MIRA INFORM REPORT

 

 

Report Date :

28.03.2014

 

IDENTIFICATION DETAILS

 

Name :

OBOUR METALLURGICAL INDUSTRIES

 

 

Registered Office :

Cairo - Ismailia Road, Obour City Industrial Zone, Plot No.5, 6, 8 & 9, Block 13035, Cairo 11771

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2013

 

 

Year of Establishments:

1997

 

 

Com. Reg. No.:

302939, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Subject operates a steel galvanizing mill, specialising in the manufacturing, colouring and exporter of galvanized steel.

 

 

No. of Employees

630

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Egypt

B1

B1

 

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 GDP growth. Despite the relatively high levels of economic growth in recent years, living conditions for the average Egyptian remained poor and contributed 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, and economic growth is likely to remain slow during the next several years. The government drew down foreign exchange reserves by more than 50% in 2011 and 2012 to support the Egyptian pound and the dearth of foreign financial assistance - as a result of unsuccessful negotiations with the International Monetary Fund over a multi-billion dollar loan agreement which have dragged on more than 20 months - could precipitate fiscal and balance of payments crises in 2013.

 

Source : CIA

 

 

SUMMARY

 

Company Name                                    : OBOUR METALLURGICAL INDUSTRIES

Doing Business As                                : GALVA METAL

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 1997

Commercial Registration Number           : 302939, Cairo

Tax Card Number                                  : 324-951-027

Issued Capital                                       : £E 292,026,800

Paid up Capital                                     : £E 292,026,800

Total Workforce                         : 630

Activities                                               : Subject operates a steel galvanizing mill

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

 


COMPANY NAME

 

OBOUR METALLURGICAL INDUSTRIES

 

 

DOING BUSINESS AS

 

GALVA METAL

 

 

company ADDRESS

 

Registered & Physical Address

Street               : Cairo - Ismailia Road

Area                 : Obour City Industrial Zone, Plot No.5, 6, 8 & 9, Block 13035

Town                : Cairo 11771

Country : Egypt

 

Telephone         : (20-2) 46100101/2/3/4

Facsimile          : (20-2) 46100105/7/8 / 46102626

Email                : galvametal@galvametal.com.eg

 

Premises

Subject operates from a large suite of offices and a galvanizing mill that are owned and located in the Industrial Area of Cairo.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Khalil Mohie El Din Khalil Kandil                                                        Chairman

 

·       Amr Mohie El Din Khalil Kandil                                                          Vice Chairman

 

·       Mohamed Ahmed Thabet                                                                  Managing Director

 

·       Dr Mohamed Motwaa                                                                        Finance Manager

 

·       Dr Mahmoud Nour El Din                                                                  Factory Manager

 

·       Mohamed Ghonem                                                                           Sales Manager

 

·       Lotfy Deraz                                                                                      Administration Manager

 

·       Fouad El Rashedy                                                                            Export Manager

 

·       Osama Moustafa Rabaa                                                                   Import Manager

 

·       Ossama Zakaria                                                                                Accounts Manager

 

·       Hussein Zenhoum                                                                             Production Manager

 

·       Ahmed Abd El Safei                                                                         Purchasing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1997

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 302939, Cairo

 

Tax Card No.                : 324-951-027

 

Authorised Capital       : £E 475,000,000

 

Issued Capital              : £E 292,026,800

 

Paid up Capital            : £E 292,026,800

 

Name of Shareholder (s)                                               Percentage

·       Flat Steel International                                                  51.05%

·       ICM (Australia)                                                             34.40%

·       Kama Metal Working & Casting                                    13.39%

·       Egyptian businessmen & private investors                      1.16%

 

 

AFFILIATED COMPANIES

 

·       36 El Sabtia Street

Cairo

Tel: (20-2) 26100122 / 26100123 / 25785255

Fax: (20-2) 26100105 / 26100108 / 26100107

 

 

OPERATIONS

 

Activities: Subject operates a steel galvanizing mill, specialising in the manufacture, colouring and export of

     galvanized steel.

 

                 Subject is ISO 9001 & ISO 14001 certified.

 

Production Capacity: 330,000 tonnes per annum

 

Import Countries: Russia, South Korea, South Africa, Saudi Arabia, Vietnam, China, India, Ukraine, Libya, Spain and Italy

 

Export Countries: Spain, Germany, France, Lebanon, Syria, Jordan, Libya, Saudi Arabia, South Africa, United States of America and Morocco

 

Subject has a workforce of approximately 630 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 706,812,341                         £E 740,858,920

 

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

 

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

 

 

BANKERS

 

·       Egyptian Gulf Bank

El Orman Plaza Building

8-10 Ahmed Nessim Street

PO Box: 56

Cairo

Tel: (20-2) 3606580 / 3606467

Fax: (20-2) 3420265 / 3606512

 

·       The Nile Bank

35, Ramses Street

     Abdel Moneim Riyad Square

     Cairo

     Tel: (20-2) 5743502 / 5741417

     Fax: (20-2) 5756296

 

·       Societe Arabe Internationale de Banque

PO Box: 124

Cairo

Tel: (20-2) 3499464 / 3603489

Fax: (20-2) 3603497 / 3603487

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Obour Metallurgical Industries was established in 1997 and enjoys a good reputation for the quality of its products. The company is run in a professional manner and is engaged in the manufacture, colouring and export of galvanized steel.

 

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.60.13

UK Pound

1

Rs.99.65

Euro

1

Rs.82.91

                

INFORMATION DETAILS

 

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.