MIRA INFORM REPORT

 

 

Report Date :

29.05.2014

 

IDENTIFICATION DETAILS

 

Name :

ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

 

 

Registered Office :

Oriental Weavers Building, 8 Zakaria Khalil Street, Heliopolis, PO Box : 2489, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

16.11.1981

 

 

Com. Reg. No.:

44139, Cairo

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Subject is engaged in the manufacture of tapestries, carpets, rugs and mats.

 

 

No. of Employees :

3,500

 

 

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

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                                     : ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 16th November 1981

Commercial Registration Number            : 44139, Cairo

Issued Capital                                        : £E 450,000,000

Paid up Capital                                      : £E 450,000,000

Total Workforce                                     : 3,500

Activities                                               : Manufacturers of tapestries, carpets, rugs and mats.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 


COMPANY NAME

 

ORIENTAL WEAVERS COMPANY FOR CARPETS SAE

 

 

company ADDRESS

 

Registered & Physical Address

 

Building             : Oriental Weavers Building

Street               : 8 Zakaria Khalil Street

Area                 : Heliopolis

PO Box             : 2489

Town                 : Cairo

Country             : Egypt

 

Telephone         : (20-2) 22672121 / 22678226 / 22678225

Facsimile          : (20-2) 22672241 / 22678240 / 22672242

Email                : info@orientalweavers.com

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                              Description

 

El Horreya Street                                                                                   Owned factory premises

Industrial Zone B1, Area No. VII

Sharkeya

PO Box: 128

Tenth of Ramadan City

Tel: (20-15) 366666

Fax: (20-15) 364498

 

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Mohamed Farid Fouad Khamis                                                                Chairman

 

Mahmoud Fawzy Fouad Khamis                                                             Vice Chairman

 

Mohamed Katary Abd Allah                                                                    Director

 

Mahmoud Rada Abdel Baki                                                                     Director

 

Yasmine Mohamed Farid Khamis                                                            Director

 

Farida Mohamed Farid Khamis                                                                Director

 

Kamal Ali Mahmoud Al Raei                                                                   Director

 

Abdel Hamid Fayad                                                                                Director

 

Mohamed Mahmoud Fawzy Khamis                                                        Director

 

Amr Mahmoud Fawzy Khamis                                                                Director

 

Mahmoud Amin Saad                                                                             Director

 

Mohamed Mohamed Ali Amer                                                                 Director

 

Mohamed Mohamed Farid Khamis                                                          Director

 

Maha Bint Ahmed Bin Hassan Feteihy                                                     Director

 

Salah Abdel Aziz Abdel Motalab                                                             Chief Executive Officer

 

Moustafa Hanafi                                                                         Administration Manager

 

Mohamed Hosni Amer                                                                            Finance Manager

 

Mohamed Katary                                                                                   Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  :           16th November 1981

 

Legal Form      :                       Egyptian Joint Stock Company

 

Commercial Reg. No.  :           44139, Cairo

 

Issued Capital              :           £E 450,000,000

 

Paid up Capital            :           £E 450,000,000

 

Name of Shareholder (s)                                    Percentage

 

Mohamed Farid Fouad Khamis                               62.68%

 

Modern Carpet                                                      19.18%

Industrial Zone B1, Block No. VII

Osman Ibn Afan Street

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 366666

Fax: (20-15) 364498

 

Mahmoud Fawzy Fouad Khamis                              4.90%

 

Egyptian businessmen and private investors             13.24%

 

 

AFFILIATED COMPANIES

 

Name                                                                                                               Percentage Held

 

Oriental Weavers Co                                                                                          100%

United States of America

 

Oriental Weavers International Co                                                                        99.99%

 

Rosetex Modern Factories for Spinning & Weaving Co                                          99.99%

 

Oriental Weavers Co                                                                                          99.65%

China

 

Oriental Weavers Company Fibers Co                                                                  99.00%

 

Egyptian Fibers Co                                                                                            79.60%

 

Modern EFCO                                                                                                   57.57%

