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MIRA
INFORM REPORT
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Report No. : |
505282 |
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Report Date : |
28.04.2018 |
IDENTIFICATION DETAILS
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Name : |
MISR FEED
ADDITIVES COMPANY |
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Registered Office : |
57 Abel Hamid
Badawy Street, El Houria, Heliopolis, PO Box-2399, Cairo |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
1997 |
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Com. Reg. No.: |
87315 |
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Legal Form : |
Egyptian Joint
Stock Company |
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Line of Business : |
Subject engaged
in the production of poultry feed additives, liquid and powder vitamins and
mineral salt blocks. |
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No. of Employees : |
300 |
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 :
MISR FEED ADDITIVES COMPANY
Country of Origin :
Egypt
Legal Form :
Egyptian Joint Stock Company
Registration Date :
1997
Commercial Registration Number :
87315, Sharkeya
Tax Card Number : 508-398-568
Issued Capital :
£E 40,000,000
Paid up Capital :
£E 40,000,000
Total Workforce :
300
Activities :
Producers of poultry feed additives, liquid and powder vitamins
and mineral salt blocks
Financial Condition :
Fair
Payments :
No Complaints
Person Interviewed :
Mohamed Yousri, Accounts Manager
COMPANY NAME
MISR FEED ADDITIVES COMPANY
ADDRESS
Registered & Physical Address
Street : 57 Abel Hamid Badawy Street
Area : El Houria, Heliopolis
PO Box : 2399
Town : Cairo
Country : Egypt
Telephone : (20-2) 21803136 / 21802132 / 21802139
/ 26241132 / 26241136 / 26241139 / 26241201
Facsimile : (20-2) 26236571 /
21802471
Mobile : (20-100) 008134
Email : alashkar@misrfeed.com
Premises
Subject operates
from a large suite of offices that are rented and located in the Central
Business Area of Cairo.
Branch Office
(s)
Location Description
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2nd
Industrial Zone A2 Factory
premises
Small Industries Complex
Plot No. 302, 311
10th of Ramadan
Sharkeya
Tel: (20-15) 410732
Fax: (20-15) 410732
KEY PRINCIPALS
Name Position
·
Mohamed
Abd El Moneim El Ashkar Managing
Director
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Arsen
Artin Emirzian Director
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Dr
Hussein Abdallah El Alaily Director
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Ahmed
Ali Sami Director
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Yasmin
El Alaily Sales
Manager
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Dr
Sayed Deif Marketing
Manager
·
Mohamed
Fareed Factory
Manager
·
Mohamed
Yousri Accounts
Manager
LEGAL FORM & OWNERS
Date of Establishment : 1997
History : Subject changed from a Limited Liability
Partnership to an Egyptian Joint Stock Company on
1st October 2015
Legal Form :
Egyptian Joint Stock
Company
Commercial Reg. No. : 87315, Sharkeya
Tax Card No. : 508-398-568
Issued Capital : £E 40,000,000
Paid up Capital : £E 40,000,000
Name of Shareholder (s)
·
Mohamed
Abd El Moneim El Ashkar
·
Arsen
Artin Emirzian
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Dr
Hussein Abdallah El Alaily
·
Ahmed
Ali Sami
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Local
businessmen and private investors
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.
AFFILIATED COMPANIES
·
Misr
Poultry Company
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Mensuria
Poultry Company
OPERATIONS
Activities: Engaged in the production of poultry feed
additives, liquid and powder vitamins and mineral salt blocks.
Import
Countries: Germany,
Netherlands, Saudi Arabia and China.
Brand Names: MIFACO
Subject has a
workforce of approximately 300 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Egyptian
Pounds (EGP)
Year sales
Year Ending
31/12/15: EGP
71,000,000
Year Ending
31/12/16: EGP
73,000,000
Year Ending
31/12/17: EGP
79,800,000
Local sources
consider subject’s financial condition to be Fair.
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
·
Suez
Canal Bank
14 Wadi El Nile Street
Nahda Square
Maadi
PO Box: 249
Cairo
Tel: (20-2) 33582681
Fax: (20-2) 33582274
·
National
Bank of Egypt
24 Sherif Street
Cairo
Tel: (20-2) 33924175
Fax: (20-2) 33924143
·
Credit
Agricole Egypt
2-6 Hassan Sabry Street
Cairo
Tel: (20-2) 27281800
Fax: (20-2) 27380450
PAYMENT HISTORY
No complaints
regarding subject’s payments have been reported.
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
Please note that
the correct name of the subject is “Misr Feed Additives Company” and not “Mur
Feed Additives Co”.
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 67.78 |
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1 |
INR 92.89 |
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Euro |
1 |
INR 80.74 |
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EGP |
1 |
INR 3.77 |
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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DIV |
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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.