MIRA INFORM REPORT

 

 

Report Date :

07.08.2010

 

IDENTIFICATION DETAILS

 

Name :

BRANDIX APPAREL LTD

 

 

Registered Office :

# 409, 03rd Floor, Galle Road, Colombo 03

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

10.12.2007

 

 

Com. Reg. No.:

PB 85

 

 

Legal Form :

Public Limited Liability Company not listed at the Stock Exchange

 

 

Line of Business :

Manufacturers and Exporters all types of Ladies and Gents Garments.

 

 

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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

Sri Lanka

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

informaTION parted by

(General Details)

 

Name :

Mr. Tariq Somar

Designation :

Treasury Executive

Contact No.:

(00 94 11) 4751211

Date :

05.08.2010

 

 

GENERAL - Basic information at a glance

 

Name of Subject of Inquiry

 :

BRANDIX APPAREL LTD

Legal Form  & Status

 :

Public Limited Liability Company not listed at the Stock Exchange.  (In Operation)

Managing Director

 :

K. Balendra

Primary Line of Business

:

Manufacturers and Exporters all types of Ladies and Gents Garments.

Principal Place of Business

:

 

# 403, 3rd Floor, Galle Road,

Colombo- 03,

Sri Lanka.

 

Tel. No: (00 94 11) 472 7222 / 472 7131 / 472 7115 /472 7777 /

               (00 94 11) 472 7000

Fax No: (00 94 11) 257 5485 / 257 5488

 

Email: info@brandix.com

 

Location : Owned

 

No of Employees

:

14,500 in the Brandix Group

1000 Employee (Brandix Apparel Ltd)

 

 

COMPANY DETAILS  - Registration and Shareholder Details

a.

Old Registration No

:

N (PVS) / PBS 10863

Date of Registration

:

08th April 1993

b.

New Re-registration No

:

PB 85

Date of Re-registration

:

10th December 2007

c.

Registered Office

:

# 409, 03rd Floor, Galle Road, Colombo 03

d.

Board of Directors

As At

20th September 2009

:

K. Balendran

Chairman

M. A. Omar

CEO

M. Aslam Omar

Director

A. J. Johnpillai  (New Zealandar)

Director

Feroz Omar

Director

G. D. M. Ranasinghe

Director

T. L. F. W. Jayasekera

Director

e.

Key Executive

 

Mr. Tariq Somar

(Cell No.: (00 94 11) 4751211)

Treasury Executive

 

 

Mr. Premratnam

(Cell No.: (00 94 11) 727016)

Key Executive

 

f.

Issued Share Capital

:

Rs.                1,970,388,950.00

g.

Nominal Value of Share

:

Rs.                                   10.00

h.

Share Holders

As At

20th September 2009

:

  Share Holders

No. Of

Shares

Brandix Lanka Ltd

(Company Incorp. In SriLanka)

197,025,389

Mast Lanka Limited

01

Brandix Management Services (Pvt) Ltd

02

Brandix Textile Holding (Pvt) Ltd

01

Phoenix Holdings (Pvt) Ltd

01

Phoenix Ventures Limited

01

i.

Auditors

:

PricewaterhouseCoopers, Colombo

j.

Company Secretaries

:

Brandix Management Services (Pvt) Ltd

k.

Bankers

:

·         Bank of Ceylon,

·         HSBC, Colombo (Facility : Total Cash Credit – Rs. 4.500 Billion)

·         HNB,

·         Commercial Bank,

·         Citibank NA,

·         Standard Chartered Bank, Colombo Branch (Facility : Total Cash Credit – Rs. 35.000 billion)

 

FINANCIAL DETAILS - Most recent available Financial Information

 

 

Year ended

31st March 2008

Rs’000

Year ended

31st March 2007

Rs’000

A

Turn over

:

23,780,242

23,535,941

B

Cost of sale

:

(21,719,417)

(21,350,640)

C

 Gross Profit

:

2,060,825

2,185,301

D

Distribution Costs

:

(172,496)

(141,814)

E

Economic Services Charge

:

(24,407)

(55,574)

F

Administrative Expenses

:

(716,039)

(630,263)

G

Operating profit

:

1,147,883

1,357,650

H

Other operating income

:

461,968

617,492

I

Finance cost

:

(229,774)

(180,957)

J

Profit before tax

:

1,380,077

1,794,185

K

Tax

 

Nil

Nil

L

Net profit

 

1,380,077

1,794,185

 

   

 

As At

31st March 2008

Rs’000

As At

31st March 2007

Rs’000

a)

Non-current Assets

:

2,376,352

2,417,539

b)

Investment

:

-

-

c)

Current Assets

:

6,760,263

3,752,870

d)

Current Liability

:

6,629,287

3,645,801

e)

Non-current liability

:

60,929

48,105

f)

Total Liabilities

:

6,690,216

3,693,906

g)

Total Assets

:

9,136,615

6,170,409

h)

 

Net Worth

 

:

2,446,399

2,476,503

 

 

CURRENT INVESTIGATION                      

 

·         History.

