MIRA INFORM REPORT

 

 

Report Date :

08.11.2012

 

IDENTIFICATION DETAILS

 

Name :

BRANDIX TEXTILES LTD

 

 

Registered Office :

 

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

 

 

 

 

Country :

Sri Lanka

 

 

 

 

Financials (as on) :

31.03.2011

 

 

 

 

Date of Incorporation :

26.03.1992

 

 

 

 

Com. Reg. No.:

N (PBS) 336

 

 

 

 

Legal Form :

Private Limited Liability Company (In operation)

 

 

 

 

Line of Business :

Manufacturing woven fabric.

 

 

 

 

No. of Employees :

Approximately 2500

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SRI LANKA - ECONOMIC OVERVIEW

 

Sri Lanka continues to experience strong economic growth, driven by large-scale reconstruction and development projects following the end of the 26-year conflict with the LTTE. Sri Lanka is pursuing a combination of government directed policies, private investment, both foreign and domestic, to spur growth in disadvantaged areas, develop small and medium enterprises, and increase agricultural productivity. The government struggles with high debt interest payments, a bloated civil service, and historically high budget deficits. However recent reforms to the tax code have resulted in higher revenue and lower budget deficits in recent years. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded strongly with the end of the war and an IMF agreement, resulting in two straight years of high growth in 2010 and 2011. Per capita income of $5,600 on a purchasing power parity basis is among the highest in the region.

Source : CIA

GENERAL

- Basic information at a glance

   

a.

Name of Subject of Inquiry

:

BRANDIX TEXTILES LTD

b.

Legal Form  & Status

:

Private Limited Liability Company (In operation)

c.

Managing Director

 :

Feroze Omar

d.

Primary Line of Business

:

 Manufacturing woven fabric.

e.

Head office

:

# 75 Arnold Ratnayake Mawatha

Colombo-10,

Sri Lanka.

 

Tel: (00 94 11) 472 6555 / 268 2236 / 267 7581 - 3

Fax: (00 94 11)  2682236           

 

E-Mail : info@brandix.com

 

f.

Factory

:

 

Wayamba Industrial Zone,

Makandura,

Gonawila

 

Tel. No: (00 94 31) 229 8266          

g.

No. of Employees

:

Approximately 2500

 

 

COMPANY DETAILS 

- Registration and Shareholder Details

a.

Registration No

:

N (PBS) 336

Date of Registration

:

26th March 1992

b.

Registration No

:

PB 317

Date of Registration

:

13th May 2008

c.

Registered Office

:

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

 

Share Holders

As At

15th October 2011

 

M. Ashroff Omar

Managing Director

M. Aslam Omar

Director

Feroz Omar

Director

M. Hajji Omar

Director

f.

Issued Share Capital

:

Rs.  450,000,060.00

g.

Nominal Value of Share

:

Rs.                  10.00        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

h.

Share Holders

As At

15th October 2011

:

  Share Holders

No. Of

Shares

M. Ashroff Omar

01

M. Aslam Omar

01

Feroz Omar

02

Kuruwita Textile Mills Ltd

32,400,000

Brandix Lanka Limited

12,600,000

Brandix Textile Holdings Ltd

01

Phoenix Ventures Limited

01

i.

Auditors

:

Price Water House Coopers

j.

Company Secretaries

:

Brandix Management Services (Pvt) Limited

k.

Bankers

:

 

Citi Bank

Hatton National Bank PLC

Bank of Ceylon

Commercial Bank PLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DETAILS

- Most recent available Financial Information

 

  Income Statement As at 31st March

 

 

2011

Rs.

2010

Rs.

