MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	SOFT
Registered Office :	Route 110 Km 11 Boulevard Chefchaouni, Casablanca
Country :	Morocco
Financials (as on) :	31.12.2011
Date of Incorporation :	18.12.1979
Com. Reg. No.:	38503
Legal Form :	Societe A Responsibilite Limitee
Line of Business :	Subjects specialized in preparation and spinning of worsted‑type fibres.
No. of Employees :	300

RATING & COMMENTS

MIRA’s Rating :	Ba
	With Financials

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Morocco	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Morocco - ECONOMIC OVERVIEW

Morocco has capitalized on its proximity to Europe and relatively low labor costs to build a diverse, open, market-oriented economy. In the 1980s Morocco pursued austerity measures and pro-market reforms, overseen by the IMF. Since taking the throne in 1999, King MOHAMMED VI has presided over a stable economy marked by steady growth, low inflation, and generally declining government debt. Industrial development strategies and infrastructure improvements - most visibly illustrated by a new port and free trade zone near Tangier - are improving Morocco's competitiveness. Key sectors of the economy include agriculture, tourism, phosphates, textiles, apparel, and subcomponents. In 2006 Morocco entered into a bilateral Free Trade Agreement with the United States; it remains the only African country to have one. In 2008 Morocco entered into an Advanced Status agreement with the European Union. Despite Morocco's economic progress, the country suffers from high unemployment and poverty. In 2011, high food and fuel prices strained the government's budget and widened the country's current account deficit. Key economic challenges for Morocco include fighting corruption, reducing government spending, reforming the education system and judiciary, addressing socioeconomic disparities, and building more diverse, higher value-added industries.

Source : CIA

COMPANY NAME

SOFT

Registration Briefing

Registration Number: 38503

Registration Date: 18/12/1979

Legal Form: SOCIETE A RESPONSIBILITE LIMITEE

Latest Financials: December 31, 2011

Financial Briefing

Nominal Capital: 40,000,000 Moroccan Dirham

Issued Capital: N/A

Turnover: 240,039,796 Moroccan Dirham

Net Profit: 1,533,592 Moroccan Dirham

Net Worth: 85,275,204 Moroccan Dirham

Original Investigation Details

Investigation Number: 179583

Company Name: SOFT CASABLANCA

Country: MO

Street Name:

City Code:

Company Details

Company Name: SOFT

Headquarter Address: Route 110 Km 11 Boulevard Chefchaouni,

Q.I Ain Sebaa,

Casablanca,

Morocco

Telephone: +212522 352060

+212522 353807

+212522 354737

Fax: +212522 350812

+212522 354735

E‑Mail: soft@softgroup.ma

Web Site: www.softgroup.ma

Company was originally started on 18/12/1979

Registration & Legal Details

Current Legal Form: SOCIETE A RESPONSIBILITE LIMITEE

Registration Address: Route 110 Km 11 Boulevard Chefchaouni,

Casablanca

Registration Number: 38503

Registration Date: 18/12/1979

Year/Date Company Established: 18/12/1979

Registration Town: Casablanca

Tax Registration Number: 01900092

Capital

Currency: Moroccan Dirham

Authorized Capital: 40,000,000

Paid Up Capital: 40,000,000

Authorized Capital Breakdown

]Number of Shares: 400,000 Type of Shares: None Selected

Issued Shares: 400,000 Value per share: MDH 100.00 Value of this type: 40,000,000.00

Shareholders / Owners

Parent Company: SOFT GROUP,

41‑43 Boulevard d'Anfa,

Casablanca,

Morocco

% Shares Held: 99.99%

Shareholders

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

Mr. Mohamed Kabbaj, 25

25, Rue Pelé,

Casablanca,

Morocco

Principals

Name: Mr Mohamed Kabbaj

Position within the company: Chairman and managing director

Date of Birth: 19/05/1943

Country of Birth: Morocco

Nationality: Moroccan

Can fluently speak: Arabic & French

Name: Mr Abdellatif Kabbaj

Position within the company: General Director

Date of Birth: 19/06/1981

Country of Birth: Morocco

Nationality: Moroccan

Can fluently speak: Arabic & French

Name: Mr Abdellah Mimouni

Position within the company: Financial Manager

Country of Birth: Morocco

Nationality: Moroccan

Can fluently speak: Arabic & French

Name: Mr Samir Bounane

Position within the company: Technical Manager

Country of Birth: Morocco

Nationality: Moroccan

Can fluently speak: Arabic & French

Name: Mr Anas Moundib

Position within the company: Commercial Manager

Country of Birth: Morocco

Nationality: Moroccan

Can fluently speak: Arabic & French

Company Activities

NACE Codes: 1310 Preparation and spinning of textile fibres

The company is specialized in preparation and spinning of worsted‑type fibres.

