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MIRA INFORM REPORT
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Report No. : |
501055 |
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Report Date : |
03.04.2018 |
IDENTIFICATION DETAILS
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Name : |
THE
EGYPTIAN CARBONATE COMPANY FOR MINING SAE |
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Registered Office : |
Building
No. 6058, Cairo Suez Road, El Basatin Sharkeya, Cairo 11435 |
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Country : |
Egypt |
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Date of Incorporation : |
04.09.1999 |
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Com. Reg. No.: |
2868 |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Subject Engaged
in the production of calcium carbonate, coloured oxides, architectural paint
and mining materials |
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No. of Employees : |
100 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Egypt |
C1 |
C1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. Agriculture, hydrocarbons, manufacturing, tourism, and other service sectors drove the country’s relatively diverse economic activity.
Despite Egypt’s mixed record for attracting foreign investment over the past two decades, poor living conditions and limited job opportunities have contributed to public discontent. These socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 has restricted economic growth and failed to alleviate persistent unemployment, especially among the young.
In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency, introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will need to make a sustained effort to implement a range of business reforms, however, to induce foreign and local investment in manufacturing and other labor-intensive sectors.
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Source
: CIA |
SUMMARY
Company Name : THE EGYPTIAN CARBONATE COMPANY FOR
MINING SAE
Country of Origin :
Egypt
Legal Form :
Egyptian Joint Stock Company
Registration Date :
4th September 1999
Commercial Registration Number : 2868
Authorised Capital :
EGP 15,000,000
Issued Capital :
EGP 15,000,000
Paid up Capital :
EGP 15,000,000
Total Workforce :
100
Activities :
Production of calcium carbonate, coloured oxides, architectural
paint and mining materials
Financial Condition :
Undetermined
Payments :
Nothing detrimental uncovered
COMPANY
NAME
THE EGYPTIAN CARBONATE
COMPANY FOR MINING SAE
ADDRESS
Registered & Physical Address
Building :
Building No. 6058
Street : Cairo
Suez Road
Area : El
Basatin Sharkeya
Town : Cairo
11435
Country : Egypt
Telephone : (20-2)
25012700 / 25010454 / 25016818 / 25013919 / 2392479
Facsimile : (20-2)
24470020
Mobile :
(20-122) 2299926 / 7501283
Email : inquires@egyptian-carbonate.com
Premises
Subject operates from a small suite of offices that are rented and
located in the Central Business Area of Cairo.
Branch Office (s)
Location Description
19 Youssef El Gendy Office
premises
Bab Al Louq
Abdeen
Cairo
Kafr El Ulwi Factory
premises
El Tebbin
Helwan
Cairo
Industrial Zone Factory
premises
Fourth Extension
Borg El Arab
Alexandria
KEY
PRINCIPALS
Name Nationality Position
Magdy Fayez Kodsy Egyptian Chairman
Nader Magdy Fayez Kodsy Egyptian Vice Chairman
Saeed Fayez Kodsy Egyptian Director
Samir Fayez Kodsy Egyptian Director
LEGAL
FORM & OWNERS
Date of Establishment : 4th
September 1999
Legal Form : Egyptian Joint
Stock Company
Commercial Reg. No. : 2868
Authorised Capital : EGP 15,000,000
Issued Capital : EGP 15,000,000
Paid up Capital : EGP 15,000,000
Name of Shareholder (s)
Magdy Fayez Kodsy
Nader Magdy Fayez Kodsy
Saeed Fayez Kodsy
Samir Fayez Kodsy
Notes to the legal Form A Joint Stock Company (SAE) can be both a
public or private company the capital of which is divided into shares of equal
value; the liability of the shareholder is confined to the value of the shares
to which he subscribes, and he is not liable for the debts of the company
except within the limit of those shares. A JSC may be 100% owned by foreign
investors and there should be at least three shareholders. The minimum capital
of JSC companies is EGP 250,000 or EGP 500,000 if it is a public company.
OPERATIONS
Activities: Engaged in the production of calcium carbonate, coloured oxides,
architectural paint and mining materials.
Subject has a workforce of 100 employees.
FINANCIAL
DATA
Companies registered in Egypt are not legally required to make their
accounts public and no financial information was released by the company or
submitted by outside sources.
