MIRA INFORM REPORT

 

 

Report No. :

338602

Report Date :

28.08.2015

 

IDENTIFICATION DETAILS

 

Name :

MEDICAL PACKAGING COMPANY SAE

 

 

Registered Office :

124 Osman Ibn Affan Street, Heliopolis, Cairo

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

22.08.2006

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Engaged in the production of glass containers for medical, pharmacy, laboratory, cosmetics, perfumes and jewellery.

 

 

No. of Employees :

150

 

 

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Egypt

B2

B2

 

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 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

 


SUMMARY

 

Company Name                                    : MEDICAL PACKAGING COMPANY SAE

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 22nd August 2006

Issued Capital                                       : ŁE 113,941

Paid up Capital                                     : ŁE 113,941

Total Workforce                                     : 150

Activities                                               : Producers of glass containers.

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady


COMPANY NAME

 

MEDICAL PACKAGING COMPANY SAE

 

ADDRESS

 

Registered & Physical Address

 

Street               : 124 Osman Ibn Affan Street

Area                 : Heliopolis

Town                : Cairo

Country             : Egypt

Telephone         : (20-2) 27744708

Facsimile          : (20-2) 27744716

Mobile              : (20-122) 4102767

Email                : m.gouda@med-pack.com

 

Premises

 

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

 

Branch Office (s)

 

Location                                                                                               Description

 

Industrial Zone B4, Plot 18                                                                     Factory premises

10th of Ramadan City

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Hasan Fadel                                                                              Chairman

 

Maher Sayed                                                                             Managing Director

 

Ibrahim Rahmo                                                                          Director

 

Amin Ailwa                                                                                Director

 

Nevan Abdul Aal                                                                       Director

 

Sami Abd El Kader                                                                    Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 22nd August 2006

 

Legal Form                  : Egyptian Joint Stock Company

 

Issued Capital              : ŁE 113,941

 

Paid up Capital            : ŁE 113,941

 

Name of Shareholder (s)                                              

 

Al Wasata Securities Co

 

Hasan Fadel                                                                                         

 

Maher Sayed                                                                            

 

Ibrahim Rahmo                                                                         

 

Amin Ailwa                                                                                           

 

Nevan Abdul Aal                                                                                  

 

Sami Abd El Kader

 

 

OPERATIONS

 

Activities: Engaged in the production of glass containers for medical, pharmacy, laboratory, cosmetics, perfumes and jewellery.

 

Import Countries: Europe and the Far East

 

Operating Trend: Steady

 

Subject has a workforce of 150 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (ŁE)

 

 

 

Balance Sheet                                                31/12/14      31/12/13

 

Total Other Operating Income or Expenses

--

(3,655.73)

Total Cash & Cash Equivalents

352.61

--

Total Assets

352.61

--

Total Current Liabilities

113,941.53

--

Total Inventory

19,513.44

--

Total Current Assets

6,717.87

--

Total Liabilities

17,492.67

--

Total Equity

43,420.53

--

Total Liabilities & Shareholders' Equity

70,521.00

--

Paid-In Capital

113,941.53

--

Net Income or Loss for the Year

64,000.00

--

Total Owners' Equity & Minority Interest Equity

(1,407.47)

--

Total Fixed Assets

70,521.00

--

 

Net Cash Flow from (Used In) Operating Activities

96,448.86

1,739.07

Net Cash Flow from (Used In) Financing Activities

--

(400.00)

Net Change In Cash & Cash Equivalents

--

1,104.73

Cash Balances at the Beginning of the Year

--

437.88

 

Cash & Cash Balances, Total

352.61

--

Total Cash & Cash Equivalents

352.61

--

Trade & Other Accounts Receivable, Net

352.61

--

Notes Receivable, Short-Term

10,385.57

--

Other Accounts Receivable

31.46

--

Finished-Goods

556.87

--

Total Assets

3,482.51

--

Accrued Expenses

113,941.53

--

Notes Payable, Short-Term

425.89

--

Current-Portion of Debt, Total

81.45

--

Other Accounts Payable

11,100.00

--

Total Current Liabilities

6,382.09

--

Loans & Borrowings, Long-Term

19,513.44

--

Total Debt, Long-Term

22,083.07

--

Deferred Tax Liability, Long-Term

22,083.07

--

Raw-Materials

1,824.02

--

Other Inventory Items

2,451.80

--

Total Inventory

40.21

--

Prepaid Expenses

6,717.87

--

Total Current Assets

36.62

--

Land

17,492.67

--

Equipment and Machinery

2,900.00

--

Other Property, Plant & Equipment

66,779.33

--

Property, Plant & Equipment, Gross

157.86

--

Accumulated Depreciation & Depletion, PP&E

70,972.56

--

Property, Plant & Equipment, Net

(9,636.88)

--

Total Liabilities

61,335.68

--

 

Income Statement

 

Net Income or Loss Before Tax

--

1,171,950.00

Net Income or Loss

--

345,207.00

General & Administrative Expenses

--

(3,168,288.00)

EBITDA

--

3,087,362.00

Total Income Tax

--

(826,743.00)

Revenue

--

13,522,836.00

Total Revenue

--

13,522,836.00

Cost of Revenue

--

(6,779,747.00)

Cost of Revenue Total

--

(6,779,747.00)

Gross Profit

--

6,743,089.00

Advertising Expenses

--

(487,439.00)

Total Selling, General & Administrative Expenses

--

(3,655,727.00)

Depreciation, Total

--

(1,893,517.00)

Depreciation, Amortization & Impairment, Total

--

(1,893,517.00)

Other Operating Expenses, Total

--

(3,655,727.00)

EBIT- Operating Income

--

1,193,845.00

Foreign Exchange Translation Gain or Loss

--

(66,767.00)

Net Income or Loss after Tax & Before Minority Interest

--

345,207.00

Total Other Operating Income or Expenses

--

(3,655,727.00)

Deferred Income Tax

--

(826,743.00)

Miscellaneous Income or Expenses

--

44,872.00

Total Other Non-Operating Income or Expenses

--

(21,895.00)

 

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

 

 

BANKERS

 

Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 33904554

Fax: (20-2) 33908992

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Local sources report that the subject’s operating history is clear with payment obligations met in a generally timely manner. The financial position is satisfactory and the company is deemed a fair trade risk.


DIAMOND INDUSTRY – INDIA

 

-            From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-            The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-            The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-            Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-            Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-            Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-            Excerpts from Times of India dated 30th October 2010 is as under –

 

-            Gem & Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.06

UK Pound

1

Rs.102.35

Euro

1

Rs.74.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

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