|
|
|
MIRA INFORM REPORT
|
Report No. : |
487509 |
|
Report Date : |
01.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
AL SHEROOQ FOR IMPORT AND EXPORT |
|
|
|
|
Registered Office : |
12 Khaled Bin Al Waleed Street Al Mohandessin City Mansoura |
|
|
|
|
Country : |
Egypt |
|
|
|
|
Date of Incorporation : |
1996 |
|
|
|
|
Com. Reg. No.: |
76840, Mansoura |
|
|
|
|
Legal Form : |
Sole Proprietorship |
|
|
|
|
Line of Business : |
Subject is engaged in the wholesale and retail of automotive spare
parts and related accessories. |
|
|
|
|
No. of Employees : |
4 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Status : |
Moderate |
|
|
|
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
Egypt |
C1 |
C1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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.
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, which remains above 10%.
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. In 2015-16, higher levels of foreign investment contributed to a slight rebound in GDP growth after a particularly depressed post-revolution period. In 2016, Cairo enacted a value-added tax, implemented fuel and electricity subsidy cuts, and floated its currency, which led to a sharp depreciation of the pound and corresponding inflation. In November 2016, the IMF approved a $12 billion, three-year loan for Egypt and disbursed the first $2.75 billion tranche.
|
Source
: CIA |
SUMMARY
Company
Name :
AL SHEROOQ FOR IMPORT AND EXPORT
Country
of Origin :
Egypt
Legal
Form :
Sole Proprietorship
Registration
Date :
1996
Commercial
Registration Number : 76840,
Mansoura
Invested
Capital :
£E 100,000
Total
Workforce :
4
Activities :
Wholesalers and retailers of automotive spare parts
Financial
Condition :
Fair
Payments :
No Complaints
Company
name and address
COMPANY
NAME: AL
SHEROOQ FOR IMPORT AND EXPORT
ADDRESS
Registered
& Physical Address
Street : 12 Khaled Bin Al Waleed Street
Area : Al Mohandessin City
Town : Mansoura
Country : Egypt
Telephone : (20-50) 2750933 / 2230830
Facsimile : (20-50) 2750933
Mobile : (20-100) 1210189
Email : ebradel@gmail.com / alshrooq77@hotmail.com
Premises
Subject
operates from a small suite of offices and a showroom that are rented and
located in the Central Business Area of Mansoura.
KEY
PRINCIPALS
Name Position
Adel
Abdul Hamid Mohamed Proprietor
& General Manager
Awad
Abdul Hamid Mohamed Assistant
General Manager
LEGAL
FORM & OWNERS
Date
of Establishment : 1996
Legal
Form : Sole Proprietorship
Commercial
Reg. No. : 76840, Mansoura
Tax
Card No. : 503-569-147
Invested
Capital : £E 100,000
Mr
Adel Abdul Hamid Mohamed is the sole proprietor of the business.
Note to the Legal Form An Sole Proprietorship is a non-incorporated entity and is owned by
one individual only. The owner is liable for all debts and liabilities of the business to the
extent of his/her personal assets. There are no legal requirements concerning
the amount of capital of a sole proprietor.
OPERATIONS
Activities: Engaged in the wholesale
and retail of automotive spare parts and related accessories.
Import
Countries:
Taiwan and India
International
Suppliers:
Auto
Light India
Depo
Auto Part Taiwan
Tong
Yang Spare Part Taiwan
Subject
has a workforce of 4 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency:
Egyptian Pounds (EGP)
Year Sales
Year
Ending 31/12/17: EGP
2,000,000
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
Egyptian
Saudi Finance Bank
Suez
Canal and El Falaky Street
Toreal
Area
Mansoura
Tel: (20-50) 2334503
Fax: (20-50) 2334501
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
- Interview with Adel Abdul Hamid Mohamed,
Proprietor & General Manager, on 31/01/2018
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 business 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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.75 |
|
|
1 |
INR 89.38 |
|
Euro |
1 |
INR 78.75 |
|
EGP |
1 |
INR 3.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
DNS |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.