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MIRA INFORM REPORT
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Report No. : |
502276 |
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Report Date : |
12.04.2018 |
IDENTIFICATION DETAILS
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Name : |
AMOUN PHARMACEUTICALS CO SAE |
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Registered Office : |
Plot 1B, 2, 3, 4, 5, Block No. 13015, Cairo-Ismalia Road, Km 76, 1st
First Industrial Zone, El Obour City, PO Box 5, Cairo 11628 |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
1989 |
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Com. Reg. No.: |
1677, El Obour |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Subject is engaged in the production of various chemicals, including amines,
raw materials for pharmaceuticals, parapharmaceutical and veterinary
preparations, as well as aerosol bottles and containers. |
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No. of Employees : |
2,800 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 :
AMOUN PHARMACEUTICALS CO SAE
Country of Origin :
Egypt
Legal Form :
Egyptian Joint Stock Company
Registration Date :
1989
Commercial Registration Number :
1677, El Obour
Tax Card Number :
324-927-835
Issued Capital :
£E 1,360,572,200
Paid up Capital :
£E 1,360,572,200
Total Workforce :
2,800
Activities :
Production of various chemicals
Financial Condition :
Good
Payments :
Regular
Operating Trend :
Steady
Person Interviewed :
Wahid Helmy, Finance Manager
COMPANY
NAME
AMOUN PHARMACEUTICALS CO SAE
ADDRESS
Registered &
Physical Address
Location : Plot 1B, 2, 3,
4, 5, Block No. 13015
Street :
Cairo-Ismalia Road, Km 76
Area : 1st
First Industrial Zone, El Obour City
PO Box : 5
Town : Cairo 11628
Country : Egypt
Telephone : (20-2) 46140100
/ 46140000 / 46149133 / 46140100 / 46101333 / 46140120
Facsimile : (20-2)
46140188 / 46140165 / 46140061 / 46140190 / 46103600
Mobile : (20-100)
6003000 / (20-122) 2158685 / (20-102) 2937033
Email : hr@amoun.com
/ whelmy@amoun.com
Premises
Subject operates from a large suite of offices and a factory that are
owned and located in the Industrial Area of Cairo.
Branch Office (s)
Location Description
El Saydla Building Office
premises
Smouha
Alexandria
Tel: (20-3) 4268132
24 Corniche El Nile Street Office
premises
Assiut
Tel: (20-88) 2313135
Amin Abou Zeid Street Office
premises
Heliopolis
Cairo
Tel: (20-2) 46971807
Fax: (20-2) 46972822
10 Abeida Ibn El Garah Office
premises
El Nozha
Heliopolis
Cairo
5 Dr Ali Etman Street Office
premises
4th Floor, Office No.12
Mansoura
Tel: (20-50) 2226837 / 9101750
KEY
PRINCIPALS
Name Position
Dr Mohamed Salah Roshdy Chairman
Robert Major Director
Edmond R Human Resources Manager
Wahid Helmy Finance Manager
Dr Hany Kamil Quality Manager
Mariam Wahaba Office
Manager
Hany Ibrahim Marketing
Manager
Dr Mervat Fayek Planning
Manager
Sherif Samir IT
Manager
Ali Al Awamari Engineering
Manager
LEGAL
FORM & OWNERS
Date of Establishment : 1989
Legal Form : Egyptian Joint
Stock Company
Commercial Reg. No. : 1677, El Obour
Tax Card No. : 324-927-835
Authorised Capital : £E 2,000,000,000
Issued Capital : £E 1,360,572,200
Paid up Capital : £E 1,360,572,200
Name of
Shareholder (s) Percentage
Mercury Cayman 99.75%
Cayman Islands
Egyptian businessmen and private investors 0.25%
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 various chemicals, including amines, raw
materials for pharmaceuticals, parapharmaceutical and veterinary preparations,
as well as aerosol bottles and containers.
Subject is ISO 9001, 14001 and 18001 accredited.
Import Countries: France, Germany, Belgium, United Kingdom and the
United States of America.
