MIRA INFORM REPORT

 

 

Report Date :

24.09.2013

 

IDENTIFICATION DETAILS

 

Name :

MELMAR KNITWEAR CO

 

 

Registered Office :

50 Hod El Medawarat Street, Ezbat El Gohary, Tariq Bahtim El Qadim, Shoubra El Kheima, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1994

 

 

Com. Reg. No.:

284702, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacture and export of clothing items.

 

 

No. of Employees :

600

 

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                                    : MELMAR KNITWEAR CO

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 1994

Commercial Registration Number           : 284702, Cairo

Issued Capital                                       : £E 3,600,000

Paid up Capital                                     : £E 3,600,000

Total Workforce                                     : 600

Activities                                               : Manufacture and export of clothing items.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady


COMPANY NAME

 

MELMAR KNITWEAR CO

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : 50 Hod El Medawarat Street

Area                 : Ezbat El Gohary, Tariq Bahtim El Qadim, Shoubra El Kheima

Town                : Cairo

Country             : Egypt

 

Telephone         : (20-2) 42211410 / 42226946 / 42205377 / 42229390 / 42215218

Facsimile          : (20-2) 42205377 / 42226946

Email                : info@melmar.com.eg

 

Premises

 

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

 

 

KEY PRINCIPALS

 

 

            Name                                                                                       Position

 

Youssef Mahboub Youssef Wassef                                                       Chairman

 

Eleza Mahboub Youssef Wassef                                                           Vice Chairman

 

Tamer Saad Thabet                                                                               General Manager

 

Ehab Nasre                                                                                           Finance Manager

 

Khalil George Nader                                                                              Administration Manager

 

Sherif Nagi                                                                                            Export Manager

 

Rami Heshmat                                                                                       Commercial Manager

 

Mina Karm                                                                                            Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1994

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 284702, Cairo

 

Authorised Capital       : £E 10,000,000

 

Issued Capital              : £E   3,600,000

 

Paid up Capital            : £E   3,600,000

 

Name of Shareholder (s)

 

Youssef Mahboub Youssef Wassef

 

Eleza Mahboub Youssef Wassef

 

Melisia Youssef Mahboub Youssef

 

Mark Youssef Mahboub Youssef

 

Lizabeath Gebrail Gargrian

 

 

AFFILIATED COMPANIES

 

Fabulous Sportswear

50 Hod El Medawarat

Shoubra El Kheima

Cairo

Tel: (20-2) 42211410 / 42226946

 

Fabulous Knitwear Co

Beni Suef

Tel: (20-82) 2323298

Fax: (20-82) 2323298

 

 

OPERATIONS

 

Activities:                     Engaged in the manufacture and export of clothing items made from cotton for ladies and gents.

 

Production Capacity:    500,000 pieces per month

 

Import Countries:         Germany, Singapore and India

 

Export Countries:         Saudi Arabia, United States of America, Canada and Europe

 

Brand Names:              FABULOUS

 

Operating Trend:          Steady

 

Subject has a workforce of approximately 600 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 15,816,153                           £E 17,513,064

 

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

 

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

 

 

BANKERS

 

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

 

Credit Agricole Egypt

2 D/4 El Nasr Street

New Maadi

Cairo

Tel: (20-2) 25172743

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Local sources report that payment obligations are met in a generally timely manner and the operating history is clear. As such the company is deemed a fair trade risk and the above credit figure is considered to be within subject’s financial means.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.52

UK Pound

1

Rs.100.26

Euro

1

Rs.84.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.