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

Operations

Employees Company Employs: 300

HQ Premises Operates from: Owned Offices, Factory, Warehouse

Premises Size: 25000 square meters

Location: Industrial Area

Related Companies

Subsidiaries

Affiliates

Information on Related Companies is not available/applicable

Bankers

Attijariwafa Bank,

Branch: Head office

2 Boulevard Moulay Youssef,

Casablanca 20000,

Morocco

Banque Marocaine du Commerce Extérieur,

Branch: Head office

140 Avenue Hassan II,

Casablanca 20000,

Morocco

Banque Marocaine pour le Commerce et l'Industrie,

Branch: Head office

26 Place des Nations Unies,

Casablanca 20000,

Morocco

Financial Information

Financial Information
	Financial Interview Date:	18-02-2013
	Source:	Companies Registry
	Figures are:	Official Figures
	Currency:	Moroccan Dirham
	Months	Sales Figures	Sales	Gross Profit/Loss	Net Profit/Loss
	12	31-12-2011	240,039,796	2,753,742	1,533,592
	12	31-12-2010	231,958,273	3,073,111	1,499,047
	12	31-12-2007	174,163,003	1,882,044	862,798
	12	31-12-2006	163,130,612	1,748,760	780,447
Balance Sheet & Profit & Loss
	BALANCE SHEET
		Asat: 31‑Dec‑2011	Asat: 31‑Dec‑2010	Asat: 31‑Dec‑2007
	Fixed Assets
	Land & Buildings	15,118,733	1,53,24,212	1,51,56,850
	Plant & Machinery	27,400,274	3,38,82,582	3,72,71,385
	Furniture & Equipment	630,059	6,07,522	4,66,136
	Motor Vehicles	598,843	5,84,081	1,59,110
	Misc. Fixed Assets	24,992	29,552
	Total Fixed Assets	43,772,901	5,04,27,949	5,30,53,481
	Financial Assets
	Shares in Related Companies	120,000	1,20,000	1,20,000
	Loans to related companies	338,186	4,14,236	4,27,449
	Investments
	Deposits
	Misc. Financial Assets	341,181	3,41,181	2,25,181
	Total Financial Assets	799,367	8,75,417	7,72,630
	Intangibles
	Goodwill
	Organisational Expenses
	Patents	131,560	19,845	13,297
	Misc. Intangible Assets
	Total Intangible Assets	131,560	19,845	13,297
	Current Assets
	Stock	39,365,697	3,82,62,035	2,65,52,533
	Stock & Work in Progress	121,141,854	11,21,87,210	1,33,26,136
	Trade Debtors & receivables	98,035,449	8,16,09,711	8,93,55,672
	Provision for bad debs
	Other receivables	75,000	75,000	80,873
	Due from related companies
	Owed by shareholders
	Prepaid expenses	205,633	63,803	1,16,258
	Cash	658,598	98,78,773	69,50,591
	Tax recoverable	26,000,340	2,38,29,895	1,98,64,864
	Marketable Securities
	Misc. Current Assets	2,812,296	8,85,973	73,402
	Total Current Assets	288,294,867	26,67,92,400	15,63,20,329
	Total Assets	332,998,695	31,81,15,611	21,01,59,737
	Owner's Equity & Liabilities
	Issued and paid up capital	40,000,000	4,00,00,000	4,00,00,000
	Share premium account
	Retained earnings	1,68,82,094	1,54,57,999	1,74,06,635
	Net profit/Loss for the year	15,33,592	14,99,047	8,62,798
	Revaluation reserves	1,42,94,709	1,42,94,709	1,42,94,709
	Legal Reserves	24,64,563	23,89,610	21,97,434
	Other reserves	1,01,00,246	1,01,00,246	86,61,404
	Net Worth	8,52,75,204	8,37,41,611	8,34,22,980
	Deffered Taxation
	Provisions/allowances	24,600	2,33,926	51,74,092
	Mortgages/Loans
	Hire purchase
	Due to group of companies
	Minority interest
	Misc. deferred liabilities
	Total Long Term Liabilities	24,600	2,33,926	51,74,092
	Current Liabilities
	Creditors	14,44,34,445	11,10,68,572	5,07,76,946
	Other creditors	3,08,718	5,74,633	2,97,156
	Accruals	10,247	58,556	3,41,586
	Bank overdrafts/Loans	5,75,71,765	6,11,06,658	5,49,83,194
	Misc. Loans
	Directors accounts
	Owing to shareholders	3,04,50,000	4,96,50,000	84,28,842
	Owing to related companies
	Proposed dividend
	Long Term‑due 1 year
	Hire Purchase‑under 1 year
	Taxation	1,05,87,773	87,10,248	65,70,098
	Advance receipts	50,305	4,33,110	36,395
	Misc. Current Liabilities	42,85,638	25,38,297	1,28,448
	Total Current Liabilities	24,76,98,891	23,41,40,074	12,15,62,665
	Owner's Equity & Liabilities	33,29,98,695	31,81,15,611	21,01,59,737
	PROFIT & LOSS
		Figures are:	Figures are:	Figures are:
		Fiscal Year	Fiscal Year	Fiscal Year
		01/01/2011 to 31/12/2011	01/01/2010 to 31/12/2010	01/01/2007 to 31/12/2007
	Total Income/Turnover	24,00,39,796	23,19,58,273	17,41,63,003
	Cost of sales	4,88,65,757	6,91,95,511
	Gross Profit/(Loss)	19,11,74,039	16,27,62,762	17,41,63,003
	Admin/selling expenses	15,35,55,172	19,29,46,013	13,02,51,804
	Services	93,71,018	87,61,178	48,04,832
	Salaries	2,07,65,524	1,81,00,232	1,18,83,568
	Auditors Fee	3,78,007	3,76,841	4,41,679
	Stock Depreciation	‑9,553,314	‑73,969,787	1,19,87,349
	Depreciation	86,87,283	91,22,851	82,92,440
	Misc. Operating Expenses
	Misc. Operating Income	2,45,500
	Net Operating Profit/(Loss)	79,70,349	74,25,434	67,46,831
	Interest Receivable/Finance Income	6,091	69,953	1,30,808
	Group related income
	Misc. Financial Income	53,59,932	41,64,602	56,37,220
	Total Financial Income	53,66,023	42,34,555	57,68,028
	Interest Payable/Finance costs	47,30,779	39,37,143	33,90,075
	Misc. financial expenses	58,51,851	46,49,735	72,42,740
	Total Financial Expenses	1,05,82,630	85,86,878	1,06,32,815
	Profit/(Loss) before taxes	27,53,742	30,73,111	18,82,044
	Income Tax	12,20,150	15,74,064	10,19,246
	Other Tax
	Profit/(Loss) after taxes	15,33,592	14,99,047	8,62,798
	Extraordinary items
	Exceptional items
	Misc. Items
	Net Profit/(Loss)	15,33,592	14,99,047	8,62,798
	Previous years retained earnings
	Current years net income	15,33,592	14,99,047	8,62,798
	Misc. additions in current year
	Current years net loss
	Dividends in current year
	Withdrawals in current year
	Misc. deductions in current year
	Retained earnings at end of	15,33,592	14,99,047	8,62,798
	financial period
	Average employees
	Directors fee
	Earnings per share
	Earnings per share‑previous year