BANKERS
Banque du Caire
6 Abu Zahra Street
Nasr City
Cairo
Tel: (20-2) 22646969
Commercial International Bank (CIB)
Nile Tower Building
21-23 Giza Street
PO Box: 2430
Cairo
Tel: (20-2) 25703043
Fax: (20-2) 25703172 / 25072691
National Bank of Egypt
24 Sherif Street
Cairo
Tel: (20-2) 33924175
Fax: (20-2) 33924143
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
GENERAL
COMMENTS
During the course of this investigation the following sources were
consulted:
- Internal database
- Journals, directories,
media & web searches
- Local Registry office
The subject and its shareholders/owners have been searched in the
following databases; Office of Foreign Assets Control (OFAC), United Nations
Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
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.
COUNTRY
OUTLOOK
Economic growth doubled (to 4.2 %) in
FY15, after four years of slow growth. Yet challenges remain, and were
aggravated by the recent foreign exchange crunch. Growth in FY15 (July
2014/June 2015) was attributed to the restoration of stability and improved
confidence, resilient private consumption, and the government’s public
investments that started to crowd in private investments. The first quarter of
FY16 witnessed subdued growth (of 3 %, from 5.6 % a year earlier), mainly due
to foreign exchange shortages that stifled production. The inadequacy of
foreign exchange along with an overvalued Pound hampered Egypt’s
competitiveness; lowering the volume of exports by 26 % in Q1-FY16.
Unemployment inched downwards (to 12.8 % in the H1-FY15 versus 13.3 % a year
earlier), albeit partially reflecting dropouts from the labour force. The
labour force participation rate dropped to 46 % of the adult population (those
above 15 years old) versus 50 % at end-2010. Headline inflation eased
slowly in early-2016, reaching 9 % in February 2016, from an average of 11
% in the previous three months. The Central Bank of Egypt (CBE) has recently
started tightening monetary policy to curb inflation, especially in light of
the recent exchange rate depreciation.
The CBE allowed the official exchange
rate to weaken in mid-March as pressures on external accounts intensified. Net
international reserves (NIR) dropped in FY16, due to large debt repayments, the
unfavourable external environment, the recent crash of the Russian airplane
over Sinai, as well as the CBE’s ongoing injection of foreign exchange to meet
import needs and to clear forex backlogs. Thus, NIR declined to just below
$16.5 billion in October 2015, and has stabilized at this level through
end-February 2016. The CBE left the official exchange rate to weaken by 14.3 %
on March 14, 2016, after the parallel market premium had surged to 18 % above
the official rate. The CBE held a later auction at a slightly stronger exchange
rate, but still signalled a move towards more flexibility.
The fiscal stance improved in FY15 due
to key consolidation measures, but the reform momentum has faded in FY16. The budget
deficit reached 11.5 % of GDP in FY15 (compared to 12.2 % of GDP in FY14, and
13 % of GDP in FY13), thanks to the partial streamlining of energy subsidies,
revenue-enhancement measures, and the drop in international oil prices. This
was achieved whilst the government raised allocations to health, education, and
infrastructure, in line with the constitutional mandate. Yet, the reform pace
has slowed down in FY16, as the energy subsidy reform program was only
partially implemented, and the ratification of the VAT and the mining laws have
been delayed.
The outlook is for GDP growth to slow
down to 3.3 % in FY16, before rebounding thereafter. A combination of
unfavourable domestic and external factors is undermining growth in FY16.
Important sectors have been underperforming, notably, the extractives which
continue to suffer from liquidity issues (accumulated arrears were recorded at
$3 billion in end-2015); and tourism, affected by the Russian plane crash last
October. Externally, the sluggish recovery of the Euro zone is expected to weigh
on Egypt’s growth, while the lower oil prices and slowdown in Gulf countries
might negatively impact Egyptians’ remittances; hence private consumption. The
deficit is expected to decline to 11.3 % of GDP in FY16, and decline further in
the medium term, with continued fiscal consolidation effort. Egypt’s external
accounts are likely to worsen in FY16 before recovering afterwards, provided
that monetary authorities continue to ease restrictions on foreign exchange and
re-align the exchange rate.
Key Economic Indicators 2014 2015 2016* 2017*
Real GDP Growth (%) 2.2 4.2 3.3 4.2
Inflation Rate (%) 10.1 10.9 9.8 9.5
Fiscal Balance (% of GDP) -12.2 -11.5 -11.3 -9.8
Current Account Balance (% of GDP) -0.9 -3.7 -4.6 -4.6
* forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.04 |
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1 |
INR 92.28 |
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Euro |
1 |
INR 80.62 |
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EGP |
1 |
INR 3.69 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.