 

MAC Carpet Mills                                                                                               53.08%

 

New Mac                                                                                                           52.02%

 

Misr American Carpets Mills (MAC)                                                                         -

28 Sherif Street

PO Box: 3163

Cairo

Tel: (20-2) 33928380 / 33938864

Fax: (20-2) 33931217

Email: intlmktg@maccarpet.com

 

Oriental Weavers Fibres                                                                             -

Osman Moharam Street

First Industrial Zone A1

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 410167 / 410168 / 410169

Fax: (20-15) 410166

 

Oriental Weavers for Urban Development                                                      -

Oriental Weavers Building

Airport Area, Heliopolis

Cairo

Tel: (20-2) 22671716 / 22671718 / 22675351

Fax: (20-2) 22672248

 

Safa Industries Group                                                                                 -

Industrial Zone B1

El Horreya Street

Sharkeya

PO Box: 69, El Asher

Tenth of Ramadan City

Tel: (20-15) 361969

Fax: (20-15) 363069

 

Egyptian Fibres EFCO                                                                              -

1st Industrial Zone A1, Area No. IIA

Osman Moharam Street

Sharkeya

PO Box: 188, El Asher

Tenth of Ramadan City

Tel: (20-15) 362287 / 362288

Fax: (20-15) 362286

 

Tenth of Ramadan Spinning Industries SAE                                                              -

Industrial Zone A1, Area No. 3/3

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 363748

Fax: (20-15) 363746

 

Oriental International Trade                                                                                     -

El Horreya Street

Industrial Zone B1, Area IXB

Sharkeya

Tenth of Ramadan City

Tel: (20-15) 364703

Fax: (20-15) 364703

 

Seta Egypt SAE                                                                                                   -

2 El Bustan Street

Square 1112, Heliopolis

Cairo

Tel: (20-2) 22679122 / 22679133

Fax: (20-2) 22679144

Email: hq@setaegypt.com

OPERATIONS

 

Activities:                     Engaged in the manufacture of tapestries, carpets, rugs and mats.

 

Production Capacity:   113 million square metres

 

Import Countries:         Germany, Italy and France.

 

Export Countries:         Europe, the United States of America and the Far East

 

Brand Names:              ORIENTAL WEAVERS, LA BOUTIQUE, GOBELIN and LIFE STYLE

           

Operating Trend:         Steady

 

Subject has a workforce of approximately 3,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

Consolidated Balance Sheet                                          31/12/12                          31/12/11

 

Long Term Assets

Fixed assets(net)                                                           1 752 675 173                1 660 251 015

Projects in progress                                                       501 185 514                  625 807 357

Available for sale investments                                          102 706 751                  102 706 751

Goodwill                                                                        696 835 970                  696 835 970

Total Long-term assets                                                   3 053 403 408                3 085 601 093

Current Assets

Inventory                                                                       1 590 235 579                1 813 592 469

Trades & notes receivable                                               921 783 464                  896 616 764

Debitors and other debit accounts                                   219 703 588                  202 416 177

Cash & Cash equivalent                                      230 724 378                  265 378 437

Total current assets                                                       2 962 447 009                3 178 003 847

Current Liabilities

Provisions                                                                     26 116 289                    75 518 138

Banks-Credit accounts                                                   1 600 703 210                1 618 183 358

Long term liabilities-Current portions                                119 629 981                  234 928 473

Suppliers & notes payable                                              621 710 127                  693 881 937

Dividends payable                                                          2 659 852                      2 759 439

Creditors & other credit accounts                                    157 732 905                  145 217 224

Total Current liabilities                                                    2 528 552 364                2 770 488 569

Working Capital                                                             433 894 645                  407 515 278

Total Investment to be Financed as follows:                      3 487 298 053                3 493 116 371

Shareholders' equity

Issued and paid up capital                                              450 000 000                  450 000 000

Reserves                                                                       1 446 181 812                1 437 552 208

Unrealized gain from available for sale investments            451 625                         451 625