Auditors Comments

Date accounts obtained: 18/02/2013

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 (2011) (2011) Results (2010) (2010)

Liquidity Ratios

Current Ratio 1.16 1.58 1.14 1.53

Acid Test Ratio 0.52 0.99 0.50 1.00

Accounts 0.60 0.43 0.48 0.67

Payable/Sales Ratio

Current Liabilities/Net 2.90 2.11 2.80 ‑0.49

Worth

Current 1.54 2.81 1.56 2.99

Liabilities/Inventory

Total Liabilities/Net 2.90 2.26 2.80 ‑0.28

Worth

Fixed Assets/Net 51.33 86.46 60.22 ‑158.05

Worth (%)

Profitability Ratios

Gross Profit Ratio (%) 79.64 92.16 70.17 93.98

Return on Capital 3.23 7.44 3.66 7.83

Employed (ROCE)(%)

Net Profit/Sales (%) 1.15 ‑5.84 1.32 ‑8.32

Return on Assets (%) 0.83 4.42 0.97 3.68

Efficiency Ratios

Sales/Working Capital 5.91 182.81 7.10 14.15

Assets/Sales(%) 138.73 189.85 137.14 230.00

Shareholders 3.23 12.12 3.67 6.90

Return(%)

Average Inventory 289.92 73,097.73 45,353.67

Period

Average Collection 136.58 100.46 119.11

Period

Sales/Inventory 1.50 7.18 1.54 5.78

Leverage Ratios

Capital Employed 2.82 4.11 2.77 4.17

Capital Structure (%) 0.03 36.78 0.28 25.85

Number of 328 328

Companies within the

industry (NACE C)

Statistics based on Manufacturing Manufacturing

NACE(C)

INDUSTRY SECTOR COMPARATIVE DATA

Elements Taken Result for specific RANKING Total Companies Used

company

DATE OF REGISTRATION 18/12/1979 339 821

TOTAL EMPLOYEES 300 166 806

SALES (2011) 21,104,299 48 194

SALES (2010) 20,393,771 72 316

NET PROFIT (2011) 134,833 81 174

NET PROFIT (2010) 131,796 138 319

TOTAL ASSETS (2011) 29,277,245 46 173

TOTAL ASSETS (2010) 27,968,725 74 324

Currency: EUROS

Charts of Financial Trends and Industry Comparisons

PLEASE NOTE THAT CHARTS ARE SHOWN IN EUROS FOR TREND AND COMPARISON PURPOSES

Payments

Subject's payments reported to be:UNDETERMINED

Representation

Other Comments

Other Comments: Patent N° : 30650620

Interview & Reporter Comments

Name/Title: Mr. Abdellah Mimouni Financial Manager

Comment: Subject was too busy to provide/confirm any information.

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. Abdellah Mimouni, Financial 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 considered by local reporters to be.

a Fair / Normal Trade Risk

General Conclusion: Local informants consider granting of credit to be a fair 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 showing an upward turn.

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.48
UK Pound	1	Rs.82.71
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

NLM

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.