MIRA INFORM REPORT
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Report No. : |
316875 |
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Report Date : |
15.04.2015 |
IDENTIFICATION DETAILS
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Name : |
EL SEWEDY
ELECTRIC SAE |
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|
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Formerly Known As : |
EL SEWEDY CABLES
CO SAE |
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Registered Office : |
Plot No. 27, 1st District, 5th Complex, New Cairo, El Gedida 311 Cairo |
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Country : |
Egypt |
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Financial As on : |
31.12.2014 |
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Date of Incorporation : |
01.06.2005 |
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Com. Reg. No.: |
14584, Cairo |
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Legal Form : |
Egyptian Joint
Stock Company |
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Line of Business : |
Engaged
in the manufacture and distribution of electric cables and copper rods. |
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No. of Employee : |
10,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Egypt |
B2 |
B2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 pursued
business climate reforms to attract foreign investment and facilitate growth.
Poor living conditions and limited job opportunities for the average Egyptian
contribute to public discontent, a major factor leading to the January 2011
revolution that ousted Mubarak. The uncertain political, security, and policy
environment since 2011 caused economic growth to slow significantly, hurting
tourism, manufacturing, and other sectors and pushing up unemployment. Weak
growth and limited FOREIGN EXCHANGE
earnings
have made public finances unsustainable, leaving authorities dependent on
expensive borrowing for deficit finance and on Gulf allies to help cover the
import bill.
|
Source
: CIA |
SUMMARY
Company Name : EL SEWEDY
ELECTRIC SAE
Country of Origin : Egypt
Legal Form :
Egyptian Joint Stock Company
Start Date : 1938
Registration Date : 1st
June 2005
Commercial
Registration Number : 14584,
Cairo
Tax Card Number : 613-540-859
Authorised Capital : £E
5,000,000,000
Issued Capital : £E
2,234,180,000
Paid up Capital : £E
2,234,180,000
Total Workforce :
10,000
Activities :
Manufacture and distribution of electric cables and
copper rods.
Financial Condition : Good
Payments :
Nothing detrimental uncovered
Operating Trend : Steady
Person Interviewed : Mostafa Reda, Chief Accountant
COMPANY
NAME
EL SEWEDY ELECTRIC SAE
Previously
Known As
EL SEWEDY CABLES CO SAE
ADDRESS
Registered & Physical
Address
Location : Plot No. 27, 1st
District, 5th Complex, New Cairo, El Gedida
PO Box : 311
Town : Cairo
Country : Egypt
Telephone : (20-2) 27599700 / 27599701
Facsimile : (20-2) 27599769 / 27599731 /
27599726 / 25799739
Mobile : (20-100) 7232292
Email : info@elsewedy.com / acc@elsewedy.com / info@elsewedyelectric.com
Please note that
subject’s previous address was, 14 Baghdad Street, El Korba, Heliopolis, Cairo.
Premises
Subject operates from
a medium sized suite of offices and a factory that are owned and located in the
Industrial Area of Cairo.
Branch Office
(s)
Location Description
·
68 El
Tayaran Street Office
premises
Nasr City
Cairo
Tel: (20-2) 24010119 / 226907511
Fax: (20-2) 22618908 / 226907512
·
3rd
Industrial Zone Factory
premises
10th of Ramadan City
Tel: (20-15) 411218
Fax: (20-15) 411215
KEY
PRINCIPALS
Name Position
·
Eng.
