MIRA INFORM REPORT

 

 

Report No. :

310158

Report Date :

04.03.2015

 

IDENTIFICATION DETAILS

 

Name :

KASSEM MAHFOUZ AND SONS CO

 

 

Registered Office :

Mahfouz Building, Mokdad Street, Ghobeiri (Baabda), Beirut

 

 

Country :

Lebanon

 

 

Date of Incorporation :

10.02.1957

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the manufacture of clothing, as well as importing and distributing textiles and fabrics.

 

 

No. of Employee :

100

 

 

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

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Lebanon

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

LEBANON - ECONOMIC OVERVIEW

 

Lebanon has a free-market economy and a strong laissez-faire commercial tradition. The government does not restrict foreign investment; however, the investment climate suffers from red tape, corruption, arbitrary licensing decisions, complex customs procedures, high taxes, tariffs, and fees, archaic legislation, and weak intellectual property rights. The Lebanese economy is service-oriented; main growth sectors include banking and tourism. The 1975-90 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and derailed Lebanon's position as a Middle Eastern entrepot and banking hub. Following the civil war, Lebanon rebuilt much of its war-torn physical and financial infrastructure by borrowing heavily, mostly from domestic banks, which saddled the government with a huge debt burden. Pledges of economic and financial reforms made at separate international donor conferences during the 2000s have mostly gone unfulfilled, including those made during the Paris III Donor Conference in 2007 following the July 2006 war. The collapse of the MIKATI government in early 2011 over its backing of the Special Tribunal for Lebanon and the conflict in neighboring Syria slowed economic growth to the 1-2% range in 2011-13, after four years of 8% average growth. In September 2011 the Cabinet endorsed a bill that would provide $1.2 billion in funding to improve Lebanon's downtrodden electricity sector, but fiscal limitations will test the government's ability to invest in other areas, such as water.

 

Source : CIA

 

SUMMARY

 

Company Name                                    : KASSEM MAHFOUZ AND SONS CO

Country of Origin                                   : Lebanon

Legal Form                                           : Limited Liability Company

Registration Date                                  : 10th February 1957

Commercial Registration Number           : 6382, Beirut

VAT Number                                         : 601-79101

Issued Capital                                       : LP 30,000,000

Paid up Capital                                     : LP 30,000,000

Total Workforce                                     : 100

Activities                                               : Manufacture of clothing, as well as importing and distributing textiles and fabrics

Financial Condition                                : Fair

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 


COMPANY NAME

 

KASSEM MAHFOUZ AND SONS CO

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Mahfouz Building

Street               : Mokdad Street

Area                 : Ghobeiri (Baabda)

Town                : Beirut

Country             : Lebanon

 

Telephone         : (961-1) 552465

Facsimile          : (961-1) 841094

Mobile              : (961-3) 210121

Email                : bmahfouz@cyberia.net.lb

 

Premises

 

Subject operates from a medium sized suite of offices that are rented and located in the Central Business Area of Beirut.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Choueifat Area                                                                                 Owned factory premises

Beirut

     Tel: (961-5) 433399

 

Please note that subject’s factory is located in Choueifat Area and not Shwifat Area.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Kassem Mahfouz                                                                              Managing Director

 

·       Bassam Kassem Mahfouz                                                                 Director

 

·       Mohamed Kassem Mahfouz                                                              Director

 

·       Salah Kassem Mahfouz                                                                    Director

 

·       Ali Kassem Mahfouz                                                                         Director

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 10th February 1957

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.   : 6382, Beirut

 

VAT No.                       : 601-79101

 

Issued Capital              : LP 30,000,000

 

Paid up Capital            : LP 30,000,000

 

Name of Shareholder (s)

 

·       Kassem Mahfouz

 

·       Bassam Kassem Mahfouz

 

·       Mohamed Kassem Mahfouz

 

·       Salah Kassem Mahfouz

 

·       Ali Kassem Mahfouz

 

 

OPERATIONS

 

Activities: Engaged in the manufacture of clothing, as well as importing and distributing textiles and fabrics.

 

Import Countries: India and China

 

Brand Names: KMB

 

Operating Trend: Steady

 

Subject has a workforce of approximately 100 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Lebanese Pounds (LP)

 

                                                Year Ending 31/12/13:              Year Ending 31/12/14:

 

Total Sales                                LP 7,660,000,000                       LP 8,200,000,000

 

Local sources consider subject’s financial condition to be Fair.

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Bank of Beirut Sal

Clemanceau Street

PO Box: 117354

Beirut

Tel: (961-1) 360850 / 350723

Fax: (961-1) 360850

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.84

UK Pound

1

Rs.95.14

Euro

1

Rs.69.25

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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%)

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