MIRA INFORM REPORT

 

 

Report Date :

15.10.2007

 

IDENTIFICATION DETAILS

 

Name :

HAYLEYS MGT KNITTING MILLS LTD.

 

 

Registered Office :

# 25, Foster Lane, Colombo –10

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

06th January 1993

 

 

Com. Reg. No.:

N (PBS) 389

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Manufactures and Exporters of knitted fabric

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

 GENERAL - Basic information at a glance

     

          

Name of Subject of Inquiry

 

:

HAYLEYS MGT KNITTING MILLS LTD.

Legal Form  & Status

 

:

 

Public Limited Liability Company  (In Operation)

General Manager/Director

 

:

Mr. Sam Stezza

Primary Line of Business

 

:

Manufactures and Exporters of knitted fabric

Colombo  office

 

 

 

:

 

# 25, Foster Lane,

Colombo –10.

 

Tel: (00 94 34) 224 2055 / 224 2049

Fax: (00 94 34) 224 2054 / 267 4568

 

E Mail: info@hayleysmgt.com

Web: www.hayleysmgt.com

 

Factory

 

:

 

Narthupana Estate,

Neboda,

Horana.

 

Employee strength

 

:

 

Approximately 675 employees.

 

 

COMPANY DETAILS  - Registration and

Shareholder Details

 

Registration No

:

N (PBS) 389

Date of Registration

:

06th January 1993

Registered Office

:

 

#400 Deans Road, Colombo-10. Sri Lanka.

 

Board of Directors

As at

28th Feb 2006

:

Don Bandula Weerasinghe

Director

Sabatino Spezza                    (Australian)

Joint Managing Director

Maximilian Frayman            (Australian)

Director

Thomas Lipson                      (Australian)

Director

Richard Annesley Ebell

Joint Managing Director

Akurange Lionel Somaratne

Director

Hilal Rumesh Peiris

Director

Ranjan Yatawara

Director

Mahesh Chandra Dayalal Amalean

Director

Sharard Dayalal Amalean

Director

Authorised Share Capital

:

Rs.  250,000,000.00

Issued Share Capital

:

Rs.  245,887,460.00

Nominal Value of Share

:

Rs.                  10.00

Major Share holders

As at

16th Nov 2005

 

 

               Major  Share Holders

   No. of  Shares

Hayleys Ltd. (Co. Incorp in Sri Lanka)

 

8,156,410

 

Mit Cargo (Pvt) Ltd      

 

329,123

 

Hayleys Advantis Ltd  

 

615,615

 

Shantiro Proprietary Ltd (Co Incorp in Singapore)

 

3,892,110

 

Ocean Faith International Ltd (Co Incorp Hong Kong)

775,219

Auditors

:

Messrs KPGM Ford Rhodes

Secretaries

:

Hayleys Group Services Ltd-

Bankers

:

Standard Chartered

 

 

FINANCIAL DETAILS - Most recent available Financial Information

 

 

HAYLEYS MGT KNITTING MILLS LTD, being a Sri Lankan company, maintains accounts in Sri Lanka Rupees and the figures given below are in Sri Lanka Rupees.    (US $ 1.00 = approx. SL Rs. 103.00)

 

 

 

9 Month to

31sr December 2005

Rs,000

Year Ended

31st  March 2005

Rs’000

A

Revenue

:

2,782,385

3,024,390

B

 Cost of Sales

:

(2,351,501)

(2,657,315)

C

 Gross Profit

:

430,884

367,075

D

Other Income

:

72

60,142

E

Administration Cost

:

(140,439)

(143,599)

F

Distribution Cost

:

(52,562)

(60,099)

G

Finance & Other Cost

:

(69,755)

(74,072)

H

Net Profit / (Loss) before Tax

:

168,200

149,447

I

Taxation

:

(5,661)

NIL

J

Net Profit / (Loss) After Tax:

:

162,539

149,447

 

 

 

 

 

 

As At

31st December 2005

Rs,000

As  At

31st March 2005

Rs,000

a)

Non-current Assets

:

1,914,561

658,394

b)

Investment

:

NIL

243,706

c)

Current Assets

:

1,592,954

1,553,828

d)

Total Liabilities

:

2,035,816

1,739,059

e)

Total Assets

:

3,507,515

2,455,929

f)

 

Net Worth

 

:

1,471,699

716,870

 

CURRENT INVESTIGATION                      

 

History

 

The Subject Company, HAYLEYS MGT KNITTING MILLS LTD is a Public Limited Liability Company incorporated on 06th January 1993. The company was first listed on the Colombo Stock Exchange in 2003.

 

The Subject Company, HAYLEYS MGT KNITTING MILLS LTD produces knitted fabric for world renowned retailers including Marks & Spencer, Next, BHS, Tesco, Sainsbury, Adams, Woolworth and Mothercare, Abercrombie & Fitch, Dunns, Disney, Benetton, Evans, BHS. Head, Nike Boden, Helly Hansen, Reebok, Champion, JC Penny, Debenhams, Laura Ashley, Victoria, Secrets, Decathlon, Littlewoods.

 

The Subject Company, HAYLEYS MGT KNITTING MILLS LTD., is a fully owned subsidiary Company of Hayleys Ltd which was founded in 1878.  Hayleys Ltd, a Blue Chip Company with a very high recognition as one of the best managed companies in the country is a quoted public company with a broad-based shareholding. 

 

Hayleys Ltd. is ranked amongst Sri Lanka’s largest best managed and most diversified public companies with interest in fibre, rubber, agriculture, transportation, knitted fabrics the environment, inland marketing, and tourism. The Hayleys Group accounts for 1.7% of Sri Lanka’s Export Income, 1.3% of GDP, 2.3% of domestic value addition and 7% of market capitalisation on the Colombo Stock Exchange.

 

 

Vision

 

To become the most preferred knitted fabric manufacturer in Asia.

 

 

Mission

 

To strive for excellence as a manufacturer of dyed and finished quality knitted fabric, with value addition at competitive prices through efforts of an empowered and motivated work force that is focused on exceeding customer expectations whilst optimizing returns to share holders.

 

 

Location

 

The subject company factory is located at client given address # Narthupana Estate, Neboda, Horana. And the company’s Colombo office and the place of business is located at # # 25, Foster Lane, Colombo –10.

 

 

Operations Details

 

General

The subject company primary line of business is Manufactures and Exporters of knitted fabric.

 

 

Export Products

 

Knitted Fabric

 

 

Export Country

 

UK, USA, Etc…

 

 

Employees

 

The employee’s strength of the subject company is approximately 675 employees.

 

 

Financial Data

 

Received from the non formal sources.


General Comments

 

The subject company when contacted refuse to provide any information to prepare this report and declined to disclose any operational or financial information, However all information received is from non-formal sources but clearly originating from the company.

 

 

Trade references

 

The subject company did not provide any trade reference referrals

 

 

Credit Recommendations

 

No computerised data bases exist to make checks whether the partners or the company has any legal action or lawsuit initiated against any of them but informal (but not in-depth) checks do not indicate any such cases in the public knowledge.

 

 

ANALYSIS & RATING - Appraisal and Rating of Subject Company

 

Rating:

a)  Business Scale                    Medium /Large

b)  Business Trend                     Growing

c)  Management Capability         Very Competent and Professional

d)  Commercial Morality             Above Average

e)  Reputation                            Above Average

f)  Market Situation                    Competitive

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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