Sadek Ahmed Sadek El Sewedy Chairman
·
Ahmed Ahmed Sadek El Sewedy Managing Director
·
Mohamed Ahmed Sadek El Sewedy Director
·
Hassan
Abd El Salam Director
·
Amr
Labib Director
·
Hesham
El Khezendar Director
·
Yaser
El Gamaly Director
·
KPMG
Hazem Hassan Director
·
Wael
Khalil Financial
Manager
·
Hazem
El Haddad Chief
Executive Officer
·
Tarek
Yehia El Kheiashy Investor
Relations Manager
·
Bahaa
Abdallah Accounts
Manager
·
Sherif Bassiouny Sales
Manager
·
Mohamed Ragab Purchasing
Manager
·
Ayman
Saleh Export
Manager
·
Hassan
Abd El Salam Production
Manager
·
Essam
Mattrawy Quality
Manager
·
Ahmed
Hassouna Marketing
Manager
·
Amr
Sadek Human
Resources Manager
·
Mostafa Reda Chief
Accountant
LEGAL
FORM & OWNERS
Date of Establishment : 1938, however
subject was registered on 1st June 2005
History : Subject changed its name from “El Sewedy
Cables Co SAE” to “El Sewedy Electric SAE” on
27th April 2012.
Legal Form :
Egyptian Joint Stock
Company
Commercial
Reg. No. : 14584, Cairo
Tax
Card No. : 613-540-859
Authorised
Capital : £E 5,000,000,000
Issued Capital : £E 2,234,180,000
Paid up Capital : £E 2,234,180,000
Name of
Shareholder (s)
·
Sadek Ahmed Sadek El Sewedy
·
Ahmed Ahmed Sadek El Sewedy
·
Mohamed Ahmed Sadek El Sewedy
·
Mona Ahmed Sadek El Sewedy
·
Zeinab Ahmed Sadek El Sewedy
·
Azza Ahmed Sadek El Sewedy
·
Local
businessmen and private investors
·
Non-executive
fund
AFFILIATED
COMPANIES
Subject is a member of the El Sewedy group of companies which
consists of the following concerns:
·
Egytech
Cables Company (El Sewedy)
El Korba,
Tel: (20-2) 24148366 /
24143364
Fax: (20-2) 24148373 /
24148367
·
Sewedy Est
Attaba
Tel : (20-2) 33911633
·
Arab Cables & Electrical Industries
1st Industrial Zone
Sharkeya
Tenth of
Tel : (20-15) 363861
·
United Industries Company El Sewedy
Tel: (20-2)
24144380 / 24144381
Fax: (20-2)
22905844 / 24144382
·
Arab Cement Company SAE
Korba,
Tel : (20-2) 24182701
·
El Sewedy Engineering & Distribution Co (Sedco)
El Obour Buildings, No. 5
PO Box : 136
Tel : (20-2) 22614796 / 22623776
Fax : (20-2) 22639155
·
El Sewedy for Plastic Industry (Sedplast)
13 El Obour Building
Tel : (20-2)
22623411
Fax : (20-2)
22623411
·
El Sewedy Electrical Equipment & Cables
PO Box : 1604
Tel : (20-2) 25912310 / 25911299
/ 25911545
Fax : (20-2) 25910583
Email : elsewedy@link.com.eg
·
Egy Lux
Tel : (20-2) 24195104
Fax : (20-2) 24195107
·
Arab Company for Iron Industries
·
El
Sewedy Electrical Supplies (Zaki El Sewedy & Co)
Alfy Street
El
Azbakiya
Cairo
Tel
: (20-2) 25741088 / 25918905 / 25741197 / 25890316
Fax
: (20-2) 25771959
·
Egyptian
Company for Advanced Industries
·
United
Metals Co
·
Sedplast
Co
·
Elasty
Mould
·
United
Wires Co
·
Red Sea
Co for Copper
·
Pyramids
Industrial Urban Development
·
El
Sewedy Sedco for Petroleum Services
·
Iskra
Emco Energy Measurement
·
Iskra
Emco Slovenia
·
Power System
Projects Company
·
Desert
Wind Company
·
Wind
Blades Company
OPERATIONS
Activities: Engaged in the
manufacture and distribution of electric cables and copper rods.
Subject is ISO 9001-2000, 14001 accredited.
Production
Capacity: Cables - 120,000
tons per year
Copper Rods – 120,000 tons per year
Import
Countries: Sweden, Turkey
and South Korea.
Export
Countries: Libya, Malawi and Nigeria.