Export Countries: The United States of America, Romania, Russia,
Kenya, Ethiopia and 14 Arab States.
Brand Names: AMOUN
Operating Trend: Steady
Subject has a workforce of approximately 2,800 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Egyptian
Pounds (EGP)
Year Sales
Year Ending 31/12/14: EGP
1,620,000,000
Year Ending 31/12/15: EGP
1,750,000,000
Year Ending 31/12/16: EGP
1,815,000,000
Year Ending 31/12/17: EGP
1,800,000,000
Local sources consider subject’s financial condition to be Good.
Note: According to Egyptian Commercial Law, only
Joint Stock Companies SAE (Listed on the Stock Market) are required to publish
their financial information. Financial information on other legal forms can
only be obtained from the companies / businesses directly
BANKERS
Banque du Caire SAE
22 Adly Street
PO Box: 1495
Cairo
Tel: (20-2) 33904554
Fax: (20-2) 33908992
Misr International Bank (MIBANK)
14 Alfy Street
PO Box: 631
Cairo
Tel: (20-2) 35931002
Fax: (20-2) 35912306
National Bank of Egypt
24 Sherif Street
Cairo
Tel: (20-2) 33924175
Fax: (20-2) 33924143
Banque Misr
151 Mohamed Farid Street
Cairo
Tel: (20-2) 33912711 / 33912106
Fax: (20-2) 33919779
PAYMENT
HISTORY
Regular
SANCTION
LIST CHECKS
The subject and its shareholders have been checked in the following
sanctions list databases:
Sanctions list Results
United Nations Sanctions No
matches
Australian Sanctions No
matches
Bureau of Industry and Security (US) No
matches
EU Financial Sanctions No
matches
Office of the Superintendent of Financial
Institutions (Canada) No
matches
OFAC - Specially Designated Nationals (SDN) No
matches
UK Financial Sanctions (HMT) No
matches
US Consolidated Sanctions No matches
GENERAL
COMMENTS
During the course of this investigation the following sources were
consulted:
- Internal database
- Journals, directories, media
& web searches
- Local Registry office
- Interview with Wahid Helmy,
Finance Manager
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
Recent
Developments
The first quarter of FY17 (July to June)
marked a slowdown in growth recording 3.4 percent compared to 5.1 percent in
the same quarter last year, with annual growth in FY16 registering 4.3 percent.
Growth was constrained by severe shortages in hard currency, an overvalued
exchange rate and sluggish growth in Europe, Egypt’s main trading partner. Key sectors
continue to experience negative growth, particularly tourism and the oil and
gas extractives sector that has been suffering from underinvestment and
arrears.
The annual fiscal deficit in FY16 increased to
12.1 percent of GDP, up from 11 percent the year before. However, in the first
half of FY17 the deficit declined to 5.4 percent of GDP, down from 6.4 percent
in the same period last year. The improvement in the first half is solely
driven by a decline in total expenditures, which compensates for a drop in
total revenues. Lower expenditures were driven by a decrease in subsidies and
public wages as a percentage of GDP.
The most recent data for the first quarter of
FY17 show an overall surplus in the balance of payments of 0.5 percent of
projected GDP, compared to a deficit of 1 percent during the same period of the
previous year. The improvement in external accounts was mainly due to the
narrowing trade deficit induced by an increase in merchandise exports (by 11.2
percent) and a decline in merchandise imports (by 4.8 percent). Meanwhile, Suez
Canal receipts further deteriorated by 4.8 percent and net private transfers
also declined by 21.8 percent. As a result, the current account deficit widened
to 1.4 percent of GDP compared to 1.1 percent in the same quarter of the
previous year. More positively, FDI inflows increased to US$1.9 billion over
the same period, up from US$1.4 billion the previous year.
To stimulate growth and address major
macroeconomic imbalances, the government embarked on a major economic reform
program. The key features include (i) the liberalization of the exchange rate
regime; (ii) fiscal consolidation through a combination of expenditure and
revenue measures, notably cuts in fuel subsidies, containment of the wage bill
and introduction of VAT; and (iii) reforms to the business environment and
addressing impediments to industrial activity.
