MIRA INFORM REPORT

 

 

Report Date :

19.12.2014

 

IDENTIFICATION DETAILS

 

Name :

ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

 

 

Registered Office :

Oriental Weavers Building, 8 Zakaria Khalil Street, Heliopolis, P O Box 2489, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

16.11.1981

 

 

Com. Reg. No.:

44139, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacturers of Tapestries, Carpets, Rugs and Mats.

 

 

No. of Employees :

3,500

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Egypt

B2

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                                    : ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 16th November 1981

Commercial Registration Number           : 44139, Cairo

Issued Capital                                       : £E 450,000,000

Paid up Capital                                     : £E 450,000,000

Total Workforce                         : 3,500

Activities                                               : Manufacturers of tapestries, carpets, rugs and mats.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 


COMPANY NAME

 

ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

 

 

ADDRESS

 

Registered & Physical Address

 

Building                        : Oriental Weavers Building

Street               : 8 Zakaria Khalil Street

Area                 : Heliopolis

 

PO Box            : 2489

 

Town                : Cairo

Country : Egypt

 

Telephone         : (20-2) 22672121 / 22678226 / 22678225

Facsimile          : (20-2) 22672241 / 22678240 / 22672242

Email                : info@orientalweavers.com

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       El Horreya Street                                                                              Owned factory premises

Industrial Zone B1, Area No. VII

Sharkeya

PO Box: 128

Tenth of Ramadan City

Tel: (20-15) 366666

Fax: (20-15) 364498

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Mohamed Farid Fouad Khamis                                                          Chairman

 

·       Mahmoud Fawzy Fouad Khamis                                                        Vice Chairman

 

·       Mohamed Katary Abd Allah                                                               Director

 

·       Mahmoud Rada Abdel Baki                                                               Director

 

·       Yasmine Mohamed Farid Khamis                                                      Director

 

·       Farida Mohamed Farid Khamis                                                          Director

 

·       Kamal Ali Mahmoud Al Raei                                                              Director

 

·       Abdel Hamid Fayad                                                                          Director

 

·       Mohamed Mahmoud Fawzy Khamis                                                   Director

 

·       Amr Mahmoud Fawzy Khamis                                                           Director

 

·       Mahmoud Amin Saad                                                                       Director

 

·       Mohamed Mohamed Ali Amer                                                           Director

 

·       Mohamed Mohamed Farid Khamis                                                    Director

 

·       Maha Bint Ahmed Bin Hassan Feteihy                                                Director

 

·       Salah Abdel Aziz Abdel Motalab                                                        Chief Executive Officer

 

·       Moustafa Hanafi                                                                               Administration Manager

 

·       Mohamed Hosni Amer                                                                      Finance Manager

 

·       Mohamed Katary                                                                              Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 16th November 1981

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 44139, Cairo

 

Issued Capital              : £E 450,000,000

 

Paid up Capital            : £E 450,000,000

 

Name of Shareholder (s)                                     Percentage

 

·       Mohamed Farid Fouad Khamis                                     62.68%

 

·       Modern Carpet                                                            19.18%

Industrial Zone B1, Block No. VII

Osman Ibn Afan Street

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 366666

Fax: (20-15) 364498

 

·       Mahmoud Fawzy Fouad Khamis                                     4.90%

 

·       Egyptian businessmen and private investors                 13.24%

 

 

AFFILIATED COMPANIES

 

     Name                                                                                                   Percentage Held

 

·       Oriental Weavers Co                                                                                     100%

United States of America

 

·       Oriental Weavers International Co                                                                  99.99%

 

·       Rosetex Modern Factories for Spinning & Weaving Co                                   99.99%

 

·       Oriental Weavers Co                                                                                     99.65%

China

 

·       Oriental Weavers Company Fibers Co                                                            99.00%

 

·       Egyptian Fibers Co                                                                                       79.60%

 

·       MAC Carpet Mills                                                                                          58.29%

 

·       Modern EFCO                                                                                              57.57%

 

·       New Mac                                                                                                      52.02%

 

·       Misr American Carpets Mills (MAC)                                                                    -

28 Sherif Street

PO Box: 3163

Cairo

Tel: (20-2) 33928380 / 33938864

Fax: (20-2) 33931217

Email: intlmktg@maccarpet.com

 

·       Oriental Weavers Fibres                                                                                    -

Osman Moharam Street

First Industrial Zone A1

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 410167 / 410168 / 410169

Fax: (20-15) 410166

 

·       Oriental Weavers for Urban Development                                                           -

     Oriental Weavers Building

     Airport Area, Heliopolis

     Cairo

     Tel: (20-2) 22671716 / 22671718 / 22675351

     Fax: (20-2) 22672248

 

·       Safa Industries Group                                                                                       -

Industrial Zone B1

El Horreya Street

Sharkeya

PO Box: 69, El Asher

Tenth of Ramadan City

Tel: (20-15) 361969

Fax: (20-15) 363069

 

·       Egyptian Fibres EFCO                                                                                     -

1st Industrial Zone A1, Area No. IIA

Osman Moharam Street

Sharkeya

PO Box: 188, El Asher

Tenth of Ramadan City

Tel: (20-15) 362287 / 362288

Fax: (20-15) 362286

 

·       Tenth of Ramadan Spinning Industries SAE                                                       -

Industrial Zone A1, Area No. 3/3

       Sharkeya

Tenth of Ramadan City

Tel: (20-15) 363748

Fax: (20-15) 363746

 

·       Oriental International Trade                                                                                -

El Horreya Street

Industrial Zone B1, Area IXB

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 364703

Fax: (20-15) 364703

 

·       Seta Egypt SAE                                                                                              -

     2 El Bustan Street

     Square 1112, Heliopolis

     Cairo

     Tel: (20-2) 22679122 / 22679133

     Fax: (20-2) 22679144

     Email: hq@setaegypt.com

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of tapestries, carpets, rugs and mats.

