MIRA INFORM REPORT

 

 

Report Date :

31.03.2012

 

IDENTIFICATION DETAILS

 

Name :

SOCITE DE FILATURE DE BONNETERIE

 

 

Registered Office :

Lot 18 Quartier Industriel Sidi Brahim II, Fes

 

 

Country :

Morocco

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

18.12.1986

 

 

Com. Reg. No.:

16027

 

 

Legal Form :

Societe A Responsibilite Limitee

 

 

Line of Business :

Manufacture of knitted and crocheted fabrics

 

 

No. of Employees :

80

 

 

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 :

Moderate

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 30, 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

 

SOCITE DE FILATURE DE BONNETERIE

 

 

Registration Briefing

 

Registration Number:               16027

 

Registration Date:                    18/12/1986

 

Legal Form:                             SOCIETE A RESPONSIBILITE LIMITEE

 

Latest Financials:                    December 31, 2010

 

Financial Briefing

 

Nominal Capital:                      6,500,000 Moroccan Dirham

 

Issued Capital:                         N/A

 

Turnover:                                 17,200,740 Moroccan Dirham

 

Net Loss:                                  2,801,914

 

Net Worth:                               3,075,009 Moroccan Dirham

 

 

Company Details

 

Company Name:                        SOCITE DE FILATURE DE BONNETERIE

Also trades as:                          SOFIB

Headquarter Address:                 Lot 18 Quartier Industriel Sidi Brahim II,

Fes,

Morocco

 

Postal Address:                         P.O.Box 2195,

Fes 30000

 

Telephone:                                +212535 641214

+212535 657769

 

Fax:                                          +212535 659277

 

E‑Mail:                                      sofib1@menara.ma

Web Site:                                  www.sofib.ma

 

 

Company was originally started on 1987

 

 

 

Registration & Legal Details

 

Current Legal Form:                   SOCIETE A RESPONSIBILITE LIMITEE

Registration Address:                 Lot 18 Quartier Industriel Sidi Brahim II,

Fes

Registration Number:                  16027

Registration Date:                      18/12/1986

Year/Date Company Established:1987

Registration Town:                     Fes

Tax Registration Number:           04501278

 

 

Capital

 

Currency:                                  Moroccan Dirham

Authorized Capital:                     6,500,000

Paid Up Capital:             6,500,000

 

 

Authorized Capital Breakdown

 

Number of Shares: 65,000          Type of Shares:  None Selected

 

Issued Shares: 65,000    Value per share: MDH 100.00     Value of this type: 6,500,000.00

 

 

Shareholders / Owners

 

 

Shareholders:

 

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

Mr. Mohamed Belkhayat,                     14,549                                      22.38% (VOTING)

Fes,

Morocco

Mr. Driss Belkhayat,                             14,550                                      22.38% (VOTING)

Fes,

Morocco

Mr. Ghali Belkhayat,                            11,884                                      18.28% (VOTING)

Fes,

Morocco

Ms. Nouzha Belkhayat,                        6,500                                        10.00% (VOTING)

Fes,

Morocco

Ms. Aicha Belkhayat,                           5,205                                        8.01% (VOTING)

Fes,

Morocco

Ms. Meriem Belkhayat,                        4,157                                        6.39% (VOTING)

Fes,

Morocco

Ms. Mounia Belkhayat,                        2,855                                        4.40% (VOTING)

Fes,

Morocco

Ms. Salma Belkhayat,                         2,855                                        4.40% (VOTING)

Fes,

Morocco

Mr. Mehdi Belkhayat,                           2,445                                        3.76% (VOTING)

Fes,

Morocco

 

 

Principals

 

Name:                                       Mr Mohamed Belkhayat

Position within the company:      Managing director

Country of Birth:             Morocco

Nationality:                                Moroccan

Can fluently speak:                    Arabic & French

 

Name:                                       Mr Abdellatif Belkhayat

Position within the company:      General Director

Country of Birth:             Morocco

Nationality:                                Moroccan

Can fluently speak:                    Arabic & French

 

