MIRA INFORM REPORT

 

 

Report Date :

29.12.2014

 

IDENTIFICATION DETAILS

 

Name :

MODERN NILE COTTON CO SAE

 

 

Registered Office :

68 Gameat El Dewal El Arabia Street, Mohandessin, Giza 12311, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

1994

 

 

Com. Reg. No.:

99752

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Engaged in the manufacture and distribution of clothing and textiles.

 

 

No. of Employee :

220

 

 

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 – 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                                     : MODERN NILE COTTON CO SAE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1994

Commercial Registration Number            : 99752, Giza

Issued Capital                                        : £E 120,000,000

Paid up Capital                                      : £E 120,000,000

Total Workforce                                     : 220

Activities                                               : Manufacture and distribution of clothing and textiles.

Financial Condition                                 : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Raafat Mohamed Adam, Accounts Manager

 

 

 

COMPANY NAME

 

MODERN NILE COTTON CO SAE

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : 68 Gameat El Dewal El Arabia Street

Area                 : Mohandessin, Giza 12311

Town                 : Cairo

Country             : Egypt

Telephone         : (20-2) 33364031 / 33361516 / 33368562 / 33378183

Facsimile          : (20-2) 33361481

Mobile               : (20-100) 1600806 / 1613105

Email                : info@modernnile.com / raafat@modernnile.com

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                              Description                                         

 

283 El Horreya Road                                                                              Factory premises

Alexandria

Tel: (20-3) 2451047 / 4272198

Fax: (20-3) 4251027

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Ahmed Khaled Moustafa El Bosaty                                             Chairman

 

Karim Mohamed Youssef Saada                                                 Director

 

Amr Mohamed Osman El Sharnouby                                           Director                                    

 

Hani Olama                                                                               Director

 

Noha Khattab                                                                            Director

 

Sherif Mansour Dabous                                                              Director

                                                                                                           

Ahmed Amer                                                                             Marketing Manager

 

Hussein Tharwat El Alfy                                                              Finance Manager

 

Raafat Mohamed Adam                                                              Accounts Manager

 

Ahmed Elhamy Abd El Khalek                                                    Sales Manager

 

Gamal Saleh                                                                             Office Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1994

 

Legal Form      : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 99752, Cairo

 

Issued Capital              : £E 120,000,000

 

Paid up Capital            : £E 120,000,000

 

Name of Shareholder (s)                                          Percentage

 

Amwal El Arabia Holding Company                                  98.9%

 

Ahmed Khaled Moustafa El Bosaty                                   1.0%

 

Egyptian for Spinning and Weaving                                    0.1%

 

 

OPERATIONS

 

Activities: Engaged in the manufacture and distribution of clothing and textiles.

 

Import Countries: Europe and the Far East.

 

Export Countries: United States of America, South Korea, Japan, China, India, Italy, Turkey and South Africa.

 

Operating Trend: Steady

 

Subject has a workforce of approximately 220 employees.

FINANCIAL DATA

 

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

                                                Year Ending 30/06/13:              Year Ending 30/06/14:

 

Total Sales                                £E 589,000,000                         £E 314,000,000

 

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

 

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

 

 

BANKERS

 

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

 

National Bank of Egypt

177 Mostafa Kamel Street

Alexandria

Tel: (20-3) 5701930

 

 

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.63.64

UK Pound

1

Rs.98.98

Euro

1

Rs.77.74

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

TPT

 

 

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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