A

Sales

:

5,001,356

6,325,462

B

 Cost  of  Sales                                                                                                                                                                                        

:

(5,129,372)

(5,938,891)

C

 Gross Profit                                                                                                      

:

(128,016)

386,571

D

Administration Cost                                                                           

:

(218,086)

(211,470)

E

Distribution Cost

:

(40,291)

(71,367)

F

Operating (Loss / Profit)

:

(386,393)

103,734

G

Non Operating Income

:

10,826

5,261

H

Finance & Other Cost

 

(87,837)

(67,936)

I

Net Profit / (Loss) before Tax                                                  

:

(463,904)

41,059

J

Taxation

:

(6,250)

(6,062)

K

Net Profit / (Loss) After Tax:                                                       

:

(469,654)

34,997

 

 

Balance Sheet As at 31st March

                                                                                                                                   

 

2011

Rs.

2010

Rs.

a)

Non-current Assets

:

1,728,892

1,473,013

c)

Current Assets

:

2,318,266

1,999,179

d)

Non Current Liabilities

:

283,290

37,956

e)

Current Liabilities

:

2,433,844

1,548,245

f)

Total  Liabilities

 

2,717,174

1,586,201

g)

Total  Assets

:

4,047,158

3,472,192

h)

 

Net Worth

 

:

1,329,984

1,885,991

 

 

 

CURRENT INVESTIGATION

 

Company Logo

 

·         History.

The Subject Company BRANDIX TEXTILE LTD is a Private    Limited   Liability Company incorporated on 26th March 1992 under registration number N (PVS) 31611 and then the company was re-registered on 31st December 2008 under registration number PB 317

 

                  The subject company was earlier known as Kuruwita Manchester Textiles Mills Ltd and it was changed to BRANDIX TEXTILE LTD on 13th December 2004.

 

·         Location.

                  The subject company is located at the client address # 75 Arnold Ratnayake Mawatha

Colombo-10

 

·         Operational Details.

 

General

                  The subject company primary line of business is manufacturing woven fabric.

 

 

Product and services

Brandix Textiles is Sri Lanka's largest woven fabric manufacturer, specialsing in fabric reactive-, vat-, pigment-, sulphur- and pad-dyed cotton and cotton-lycra.

 

Export Countries

Middle East, Europe, India/South Asia

 

No of Employees

                  Approximately 2500

 

 

Companies of BRANDIX GROUP

o        Brandix Casualwear (Pvt) Ltd

o        Brandix Intimate Apparel (Pvt) Ltd

o        Brandix Lingerie (Pvt) Ltd

o        Brandix Hangers (Pvt) Ltd

o        Brandix Finishing (Pvt) Ltd

o        Brandix College of Clothing Technology (Pvt) Ltd

 

 

 

 

 

·         Directors Details

 

Name

M. Ashroff Omar

ID Number

551352110 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th May 1955

Age

57 Years

 

 

02)

Name

Feroz Omar

ID Number

641052566 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th April 1964

Age

48 Years

 

 

03)

 

Name

M. AslamOmar

Gender

Male

Nationality

Sri Lankan

National ID  No.

541192719 V

Date of Birth

20th April 1954

Age

58 Years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

04)

 

Name

M. Hajji Omar

Gender

Male

Nationality

Sri Lankan

ID No

 320922470 V

Date of Birth

01st April 2011

Age

79 Years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·         Financial Data

Received from other sources.

 

 

·         General Comments

 

When we contacted the Subject Company they refused to provide any information on the Subject Company

 

·         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.

 

 

 

 

ANALYSIS & RATING

 Appraisal and Rating of Subject Company

 

 

Rating:

a) Business Scale        

Medium

b) Business Trend

Steady

c) Management Capability

Very Professional

d) Commercial Morality

Above Average

e) Reputation

Above Average

f) Market Situation

Garments Manufacture is a Very Competitive enterprise in Sri Lanka especially after the expiry of the Multy Fibre Agreement

                                   

 

Information declined by

 

Name

Ms. Sunita

Designation

Accounts Manager

Date

07.11.2012

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.25

UK Pound

1

Rs.87.00

Euro

1

Rs.69.83

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.