The reform program was supported by an IMF
Extended Fund Facility of US$12 billion which contributes to cover Egypt’s
financing needs, the rest of which has been covered through disbursements under
the World Bank, the African Development Bank and a number of bilateral loans,
in addition to a recent issuance of Eurobonds in the amount of US$4 billion.
Following the floatation, the exchange rate displayed strong overshooting
(hitting its
lowest rate of 19.5 in December compared to a
pre-float fixed rate of 8.8), but has subsequently strengthened as foreign
investor confidence picked up and backlogs of USD orders to finance imports
eased. Net international reserves reached US$26.4 billion at-end January (6
months’ imports), up from a pre-floatation level of US$19 billion.
Currency weakening has led to a sharp rise in
inflation, which reached its highest recorded level of 30.2 percent in February
2017. Following the currency floatation, the CBE increased interest rates by
300 basis points (bringing the cumulative increase to 550 basis points since
March 2016) to absorb excess liquidity and curb inflation. High inflation has
contributed to the aggravation of social conditions, given the persistently
high unemployment (12.6 percent in 2016). The recently adopted reform program
involves efforts to improve social safety nets, notably through the partial reallocation
of freed up resources from reduced energy and food subsidies; the expansion of
cash transfer programs; and an increase in the general pension budget by 15
percent. Nonetheless, the mitigation of recent adverse
shocks will continue to depend on an
effective targeting mechanism.
Outlook
GDP is expected to grow by 3.9 percent in
FY17, and will be largely driven by public investment and to some extent net
exports. Private investment is expected to pick up only in the second half of FY17,
supported by enhanced competitiveness following the depreciation of the
currency and the gradual implementation of business climate reforms. Tourism is
also expected to steadily recover on the back of a weaker currency. Yet, growth
will likely be undermined by slower growth of private consumption, which is
expected to be negatively affected by record high inflation rates. Prudent
monetary policy is projected to bring inflation down over the forecast horizon
after the one off effects of depreciation, subsidy reforms, and the
introduction of VAT dissipate.
The fiscal deficit is projected to narrow to
10.5 percent in FY17, contingent on the government’s commitment and ability to
sustain its fiscal consolidation plan. With the implementation of the VAT, the
expected increase in the VAT rate to 14 percent from the current 13 percent,
and efforts to improve tax collection, revenues are expected to improve, while
expenditures will continue to be contained.
The current account deficit is expected to
start improving in FY17, supported by a positive exchange rate effect and an
increase in remittances transferred through formal channels.
In the near term high inflation is likely to
have negative short-term effects on households. Current efforts to improve
targeting in the food smart-card program,
currently used to protect the vulnerable population from food price shocks and
ensure a minimum level of food security, could provide additional resources for
an improved safety net.
Risks and challenges
Policy slippage and absence of real-sector
reforms may negatively impact the anticipated economic recovery. Deteriorating
security risks can adversely affect the recovery of the tourism sector,
traditionally a main source of revenue and foreign currency.
On the social front, resources from fuel
subsidy reform to be allocated to social programs may be lower than expected
due to currency depreciation, but efforts
should continue to improve the efficiency of the safety net system. Sustained
high unemployment may lower households’ ability to improve their living
conditions.
Key Economic
Indicators 2014 2015 2016* 2017* 2018 2019
Real GDP Growth (%) 2.9 4.4 4.3 3.9 4.6 5.3
Inflation Rate (%)
10.1 10.4 10.2 20.1 14.2 11.3
Current Account Balance (% of GDP) -0.9 -3.8 -6.1 -5.5
-4.4 -3.8
Fiscal Balance (% of GDP) -11.5 -11.0 -12.1 -10.5
-9.2 -7.3
* Forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.13 |
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1 |
INR 92.52 |
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Euro |
1 |
INR 80.59 |
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EGP |
1 |
INR 3.70 |
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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VIV |
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Report Prepared
by : |
TPT |
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.