MIRA INFORM REPORT

 

 

Report No. :

330327

Report Date :

08.07.2015

 

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) :

31.12.2014

 

 

Date of Incorporation :

16.11.1981

 

 

Com. Reg. No.:

44139

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

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

 

 

No. of Employees :

3,500

 

 

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 :

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, 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                                    : 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

 

 

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                                                                               67.87%

 

MAC Carpet Mills                                                                                  58.29%

 

Modern EFCO                                                                                       57.57%

 

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                                            31/12/14                          31/12/13

 

Long Term Assets

Fixed assets(net)                                                           2 663 344 195                2 753 447 469

Projects in progress                                                      62 180 917                    57 484 717

Available for sale investments                                        81 673 779                    81 673 779

Goodwill                                                                       366 239 174                  473 790 520

Total Long-term assets                                                  3 173 438 065                3 366 396 485

Current Assets

Inventory                                                                       1 631 748 329                1 523 335 196

Trades & notes receivable                                              1 028 561 382                945 669 198

Debitors and other debit accounts                                 201 372 543                  211 849 502

Cash & Cash equivalent                                                 591 390 667                  324 866 214

Total current assets                                                       3 453 072 921                3 005 720 110

Current Liabilities

Provisions                                                                    14 490 642                   35 847 673

Banks-Credit accounts                                                   1 323 046 652                1 388 215 798

Long term liabilities-Current portions                               93 616 953                    89 138 296

Suppliers & notes payable                                             740 997 806                  624 423 822

Dividends payable                                                        11 647 562                    8 151 624

Creditors & other credit accounts                                   147 618 222                  143 045 895

tax payable                                                                   85 333 638                    63 263 790

Total Current liabilities                                                    2 416 751 475                2 352 086 898

Working Capital                                                             1 036 321 446                653 633 212

Total Investment to be Financed as follows:                   4 209 759 511                4 020 029 697

Shareholders' equity

Issued and paid up capital                                             450 000 000                  450 000 000

Reserves                                                                      1 505 118 644                1 413 412 591

Retained earnings                                                          707 276 452                  664 191 959

Net profit for the year                                                    367 079 806                  347 488 068

503 968 630                  448 119 302

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

3 518 847 027                3 308 615 415

Minority interest                                                             398 080 655                  357 129 839

Shareholder's equity                                                      3 916 927 682                3 665 745 254

Long-term liabilities

Long term loans                                                            131 068 068                  209 724 851

Housing and Development Bank loan                             375 780                         437 269

Deferred tax liabilities                                                    161 387 981                  144 122 323

Total long term liabilities                                                292 831 829                  354 284 443

Total shareholder's equity & long term liabilities              4 209 759 511                4 020 029 697

 

Consolidated Income Statement

 

Net sales                                                                      5 664 331 603                5 521 302 186

Less:

Cost of sales                                                                5 027 724 302                4 953 548 574

Gross profit                                                                  636 607 301                  567 753 612

Less:

Distribution expenses                                                    40 354 658                    41 171 280

General & Administrative expenses                                139 509 689                  119 098 696

Formed provisions & Impairment                                    50 450 000                    20 480 940

230 314 347                  180 750 916

Net income from operation activities                              406 292 954                  387 002 696

Add / (Less(:

Investment income                                                        24 325 098                    -

Interest Income                                                              8 077 251                      3 177 008

Other revenues                                                              154 967 487                  150 913 182

Capital Gain                                                                  3 747 659                      35 299 373

Financing expenses                                                       (88 318 747)                  (112 852 353)

Foreign exchange differences                                        (40 815 404)                  (22 994 324)

61 983 344                    53 542 886

Net profit for the year before income tax                        468 276 298                  440 545 582

 

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.63.37

UK Pound

1

Rs.98.86

Euro

1

Rs.69.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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.