 

Production Capacity: 113 million square metres

 

Import Countries: Germany, Italy and France.

 

Export Countries: Europe, the United States of America and the Far East

 

Brand Names: ORIENTAL WEAVERS, LA BOUTIQUE, GOBELIN and LIFE STYLE

 

Operating Trend: Steady

 

Subject has a workforce of approximately 3,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

Consolidated Balance Sheet                                            31/12/12                          31/12/13

 

Long Term Assets

Fixed assets(net)                                                           1 752 675 173                2 753 447 469

Projects in progress                                                      501 185 514                  57 484 717

Available for sale investments                                        102 706 751                  81 673 779

Goodwill                                                                       696 835 970                  473 790 520

Total Long-term assets                                                  3 053 403 408                3 366 396 485

Current Assets

Inventory                                                                       1 590 235 579                1 523 335 196

Trades & notes receivable                                              921 783 464                  945 669 198

Debtors and other debit accounts                                  219 703 588                  211 849 502

Cash & Cash equivalent                                                 230 724 378                  324 866 214

Total current assets                                                       2 962 447 009                3 005 720 110

Current Liabilities

Provisions                                                                    26 116 289                    35 847 673

Banks-Credit accounts                                                   1 600 703 210                1 388 215 798

Long term liabilities-Current portions                               119 629 981                  89 138 296

Suppliers & notes payable                                             621 710 127                  624 423 822

Dividends payable                                                        2 659 852                      8 151 624

Creditors & other credit accounts                                   157 732 905                  206 309 685

Total Current liabilities                                                    2 528 552 364                2 352 086 898

Working Capital                                                             433 894 645                  653 633 212

Total Investment to be Financed as follows:                   3 487 298 053                4 020 029 697

Shareholders' equity

Issued and paid up capital                                             450 000 000                  450 000 000

Reserves                                                                      1 446 181 812                1 412 960 966

Unrealized gain from available for sale investments         451 625                         451 625

Retained earnings                                                          585 192 036                  664 191 959

Net profit for the year                                                    272 761 511                  347 488 068

Exchange differences arising on translation of

financial statements                                                       260 885 756                  448 119 302

Treasury stocks                                                             (14 596 505)                  (14 596 505)

Total equity attributable to equity holders of the parent   3 000 876 235                3 308 615 415

Minority interest                                                             211 939 190                  357 129 839

Shareholder's equity                                                      3 212 815 425                3 665 745 254

Long-term liabilities

Long term loans                                                                        267 367 639                  209 724 851

Housing and Development Bank loan                             498 754                         437 269

Creditors-Purchase of fixed assets                                259 092                         -

Deferred tax liabilities                                                    6 357 143                      144 122 323

Total long term liabilities                                                274 482 628                  354 284 443

Total shareholder's equity & long term liabilities              3 487 298 053                4 020 029 697

 

Consolidated Income Statement

 

Net sales                                                                      4 894 970 047                5 521 302 186

Less:

Cost of sales                                                                4 431 083 586                4 953 548 574

Gross profit                                                                  463 886 461                  567 753 612

Less:

Distribution expenses                                                    38 544 432                    41 171 280

General & Administrative expenses                                100 948 883                  119 098 696

Formatted provisions & Impairment                                5 500 000                      20 480 940

144 993 315                  180 750 916

Net income from operation activities                              318 893 146                  387 002 696

Add/(Less):

Investment income                                                        677 500                         -

Interest Income                                                              6 186 918                      3 177 008

Other revenues                                                              165 472 468                  150 913 182

Capital Gain                                                                  6 385 007                      35 299 373

Financing expenses                                                       (161 719 048)                (112 852 353)

Foreign exchange differences                                        (10 039 109)                  (22 994 324)

6 963 736                      53 542 886

Net profit for the year before income tax                                    325 856 882                  440 545 582

Add/(Less):

Current income tax                                                        (35 614 417)                  (59 365 994)

Deferred tax                                                                  (5 148 867)                    (12 057 580)

Income tax for the year                                                  (40 763 284)                  (71 423 574)

Net profit for the year after income tax                           285 093 598                  369 122 008

 

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

 

 

BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

·       Suez Canal Bank

PO Box: 2620

Cairo

Tel: (20-2) 25769296

Fax: (20-2) 25322064

 

·       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

 

·       Egyptian Gulf Bank

El Orman Plaza Building

8-10 Ahmed Nessim Street

PO Box: 56

Cairo

Tel: (20-2) 33606580 / 33606467

Fax: (20-2) 33420265 / 33606512

Swift Code: EGGBEGCABLS

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                   November 2002            May 2006                      November 2008

Credit amount                           11,000                          100,000             100,000

Amount overdue                        0                                  0                                  0

Payment terms                          60 days                                    60 days                                    60 days

Payment Method                       Letters of Credit                        Letters of Credit                        Letters of Credit

Paying record                           No Complaints              No Complaints              No Complaints

Currency                                   Euros                           US Dollars                    US Dollars

 

 

GENERAL COMMENTS

 

Oriental Weavers Company For Carpets SAE is very well established in the local market with operations dating back to 1981.

 

Subject is a member of the Oriental Weavers Group, Egypt’s largest producer of machine woven carpets with an 80% share of the local market. It also has a 25% share of the US market, where it distributes through its subsidiary Oriental Weavers USA.

 

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.63.32

UK Pound

1

Rs.98.68

Euro

1

Rs.78.11

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.