MIRA INFORM REPORT

Report Date :

09.12.2014

IDENTIFICATION DETAILS

Name :	SHEHFE CASINGS FREE ZONE LTD

Registered Office :	5 Salah Salem Street, Attarin 2482 Alexandria

Country :	Egypt

Financials (as on) :	31.12.2013

Date of Incorporation :	1980

Com. Reg. No.:	98916

Legal Form :	Free Zone Limited Company

Line of Business :	Engaged in the processing, salting, packaging and distribution of animal casings

No of Employees :	600

RATING & COMMENTS

MIRA’s Rating :

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Egypt

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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 : SHEHFE CASINGS FREE ZONE LTD

Country of Origin : Egypt

Legal Form : Free Zone Limited Company

Registration Date : 1980

Commercial Registration Number : 98916

Industry Registration Number : 96400

Issued Capital : £E 10,000,000

Paid up Capital : £E 10,000,000

Total Workforce : 600

Activities : Processing, salting, packaging and distribution of animal casings

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Mounir Albert Shehfe, Director

COMPANY NAME

SHEHFE CASINGS FREE ZONE LTD

company ADDRESS

Registered & Physical Address

Street : 5 Salah Salem Street

Area : Attarin

PO Box : 2482

Town : Alexandria

Country : Egypt

Telephone : (20-3) 4865523 / 4480556

Facsimile : (20-3) 4861377

Mobile : (20-122) 2124538 / 2150647

Email : casings@shehfe.com

Premises

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

Branch Office (s)

Location Description

· Amriya Free Zone Factory premises

Alexandria

Tel: (20-3) 4500129

Fax: (20-3) 4500241

KEY PRINCIPALS

Name Nationality Position

· Nadim Albert Shehfe Libyan Managing Director

· Mounir Albert Shehfe Libyan Director

· Essam Mahgoub - Financial Manager

· Albert Mounir Albert Shehfe - Production Manager

· Ahmed Hassan Raouf Ismail - Administration Manager

LEGAL FORM & OWNERS

Date of Establishment : 1980

Legal Form : Free Zone Limited Company

Commercial Reg. No. : 98916

Industry Reg. No. : 96400

Issued Capital : £E 10,000,000

Paid up Capital : £E 10,000,000

Name of Shareholder (s) Percentage

· Nadim Albert Shehfe 45%

· Mounir Albert Shehfe 45%

· Nicol Albert Shehfe 10%

OPERATIONS

Activities: Engaged in the processing, salting, packaging and distribution of animal casings.

Production Capacity: 2,000,000 hanks of sheep casing per year

Import Countries: Europe and the Far East

International Suppliers:

· Irish Casing Company Ltd Republic of Ireland

· Rudolf Marth Inh Germany

Export Countries: Germany, France, Italy, United States of America, Australia and New Zealand.

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

Total Sales £E 92,200,000 £E 94,650,000

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

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

BANKERS

· Commercial International Bank (CIB)

61 Sultan Hussein Street

Alexandria

Tel: (20-3) 4824643 / 4834255

Fax: (20-3) 4832240

· Egyptian American Bank

14 Salah Salem Street

PO Box: 1737

Alexandria

Tel: (20-3) 4835008

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

According to local sources, subject enjoys a good reputation for the quality of its products with nothing detrimental uncovered regarding the manner in which operations are conducted. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 61.92
UK Pound	1	Rs. 96.37
Euro	1	Rs. 76.10

INFORMATION DETAILS

Analysis Done by :	SMT

Report Prepared by :	DPT

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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