 

The Subject Company, BRANDIX APPAREL LTD was incorporated as a private limited liability company on 08th April 1993 under registration number N (PVS) 10863 / PBS and then the company was re-registered on 10th December 2007 under Registration No. PB 85.

 

Initially the subject company was named as “Mast Lanka (Pvt) Ltd” and it changed to BRANDIX APPAREL (PVT) LTD on 19th December 2003. Once again the name was changed to the present name “BRANDIX APPAREL LTD” after transforming it to a “Public Limited Liability Company not listed at the Stock Exchange” with re-registration on 10.12.2007 and is still the name used.

    The subject company is a member of the “BRANDIX GROUP”.

 

·         Directors Details

1)

Name

M. A. Omar

ID Number

551352110 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th May 1955

Age

55 Years

Address

No.119/4, Kynsey Road, Colombo – 08, Sri lanka.

 

2)

Name

M. Aslam Omar

ID Number

541192719 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

28th April 1954

Age

56 Years

Address

No.19, Greenlands Lane, Colombo – 05, Sri lanka.

 

 3)

Name

K. Balendra

ID Number

403332780 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

28th November 1940

Age

70 Years

Address

No.47/1, Ward Place, Colombo – 07, Sri lanka.

      

4)     

Name

Feroz Omar

ID Number

641052566 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th April 1964

Age

46 Years

Address

No.161/3, Duwa Road, Baddegana, Pitakotte, Sri lanka.

 

5)

Name

T. L. F. W. Jayasekara

ID Number

530060241 X

Nationality

Sri Lankan

Gender

Male

Date of Birth

6th January 1953

Age

57 Years

Address

No.82B, Ward Place, Colombo – 07, Sri lanka.

 

6)

Name

G. D. M. Ranasinghe

ID Number

631440428 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

23rd May 1963

Age

47 Years

Address

No.45/15A, Chandraloka Mawatha, Udahamulla, Nugegoda,  Sri lanka.

 

7)

Name

A. J. Johnpillai  (New Zealandar)

 

 

 

·         Location.

 

The Subject Company is located at address # 409, 3rd Floor Galle Road , Colombo-03

 

·               Operational Details.

 

General

 

                  The subject company primary line of business is Manufacturers and Exporters all types of Ladies and Gents Garments and is the largest woven fabric manufacturer.

 

Products

All types of ladies and gents garments such as

·                                 Casual Wear

·                                 Sleep Wear and Lounge

·                                 Briefs

·                                 Bras

 

Export Countries

 (South East Asia, Mediterranean, South America and also South Indian Markets)

UK, USA, Hong Kong, China, Thailand and Singapore, South Africa, India, European countries, etc.

 

Export Products

Readymade Garments

 

No of Employees

The employee strength of the Group of companies is approximately 14,500 employees.

The employee strength of the Company is 1000 employees


·         Trading Terms

 

Selling Terms              Cash

Purchasing Terms        Cash

 

·         General Comments

 

The Brandix Group of companies was set up at the beginning of the year 2004 by the amalgamation of two of the largest Garments manufacturing groups (Phoenix Group and Jewel knit Ltd) in the country and the goals it has set for itself are extremely wide ranging and ambitious.  It has done this with a view to positioning itself to anticipate the changes that will come with the lifting of the quota system in the USA with effect from 31st Dec. 2004. The newly set up BRANDIX GROUP comprises over 20 world-class manufacturing plants with a combined workforce of 14,500.The new corporate structure of BRANDIX is fully in line with and compliments the Group's category leadership. The holding company is structured into three sectors - BRANDIX APPAREL, BRANDIX TEXTILES and BRANDIX INVESTMENTS.  The Brandix Group expects to be a 10 billion US dollar turnover company by the end of the decade.  The Brandix Group also has manufacturing operations in the Maldives and Madagascar while the Company announced long-term plans to establish production presence in India, China and Mexico. The Group's manufacturing operations are supported by marketing offices in New York and London as well as an apparel sourcing office in Bangalore, India.

 

Type of customers:

·         Retailers

·         End Users

·         OEm’s

·         Wholesalers

 

·         Trade references

 

The subject company did not provide any trade references

 

·         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.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.02

UK Pound

1

Rs.73.21

Euro

1

Rs.60.70

 

 

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

 

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.