MIRA INFORM REPORT

 

 

Report Date :

16.09.2013

 

IDENTIFICATION DETAILS

 

Name :

MISR SPINNING & WEAVING MEHALLA EL KOBRA

 

 

Registered Office :

Talaat Harb Street El Mehalla El Kobra Mehalla 31952 Gharbeya

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1927

 

 

Com. Reg. No.:

44732, Gharbeya

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and export of cotton, fabrics, textiles and clothing

 

 

No. of Employees :

23,000

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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                                    : MISR SPINNING & WEAVING MEHALLA EL KOBRA

Also Known As                                     : SOCIETE MISR POUR LA FILATURE ET LE TISSAGE MEHALLA EL

                                                              KOBRA

Country of Origin                                   : Egypt

Legal Form                                           : Joint Stock Company

Registration Date                                  : 1927

Commercial Registration Number           : 44732, Gharbeya

Issued Capital                                       : £E 300,000,000

Paid up Capital                                     : £E 300,000,000

Total Workforce                                     : 23,000

Activities                                               : Manufacture and export of cotton, fabrics, textiles and clothing.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

 

COMPANY NAME

 

MISR SPINNING & WEAVING MEHALLA EL KOBRA

 

ALSO KNOWN AS: SOCIETE MISR POUR LA FILATURE ET LE TISSAGE MEHALLA EL KOBRA

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Talaat Harb Street

Area                 : El Mehalla El Kobra

Town                : Mehalla 31952

Province           : Gharbeya

Country             : Egypt

Telephone         : (20-40) 2299200 / 2299201 / 2299206 / 2299202

Facsimile          : (20-40) 2227833 / 2225280 / 2227780

 

Premises

 

Subject operates from a large suite of offices, warehousing and a factory that are owned and located in the Industrial Area of Mehalla.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       1097 Corniche El Nile                                                                        Sales Office

Garden City

Cairo

Tel: (20-2) 27949134

Fax: (20-2) 27958907

 

·       37 Sidi El Metwaly                                                                            Sales Office

Alexandria

     Tel: (20-3) 4928028

     Fax: (20-3) 4928028

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Fouad Abd El Alim Hassan                                                               Chairman

 

·       Farag Awad                                                                                      Director

 

·       Ahmed Share                                                                                   Director

 

·       Ibrahim Abu Seada                                                                           Director

 

·       Mahmoud Abd El Moneim                                                                 Director

 

·       Ibrahim Bedir Abd El Nady                                                                Director

 

·       El Sayed Abd El Kader Ezz El Arab                                                   Director

 

·       Fawzy Mohamed Mohamed Salem                                                    Director

 

·       Mohamed Mohamed Abdallah Saad                                                  Director

 

·       Mansour El Said                                                                               Administration Manager

 

·       Salem El Sabagh                                                                              Finance Manager

 

·       Sayed Zayed                                                                                    Sales Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1927

 

Legal Form                  : Joint Stock Company

 

Commercial Reg. No.   : 44732, Gharbeya

 

Issued Capital              : £E 300,000,000

 

Paid up Capital            : £E 300,000,000

 

Name of Shareholder (s)                                                Percentage

 

·       Cotton, Spinning & Weaving Holding Company *                     100%

8 El Taher Street

Abdin

Cairo

Tel: (20-2) 33953447 / 33954797

Fax: (20-2) 33953446

 

*  Cotton, Spinning & Weaving Holding Company is wholly owned by the Ministry of Public Enterprises, which in

    turn is a Ministry within the Egyptian government.

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and export of cotton and blended fabrics, ready made garments for ladies & men, terry towels, bed sheets and t-shirts & shirts for men. Subject also produces wool and blended blankets.

 

Import Countries: Germany, Italy, United Kingdom, Turkey, United States, Russian Federation, China, Switzerland and Japan.

 

Export Countries: Hungary, United Kingdom, Spain, Italy, and the United States of America

 

Brand Names: MEHALLA EL KOBRA

 

Operating Trend: Steady

 

Subject has a workforce of approximately 23,000 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 1,046,135,000                       £E 1,340,464,000

 

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

 

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

 

 

BANKERS

 

·       Misr International Bank (MIBANK)

14 Alfy Street

     PO Box: 631

     Cairo

     Tel: (20-2) 25931002

     Fax: (20-2) 25912306

 

·       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

 

Misr Spinning & Weaving Mehalla El Kobra was established in 1927 and is owned by the Cotton, Spinning & Weaving Holding Company, which in turn is wholly owned by the Ministry of Public Enterprises, a Ministry within the Egyptian government.

 

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.63.79

UK Pound

1

Rs.100.70

Euro

1

Rs.84.67

 

 

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%)

 

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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.