MIRA INFORM REPORT

 

 

Report No. :

338613

Report Date :

04.09.2015

 

IDENTIFICATION DETAILS

 

Name :

ALEXANDRIA SPINNING AND WEAVING CO (SPINALEX)

 

 

Registered Office :

El Bar El Kebly, El Mahmoudeia, El Nozha, Alexandria 21511

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

1959

 

 

Com. Reg. No.:

942

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Engaged in the manufacture and distribution of Egyptian cotton.

 

 

No. of Employees :

2,400

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

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

 

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                                                : ALEXANDRIA SPINNING AND WEAVING CO (SPINALEX)

Country of Origin                                   : Egypt

Legal Form                                           : Egyptian Joint Stock Company

Registration Date                                  : 1959

Commercial Registration Number                       : 942, Alexandria

Authorised Capital                                 : £E 1,000,000,000

Issued Capital                                       : £E 596,467,250

Paid up Capital                                     : £E 596,467,250

Total Workforce                                     : 2,400

Activities                                               : Manufacturers of Egyptian cotton

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                                : Steady

Person Interviewed                                : Zakaria Mohamed Abdul Majeed, Financial Controller

 

COMPANY NAME

 

ALEXANDRIA SPINNING AND WEAVING CO (SPINALEX)

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : El Bar El Kebly, El Mahmoudeia, El Nozha

Town                : Alexandria 21511

Country             : Egypt

Telephone         : (20-3) 3818310 / 3818664 / 3818663 / 3818403 / 3818046 / 3818664 / 3813240 / 3814130

Facsimile          : (20-3) 3810485 / 3818512 / 3818421

Mobile              : (20-100) 6533548

Email                : export@spinalex.com / import@spinalex.com / spinalexco@yahoo.com

 

Premises

 

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

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Amro Mohamed El Sharoubi                                                      Chairman

 

Refaat Hilal Hamoud                                                                  Vice Chairman

 

Ibrahim Ibrahim Al Saidi                                                             Director

 

Mohamed Ali Hussain El Kaliouby                                                          Director

 

Dr Majed Marzouq Abdul Hamid                                                 Director

 

Essam Mansour Abdulaziz                                                         Director

 

Karim Mohamed Saada                                                             Director

 

Dr Hani Abdullatif Al Olama                                                       Director

 

Ahmed Khaled Al Busati                                                                        Director

 

Fatima Mohamed                                                                      Financial Manager

 

Suzan Awadallah                                                                       Export Manager

 

Zakaria Mohamed Abdul Majeed                                                            Financial Controller

 

Najwa Hassan                                                                           Head of Business Development

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1959

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.   : 942, Alexandria

 

Authorised Capital       : £E 1,000,000,000

 

Issued Capital              : £E 596,467,250

 

Paid up Capital            : £E 596,467,250

 

Name of Shareholder (s)                                              Percentage

 

El Nasr Cloth & Textile Co (KABO)                                 35.66%

Cairo

 

Ibrahim Ibrahim Al Saidi                                                 17.11%

 

Misr Insurance Company                                                              9.40%

Cairo

 

Misr Life Insurance                                                          8.12%

Cairo

 

Mohamed Ali Hussain El Kaliouby                                                0.06%

           

Private investors & members of the public                                  29.65%

           

 

OPERATIONS

 

Activities: Engaged in the manufacture and distribution of Egyptian cotton.

 

Production Capacity: 1,200 tons per annum

 

Operating Trend: Steady

 

Subject has a workforce of approximately 2,400 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 6,535,000,000                       £E 6,970,000,000

 

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

 

The above figures were provided by Mr Zakaria Mohamed Abdul Majeed, Financial Controller

 

 

BANKERS

 

Bank of Alexandria

6, Salah Salem Street

Alexandria

Tel: (20-3) 4824056

 

 

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.66.23

UK Pound

1

Rs.101.23

Euro

1

Rs.74.33

 

 

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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