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MIRA INFORM REPORT
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Report No. : |
510044 |
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Report Date : |
22.05.2018 |
IDENTIFICATION DETAILS
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Name : |
CHEM SOURCE EGYPT |
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Registered Office : |
9 First of May Building, Nasr Road, Nasr City, Cairo 11727 |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
25.08.2015 |
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Com. Reg. No.: |
94543 |
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Legal Form : |
Limited Liability Partnership |
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Line of Business : |
Subject is engaged in the manufacture of calcium carbonate, PVC compounds and export premium Egyptian minerals, final plastic products, and paint raw materials and import and stock plastic raw materials and additives for plastic producers |
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No. of Employees : |
45 |
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 :
CHEM SOURCE EGYPT
Country of Origin :
Egypt
Legal Form :
Limited Liability Partnership
Start Date :
25th August 2015
Commercial Registration Number :
94543
Tax Card Number :
504-436-740
Issued Capital :
EGP 200,000
Paid up Capital :
EGP 200,000
Total Workforce :
45
Activities :
Manufacturers of calcium carbonate, PVC compounds
and export
premium Egyptian minerals, final plastic products, and paint raw materials and import and stock plastic
raw materials and additives for plastic
producers
Financial Condition :
Fair
Payments :
No Complaints
Operating Trend :
Steady
COMPANY
NAME
CHEM SOURCE EGYPT
ADDRESS
Registered & Physical Address
Building :
9 First of May Building
Street : Nasr
Road
Area : Nasr
City
Town : Cairo
11727
Country : Egypt
Telephone : (20-2)
22705330
Facsimile : (20-2)
22705330
Mobile :
(20-100) 9799906
Email : info@chemsourceegy.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
Elmenia Factory premises
KEY
PRINCIPALS
Name Position
Osama Hassan Samih Managing
Partner
Hatim Hassan Hosny Partner
Yomanah Othman Partner
LEGAL
FORM & OWNERS
Date of Establishment : 25th
August 2015
Legal Form : Limited Liability
Partnership
Commercial Reg No. : 94543
Tax Card No. : 504-436-740
Issued Capital : EGP 200,000
Paid up Capital : EGP 200,000
Name of Partners
Osama Hassan Samih
Hatim Hassan Hosny
Yomanah Othman
OPERATIONS
Activities: Engaged in the manufacture of calcium carbonate, PVC compounds
and export premium Egyptian
minerals, final plastic
products, and paint raw materials and import and stock plastic raw materials
and additives for plastic producers.
Operating Trend: Steady
Subject has a workforce of 45 employees.
FINANCIAL
DATA
Financial highlights provided by local sources are given below:
Currency: Egyptian Pounds (EGP)
Year Revenue
Year Ending 31/12/14: EGP
9,000,000
Year Ending 31/12/15: EGP
11,250,000
Year Ending 31/12/16: EGP
12,900,000 (estimated)
Year Ending 31/12/17: EGP
13,650,000 (estimated)
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
Commercial International Bank (CIB)
Nile Tower Building
21-23 Giza Street
PO Box: 2430
Cairo
Tel: (20-2) 25703043
Fax: (20-2) 25703172 / 25072691
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
- Interview with Mr Osama
Hassan Samih, Managing Partner
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 68.09 |
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1 |
INR 91.91 |
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Euro |
1 |
INR 79.93 |
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EGP |
1 |
INR 3.79 |
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 : |
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
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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.