MIRA INFORM REPORT

 

 

Report Date :           

12.03.2012

 

IDENTIFICATION DETAILS

 

Name :

DESIGN CARPET SARL

 

 

Registered Office :

Route 110 ‑ Km 11, Lotissement Mauritania, Quartier Industriel Ain Sebaa,  Casablanca,

 

 

Country :

Morocco

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

19.06.2008

 

 

Com. Reg. No.:

184437

 

 

Legal Form :

Societe A Responsibilite Limitee

 

 

Line of Business :

Manufacture of carpets and rugs

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Poor

Payment Behaviour :

Unknown

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 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Morocco

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

DESIGN CARPET SARL

 

 

Rating Briefing

 

Current Recommended Credit:             

 

Payment Record:                                   UNDETERMINED

 

 

Registration Briefing

 

Registration Number:                             184437

Registration Date:                                  19/06/2008

Legal Form:                                           SOCIETE A RESPONSIBILITE LIMITEE

Latest Financials:                                  December 31, 2010

 

 

Financial Briefing

 

Nominal Capital:                                    100,000 Moroccan Dirham

 

Issued Capital:                                       N/A

 

Turnover:                                               1,988,052 Moroccan Dirham

 

Net Loss:                                                493,684

 

Net Worth:                                              ‑548,513 Moroccan Dirham

 

 

Company Details

 

Company Name:                                          DESIGN CARPET SARL

Headquarter Address:                                   Route 110 ‑ Km 11, Lotissement Mauritania,

                                                                  Quartier Industriel Ain Sebaa,

                                                                  Casablanca,

                                                                  Morocco

Telephone:                                                  +212522 359141

                                                                  +212522 359142

Fax:                                                            +212522 359143

E‑Mail:                                                        contact@designcarpet.ma

Web Site:                                                    www.designcarpet.ma

 

Company was originally started on 19/06/2008

 

 

Registration & Legal Details

 

Current Legal Form:                                   SOCIETE A RESPONSIBILITE LIMITEE

Registration Address:                                 Route 110 ‑ Km 11, Lotissement Mauritania,

                                                                Casablanca

Registration Number:                                  184437

Registration Date:                                      19/06/2008

Year/Date Company Established:                19/06/2008

Registration Town:                                     Casablanca

Tax Registration Number:                           40175383

 

 

Capital

 

Currency:                                                                 Moroccan Dirham

Authorized Capital:                                                                 100,000

Paid Up Capital:                                                                     100,000

 

 

Authorized Capital Breakdown

 

Number of Shares: 1,000                            Type of Shares:  None Selected

 

Issued Shares: 1,000                                 Value per share: MDH 100.00               Value of this type: 100,000.00

 

 

Shareholders / Owners

 

Shareholders:

 

Name/Other Information                                                    Shares Held                              % of

                                                                                                                                      Voting/Non‑Voting

                                                                                                                                      capital

SOFT GROUP,                                                                500                                           50.00% (VOTING)

41, Boulevard d'Anfa,

Casablanca,

Morocco

Mr. Ali Laraqui Housseini,                                             500                                           50.00% (VOTING)

13, Résidence Les Jardins de La

Corniche ‑ Ain Sebaa,

Casablanca,

Morocco

 

Principals

Name:                                                       Mr Ali Laraqui Housseini

Position within the company:                      General Manager

Additional Information:                                Mail : a.laraqui@designcarpet.ma

Date of Birth:                                             13/12/1953

Country of Birth:                                         Morocco

Nationality:                                                Moroccan

Can fluently speak:                                    Arabic & French

 

 

Company Activities

 

NACE Codes:          1393           Manufacture of carpets and rugs

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

 

 

Operations

 

HQ Premises                                            Operates from:     Rented Office , Factory

                                                                Location:             Industrial Area

 

 

Exports

 

Export % and type of product:                   Subject does not export

 

Trading & Selling

Territory:                                                  100% Nationally

 

 

Related Companies

 

Subsidiaries

Affiliates

Information on Related Companies is not available/applicable


Bankers

 

Attijariwafa Bank,

Branch: Head office

2 Boulevard Moulay Youssef,

Casablanca,

Morocco

 

Banque Populaire,

Branch: Head office

101 Boulevard Mohamed Zerktouni,

Casablanca,

Morocco

 

Société Générale,

Branch: Head office

55 Boulevard Abdelmoumen,

Casablanca,

Morocco

 