Name:                                       Mr Ghali Belkhayat

Position within the company:      Commercial Manager

Country of Birth:             Morocco

Nationality:                                Moroccan

Can fluently speak:                    Arabic, French & English

 

 

Company Activities

 

NACE Codes:    1391     Manufacture of knitted and crocheted fabrics

 

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

 

 

Operations

 

Employees       Company Employs: 80

 

HQ Premises    Operates from:   Owned Office , Warehouse, Workshops

Premises Size:  5077 square meters

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: Centre d'Affaires Fes

Place de l'Atlas ‑ Ville Nouvelle,

Fes,

Morocco

 

 

Financial Information

 

 

        Financial Interview Date:                     28/03/2012

        Source:                                             Companies Registry

        Figures are:                                       Official Figures

        Currency:                                          Moroccan Dirham

 

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

               12                31/12/2010              17,200,740                           (2,715,384)                      (2,801,914)

               12                31/12/2009              20,078,050                           (1,214,885)                      (1,315,484)

 

Balance Sheet & Profit & Loss

 

BALANCE SHEET

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

  Fixed Assets

  Land & Buildings                                                   2,132,780                                 2,526,088

  Plant & Machinery                                                1,077,284                                 1,329,250

  Furniture & Equipment                                              118,994                                    157,290

  Motor Vehicles                                                            4,101                                       5,592

  Misc. Fixed Assets

  Total Fixed Assets                                               3,333,159                                 4,018,220

 

  Financial Assets

  Shares in Related Companies                                   180,000                                    180,000

  Loans to related companies

  Investments

  Deposits

  Misc. Financial Assets                                              42,496                                      42,496

  Total Financial Assets                                           222,496                                    222,496

 

  Intangibles

  Goodwill

  Organisational Expenses                                                                                            4,636

  Patents                                                                      5,198                                      13,665

  Misc. Intangible Assets

  Total Intangible Assets                                              5,198                                      18,301

 

  Current Assets

  Stock                                                                   2,399,237                                 1,862,779

  Stock & Work in Progress                                        471,310                                    528,930

  Trade Debtors & receivables                                   8,620,324                                 9,689,118

  Provision for bad debs

  Other receivables                                                     325,273                                    325,273

  Due from related companies

  Owed by shareholders

  Prepaid expenses

  Cash                                                                        14,369                                      36,626

  Tax recoverable                                                     2,002,401                                 1,587,567

  Marketable Securities                                                56,000                                      56,000

  Misc. Current Assets                                               315,389                                      44,026

  Total Current Assets                                          14,204,303                               14,130,319

  Total Assets                                                       17,765,156                               18,389,336

  Owner's Equity & Liabilities

  Issued and paid up capital                                     6,500,000                                 6,500,000

  Share premium account                                             14,000                                      14,000

  Retained earnings                                                   ‑997,702                                    317,782

  Net profit/Loss for the year                                    ‑2,801,914                                ‑1,315,484

  Revaluation reserves

  Legal Reserves                                                        360,625                                    360,625

  Other reserves

  Net Worth                                                           3,075,009                                 5,876,923

 

 

  Deffered Taxation

  Provisions/allowances                                              102,513                                    102,513

  Mortgages/Loans

  Hire purchase

  Due to group of companies

  Minority interest

  Misc. deferred liabilities

  Total Long Term Liabilities                                   102,513                                    102,513

 

  Current Liabilities

  Creditors                                                              6,274,175                                 6,363,855

  Other creditors

  Accruals

  Bank overdrafts/Loans                                           5,493,418                                 3,583,959

  Misc. Loans

  Directors accounts

  Owing to shareholders                                           2,450,837                                 2,050,837

  Owing to related companies

  Proposed dividend

  Long Term‑due 1 year

  Hire Purchase‑under 1 year

  Taxation                                                                   46,195                                      91,247

