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Report No. : |
336533 |
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Report Date : |
17.08.2015 |
IDENTIFICATION DETAILS
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Name : |
EASTERN COMPANY SAE |
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Registered Office : |
450 Al Ahram Street, Pyramids, Giza, PO Box : 1543, Cairo |
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Country : |
Egypt |
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Date of Incorporation : |
12.07.1920 |
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Com. Reg. No.: |
4884, Giza |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Subject is manufacturers of cigarettes, moassel, pipe tobacco,
roll-your-own tobacco, cigars and Toscani. |
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No. of Employee : |
13,640 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Egypt |
B2 |
B2 |
|
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. Egypt's current Constitution passed in a referendum that took place in January 2014.
|
Source
: CIA |
Company Name :
EASTERN COMPANY SAE
Country of Origin :
Egypt
Legal Form :
Egyptian Joint Stock Company
Registration Date :
12th July 1920
Commercial Registration Number :
4884, Giza
Chamber Member Number :
0158
Authorised Capital :
£E 1,500,000,000
Issued Capital :
£E 750,000,000
Paid up Capital :
£E 750,000,000
Total Workforce :
13,640
Activities :
Manufacturers of cigarettes and tobacco.
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
EASTERN COMPANY
SAE
Street : 450 Al Ahram
Street
Area : Pyramids,
Giza
PO Box : 1543
Town : Cairo
Country : Egypt
Telephone : (20-2) 35703326
/ 35724711 / 35724965 / 35724424 / 35724945
Facsimile : (20-2)
35687434 / 35684734
Email : eastern@easternegypt.com
Subject operates from a large suite of offices, a factory and a
warehouse that are owned and located in the Suburban Business Area of Cairo.
Branch Office (s)
Location Description
· 91 Suez Canal
Street Owned
factory premises
Moharam Bey
Alexandria
Tel: (20-3)
4221427 / 4291426
Fax: (20-3)
4285796
· 38 Nabil El Waqad
Street Owned
factory premises
El Rasafa
Moharam Bey
Alexandria
Tel: (20-3)
4911868 / 3934317
Fax: (20-3)
3938518
· Assiut Owned
factory premises
AbuTig
Tel: (20-88)
2480361 / 2480828
Fax: (20-88)
2481733
· Menoufeya Owned
factory premises
Sers Allian Road
Tel: (20-48)
3661029 / 3660397
Fax: (20-48)
3661229
· Gharbeya Owned
factory premises
10 Abd El Aal Bek
Tel: (20-40)
3335709
Fax: (20-40)
3335345
· 2 Khatem El
Morsaleen Street Owned
factory premises
Talbia
Giza
Tel: (20-2)
35611411
Fax: (20-2)
35612615
Subject owns 11 factories in total and has a strong
and well-established distribution network spanning the whole of Egypt,
totalling in excess of 300 sites.
Name Position
· Nabil Abd El Aziz
Abd El Meguid Mohsen Chairman
& Managing Director
· Talaat Araby
Ismail Mohamed Director
· Magdy Korany El
Sherbini Director
· Dr Ali Abdel
Rahman Yousef Director
· Ossama Saad Hassan Financial
Manager
· Mohamed Osman
Haroun Marketing
Manager
· Zeinab El
Samandouny Legal Manager
· Abd El Halem
Habashy Technical
Affairs Manager
· Mahmoud Lotfy Laboratories
Manager
· Ali Saad El Din
Ali Investor
Relations Manager
· Mahmoud Mohamed
Gad Allam Human
Resources Manager
· Mohamed Ali Ahmed
Abd El Aal IT
Manager
· Naeem Hassan
Tawfik Public
Relations Manager
· Adel Azzam Legal
Tobacco Sector Manager
Date of
Establishment : 12th
July 1920
History : Subject’s
operations date back to 1920, however it was nationalised in 1963. Between 1963
and 1984, when its monopoly over the local cigarette market was established, it
was merged with 10 other local tobacco manufacturers, including the merger of
El Nasr Tobacco and Eastern Tobacco Company.
Legal Form : Egyptian Joint
Stock Company
Commercial Reg.
No. : 4884, Giza
Chamber Member No. : 0158
Authorised Capital : £E 1,500,000,000
Issued Capital : £E 750,000,000
Paid up Capital : £E 750,000,000
· Holding Co for Chemical
Industries Group 55.00%
· Private Investors
33.38%
· Lazard Emerging
Market Equity Portfolio 6.15%
United States of America
· Shareholders
Employees Association 5.47%
Activities: Manufacturers of cigarettes, moassel, pipe tobacco, roll-your-own
tobacco, cigars and Toscani.
Subject is Egypt’s main cigarette
manufacturer. In addition to manufacturing its own brands, which
command a 94 percent market share, the
company retails 17 international brands under licence from Philip Morris, BAT,
RJ Reynolds and Rothmans.
Subject is ISO 9001 accredited.
Production
Capacity: 82,711 million cigarettes per day.
Import Countries: Brazil, China, Thailand, Mali and Italy.
Export Countries: Japan, Saudi Arabia, Kuwait, Libya, Qatar and
Georgia.
Brand Names: CLEOPATRA FAMILLES, CLEOPATRA GOLDEN KING,
CLEOPATRA BOX, CLEOPATRA SUPER,
BOSTON, MONDIAL RED, MONDIAL BLUE,
BELMONT, LIGHTS, LIGHT, CIGAR, MOASSEL,
CIGARILLOS and CAPTAIN
Operating Trend: Steady
Subject has a workforce of approximately 13,640 employees.
Financial highlights provided by local sources are given below:
Currency: Egyptian Pounds (£E)
Year
Ending 31/12/13: Year Ending 31/12/14:
Total Sales £E
2,803,713,000 £E
3,455,346,000
Gross Profit £E
932,099,000 £E
571,218,000
Net Profit £E
585,778,000 £E
371,595,000
Equity £E
4,866,489,000 £E
4,283,038,000
Reserves £E
3,469,354,000 £E
3,469,354,000
Local sources consider subject’s financial condition to be Good.
The above financial figures are based on estimations by our local
sources.
·
National Bank of Egypt
24 Sherif Street
Cairo
Tel:
(20-2) 33924175
Fax:
(20-2) 33924143
·
Banque Misr
151 Mohamed Farid
Street
Cairo
Tel: (20-2)
33912711 / 33912106
Fax: (20-2)
33919779
·
Misr International Bank (MIBANK)
14 Alfy Street
PO Box:
631
Cairo
Tel:
(20-2) 35931002
Fax:
(20-2) 35912306
·
Scotia Bank
3 Ahmed Nessim
Street
Giza
PO Box: 656
Cairo 11511
Tel: (20-2)
33365734 / 33365731
Fax: (20-2)
33365730
Regular
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.65.12 |
|
|
1 |
Rs.101.62 |
|
Euro |
1 |
Rs.72.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ASH |
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 |
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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 |
-- |
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.