MIRA INFORM REPORT

 

 

Report Date :

19.05.2014

 

IDENTIFICATION DETAILS

 

Name :

DABUR EGYPT LTD

 

 

Registered Office :

2 Saudi Buildings, El Nozha Street, Heliopolis Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

12.06.1996

 

 

Com. Reg. No.:

245

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in the manufacture of cosmetics, hair and skin care products.

 

 

No. of Employees

100

 

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 – 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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  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                                     : DABUR EGYPT LTD

Country of Origin                                    : Egypt

Legal Form                                            : Limited Liability Company

Registration Date                                   : 12th June 1996

Commercial Registration Number            : 245

Issued Capital                                        : £E 1,804,180

Paid up Capital                                      : £E 1,804,180

Total Workforce                                     : 100

Activities                                               : Manufacturers of cosmetics, hair and skin care products.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 


COMPANY NAME

 

DABUR EGYPT LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : 2 Saudi Buildings

Street               : El Nozha Street

Area                 : Heliopolis

 

Town                 : Cairo

Country             : Egypt

 

Telephone         : (20-2) 22901739 / 22900264

Facsimile          : (20-2) 22901739

Mobile               : (20-12) 3903188

 

Premises

 

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

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       B4 Industrial Zone, Block 5                                                                Factory premises

Sharkeya

     10th of Ramadan City

     Tel: (20-15) 361911 / 361829 / 380135

     Fax: (20-15) 366756

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Anoob Sharma                                                                                  Chairman

 

·       Vishal Bhimani                                                                                  Finance Manager

 

·       Hebatallah Hesham Anas                                                                   Office Manager

 

·       Mohamed Ezzat                                                                                Purchasing Manager

 

·       Ibrahim Safwat                                                                                  Production Manager

 

·       Enjan Das                                                                                        Factory Manager

 

·       Gaser Sherin                                                                                    Sales Manager

 

·       Moheb Kaisar                                                                                   Marketing Manager

 

·       Mahmoud Abu Fasha                                                                        Human Resources Manager

 

·       Mohamed Safwat                                                                              Project Manager

 

·       Heba Hazem                                                                         Office Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 12th June 1996

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.  : 245

 

Issued Capital              : £E 1,804,180

 

Paid up Capital            : £E 1,804,180

 

Name of Shareholder (s)                                             Percentage

 

·       Dabur India Ltd                                                                      100%

Kaushambi
Ghaziabad 201010
Uttar Pradesh

India

Tel: (91-120) 3982000

Fax: (91-120) 3001000

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of cosmetics, hair and skin care products.

 

Import Countries: India

 

Export Countries: Sudan, Morocco, Libya, Jordan, Syria and Kenya

 

Brand Names: DABUR, VATIKA and AMLA

 

Operating Trend: Steady

 

Subject has a workforce of 100 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

Balance Sheet                                                             31/03/2013                    31/03/2012        31/03/2011

 

Non-current assets

Fixed assets (net)                                                          95,055,611                    53,033,880        17,333,196

Projects in Progress                                                       635,020                         22,435,276        14,454,343

Total non-current assets                                              95,690,631                    75,469,156        31,787,539

 

Current Assets

Inventory and goods transit                                             30,367,716                    23,202,059        20,477,398

Accounts and notes receivables                                      36,584,927                    27,598,234        20,389,875

Prepaid expenses and other debit balances                        7,375,749                    6,368,048          5,194,413

Due from intercompany                                                          38,188                   0                                  0

Investment                                                                                 500                    0                                500

Treasury bonds                                                                8,824,819                     0                       5,865,000

Advance payment                                                            3,899,419                    4,813,779          3,571,957

Cash in hand & cash at bank                                               374,280                    258,514 6,294,205

Total current assets                                                     87,465,598                    62,240,634        61,793,348

 

Current Liabilities

Provisions                                                                       7,360,451                    6,237,389          5,736,350

Bank overdraft                                                                  3,564,753                    8,173,367          2,275,776

Trade payable                                                                  9,448,494                    7,022,304          6,608,563

Creditors & other credit balances                                     36.890.095                    25,709,228        20,192,261

Due to intercompany                                                        4,578,856                    2,625,997          4,247,043

Total current liabilities                                                61,842,649                    49,768,285        39,059,993

Working Capital                                                           25,622,949                    12,472,349        22,733,355

Total owner’s equity & employed capital                    87,941,505                    54,520,894

Shareholder’s Equity

Paid up capital                                                                 1,804,180                    1,804,180          1,804,180

Legal reserve                                                                      494,274                    494,274             494,274

Retained earnings                                                         104,718,675                   76,749,386        51,218,337

Total Liabilities and shareholder’s equity                  107,017,129                   79,047,840        53,516,791

Long term liabilities (IDA, land)                                          9,867,084                    7,538,919          563,750

Deferred tax                                                                     4,429,367                    1,354,746          440,353

Total Liabilities and shareholder’s equity                  121,313,580                   87,941,505        54,520,894

 

Income Statement                                                       31/03/2013                    31/03/2012        31/03/2011

 

Sales (net)                                                                    219,436,144                  183,443,463           136,021,336

Cost of goods sold                                                         (120,762,161)                (103,362,780)        (69,492,580)

Selling and marketing expenses                                      (37,879,959)                 (30,567,372)           (26,456,569)

Gross profit                                                                    60,794,024                  49,513,311               40,072,187

 

Less:

General and administrative expenses                               (19,798,693)                 (16,463,814)           (13,566,735)

Depreciation & amortization                                                  (486,894)                 (421,790)                     (254,810)

Operating profit                                                              40,508,437                 32,627,707               26,250,642

 

Less:

Interest on cash credit                                                           (2,210,980)                 (454,639)       (74,079)

Capital loss (sales assets)                                                        (187,761)                 (3,383)          (38,346)

Provisions for leave encashment                                          (505,423)                       (502,828)       (318,094)

Provisions for slow non-moving stock                                            90,000                  -                          (365,318)

Difference in currency exchange                                                  132,777                 (133,571)       (26,224)

 

Add:

Capital gain (sale assets)                                                                     -                 -                                -

Unused provision                                                                                  -                 847,730                     -

Other income                                                                            865,987                  982,760         1,952,314

Net profit for the period before income tax                       38,521,037                  31,983,644    28,228,625

 

Less:

Provisions for income tax                                                        7,336,627                  5,403,000      5,402,000

Deferred income tax                                                               3,074,621                  914,393         226,137

Net profit for the period after tax                                       28,109,789                  25,666,251    22,600,488

 

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

 

 

BANKERS

 

·       Banque du Caire Barclays Internationale SAE

12 Midan El Sheikh Youssef Street

Garden City

PO Box: 110, Maglis El Shaab

Cairo

Tel: (20-2) 33542195 / 33549415 / 33549422

Fax: (20-2) 33552746

 

·       HSBC Bank Egypt

Maadi

     Cairo

     Tel: (20-2) 25298000

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              February 2011

Credit amount                                        100,000

Amount overdue                                     0

Payment terms                                      60 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               US Dollars

 

 

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.58.86

UK Pound

1

Rs.98.82

Euro

1

Rs.80.71

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

PDT

 

               

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.