwait

·       National Maritime & Agencies Co                               Kuwait

·       United Contracting Co                                               Kuwait

·       Kuwait Food Co                                                       Kuwait

·       Mohamed Abdul Mohsin Kharafi & Sons WLL            Kuwait

·       Admak General Contracting Co                                  Abu Dhabi, United Arab Emirates

·       M.A. Kharafi (Saudi Arabia)                                       Saudi Arabia

·       MAK Contracting Co                                                 Yemen

·       M.A. Kharafi Est                                                       Oman

·       Omak – Travo LLC                                                    Oman

·       Kharafi Water Well Drilling                                         Oman

·       M.A. Kharafi Contracting Co                                      Kenya  

·       MAK (Pty) Ltd                                                          Botswana

·       Arab Aluminium Co                                                   Egypt

·       Yemen Hotels & Investment Co                                 Yemen

·       Arab Heavy Industries Co Ltd                                    Ajman, United Arab Emirates

·       Maroc Kuwait Hotels Co                                            Morocco

·       Sudan Kuwait Hotels Co                                           Sudan

·       MAK Brake Lining Co SAE                                        Egypt

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of duplex paper and all kinds of cardboard.

 

Import Countries: United States of America, South Korea and Canada

 

Production Capacity: 180,000 tons per day.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 400 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 130,000,000                         £E 150,000,000

 

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

 

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

 

 

BANKERS

 

·       Arab African Bank

5 El Saraya El Kobira Square

     PO Box: 60, Magles El Shaab

     Cairo

     Tel: (20-2) 33545094

     Fax: (20-2) 33558493

 

·       Commercial International Bank (CIB)

Nile Tower Building

21-23 Giza Street

PO Box: 2430

Cairo

Tel: (20-2) 35703043

Fax: (20-2) 35703172 / 35072691

 

·       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.

 

 

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.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.