Operating Trend: Steady
Subject has a workforce
of approximately 10,000 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Egyptian
Pounds
Consolidated Balance Sheet 31/12/14 31/12/13
Assets
Fixed assets 2,953,930,471 3,215,401,911
Project under
progress 167,870,567 135,091,257
Investments
available for sale 10,875,273 10,266,200
Investments in
associates 12,840,351 12,693,283
Investment
certificates 20,000,000 -
Debit balances 54,831,896 72,257,554
Intangible assets 52,975,012 84,819,531
Deferred tax assets 65,554,772 44,778,613
Total long term
assets 3,338,878,342 3,575,308,349
Current assets
Inventories 3,343,933,055 3,668,495,024
Trade receivables 5,272,376,564 5,321,343,896
Due from related
parties 358,402,481 192,873,358
Investment fund 318,605,293 182,700,369
Banks and cash in
hand 1,279,005,323 1,206,173,871
Assets held for
sale - 72,296,777
Total current
assets 10,572,322,716 10,643,883,295
Bank facilities and
overdraft 3,227,734,071 4,009,828,259
Loans 894,637,717 823,770,990
Notes payable due
to banks 155,921,516 84,473,968
Trade notes and
other payables 2,894,689,425 2,965,580,862
Due to related parties 163,193,948 172,680,187
Provisions 163,193,948 219,829,699
Total current
liabilities 7,647,093,694 8,276,163,965
Working capital 2,925,229,022 2,367,719,330
Total investments 6,264,107,364 5,943,027,679
Shareholders’ equity
Capital 2,234,180,000 2,234,180,000
Own shares (1,422,160) (1,422,160)
Reserves 149,535,197 149,535,197
Increase in the
nets assets of the acquired subsidiaries 578,908,660 578,908,660
Retained earnings 1,982,749,739 1,900,996,805
Net profits for the
year 403,300,490 96,501,795
Foreign exchange
differences (33,276,490) (87,612,698)
Total parent’s
shareholders’ equity 5,313,975,436 4,871,087,599
Minority interest 420,088,898 415,952,466
Total equity 5,734,064,334 5,287,040,065
Loans 285,199,434 504,689,446
Deferred tax
liabilities 203,677,475 101,375,596
Other liabilities 41,166,121 49,922,572
Total long term
liabilities 530,043,030 655,987,614
6,264,107,364 5,943,027,679
Consolidated Income Statement
Operational
revenues 17,014,814,372 15,098,992,917
Operational costs (14,431,752,278) (13,034,117,023)
Gross profit 2,583,062,094 2,064,875,894
Other operating
profit 133,094,340 71,248,288
Selling and
distribution expenses (453,961,871) (468,843,437)
Administrative
expenses (598,240,111) (594,069,521)
Other operating
expenses (673,749,220) (414,383,222)
Operating profit 990,205,232 658,828,002
Financing income 60,597,627 24,417,366
Financing costs (340,087,011) (446,111,733)
Net financing costs (279,489,384) (421,694,367)
Investments
available for sales revenues 1,109,705 3,469,485
Net profit for the
period before tax 711,825,553 240,603,120
Income tax
Current income tax (189,874,452) (136,658,599)
Deferred income tax (76,839,193) 30,584,122
Net profit after
tax 445,111,908 134,528,643
Local sources
consider subject’s financial condition to be Good.
BANKERS
·
Commercial
Bank of Egypt
21/33 Charles de Gaulle Street
Giza
PO
Box: 2430
Cairo
·
Arab
Bank Plc
PO Box: 68
Cairo
Tel: (20-2) 3029069 / 3029070
Fax: (20-2) 3029068
·
Arab
African Bank
5 El Saraya El Kobira Square
PO Box: 60, Magles El Shaab
Cairo
Tel: (20-2) 33545094
Fax: (20-2) 33558493
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.62.39 |
|
|
1 |
Rs.91.06 |
|
Euro |
1 |
Rs.66.16 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.