 

Financial Information

 

Source:                                                     Companies Registry

Figures are:                                               Official Figures

Currency:                                                  Moroccan Dirham

 

Months   Sales Figures                             Sales                                   Gross Profit/Loss            Net

                                                                                                                                                  Profit/Loss

               12                31/12/2010              1,988,052                             (493,684)                         (493,684)

               12                31/12/2009              2,963,789                             135,979                           135,979

 

 


Balance Sheet & Profit & Loss

BALANCE SHEET

As at:                                                                   31‑Dec‑2010                    As at: 31‑Dec‑2009

  Fixed Assets

  Land & Buildings

  Plant & Machinery                                                   170,071                                    191,044

  Furniture & Equipment                                               46,923                                      58,983

  Motor Vehicles

  Misc. Fixed Assets

  Total Fixed Assets                                                 216,994                                    250,027

 

  Financial Assets

  Shares in Related Companies

  Loans to related companies

  Investments

  Deposits

  Misc. Financial Assets

  Total Financial Assets                                                     0                                              0

 

  Intangibles

  Goodwill

  Organisational Expenses                                             7,470                                      10,458

  Patents

  Misc. Intangible Assets

  Total Intangible Assets                                              7,470                                      10,458

 

  Current Assets

  Stock                                                                     337,075                                    405,768

  Stock & Work in Progress

  Trade Debtors & receivables                                      382,138                                    172,384

  Provision for bad debs

  Other receivables

  Due from related companies

  Owed by shareholders

  Prepaid expenses                                                                                                     19,424

  Cash                                                                              28

  Tax recoverable                                                         61,703                                      55,467

  Marketable Securities

  Misc. Current Assets                                                 12,000                                      11,200

  Total Current Assets                                              792,944                                    664,243

  Total Assets                                                        1,017,408                                    924,728

  Owner's Equity & Liabilities

  Issued and paid up capital                                        100,000                                    100,000

  Share premium account

  Retained earnings                                                   ‑154,829                                   ‑290,808

  Net profit/Loss for the year                                       ‑493,684                                    135,979

  Revaluation reserves

  Legal Reserves

  Other reserves

  Net Worth                                                             ‑548,513                                     ‑54,829

 

 

  Deffered Taxation

  Provisions/allowances

  Mortgages/Loans

  Hire purchase

  Due to group of companies

  Minority interest

  Misc. deferred liabilities

  Total Long Term Liabilities                                             0                                              0

 

  Current Liabilities

  Creditors                                                                   72,219                                    159,370

  Other creditors

  Accruals

  Bank overdrafts/Loans                                              845,402                                    421,346

  Misc. Loans

  Directors accounts

  Owing to shareholders                                              495,533                                    269,600

  Owing to related companies

  Proposed dividend

  Long Term‑due 1 year

  Hire Purchase‑under 1 year

  Taxation                                                                  140,681                                    100,872

  Advance receipts

  Misc. Current Liabilities                                              12,086                                      28,369

  Total Current Liabilities                                      1,565,921                                    979,557

  Owner's Equity & Liabilities                                1,017,408                                    924,728

 

PROFIT & LOSS

 

                                                                            Figures are:                              Figures are:

                                                                             Fiscal Year                               Fiscal Year

 

                                                        01/01/2010 to 31/12/2010          01/01/2009 to 31/12/2009

  Total Income/Turnover                                            1,988,052                                 2,963,789

  Cost of sales                                                           327,551                                      21,600

 

  Gross Profit/(Loss)                                                1,660,501                                 2,942,189

 

  Admin/selling expenses                                           643,797                                 1,043,654

  Services                                                                  794,078                                    864,468

  Salaries                                                                  791,167                                    809,947

  Auditors Fee                                                                  770                                       6,600

  Stock Depreciation                                                   ‑46,106                                      22,570

  Depreciation                                                              36,021                                      31,154

  Misc. Operating Expenses

  Misc. Operating Income

  Net Operating Profit/(Loss)                                   ‑559,226                                    163,796

 

  Interest Receivable/Finance Income                            75,400

  Group related income

  Misc. Financial Income                                              11,132                                       1,125

  Total Financial Income                                           86,532                                       1,125

 

  Interest Payable/Finance costs                                    9,353                                      13,177

  Misc. financial expenses                                            14,637                                      15,765