  Advance receipts

  Misc. Current Liabilities                                            323,009                                    320,002

  Total Current Liabilities                                    14,587,634                               12,409,900

  Owner's Equity & Liabilities                              17,765,156                               18,389,336

 

 

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                                          17,200,740                               20,078,050

  Cost of sales

 

  Gross Profit/(Loss)                                              17,200,740                               20,078,050

 

  Admin/selling expenses                                       12,713,507                               13,719,573

  Services                                                               1,832,631                                 1,866,059

  Salaries                                                               4,370,786                                 4,564,945

  Auditors Fee                                                             76,233                                      68,259

  Stock Depreciation                                                 ‑133,560                                      21,000

  Depreciation                                                            751,954                                    763,023

  Misc. Operating Expenses

  Misc. Operating Income

  Net Operating Profit/(Loss)                                 ‑2,410,811                                   ‑924,809

 

  Interest Receivable/Finance Income

  Group related income                                                  3,276                                       3,276

  Misc. Financial Income                                            101,976                                      38,297

  Total Financial Income                                         105,252                                      41,573

 

  Interest Payable/Finance costs                                 359,532                                    269,114

  Misc. financial expenses                                            50,293                                      62,535

  Total Financial Expenses                                      409,825                                    331,649

 

  Profit/(Loss) before taxes                                   ‑2,715,384                                ‑1,214,885

 

  Income Tax                                                               86,530                                    100,599

  Other Tax

  Profit/(Loss) after taxes                                      ‑2,801,914                                ‑1,315,484

 

  Extraordinary items

  Exceptional items

  Misc. Items

 

  Net Profit/(Loss)                                                 ‑2,801,914                                ‑1,315,484

 

 

  Previous years retained earnings

  Current years net income

  Misc. additions in current year

  Current years net loss                                          ‑2,801,914                                ‑1,315,484

  Dividends in current year

  Withdrawals in current year

  Misc. deductions in current year

 

  Retained earnings at end of                              ‑2,801,914                                ‑1,315,484

  financial period

 

  Average employees

 

  Directors fee

  Earnings per share

  Earnings per share‑previous year

 

 

Auditors Comments

 

      Date accounts obtained:                    28/03/2012

      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                                      0.97                            1.69                           1.14                            1.57

  Acid Test Ratio                                   0.78                            1.06                           0.95                            1.06

  Accounts                                            0.36                            0.26                           0.32                            0.35

  Payable/Sales Ratio

  Current Liabilities/Net                          4.74                            0.20                           2.11                            3.49

  Worth

  Current                                               5.08                            2.42                           5.19                            3.18

  Liabilities/Inventory

  Total Liabilities/Net                              4.78                           ‑1.42                           2.13                            3.93

  Worth

  Fixed Assets/Net                             108.40                       ‑144.08                          68.37                        138.95

  Worth (%)

 

  Profitability Ratios

  Gross Profit Ratio (%)                      100.00                          94.52                        100.00                          93.71

  Return on Capital                              ‑85.46                          15.45                         ‑20.32                          13.62

  Employed (ROCE)(%)

  Net Profit/Sales (%)                          ‑15.79                            4.08                          ‑6.05                           ‑5.69

  Return on Assets (%)                       ‑15.28                            4.42                          ‑6.61                            3.24

 

  Efficiency Ratios

  Sales/Working Capital                      ‑44.87                          23.69                          11.67                            3.28

  Assets/Sales(%)                             103.28                        127.22                          91.59                        164.63

  Shareholders                                    ‑88.30                          33.42                         ‑20.67                          10.76

  Return(%)

  Average Collection                           194.26                        116.21                                                          115.48

  Period

  Sales/Inventory                                   5.99                            4.39                           8.39                            6.82

 

  Leverage Ratios

  Capital Employed                                5.60                            3.64                           3.43                            4.89

  Capital Structure (%)                           3.23                          23.57                           1.71                          26.46

 

  Number of                                                                             339                                                              339

