MIRA INFORM REPORT

Report Date :

17.09.2013

IDENTIFICATION DETAILS

Name :	AZABTEX FOR SPINNING & WEAVING
Registered Office :	Plot No. 1, Block No. 20036, 1^st Industrial Zone, El Obour City Cairo
Country :	Egypt
Financials (as on) :	01.02.2007
Date of Incorporation :	31.12.2012
Com. Reg. No.:	19724
Legal Form :	Sole Proprietorship
Line of Business :	Subject is engaged in the spinning and weaving of Lycra, polyester micro filament and pure Egyptian cotton.
No. of Employees :	35

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 : AZABTEX FOR SPINNING & WEAVING

Country of Origin : Egypt

Legal Form : Sole Proprietorship

Registration Date : 1^st February 2007

Commercial Registration Number : 19724

Tax Card Number : 572-671-342

Invested Capital : £E 100,000

Total Workforce : 35

Activities : Spinning and weaving of Lycra, polyester micro filament and pure Egyptian cotton.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Abdullah Mahmoud Azab, Proprietor & General Manager

COMPANY NAME

AZABTEX FOR SPINNING & WEAVING

ADDRESS

Registered & Physical Address

Location : Plot No. 1, Block No. 20036, 1^st Industrial Zone, El Obour City

Town : Cairo

Country : Egypt

Telephone : (20-2) 46103554

Facsimile : (20-2) 46103553

Mobile : (20-122) 3371699

Email : aazab@yahoo.com / azzab@hotmail.com / aazab53@yahoo.com

Premises

Subject operates from a medium sized suite of offices and a factory that are rented and located in the Industrial Area of Cairo.

Branch Office (s)

Location Description

· 2 Hart El Malty El Hamzawy Office premises

Cairo

Tel: (20-2) 25146481

KEY PRINCIPALS

Name Position

· Abdullah Mahmoud Azab Proprietor & General Manager

· Mohamed Abdullah Mahmoud Azab Assistant General Manager

· Mahmoud Abdullah Mahmoud Azab Commercial Manager

· Sayed Ibrahim Technical Manager

LEGAL FORM & OWNERS

Date of Establishment : 1^st February 2007

Legal Form : Sole Proprietorship

Commercial Reg. No. : 19724

Tax Card No. : 572-671-342

Invested Capital : £E 100,000

Mr Abdullah Mahmoud Azab is the sole proprietor of the business.

AFFILIATED COMPANIES

· Azabtex Co Spinning & Weaving Import and Export

2 Hart El Malty El Hamzawy

Cairo

Tel: (20-2) 25146481

Fax: (20-2) 25146481

CR No. 18403

OPERATIONS

Activities: Engaged in the spinning and weaving of Lycra, polyester micro filament and pure Egyptian cotton.

Import Countries: Europe and India.

International Suppliers:

· Al Nahar Spinning India

· JVJ Spinning India

· Tekima India

Operating Trend: Steady

Subject has a workforce of 35 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Egyptian Pound (£E)

Year Ending 31/12/11: Year Ending 31/12/12:

Total Sales £E 26,700,000 £E 28,000,000

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

The above figures were provided by Mr Abdullah Mahmoud Azab, Proprietor & General Manager

BANKERS

· Banque du Caire Barclays Internationale SAE

12 Midan El Sheikh Youssef Street

Garden City

PO Box: 110, Maglis El Shaab

Cairo

Tel: (20-2) 33542195 / 33549415 / 33549422

Fax: (20-2) 33552746

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 business is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.48
UK Pound	1	Rs.99.66
Euro	1	Rs.83.50

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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