MIRA INFORM REPORT

 

 

Report Date :

30.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SOCIETE EGYPTIENNE D’ENTREPRISES (SEDE)

 

 

Formerly Known as : 

EGYPTIAN CONTRACTING CO (MOUKHTAR IBRAHIM)

 

 

Registered Office :

199 Extension of 26 July Street, Agouza, Giza, P O Box 2263, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishments :

1936

 

 

Com. Reg. No.:

146775

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

General Construction and Electro Mechanical Contractors specialising in the following areas:-

 

·         Waste water disposal

·         Waste water treatment plants

·         Pump Stations

·         Pipelines

·         Pipe Networks

·         Portable Water projects

·         Potable Water Pipe Networks

·         Pipelines

·         Tanks

·         Purification plants

·         Petroleum refineries and tanks

·         Roads, bridges and land reclamation

·         Electric and power plants

·         Underground Cables and Overhead Transmission Lines

·         Housing

·         Tourist villages

 

 

No of Employees :

5,000 (Approximately)

 

 

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                                    : SOCIETE EGYPTIENNE D’ENTREPRISES (SEDE)

Previously Known As                             : EGYPTIAN CONTRACTING CO (MOUKHTAR IBRAHIM)

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Start Date                                             : 1936

Registration Date                                  : 18th February 1952

Commercial Registration Number           : 146775

Issued Capital                                       : £E 60,000,000

Paid up Capital                                     : £E 60,000,000

Total Workforce                                     : 5,000 (Approximately)

Activities                                               : General construction and electro mechanical contractors

Financial Condition                                : Good

Payments                                             : Regular

Operating Trend                                    : Steady

Person Interviewed                                : Magdy Makram, Finance Manager

 

COMPANY NAME

 

SOCIETE EGYPTIENNE D’ENTREPRISES (SEDE)

 

 

company ADDRESS

 

Registered & Physical Address

Street               : 199 Extension of 26 July Street

Area                 : Agouza, Giza

PO Box            : 2263

Town                : Cairo

Country             : Egypt

 

Telephone         : (20-2) 33471529 / 33471507 / 33471509

Facsimile          : (20-2) 33471521

Email                : mktr1000@moukhtar.com / contact@moukhtar.com

 

Premises

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

 

Branch Offices

 

     Location                                                                                          Description

 

·       8 Champollion Street                                                                        Office premises

Cairo

 

·       Ismailia Canal Street                                                                         Warehouse premises

Bahteem

Cairo

Tel: (20-2) 2200599

 

·       Block 247, Street No. 36                                                                   Workshop premises      

Second Industrial Area

6th of October City

Tel: (20-2) 8332827

 

·       El Wahat Road                                                                                 Office premises

6th of October City

Tel: (20-2) 8351870

 

·       Smouha Block                                                                                  Office premises

Alexandria

Tel: (20-3) 4296901

Fax: (20-3) 4276853

 

·       1 El Nadi El Reyadi Street                                                                 Office premises           

Tanta

Tel: (20-40) 3317689

 

·       Kaliubeya                                                                                         Office premises

Tel: (20-13) 2427710

 

·       El Bagour Center                                                                              Office premises

Menoufeya

Tel: (20-48) 3933385

Fax: (20-48) 3933435

 

·       Building No. 3                                                                                  Office premises

Street No. 1

Taqseem El Qodah

Kafr El Sheikh

Tel: (20-47) 322900

 

Subject also has branch offices located in Desouk, Balteem, Dakahleya, Damietta, Sharkeya, Menia Al Kamh, Al Qenayat, Mashtoul El Souk, Ismailia, Suez, Al Fayoum, Beni Suef, Menia, Assiut, Sohag, Aswan and the Red Sea Area.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Fayek Mohamed Ali El Bana                                                              Chairman

 

·       Ali Ibrahim Ahmed Abu Halawa                                                          Vice Chairman

 

·       Mohamed Hashem Mohamed Ibrahim Al Sheikh                                 Managing Director

 

·       Nagwa Ali Farghly                                                                             Director

 

·       Fathy Ali Ismael Al Yazby                                                                  Director

 

·       Ramdan Lotfy Ramdan Mohamed                                                     Director

 

·       Sohair Moussa Slama Beshay                                                           Director

 

·       Mohamed Salah Ismael Al Shamy                                                      Director

 

·       Mohamed Tawfik Ali Mahmoud                                                          Director

 

·       Kamal Mustafa Saad Al Ashry                                                           Director

 

·       Abdullah Abbas Mohamed Al Gendy                                                 Director

 

·       Sabry Cerlous Gendy                                                                        Director

 

·       Abdel Menaem Al Morsy Hussin                                                        Director

 

·       Nabil Mohamed Tawfik                                                                      Director

 

·       Mounir Ali Mohamed Al Ghanam                                                        Director

 

·       Nabawiya Jamal Eddine                                                                    Project Manager

 

·       Sayed Khattab                                                                                 Purchasing Manager

 

·       Safa Nassar                                                                                     Procurement Manager

 

·       Magdy Makram                                                                                 Finance Manager

 

·       Ali Ibrahim Ahmed Abu Halawa                                                          Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject’s operations date back to 1936, however it was incorporated by Royal decree on 18th February 1952.