Retained earnings                                                          585 192 036                  556 679 253

Net profit for the year                                                      272 761 511                  243 025 559

Exchange differences arising on translation of

financial statements                                                       260 885 756                  199 732 870

Treasury stocks                                                             (14 596 505)                  (14 596 505)

Total equity attributable to equity holders of the parent      3 000 876 235                2 872 845 010

Minority interest                                                             211 939 190                  227 506 668

Shareholder's equity                                                       3 212 815 425                3 100 351 678

Long-term liabilities

Long term loans                                                             267 367 639                  389 597 585

Deferred sales taxes instalments                                     -                                   88 160

Housing and Development Bank loan                               498 754                         557 845

Creditors-Purchase of fixed assets                                  259 092                         388 638

Deferred tax liabilities                                                     6 357 143                      2 132 465

Total long term liabilities                                                 274 482 628                  392 764 693

Total shareholder's equity & long term liabilities                3 487 298 053                3 493 116 371

Deferred tax liabilities                                                     2 132 465                      -

Total long term liabilities                                                 392 764 693                  586 562 529

Total shareholder’s equity & long term liabilities                3 493 113 371                3 579 803 118

 

Consolidated Income Statement

 

Net sales                                                                      4 894 970 047                4 608 942 531

Less:

Cost of sales                                                                 4 431 083 586                4 252 986 620

Gross profit                                                                   463 886 461                  355 955 911

Less:

Distribution expenses                                                     38 544 432                    36 262 376

General & Administrative expenses                                 100 948 883                  86 108 866

Formatted provisions & Impairment                                  5 500 000                      -

144 993 315                  122 371 242

Net income from operation activities                                 318 893 146                  233 584 669

Add/(Less):

Investment income                                                         677 500                         -

Interest Income                                                              6 186 918                      12 857 357

Other revenues                                                              165 472 468                  156 739 064

Capital Gain                                                                  6 385 007                      218 386

Financing expenses                                                       (161 719 048)                (87 597 070)

Foreign exchange differences                                          (10 039 109)                  (18 919 134)

6 963 736                      63 298 603

Net profit for the year before income tax                           325 856 882                  296 883 272

Add/(Less):

Current income tax                                                         (35 614 417)                  (32 636 217)

Deferred tax                                                                   (5 148 867)                    (3 528 677)

Income tax for the year                                                   (40 763 284)                  (36 164 894)

Net profit for the year after income tax                              285 093 598                  260 718 378

 

Please note that 2013 figures are not available.

 

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

 

 

BANKERS

 

National Bank of Egypt

24 Sherif Street

Cairo

Tel: (20-2) 33924175

Fax: (20-2) 33924143

 

Suez Canal Bank

PO Box: 2620

Cairo

Tel: (20-2) 25769296

Fax: (20-2) 25322064

 

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

 

Egyptian Gulf Bank

El Orman Plaza Building

8-10 Ahmed Nessim Street

PO Box: 56

Cairo

Tel: (20-2) 33606580 / 33606467

Fax: (20-2) 33420265 / 33606512

Swift Code: EGGBEGCABLS

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                  November 2002            May 2006                      November 2008

Credit amount                            11,000                          100,000                         100,000

Amount overdue                         0                                  0                                  0

Payment terms                          60 days                         60 days                         60 days

Payment Method                       Letters of Credit             Letters of Credit             Letters of Credit

Paying record                            No Complaints               No Complaints               No Complaints

Currency                                   Euros                            US Dollars                     US Dollars

 

GENERAL COMMENTS

 

Oriental Weavers Company For Carpets SAE is very well established in the local market with operations dating back to 1981.

 

Subject is a member of the Oriental Weavers Group, Egypt’s largest producer of machine woven carpets with an 80% share of the local market. It also has a 25% share of the US market, where it distributes through its subsidiary Oriental Weavers USA.

 

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.59.07

UK Pound

1

Rs.99.20

Euro

1

Rs.80.53

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.