MIRA INFORM REPORT

Report Date :

05.04.2012

IDENTIFICATION DETAILS

Name :	MAS HOLDINGS (PVT) LIMITED
Registered Office :	# 10^th Floor, Aitken Spence Tower II, # 315, Vauxhall Street, Colombo-02
Country :	Sri Lanka
Date of Incorporation :	21.11.1988
Com. Reg. No.:	PV 12488
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Garments
No. of Employees :	Whole Group 20,000 + including overseas establishments

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Sri Lanka	a2	a2

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

GENERAL- Basic information at a glance

Name of Subject of Inquiry	:	MAS HOLDINGS (PVT) LIMITED
Legal Form & Status	:	Private Limited Liability Company (In Operation)
Chairman	:	Mahesh Dayalal Amalean
Primary Line of Business	:	Manufacturer of Garments
Place of Business	:	10^th Floor, Aitken Spence Tower II, # 315, Vauxhall Street, Colombo 02, Sri Lanka. Tel. No: (00 94 11) 479 6444 Fax No: (00 94 11) 479 6481 / 230 0494
No. of Employees	:	Whole Group 20,000 + including overseas establishments

COMPANY DETAILS- Registration and Shareholder Details

Registration No		:		N (PVS) 4983
Date of Registration		:		21^st November 1988
Re-Registration No		:		PV 12488
Date of Re-Registration		:		24^th March, 2009
Registered Office		:		# 10^th Floor, Aitken Spence Tower II, # 315, Vauxhall Street, Colombo-02
Board of Directors As At 14^h July 2011		:		Mahesh Dayalal Amalean	Chairman
				Sharad Dayalal Amalean	Director
				Ajay Dayalal Amalean	Director
				J. Dian Gomes	Director
				T.A.B Speldewinde	Director
				Poleg Eliaz (French)	Director
Issued Share Capital		:		Rs. 12,050,000.00
Nominal Value of Share		:		Rs. 10.00
Share Holders As At 14^th July 2011		:		Share Holders		No. of Shares
						Ordinary	Preference
				Mahesh Dayalal Amalean		400,000	1,000
				Sharad Dayalal Amalean		400,000	1,000
				Ajay Dayalal Amalean		400,000	1,000
				J. Dian Gomes		-	1,000
				T. Allan Brent Speldewinde		-	1,000
Auditors	:		SJMS Associates
Company Secretaries	:		Corporated Services (Pvt) Limited
Bankers	:		HSBC, Hatton National Bank, Commercial Bank, Standard Chartered Bank

FINANCIAL DETAILS

Most recent available Financial Information

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability are not required to make public disclosure of their annual financials. Therefore no financials are available for this entity.

Current investigation

· History.

Company Logo

The Subject Company MAS HOLDINGS (PVT) LTD is a Private Limited liability Company incorporated in 21^st November 1988 under registration number N (PVS) 4983 and re-registered under the Companies Act # 7 of 2007 under number PV 12488 on 24^th March, 2009.

Industry sources reveal that the Subject Company, MAS HOLDINGS (PVT) LTD is, as the name implies, the holding company of the MAS GROUP of COMPANIES. The group is now run by three brothers of one family, which is the third generation of a family that has been in the textile business in Sri Lanka, for over 60 years; the original business name being “NAGINDAS”. Two of the three brothers have Masters Degrees in Engineering while the third has a Masters Degree in Business Administration and Finance. All three are graduates from Universities in India. The directors of the company are all well known in the Sri Lankan business circle as well respected and well thought of businesspersons of high calibre.

The MAS GROUP of COMPANIES consists of the following companies.

· Linea Intimo (Pvt) Ltd

· Bodyline (Pvt) Ltd

· Leisureline (Pvt) Ltd

· Slimline (Pvt) Ltd

· Linea Clothing (Pvt) Ltd

· Unichela (Pvt) ltd

· Stretchline (Pvt)Ltd

· Shadowline (Pvt) Ltd

· Linea Aqua (Pvt) Ltd

· Prym Newey Lanka (Pvt) Ltd

· Intimate Fashion India (Pvt) Ltd

· Columbia Clothing (Pvt) Ltd

· Cottonline (Pvt) Ltd

Joint Venture Partners:

- Limited Brands, USA

- Triumph International, Germany

- Speedo International, UK

- Stretchline Global, UK

- Prym Imtimates PLC, UK

- Brandot International, USA

- Noyon Dentelles, France

- DOGI International, Spain

- Textprint S.A. Spain

· Location.

The Subject Company is now located at # 10^th Floor, Aitken Spence Tower II, No. 315, Vauxhall Street, Colombo 02.

The subject company has opened their new factory in Kilinochchi District in Northern Province of the Sri Lanka

· Operational Details.

General

The subject company, MAS HOLDINGS (PVT) LTD, and the companies that make up the group has a very high reputation within the garment manufacturing sector as a well managed and well run company/group.

The subject company and the companies that make up the group all enjoy extended credit from most of its suppliers while imports are normally on terms agreed with foreign suppliers. The company has access to extensive credit facilities from commercial banks.

Informal feedback from trade circles indicates a good reputation of the ability of the MAS GROUP of COMPANIES to honour its debts and commitments.

The MAS GROUP of COMPANIES is solely focused in the textile and garments industry and it produces garments for almost all the leading names worldwide such as Tommy Hillfiger, Sara Lee, Victoria’s Secret and etc. Most of the companies within the group are 100 % owned by the family and in the few that has foreign collaboration, the foreign participation is strictly maintained at below 35%.

The first company within the group, Unichela (Pvt) Ltd. has been set up in 1987, with 25 employees and in 1998; The group now consists of 14 production units in Sri Lanka with a total strength of 15,000 employees. There are 4 production units overseas, one each in Maldives, Madagascar, (South) India and Vietnam and the work force in the overseas outfits add up to an additional 5,000 employees making the total worldwide number of employees in the group in excess of 20,000 persons.

The MAS GROUP of COMPANIES claims to be the No. 1 in the garments and allied fields in Sri Lanka.

Brands

Nike

Marks & Spencer

Ann Taylor

Adidas

Banana Republic

Lane Bryant

Speedo

Gap

No of Employees

The employee strength of the subject company’s group is approximately 20,000 employees.

Directors’ Details

01)

Name	Mahesh Dayalal Amalean
ID Number	550951762 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	4^th April 1955
Age	56 Years

02)

Name	S. D. Amalean
ID Number	562632247 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	19th September 1956
Age	55 Years

03)

Name	Ajay Dayalal Amalean
ID Number	573403185 V
nationality	Sri Lankan
Gender	Male
Date of Birth	5th December 1957
Age	54 Years

04)

Name	Dian Gomez
ID Number	572650600 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	21st September 1957
Age	54 Years

05)

Name	T. A. B. Speldewinde
ID Number	612811962 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	07th October 1961
Age	50 Years

06)

Name	Poleg Eliaz
ID Number	08AP41018
Nationality	French

Financial Data

The information on its finances is not available.

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability is not required to make public disclosure of their annual financials.

Therefore no financials are available for this entity.

· General Comments

The company declined to disclose any financial information stating that it was company policy not to divulge same to non-bank institutions.

· Trade references

The subject company did not provide any trade references

· Credit Recommendations

Since no financial information has been forthcoming from the company, it is not possible to comment on the merits or otherwise of the company.

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	Large
b) Business Trend	Growing
c) Management Capability	Above Average
d) Commercial Morality	Above Average
e) Reputation	Above Average
f) Market Situation	Very Competitive

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.05
UK Pound	1	Rs.81.09
Euro	1	Rs.67.39

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.