MIRA INFORM REPORT

 

 

Report Date :

14.04.2012

 

IDENTIFICATION DETAILS

 

Name :

SOCIETE DEMCO KNITWEAR SARL

 

 

Registered Office :

Zone Industrielle Moknine, Moknine, Monastir 5050

 

 

Country :

Tunisia

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1997

 

 

Com. Reg. No.:

B 1562332006

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Manufacture of underwear

 

 

No. of Employees :

540

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

149,000 EUR

Status :

Good

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 – September 30, 2011

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Tunisia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company Name

 

 

SOCIETE DEMCO KNITWEAR SARL

 

 

Rating Briefing

 

Current Recommended Credit:              149,000 EUR

 

Payment Record:                                   NO COMPLAINTS

 

                                                             

 

Registration Briefing

 

      Registration Number:                       B 1562332006

 

      Registration Date:                            1997

 

      Legal Form:                                     PRIVATE LIMITED CO

 

      Latest Financials:                            N/A

 

 

Financial Briefing

 

      Nominal Capital:                              100,000 Tunisian Dinar

 

      Issued Capital:                                 N/A

 

      Turnover:                                         12,368,241 Tunisian Dinar

 

      Net Profit:                                        865,130 Tunisian Dinar

 

      Net Worth:                                       7,078,794 Tunisian Dinar

 

 

Original Investigation Details

 

      Investigation Number:                             155320

      Company Name:                                    DEMCO KNITWEAR

      Country:                                                TU

      Street Name:                                         ZONE INDUSTRIELLE, MOKNINE 5050

      City Code:

 

 

Company Details

 

      Company Name:                                    SOCIETE DEMCO KNITWEAR SARL

      Headquarter Address:                             Zone Industrielle Moknine,

                                                                  Moknine,

                                                                  Monastir 5050,

                                                                  Tunisia

 

      Telephone:                                            +21673 416100

                                                                  +21673 416200

 

      Fax:                                                      +21673 416310

 

      E‑Mail:                                                  standard@demcoknitwear.com

 

 

 Company History

 

      Former Addresses                                                                                   Date of Change

 

        Route de sousse,                                                                                     1/08/2008

        Teboulba,

        Monastir 5080

 

        Company was originally started on 28/12/2006

 

 

Registration & Legal Details

 

      Current Legal Form:                             PRIVATE LIMITED CO

      Additional Information:                          Customs ID 824665 G

 

      Registration Address:                           Zone Industrielle Moknine,

                                                                Monastir 5050

      Registration Number:                            B 1562332006

      Registration Date:                                1997

      Year/Date Company Established:          28/12/2006

      Registration Town:                               Monastir

      Tax Registration Number:                     982045 A

 

 

Capital

 

      Currency:                                                                Tunisian Dinar

      Authorized Capital:                                                           100,000

      Paid Up Capital:                                                               100,000

 

 

Shareholders / Owners

 

        Shareholders:

 

Name/Other Information                           Shares Held                                    % of Voting/Non‑Voting capital

SOCIETE J&S.COM                                                                                      90.00% (VOTING)

SOCIETE DEMCOTEX                                                                                  10.00% (VOTING)

 

 

Principals

 

        Name:                                               Mr John De Meirsman

        Position within the company:              General manager

        Country of Birth:                                 Belgium

        Nationality:                                        Belgian

        Can fluently speak:                            French/english

 

        Name:                                               Mr Johan Maeulebroeck

        Position within the company:              Manager

        Country of Birth:                                 Belgium

        Nationality:                                        Belgian

        Can fluently speak:                            French/english

 

        Name:                                               Mr Adel Belguith

        Position within the company:              Chief of Accountant

        Country of Birth:                                 Tunisia

        Nationality:                                        Tunisian

        Can fluently speak:                            French/English

 

        Name:                                               Ms Chiraz Zourour

        Position within the company:              Principal

        Country of Birth:                                 Tunisia

        Nationality:                                        Tunisian

        Can fluently speak:                            French

 

 

Company Activities

 

        NACE Codes:  1414           Manufacture of underwear

 

The Company is involved in the manufacturing of men’s and women’s underwear’s as T‑shirts, underpants, shorts, jogging outfits, made from imported and local purchased raw materials then sold totally on a wholesale basis to the foreign clients.

 

 

Local Reporters consider the investigated company to be LARGE in their field of concern.

 

 

Operations

 

 Employees                                              Company Employs: 540

                                                                Group employs: 3600 staff

 

 HQ Premises                                           Operates from:     Rented Offices , Factory, Warehouse

                                                                Premises Size:    715 square meters

                                                                Location:             Suburban Business Area, Side Road

Imports

 

                                                              Import % and type of product:     90% Raw Materials

                                                              Imports From:                            Belgium, France, Netherlands, USA, Italy

                                                              Importing Terms:                        60 days credit, letters of credit

                                                              Additional Information:                The other payment method is bank transfer.