  Total Financial Expenses                                        23,990                                      28,942

 

  Profit/(Loss) before taxes                                      ‑496,684                                    135,979

 

  Income Tax

  Other Tax

  Profit/(Loss) after taxes                                         ‑496,684                                    135,979

 

  Extraordinary items

  Exceptional items

  Misc. Items

 

  Net Profit/(Loss)                                                    ‑496,684                                    135,979

 

 

  Previous years retained earnings

  Current years net income                                                                                         135,979

  Misc. additions in current year

  Current years net loss                                             ‑496,684

  Dividends in current year

  Withdrawals in current year

  Misc. deductions in current year

 

  Retained earnings at end of                                 ‑496,684                                    135,979

  financial period

 

  Average employees

 

  Directors fee

  Earnings per share

  Earnings per share‑previous year

 

 

Auditors Comments

 

Date accounts obtained:                          09/03/2012

Accounts obtained from:                          Companies registry

 

Auditors Opinion:                                     The audited financial statement gives a true and fair view of the state

                                                                of affairs of the subject Financial Statements have been prepared on

                                                                an on‑going basis. Assuming support of: shareholders

 

 


FINANCIAL RATIOS / COMPARATIVE DATA

 

                                      Actual Company      Industrial Averages     Actual Company      Industrial Averages

                                        Results (2010)                   (2010)                   Results (2009)                   (2009)

  Liquidity Ratios

  Current Ratio                                      0.51                            1.68                           0.68                            1.57

  Acid Test Ratio                                   0.29                            1.05                           0.26                            1.06

  Accounts                                            0.04                            0.27                           0.05                            0.35

  Payable/Sales Ratio

  Current Liabilities/Net                         ‑2.85                           ‑0.03                         ‑17.87                            3.50

  Worth

  Total Liabilities/Net                             ‑2.85                           ‑1.79                         ‑17.87                            3.95

  Worth

  Fixed Assets/Net                             ‑39.56                       ‑161.36                       ‑456.01                        142.08

  Worth (%)

 

  Profitability Ratios

  Gross Profit Ratio (%)                        83.52                          94.20                          99.27                          93.80

  Return on Capital                               90.55                          15.53                       ‑248.01                          12.85

  Employed (ROCE)(%)

  Net Profit/Sales (%)                          ‑24.98                            3.84                           4.59                           ‑5.76

  Return on Assets (%)                       ‑48.82                            4.34                          14.70                            3.37

 

  Efficiency Ratios

  Sales/Working Capital                        ‑2.57                          25.54                          ‑9.40                            3.20

  Assets/Sales(%)                               51.18                        127.57                          31.20                        165.62

  Shareholders                                     90.55                          34.64                       ‑248.01                            9.91

  Return(%)

  Average Inventory                             413.89                    62,056.65                                                   495,235.85

  Period

  Average Collection                             50.90                        116.11                                                          116.11

  Period

 

  Leverage Ratios

  Capital Employed                               ‑3.58                            3.67                         ‑45.40                            4.96

 

  Number of                                                                             331                                                              331

  Companies within the

  industry (NACE C)

  Statistics based on                                       Manufacturing                                               Manufacturing

  NACE(C)

 


INDUSTRY SECTOR COMPARATIVE DATA

 

Elements Taken                      Result for specific                                                                   

                                                      company

DATE OF REGISTRATION                        19/06/2008                                                                                 

SALES (2010)                                              174,790                                                                                         SALES (2009)                                                           260,576                                                                                 

NET PROFIT (2010)                                       ‑43,668                                                                                 

NET PROFIT (2009)                                        11,955                                                                                 

TOTAL ASSETS (2010)                                   89,451                                                                                 

TOTAL ASSETS (2009)                                   81,302                                                                                 

 

                                                                                                                                        Currency: EUROS

 

Payments

 

Subject's payments reported to be:        UNDETERMINED

 

 

Representation

 

Other Comments

Other Comments:                                      Patent N° : 37957442

 

 

Interview & Reporter Comments

 

Name/Title:                                                Mr. Ali Laraqui Housseini General Manager

Comment:                                                 We have sent a fax/e‑mail/questionnaire however no reply has been

                                                                received as of yet.

 

 

 

Reporter Comment:                  All legal forms in Morocco are obliged by law to be registered with the Registry

                                              Office (OMPIC: Office Marocain de la Propriete Industrielle et Commerciale) which

                                              is publicly available.

