MIRA INFORM REPORT

 

 

Report No. :

325005

Report Date :

10.06.2015

 

IDENTIFICATION DETAILS

 

Name :

EGYPTIAN SPINNING AND WEAVING COMPANY

 

 

Registered Office :

1st Industrial Zone, Plot No. 1, 2 and 3, Sadat City, Menofeya,

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

01.02.2005

 

 

Com. Reg. No.:

7655

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Manufacture and Distribution of Textiles and Egyptian Cotton Yarns.

 

 

No. of Employees :

830

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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                                    : EGYPTIAN SPINNING AND WEAVING COMPANY

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 1st February 2005

Commercial Registration Number           : 7655

Issued Capital                                       : £E 160,000,000

Paid up Capital                                     : £E 160,000,000

Total Workforce                                     : 830

Activities                                               : Manufacture and distribution of textiles and Egyptian cotton yarns

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Ashraf Abou Shady, Accounts Manager

 

 

COMPANY NAME

 

EGYPTIAN SPINNING AND WEAVING COMPANY

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : 1st Industrial Zone, Plot No. 1, 2 and 3, Sadat City

 

Town                : Menofeya

Country             : Egypt

 

Telephone         : (20-48) 2659040 / 2611317 / 2611777

Facsimile          : (20-48) 2659040 / 2610882

Email                : info@egyptianspinning.com

 

Premises

 

Subject operates from a suite of offices a warehouse and a manufacturing plant covering 280,000 m2 that are owned and located in the Industrial Area of Menofeya.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Karim Mahmoud Youssef Saadah                                                     Chairman

 

·       Mohsen Mohamed Hassan                                                                Vice Chairman

 

·       Mohamed Ahmed Helmy El Ashmawy                                                Director

 

·       Mohamed Ali Wahby                                                                         Director

 

·       Taher Gilbert Gargour                                                                        Director

 

·       Wael Wagdy Olama                                                                          Director

 

·       Noha Hussein Khattab                                                                      Director

 

·       Maged Marzouk Abdel Hamid                                                            Director

 

·       Ahmed Khaled Mostafa El Basaty                                                     Director

 

·       Hany Abdel Latif Olama                                                                    Director

 

·       Ashraf Abou Shady                                                                          Accounts Manager

 

·       Emad Turkey                                                                                    Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1st February 2005

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 7655

 

Issued Capital              : £E 160,000,000

 

Paid up Capital            : £E 160,000,000

 

Name of Shareholder (s)                             Percentage           

 

·       Amwal Al Arabia Cotton                                91%                                                     

 

·       Taher Gilbert Gargour                                      5%                

 

·       Wael Wagdy Olama                                        4%

 

 

AFFILIATED COMPANIES

 

·       Arabian Cotton Ginning Co (ACGC)

 

·       Egypt Cotton Ginning Co

 

·       Upper Egypt Flour Mills (UEFM)

 

·       Modern Nile Cotton

 

·       El Nasr Clothes and Textiles (KABO)

 

·       Alexandria Spinning and Weaving Co (SPINALEX)

 

·       Wave

 

 

OPERATIONS

 

Activities: Engaged in the import, manufacture and distribution of textiles and Egyptian cotton yarns.

 

                 Subject is ISO 9001 & 14001 accredited.

 

Import Countries: Germany, Italy, Switzerland and India

 

Local Suppliers:

 

·       Modern Nile Cotton

·       Eng. Osama Abou Amer Company For Cotton Trading

 

Local Clients:

 

·       El Nasr Clothes and Textiles

·       Alexandria Spinning and Weaving (Spinalex)

·       Eltaqwa Company Of Import And Export And Customs

 

International Clients:

 

·         Tesco

·         Macy’s

 

Export Countries: Italy, Portugal, Spain, Switzerland, Germany, Turkey, Brazil, France, Bahrain and Morocco

 

Operating Trend: Steady

 

Subject has a workforce of approximately 830 employees.

 

 

FINANCIAL DATA

 

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 142,768,078                         £E 111,259,497

 

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

 

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

 

 

BANKERS

 

·       CIB Commercial International Bank

Talaat Harb Street

Sadat City

Menofeya

 

·       National Bank of Egypt

5th District Services Spine

Banks Complex

Sadat City

Menofeya

 

·       Credit Agricole Egypt

19 Belal Ibn Rabah Street

1st Residential Zone

Sadat City

Menofeya

 

 

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.63.94

UK Pound

1

Rs.98.27

Euro

1

Rs.72.37

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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