The ordinary general assembly meeting of the Holding Company for Cotton, Spinning and Weaving was chaired by the Minister of Investment, Dr. Mahmoud Mohieldin and attended by the Minister of Manpower and Immigration, Mrs. Aisha Abdel Hady; representatives of the Central Auditing Organization (CAO); members of the general assembly and the board of directors of the Holding Company; and representatives of the Ministry of Investment. The meeting discussed the results of the Company and its affiliates companies in FY 2008/09.
The 2008/2009 Board of Directors' report was presented by the company's chairman, Eng. Mohsen El-Guilani. Affiliates made a net loss of EGP 2,292 million compared to a net loss of EGP 1,959 million in the previous fiscal year. The holding company includes 23 weaving and spinning companies and 9 cotton companies, employing 73,000 workers.
El-Guilani noted that investments worth of EGP 116 million were implemented during FY 2008/09 and are expected to increase to EGP 497 million that is expected to be injected into affiliates during FY 2009/10.
El-Guilani highlighted the continuous support the company and its affiliates have received from the Ministry of Investment. He highlighted the ministry's efforts to settle the EGP 11 billion debt of the spinning and weaving companies, due to commercial banks. Thanks to the settlement, the amount declined to EGP 1.3 billion on June 30th, 2009. A second stage of settlement will lead to the payment of EGP 707 million to Misr Bank and the National Bank of Egypt.
Some 607 temporary workers have been employed permanently, along with the appointment of 3,137 new workers, El-Guilani stated.
Financial indicators of affiliates were reviewed as follows:
• Revenues of current activities reached EGP 2,423 million during FY 2008/09 compared to EGP 3,260 million during the FY 2007/08, due to the impact of the global financial crisis.
• Affiliates made a net loss of EGP 2,292 million, compared to EGP 1,959 million during FY 2007/08.
• A total of EGP 422 million was paid to sovereign bodies during FY 2008/09, compared to EGP 461 million during FY 2007/08.
Financial indicators of the holding company were reviewed as follows:
• The company’s share of affiliates' profits reached EGP 13.7 million during FY 2008/09, compared to EGP 12 million during FY 2007/08.
• The company’s net loss reached EGP 31.5 million during FY 2008/09, compared to EGP 41 million during FY 2007/08.
The meeting reviewed the Central Auditing Organization’s report on consolidated financial statements on June 30th, 2009 and the company’s response to these statements.
The Holding Company’s general assembly approved the company’s financial statements, and the board of directors' report on the company’s financial activity for the year which ended on June 30th, 2009.