MIRA INFORM REPORT

 

 

Report Date :

21.06.2014

 

 

IDENTIFICATION DETAILS

 

Name :

MISR SONS DEVELOPMENT

 

 

Registered Office :

Yehia Zakaria Street, Industrial Zone, Lot 5, Heliopolis, P O Box 1620, Cairo 11361

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishment :

1991

 

 

Com. Reg. No.:

260411, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

·         Engaged as general building contractors and real estate development.

·         Subject works on projects ranging from heavy military industries to light food-processing facilities, water purification & waste water treatment projects, hotels, resorts, housing & admin buildings, energy projects, energy generating stations, telecommunication networks, electromechanical & electronic works & finishing works for buildings.

 

 

No of Employees :

7,000 (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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Egypt

B1

B1

 

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                                    : MISR SONS DEVELOPMENT

Also Known As                                     : HASSAN ALLAM CONSTRUCTION

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 1991

Commercial Registration Number           : 260411, Cairo

Tax Card Number                                  : 100-400-138

Issued Capital                                       : £E 38,100,000

Paid up Capital                                     : £E 38,100,000

Total Workforce                         : 7,000

Activities                                               : General building contractors and real estate development.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Mohamed Saad, Financial Manager

 

 

 


COMPANY NAME

 

MISR SONS DEVELOPMENT

 

 

ALSO KNOWN AS

 

HASSAN ALLAM CONSTRUCTION

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Yehia Zakaria Street

Area                 : Industrial Zone, Lot 5, Heliopolis

PO Box            : 1620

Town                : Cairo 11361

Country : Egypt

Telephone         : (20-2) 22660690 / 22666921 / 22666917 / 22666918 / 26785917

Facsimile          : (20-2) 22666920 / 22680198

Mobile              : (20-100) 3061206

Email                : msdallam@allamsons.com / mohamedsaad@allamsons.com

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       15 Saad Zaghloul Square                                                                  Office premises

Ramleh

Alexandria

Tel: (20-3) 4868377 / 4866728 / 4844705 / 4844706

Fax: (20-3) 4868377

 

·       15 Hassam Allam Street                                                                    Office premises

El Sabaa Emarat City

Heliopolis

Cairo

 

·       Abd El Rahman Ben El Hareth                                                           Office premises

Bowady

Jeddah

Saudi Arabia

Tel: (966-2) 6645812

Fax: (966-2) 6645769

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Alawi Hassan Allam                                                                          Chairman

 

·       Kamal Eddine Hassan Allam                                                             Managing Director

 

·       Salah Hassan Allam                                                                          Director

 

·       Essam Hassan Allam                                                                        Director

 

·       Majdi Hassan Allam                                                                          Director

 

·       Medhat Hassan Allam                                                                       Director

 

·       Samir Hassan Allam                                                                          Director

 

·       Amr Essam Hassan Allam                                                                 Chief Executive Officer

 

·       Mohamed Saad                                                                                Financial Manager

 

·       Essam Abd El Kader                                                                                    Accounts Manager

 

·       Ahmed Shawky                                                                                 Project Manager

 

·       Iman Yehia                                                                                       IT Manager

 

·       Assem Shawky                                                                                 Investor Relations Manager

 

·       Hossam Allam                                                                                  Investment & Development Manager

 

·       Mohamed Badr                                                                                 Purchasing Manager

 

·       Mohamed Gamal                                                                              Human Resources Manager

 

·       Ahmed El Kafoury                                                                            Business Development Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1991

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 260411, Cairo

 

Tax Card No.                : 100-400-138

 

Issued Capital              : £E 38,100,000

 

Paid up Capital            : £E 38,100,000

 

Name of Shareholder (s)                                            Percentage

 

·       Hassan Allam Holding                                               76.92%

Yehia Zakaria Street

Industrial Zone, Heliopolis

Cairo

Tel: (20-2) 22666917 / 22666920

Fax: (20-2) 22666917

 

·       Alawi Hassan Allam                                      ]

]

·       Kamal Eddine Hassan Allam                         ]

]

·       Majdi Hassan Allam                                      ]

]

·       Essam Hassan Allam                                    ]

]           23.08%

·       Samir Hassan Allam                                      ]

]

·       Medhat Hassan Allam                                   ]

]

·       Salah Hassan Allam                                      ]

]

·       Heirs of Fahmy Hassan Allam                       ]

 

 

AFFILIATED COMPANIES

 

·       Little Venice Resort

Egypt

 

·       Ascom for Financial Leasing

Egypt

 

·       Hassan Allam Sons

Saudi Arabia

 

·       Hassan Allam Sons

Algeria

 

·       Hassan Allam Sons

Libya

 

·       Palm Hills Developments

Egypt

 

 

OPERATIONS

 

Activities: Engaged as general building contractors and real estate development.

 

Subject works on projects ranging from heavy military industries to light food-processing facilities, water purification & waste water treatment projects, hotels, resorts, housing & admin buildings, energy projects, energy generating stations, telecommunication networks, electromechanical & electronic works & finishing works for buildings.

 

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

 

Operating Trend: Steady

 

Subject has a workforce of approximately 7,000 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 1,397,819,866                       £E 1,173,328,522

 

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

 

The above figures were provided by Mr. Mohamed Saad, Financial Manager

 

 

BANKERS

 

·       Commercial International Bank (CIB)

Nile Tower Building

21-23 Giza Street

PO Box: 2430

Cairo

Tel: (20-2) 25703043

Fax: (20-2) 25703172 / 25072691

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 33924175

     Fax: (20-2) 33924143

 

 

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.60.28

UK Pound

1

Rs.102.77

Euro

1

Rs.82.12

 

 

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.