MIRA INFORM REPORT

Report Date :

14.11.2014

IDENTIFICATION DETAILS

Name :	EL KARNAK IMPORT EXPORT & AGENCIES

Registered Office :	43 El Kolaly Street, El Sabtiya Area, Cairo

Country :	Egypt

Financials (as on) :	31.12.2012

Date of Incorporation :	1976

Com. Reg. No.:	216662

Legal Form :	Sole Proprietorship

Line of Business :	Engaged in the import and distribution of agricultural machinery and presses, as well as irrigation equipment.

No of Employees :	15

RATING & COMMENTS

MIRA’s Rating :

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Egypt

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 : EL KARNAK IMPORT EXPORT & AGENCIES

Country of Origin : Egypt

Legal Form : Sole Proprietorship

Registration Date : 1976

Commercial Registration Number : 216662, Cairo

Invested Capital : £E 100,000

Total Workforce : 15

Activities : Distributors of agricultural machinery and presses, as well as irrigation

equipment.

Financial Condition : Fair

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

EL KARNAK IMPORT EXPORT & AGENCIES

ADDRESS

Registered & Physical Address

Street : 43 El Kolaly Street

Area : El Sabtiya Area

Town : Cairo

Country : Egypt

Telephone : (20-2) 25752436 / 25752446

Facsimile : (20-2) 25766256

Mobile : (20-12) 2123895 / (20-100) 99558463

Email : elkarnak@starnet.com / el.karnak@hotmail.com

Please note that the correct spelling is El Sabtiya Area and not El Sahteya Area.

Premises

Subject operates from a small suite of offices and a warehouse that are rented and located in the Suburban Business Area of Cairo.

KEY PRINCIPALS

Name Position

Ibrahim Samaan Guirguis Proprietor

Emad Ibrahim Samaan Guirguis General Manager

LEGAL FORM & OWNERS

Date of Establishment : 1976

Legal Form : Sole Proprietorship

Commercial Reg. No. : 216662, Cairo

Invested Capital : £E 100,000

Mr Ibrahim Samaan Guirguis is the sole proprietor of the business.

OPERATIONS

Activities: Engaged in the import and distribution of agricultural machinery and presses, as well as irrigation equipment.

Subject is an authorized dealer on behalf of the local Helwan Company for diesel engines.

Import Countries: India, Italy and Turkey

International Suppliers:

Usha International India

Mico India

Usha Shree Ram Piston India

Operating Trend: Steady

Subject has a workforce of 15 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Egyptian Pound (£E)

Year Ending 31/12/12: Year Ending 31/12/13:

Total Sales £E 52,000,000 £E 52,800,000

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

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

BANKERS

Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 33904554

Fax: (20-2) 33908992

Banque Misr

151 Mohamed Farid Street

Cairo

Tel: (20-2) 33912711 / 33912106

Fax: (20-2) 33919779

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction November 2004 September 2008

Credit amount 50,000 100,000

Amount overdue 0 0

Payment terms 60 days 60 days

Payment Method Letters of Credit Letters of Credit

Paying record No Complaints No Complaints

Currency US Dollars US Dollars

GENERAL COMMENTS

Please note that the correct spelling of the subject’s name is El Karnak Import Export & Agencies and not El Kar Nk Co For Import & Export.

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 business is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.56
UK Pound	1	Rs.97.10
Euro	1	Rs.76.61

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	TPT

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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