 

Subject's Suppliers:                                   Company Name:  SPORTSWEAR

                                                                Address:             Spain

 

                                                                Company Name:  TT LIMITED

                                                                Address:             India

 

                                                                Company Name:  EDOR

                                                                Address:             Portugal

 

                                                                Company Name:  ENGELVAART

                                                                Address:             Netherlands

 

 

Agencies:

              LENS                                                 USA

              DIOR                                                  France

              TOMMY                                              USA

CHAMPION                                                       France

 

 

Exports

 

                                                              Export % and type of product:     100%

                                                              Exports To:                                France, Belgium, Netherlands, USA, Italy

                                                              Exporting Terms:                        90 days credit, bank transfer

                                                              Additional Information:                The subject export : Sweat shirts 42%, T‑shirt 45%

                                                                                                               , Underwear 13%

 

Trading & Selling

 

                                                               Territory:                                   100% International

                                                               Additional Information:               The subject buys 10% raw materials locally.

                                                              Type of Customer:                     European clothes wholesalers and retailers

 

        Vehicles:                                          Total number of vehicles: 15

                                                                7 cars

 

 

Related Companies

 

 Subsidiaries

 Affiliates

                                  Societe Demcotex

                                  Zone Industrielle Moknine,

                                  Moknine,

                                  Tunisia

                                                                                       Start Date: 1990

                                  Operates as: A manufacture of under garments.

                                  Related through: common principals and shareholders

 

                                  D.E.S

                                  Zone Industrielle Moknine,

                                  Monastir,

                                  Tunisia

                                                                                       Start Date: 2006

                                  Operates as: A manufacture operating in Finishing treatments for clothing items (dyeing,

                                  fading, and           silk screening).

                                  Related through: common principals and shareholders

 

                                  DEMCO

                                  Zone Iindustrielle  Moknine,

                                  Monastir,

                                  Tunisia

                                                                                       Start Date: 1991

                                  Operates as: a manufacturer of outwears.

                                  Related through: common principals and shareholders

 

                                  J & S.COM

                                  Zone Industrielle Moknine,

                                  Monastir,

                                  Tunisia

                                                                                       Start Date: 2004

                                  Operates as: a manufacturer of outwears.

                                  Related through: common principals and shareholders

 

                                  AMYCO

                                  AMIRAT EL HOJJAJ, Moknine,

                                  Monastir,

                                  Tunisia

                                                                                       Start Date: 1999

                                  Operates as: a manufacturer of outwears.

                                  Related through: common principals and shareholders

 

 

Bankers

 

Banque Internationale Arabe de Tunisie,

Branch: Teblouba

262 Avenue Habib Bourguiba,

Monsatir 5080,

Tunisia

Account Number:                                         125100089 8

Currency:                                                    Euros

Relationship with Bank:                                is reported to be good

 

Banque Internationale Arabe de Tunisie,

Branch: Teboulba

262 Avenue Habib Bourguiba,

Monastir 5080,

Tunisia

Account Number:                                         125000124 6

Currency:                                                    Tunisian Dinar

Relationship with Bank:                                is reported to be good

 

ING BANK,

Branch: Alost

Belgium

Account Number:                                         393‑0062579‑06

 

 

Financial Information

 

        Financial Interview Date:                     11/04/2012

        Source:                                             Adel Belguith Chief of Accountant

        Figures are:                                       Official Figures

        Currency:                                          Tunisian Dinar

 

Months   Sales Figures                             Sales                 Gross Profit/Loss          Net  Profit/Loss

               12                31/12/2011              12,368,241                                                 865,130

               12                31/12/2010              12,359,000                                                 692,383

               12                31/12/2009              11,600,000                                                 1,343,283

               12                31/12/2008              12,642,000                                                 107,304

 

 

 

Brief Financials Data

 

           Date Obtained:                   18/08/2011

           Date of Figures:                  31/12/2010

           Figures are:                        Financial Estimates

           Currency:                           Tunisian Dinar

 

            Issued Capital                                               100,000

            Retained Earnings                                      2,625,993

            Net Worth                                                  7,078,794

            Long Term Liabilities                                   3,418,376

            Trade Creditors                                           3,067,689

            Bank Overdraft                                              592,729

            Total Current Liabilities                                3,660,418

            Total Liabilities                                           3,660,418

 

            Fixed Assets                                              2,035,311

            Stock                                                        1,599,346

            Trade Debtors                                             2,674,475

            Cash                                                            125,594

            Total Current Assets                                   5,043,483

            Total Assets                                               7,078,794

 

Payments

 

       Subject's payments reported to be: NO COMPLAINTS

 

 

Interview & Reporter Comments

 

Name/Title:                                                Chiraz Zourour Principal

Comment:                                                 Subject has confirmed the general details shown in the report.

 

 

 

Reporter Comment Date:                           11/04/2012

 

        Reporter Comment:          In the interview conducted with Ms.Chiraz Zourour,she confirmed details shown in this report and declined to provide full financial details stating the grounds of the company’s confidentiality.