 

History                         : The Commission under securities meeting held on 20/06/2013 to approve the following.

First: cancellation of the Shares of the company / Egyptian Contracting - Mokhtar Ibrahim write-off optionally with a capital of 60 million pounds source distributed over 12 million shares with a nominal value of 5 pounds per share (representative in eight versions) of the Stock Exchange.

 

  According to Article 35 of the rules of registration of securities and the write-off, its

  amendments and established them as of the date 08/01/2002.

 

Second, the company's shares are deleted from the database and data exchange traded OTC from the beginning of the trading session on 23/06/2013 market deals with the   definition of MCDR.

 

The company commits to purchase shares of the shareholders who were unable to sell their shares during the period of the tender offer and even the decision to cancel the registration committee under the company's shares from the Stock Exchange at a price of 84.42 pounds during the six months from the date of issuance of the Commission's decision referred to the  period.

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 146775

 

Issued Capital              : £E 60,000,000

 

Paid up Capital            : £E 60,000,000

 

Name of Shareholder (s)                                                                               Percentage

 

·       National Construction & Development Holding Co (NCCD)                              100%

Commercial Centre Building

Heliopolis

Cairo

Tel: (20-2) 22662973 / 22662971 / 22666130

Fax: (20-2) 22663160

 

 

AFFILIATED COMPANIES

 

·       Heliopolis Co for Housing and Development

 

·       The Arab Bureau for Design & Technical Consultation

 

·       Egyptian Dredging

 

·       Egyptian Irrigation & Drainage

 

·       General Mechanical Excavation

 

·       Omar Effendi

 

·       Arab Foreign Trade Company

 

·       United For Trade

 

·       Nile Cotton Ginning

 

·       Nasr General Contracting

 

·       El Abd the Egyptian Contracting Co

 

·       El Nasr Building and Construction Co

 

·       Misr Concrete Development Co

 

·       Atlas General Contracting and Real Estate Investments Air Conditioning & Elevators Works Co

 

·       General Construction Co

 

·       The General Egyptian Co for Buildings

 

·       Arabic Co for Foundations Vibro

 

·       Cairo Contracting Co

 

·       El Nasr Co for Housing and Development

 

·       Maadi Co for Development and Reconstruction

 

·       High Dam Electrical and Industrial Projects Co Hideleco

 

·       General Company for Electrical Projects Eleject

 

·       Ramsis For Agriculture Projects Management

 

 

OPERATIONS

 

Activities: General construction and electro mechanical contractors specialising in the following areas:

 

-  Waste water disposal

-  Waste water treatment plants

-  Pump Stations

-  Pipelines

-  Pipe Networks

-  Portable Water projects

-  Potable Water Pipe Networks

-  Pipelines

-  Tanks

-  Purification plants

-  Petroleum refineries and tanks

-  Roads, bridges and land reclamation

-  Electric and power plants

-  Underground Cables and Overhead Transmission Lines

-  Housing

-  Tourist villages

 

                 Subject is ISO 9001:2000, ISO 9002:1994 and ISO 14001:2001 accredited.

 

Import Countries: Germany, Turkey and the United States of America.

 

Suppliers:

 

·       Ezz Steel                                                      Egypt

·       Delta Steel                                                   Egypt

·       El Zohoor For Metal Industries                      Egypt

·       Future Pipe Industries                                   Egypt

·       Hakim Plast                                                  Egypt

·       Itashy                                                           Belgium

·       Noxel                                                           Turkey

Clients:

 

·       Shoubra Al Khaimah Station

·       El Zahir villages project in Upper Egypt

·       Public Irrigation Network for ports 6&20-El Sheikh Gaber El Sabah canal

·       Construction of a water pumping station Qidfa new Fujairah

·       Generation 3 line of dam water carrier and narrow valley farms to the state of Kiryat tank in Oman

 

Operating Trend: Steady

 

Subject has a workforce of approximately 5,000 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 Revenue                           £E 1,050,000,000                       £E 1,200,000,000

 

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

 

The above figures were provided by Mr Magdy Makram, Finance Manager

 

 

BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

·       Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 33904554

Fax: (20-2) 33908992

 

·       Misr International Bank (MIBANK)

14 Alfy Street

     PO Box: 631

     Cairo

     Tel: (20-2) 25931002

     Fax: (20-2) 25912306

 

·       HSBC Bank Egypt

128 El Nil Street

Agouza, Giza

Cairo

Tel: (20-2) 37618126

 

 

PAYMENT HISTORY

 

Regular

 

 

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.63.65

UK Pound

1

Rs.99.14

Euro

1

Rs.77.60

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

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.