  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                        18/12/1986                                                                                         TOTAL EMPLOYEES                                                        80                                        

SALES (2010)                                            1,512,289                                                                                 

SALES (2009)                                            1,765,262                                                                                 

NET PROFIT (2010)                                     ‑238,737                                                                                 

NET PROFIT (2009)                                     ‑106,813                                                                                 

TOTAL ASSETS (2010)                              1,561,913                                                                                 

TOTAL ASSETS (2009)                              1,616,790                                                                                 

 

Currency: EUROS

 

 

Payments

 

Subject's payments reported to be:          UNDETERMINED

 

Representation

 

Other Comments

 

Other Comments:          Patent N° : 14202335

 

 

Interview & Reporter Comments

 

Name/Title:        Mr. Ghali Belkhayat Commercial 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.

 

We contacted the subject and they confirmed that Mr. Ghali Belkhayat, Commercial Manager,

who has the authority to divulge such information, however, they confirmed that he is not

available at the present.

 

 

Conclusions

 

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

Risk.

 

General Conclusion:       In view of the fin. condition obtain suitable assurances or guarantees.

 

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 is a long established family run business.

 

 

Country Intelligence Information

 

Country:            Morocco

Date:    26/03/2012  00:00:00

Source: Economist Intelligence Unit

 

Economy:         February 15th 2012

 

Trade deficit reaches a record Dh186bn in 2011

 

Morocco's trade deficit reached a record high of Dh186bn (US$23bn) in 2011, up by 25.2% year on

year. According to preliminary figures from the Office des changes, Morocco's customs agency,

import costs rose to Dh355bn, up from Dh298bn in 2010, and exports reached Dh169bn, up by

13.1%.

 

In 2011 the phosphates sector strongly benefited from higher international prices. The price of

phosphates reached over US$200/tonne in November 2011, 44.6% higher than at the end of 2010.

Raw phosphate exports reached Dh12.5bn, up by 39% year on year. Phosphates derivatives rose by

29.3% to Dh34.8bn. The Office chérifien des phosphates, the state‑owned phosphate miner, is

currently implementing a sizeable investment programme (€6.3bn by 2020), which is aimed at raising

gross phosphate production from 28m to 47m tonnes, with roughly 80% processed locally. In

December a new Dh2.7bn phosphate‑fertiliser production unit in partnership with Bunge, a

US‑headquartered company, was inaugurated at Jorf Lasfar.

 

The rise in import costs was mainly down to higher prices for wheat and energy products. Morocco

has no hydrocarbons resources and thus must meet its energy needs through imports, which weigh

heavily on the current account. Overall energy imports increased by 32.7% in 2011. The import bill for

crude oil grew by 26.7% to Dh31.8bn. The wheat import bill surged by 48.4% to Dh11bn, despite a

relatively strong harvest last year.

 

Remittances from Moroccans living abroad and tourism receipts expanded by 7.6% and 4%

respectively to around Dh59bn each in 2011. These earnings have helped to offset only part of the

considerable trade deficit as inflows from foreign direct investment (FDI) dropped by 26% to Dh29bn.

The central bank's international reserves stood at Dh177bn at the end of 2011, which is enough to

cover for five and a half months of imports, one of the lowest levels in several years. In February

Morocco's finance minister, Mr Baraka, said that the country may issue another Eurobond to help

cover its financing requirement and also that facilities remain open from the EU or other multilateral

lenders.

 

Risk:     February 15th 2012

 

Sovereign risk

 

Stable. Morocco's fiscal account will remain deeply in deficit, owing to high recurrent expenditure on

subsidies and wages, but the shortfalls 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 will strengthen 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 rural Moroccans and expatriates to save in an effort to improve liquidity.

 

 

Political risk

 

The government will increase public spending in the short term to quell political and social protests

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 movements in international commodity prices but are

manageable.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.15

UK Pound

1

Rs.81.79

Euro

1

Rs.68.34

 

 

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.