 

As per Tunisian Commercial law companies, except the quoted public limited ones, are not required to file their financials and are under no obligation to provide such details to third parties, representatives and or correspondents representing international and or local clientele.

 

                                              STATISTICAL DATA OF THE UNDERWAERS CLOTHES (April 2012)

 

                                              ‑ 217 Registered industrial companies with more than 10 employees.

                                              ‑ 188 are totally exporting companies

                                                29 are partially exporting companies

 

                                              * TOTALLY EXPORTING COMPANY :

 

                                               ‑ Whose at least 80 % of its production is entirely destined for export

                                               ‑ Whose services are rendered abroad or in Tunisia for their use abroad

‑ That works exclusively with the enterprises aforementioned or in the free zones        

  or with non resident financial establishments

                                               ‑ Wholly exporting enterprises are subject to the free zone system.

 

                                              * BENEFIT :

 

  ‑ Full exoneration of income and profits from the tax base during the first ten years of activity and a 50% deduction thereafter.

 ‑ Extension of the period for the total deduction of income and profit from export operations, the appropriate law article :

 

                                              Article 29 of the finance law for the year 2003

Remaining in application is the total deduction of income and profit from export operations for exporting companies within the framework of current fiscal legalization and for which the duration of the total deduction of their income and profit resulting from export operations expires before 2007, and for income and profit realized through to December 31, 2007.

 

 ‑ Tax relief on profits or income reinvested in the initial capital or increase in capitalization subject to the minimum tax base.

 ‑ Tax relief on profits reinvested back into the company subject to the minimum tax base.

 ‑ The liberty to import free of customs duties and taxes the equipment necessary for production

 ‑ Total exoneration from registration fees, stamp duty and value added taxes on the activities of the enterprise.

                                               ‑ Opportunity to sell on the domestic market  20% of turnover

                                               ‑ Possibility to recruit up to 4 foreign management employees.

 

 

Conclusions

 

Local Reputation:           The Company being investigated is well known and trusted in the local market and is

 

                                      considered to be a sound trading partner with low trade risk associated.

 

Financial Results Trend: Financial Information indicates that the business activities of the company are

                                      showing an upward turn.

 

Age of Business:            The Company is long established in the local market.

 

 

Country Intelligence Information

 

        Country:               Tunisia

        Date:                    26/03/2012  00:00:00

        Source:                Economist Intelligence Unit

 

        Economy:             The economic downturn in 2011 is worse than expectedFebruary 13th 2012. The economy performed more weakly in 2011 than originally forecast. In January the  regional development and planning minister, Jamel Gharbi, said that GDP shrank by 1.8% in 2011, while the  central bank governor, Mr Nabli, said the contraction was 1.85%. As recently as the start of December Mr Nabli had been predicting that growth over the year as a whole would be close to zero.    Growth has faltered as domestic unrest combined with the economic downturn and sovereign‑debt crisis in the euro zone and the civil war in Libya reduced production, tourism receipts, worker remittances and investment flows.Industrial production in the first 11 months of 2011 fell by 3.2% compared with the same period of 2010, largely because of a 56% slump in the output of the mining sector and a 4.9% decline in the output of the energy sector. Manufacturing output fell by 1.2%, largely because a 29% decline in output of the chemicals sector, which mostly produces phosphate derivatives and relies heavily on the mining sector for its feedstock; Mr Jebali estimated that strikes and protests at a state mining firm, Compagnie de phosphates de Gafsa, and the state fertiliser firm, Groupe chimique, had caused TD1.2bn (US$852m) of losses. Despite some disruption, the output of the two biggest manufacturing sectors, mechanical and electrical industries and textiles, expanded by 3.9% and 1.3% respectively in the first 11 months, while the output of the food‑processing sector grew by 1.9%. The employers' association, UTICA, said that industrial unrest has so far caused 170 foreign‑owned enterprises to shut down operations permanently in 2011; some 3,135 foreign enterprises were operating at the end of 2010, most of them in manufacturing. The services sector suffered in 2011 from a downturn in transport and tourism. Official tourist numbers fell from 6.4m in 2010 to 4.4m. The shrinkage of GDP was prevented from being even greater by the expansion of agriculture by more than 9%, following good rains, and by an increase in government spending intended to reduce social tensions. Foreign investment in the economy also slumped by 22% in 2011; 24,000 new jobs were created in 2011, although official figures suggest that 137,000 jobs had been lost across the economy in the same period as a result of social unrest. One of the rare positive indicators was the moderation of the inflation rate to 3.5%, according to official figures, from 4.4% in 2010.

 

        Risk:                     February 13th 2012

 

                                    Sovereign risk

 

Negative. Tunisia's public debt stock has risen steadily since 2009 and is forecast to continue to rise in 2012‑13. Large budget and current‑account deficits will make it more challenging to meet external debt obligations. However, Tunisia will receive substantial foreign aid in 2012‑13. The G8 group of major economies has promised to almost double aid to North Africa to US$38bn.

 

 

                                   

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.41

UK Pound

1

Rs.81.93

Euro

1

Rs.67.66

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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 and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.