MIRA INFORM REPORT

 

 

Report Date :

03.12.2014

 

IDENTIFICATION DETAILS

 

Name :

EL EKHLAS CO FOR TRADING COTTON IMPORT AND EXPORT

 

 

Registered Office :

20 Amin Fekrey Street, Al Raml Station, Alexandria

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

11.01.2005

 

 

Com. Reg. No.:

46597

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Import and Distribution of Raw Cotton.

 

 

No. of Employees :

22

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Egypt

B1

B2

 

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 growth. Poor living conditions combined with limited job opportunities for the average Egyptian contribute 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, pushing up unemployment levels, and economic growth remains slow amid political uncertainty, government transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down foreign exchange reserves and depended on foreign assistance, particularly from Gulf countries, to finance imports and energy products and prevent further devaluation of the Egyptian pound, fearing higher inflation from a weaker currency.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : EL EKHLAS CO FOR TRADING COTTON IMPORT AND EXPORT

Also Known As                         : MOHAMED ABDUL HAMID AND PARTNER

Country of Origin                                   : Egypt

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 11th January 2005

Commercial Registration Number           : 46597

Import Licence Number              : 73795

Export Licence Number             : 46210

Tax Card Number                                  : 352-153-555

Issued Capital                                       : £E 250,000

Paid up Capital                         : £E 250,000

Total Workforce                         : 22

Activities                                               : Distributors of raw cotton

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Mohamed Mostafa, Commercial Manager

COMPANY NAME

 

EL EKHLAS CO FOR TRADING COTTON IMPORT AND EXPORT

 

 

ALSO KNOWN AS

 

MOHAMED ABDUL HAMID AND PARTNER

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : 20 Amin Fekrey Street

Area                 : Al Raml Station

 

Town                : Alexandria

Country : Egypt

 

Telephone         : (20-3) 4873087

Facsimile          : (20-3) 4873086

Mobile              : (20-106) 9977587 / 623807 / 623808

Email                : ekhlascotton.company@yahoo.com / ekhlas.shipping@gmail.com

 

Premises

 

Subject operates from a small suite of offices that are rented and located in the Central Business Area of Alexandria.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Ali Abdul Hamid Abu Madawi                                                            Managing Partner

 

·       Mohamed Holail Abdul Hamid Abu Madawi                                        Partner

 

·       Mohamed Mostafa                                                                           Commercial Manager

 

·       Mohamed Allam                                                                               Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 11th January 2005

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 46597

 

Import Lic. No.             : 73795

 

Export Lic. No.             : 46210

 

Tax Card No.                : 352-153-555

 

Issued Capital              : £E 250,000

 

Paid up Capital            : £E 250,000

 

Name of Partner (s)

 

·       Ali Abdul Hamid Abu Madawi

 

·       Mohamed Holail Abdul Hamid Abu Madawi

 

 

OPERATIONS

 

Activities: Engaged in the import and distribution of raw cotton

 

Import Countries: Greece, South Africa, Benin and the United States of America.

 

International Suppliers:

 

·       Belexi Cotton           Greece

 

Operating Trend: Steady

 

Subject has a workforce of 22 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

                                                Year Ending 31/12/12:               Year Ending 31/12/13:

 

Total Sales                                £E 9,400,000                             £E 10,000,000

 

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

 

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

 

 

BANKERS

 

·       Bank of Alexandria

19 Salah Salem Street

El Gomrok, Mansheya

Alexandria

Tel: (20-3) 4827995

 

 

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.61.93

UK Pound

1

Rs.97.39

Euro

1

Rs.77.21

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

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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.