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MIRA INFORM REPORT
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Report No. : |
509378 |
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Report Date : |
18.05.2018 |
IDENTIFICATION DETAILS
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Name : |
EL EKHLAS CO FOR
TRADING COTTON IMPORT AND EXPORT |
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Registered Office : |
20 Amin Fekrey
Street, Al Raml Station, Alexandria |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
11.01.2005 |
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Com. Reg. No.: |
46597 |
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Legal Form : |
Limited Liability Partnership |
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Line of Business : |
Import and
Distribution of Raw Cotton. |
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No. of Employees : |
22 |
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 : EL EKHLAS
CO FOR TRADING COTTON IMPORT AND EXPORT
Also Known As : MOHAMED
ABDUL HAMID AND PARTNER
Country of Origin : Egypt
Legal Form :
Limited Liability Partnership
Registration Date : 11th
January 2005
Commercial
Registration Number : 46597
Import Licence Number : 73795
Export Licence
Number : 46210
Tax Card Number : 352-153-555
Issued Capital : EGP
250,000
Paid up Capital : EGP
250,000
Total Workforce :
22
Activities :
Distributors of raw cotton
Financial Condition : Good
Payments :
No Complaints
Person Interviewed : Ali Abdul
Hamid Abu Madawi, Managing Partner
COMPANY NAME
EL EKHLAS CO FOR
TRADING COTTON IMPORT AND EXPORT
ALSO KNOWN AS
MOHAMED ABDUL HAMID AND
PARTNER
ADDRESS
Registered & Physical Address
Street : 20 Amin Fekrey Street
Area : Al Raml Station
Town : Alexandria
Country : Egypt
Telephone : (20-3) 4873087
Facsimile : (20-3) 4873086
Mobile : (20-106) 9977587 / 623807 / 623808
Email : ekhlascotton.company@yahoo.com
/ ekhlas.shipping@gmail.com
Premises
Subject operates
from a small suite of offices that are rented and located in the Central
Business Area of Alexandria.
Branch Office
(s)
Location Description
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111
Galal El Desokki Office
premises
Wabour El Miaa
Tel: (20-3) 4286514 / 4286508 / 4299251
KEY PRINCIPALS
Name Position
·
Ali
Abdul Hamid Abu Madawi Managing
Partner
·
Mohamed
Holail Abdul Hamid Abu Madawi Partner
·
Mohamed
Mostafa Commercial
Manager
·
Mohamed
Allam Accountant
LEGAL FORM & OWNERS
Date of Establishment : 11th
January 2005
Legal Form :
Limited Liability
Partnership
Commercial
Reg. No. : 46597
Import
Lic. No. : 73795
Export
Lic. No. : 46210
Tax
Card No. : 352-153-555
Issued Capital : EGP 250,000
Paid up Capital : EGP 250,000
Name of Partners
·
Ali
Abdul Hamid Abu Madawi
·
Mohamed
Holail Abdul Hamid Abu Madawi
OPERATIONS
Activities: Engaged in the import and distribution of
raw cotton.
Import
Countries: Greece, South
Africa, Benin and the United States of America
International Suppliers:
·
Belexi Cotton Greece
Clients:
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GNT
Group India
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Otto
Slander Germany
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Cafares Greece
Subject has a
workforce of 22 employees.
FINANCIAL DATA
Financial
highlights provided by local sources are given below:
Currency: Egyptian
Pounds (EGP)
Year Sales
Year Ending
31/12/16: EGP
190,000,000
Year Ending
31/12/17: EGP
200,000,000
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
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Bank of
Alexandria
19 Salah Salem Street
El Gomrok, Mansheya
Alexandria
Tel: (20-3) 4827995
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 Ali Abdul Hamid Abu Madawi,
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.
Local sources
report that subject meets its payments in a timely manner and 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 67.72 |
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1 |
INR 91.65 |
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Euro |
1 |
INR 79.89 |
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EGP |
1 |
INR 3.82 |
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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NIS |
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Report Prepared
by : |
NIT |
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
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Litigation
against the subject
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Industry
scenario / competitor analysis
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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.