 

Subject was found registered and Information obtained from above official source is as follows :

 

                                              Registered name / registration number / date of registration / registered address /

                                              legal form / capital / main principals – administrators / shareholders /

                                              shareholders% / financial information.

 

According to the Morocco Commercial Law, all legal forms except for proprietorship entities are obliged to file their financial accounts to the OMPIC.

 

                                              Any other data stated in the report was obtained directly from the subject company

                                              and/or other publicly available information. Therefore it should be used as a point

                                              of reference as it is not possible to verify such data with official sources.

 

                                              In the interview conducted with Mr. Ali Laraqui Housseini, General Manager, he

                                              asked us to send him a letter for information, however there is no reply was

                                              received as of yet.

 

 

Conclusions

 

Local Reputation:                                       The company being investigated is believed by local reporters to be a

                                                                Medium Trade Risk.

 

Owner/Shareholders Comments:                 Some of the owners / shareholders have an active participation in the

                                                                running of the business.

 

 

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

                                                                company are declining in strength.

 

Age of Business:                                       The company has been established for under 5 years.

 

 

 

Country Intelligence Information

 

Country:                       Morocco

Date:                            21/02/2012  00:00:00

Source:                        Economist Intelligence Unit

 

Economy:                     Economy grew by 4.8% in third quarter of 2011

                                    January 11th 2012

 

                                    Morocco's economy expanded by 4.8% year on year in real terms in the third quarter of

                                    2011, compared with growth of 3.1% in the same period of 2010. According to the Haut

commissariat au plan, Morocco's statistics agency, domestic demand was the primary driver of growth. Private consumption rose by 7.3% year on year and government consumption was up by 5.2%. Fixed investment rose by 4.6%. However, imports of goods and services continued to be exert a major drag on economic performance, up nearly 15% year on year, a faster pace than at the start of 2011, while export volume growth has slowed.

 

At a meeting of its board, Bank al‑Maghrib (BAM; the central bank) revised down its estimate of overall 2011 GDP growth to between 4% and 5% from 4.5% to 5.5% (the Economist Intelligence Unit estimates the economy expanded by 4.4%). The bank cited lower tourism revenue and weaker exports of phosphates and associated products. BAM expects 2012 real GDP growth of 4‑5% unless there is a serious deterioration in European economies, but we forecast that growth will be weaker.

 

Post and telecommunications was the fastest growing segment of the economy, up 19% in real terms to the end of September while social spending and construction and public works also recorded significant growth rates of 8.1% and 7.1% respectively. Agriculture, the single largest component of Morocco's economy, expanded by 4.1%. Hotels and restaurants shrank in the third quarter by 2.6% year on year. Given that this period encompassed the summer months, in which Morocco generally receives large amounts of tourists, the decline in this sector confirms reports that visitors, particularly those from Europe, are reducing travel to Morocco. The absence of large numbers of European tourists who may be reluctant to spend on holidays abroad given the precarious economic conditions at home, has been compounded by the fact that the Islamic holy month of Ramadan fell in the month of August in 2011. Ramadan will continue to fall in summer months for the     next six years.

 

Risk: January 16th 2012

 

                                    Sovereign risk

Stable. Morocco's sovereign debt risk has been downgraded to B. The fiscal account will remain deeply in deficit, owing to high recurrent expenditure on subsidies and wages, but this should be financed mostly by borrowing from domestic banks.

 

Currency risk

Stable. The current exchange‑rate system—a managed float—will remain in place. The Moroccan dirham is strengthening against the euro, but the central bank has the capacity to intervene if necessary to protect exporters.

 

Banking sector risk

Stable. The banking sector has benefited from prudential regulation, relatively low levels of non‑performing loans (although these are rising) and limited direct foreign exposure. The government is encouraging saving among rural Moroccans and expatriates in an effort to improve liquidity.

 

Political risk

The government will increase public spending in the short term to quell political and social unrest over unemployment and poverty. Tensions over the disputed territory of Western Sahara may also lead to violent demonstrations.

 

 

Economic structure risk

Dependence on agriculture leaves economic performance vulnerable to weather conditions. The fiscal and external deficits fluctuate in line with international commodity prices but are manageable.

 


           

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.02

UK Pound

1

Rs.79.00

Euro

1

Rs.66.18

 

 

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.