MIRA INFORM REPORT

Report Date :

08.10.2012

IDENTIFICATION DETAILS

Name :	NOBLESWEAR (PVT) LTD
Registered Office :	16/15, Pogada Road
Country :	Sri Lanka
Financials (as on) :	31.03.2012
Year of Establishment :	1999
Com. Reg. No.:	PV 2322
Legal Form :	Private Limited Liability Company (In Operation)
Line of Business :	Manufactures and Exporters of Ready Made Garments
No. of Employees :	Approximately 2000

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 30^th, 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

Name of Subject of Inquiry	:	NOBLESWEAR (PVT) LTD
Legal Form & Status	:	Private Limited Liability Company (In Operation)
Chairman	:	Mithra Wettimuny
Primary Line of Business	:	Manufactures and Exporters of ready made Garments
Registered Office	:	16/15, Pogada Road, Sri Lanka Email: dilrushi@nobleswear.lk
Head Office & Factory # 01	:	Henegama, Pokunuwita, Horana. Sri Lanka Tel. No: (00 94 34) 428 6150 (hunting) Fax No: (00 94 11) 462 8126 Email: nimalw@nobles.lk sidath@nobles.lk
Factory 1	:	Henegama, Pokunuwita, Horana. Tel. No: (00 94 34) 226 4178/ 9, 428 6150 Fax No: (00 94 34) 226 2384
Factory 2	:	Koggala, Free Trade Zone, Koggala. Tel. No: (00 94 91) 2882082
Factory 3	:	Pallekele, E.P.Z. Kandy. Tel. No: (00 94 81) 447 0040/3 Fax No: (00 94) 081-01421720
Number of Employees	:	Approximately 2000

COMPANY DETAILS

- Registration and Shareholder Details:

Registration No	:	N (PVS) 18210
Date of Registration	:	1999
Re- Registration No	:	PV 2322
Date of Registration	:	08^th February, 2008
Registered Office	:	# 91, Barnes Place, Colombo – 07, Sri Lanka
Board of Directors As At 14^th October 2011	:	Mithra Wettimuny	Chairman
		Sidath Wettimuny	Vice Chairman
		Nimal Wettimuny	Managing Director
		Ranjan Wettimuny	Director
Authorised Share Capital	:	Not Applicable
Issued Share Capital	:	LKR. 200,000,000.00
Nominal Value of Share	:	LKR. 10.00
Share Holders As At 14^th October 2011	:	Share Holders	No. of Shares
		Mithra De Silva Wettimuny	08
		Sidath Wettimuny	08
		Ranjan Wettimuny	08
		Nimal Wettimuny	08
		Nobles (Pv) Ltd	19,999,968
Auditors	:	Ernst & Young
Company Secretaries	:	Consultants and Corporate Secretaries (Pvt) Ltd
Bankers	:	Seylan Bank, Bank of Ceylon

FINANCIAL DETAILS

- Most recent available Financial Information

	31.03.2012
Sales Turnover	LKR 1.9 billions

Expected Sales (2012-2013) : Rs.LKR 2.1 billions

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

Information parted by

Name : Ms. Dilrushi

Designation : Finance Manager

Contact : 94-34-4286150

Date : 05.10.2012

CURRENT INVESTIGATION

· History.

Company Logo:

The Subject Company, NOBLES WEAR (PVT) LTD is a Private Limited Liability Company incorporated on 27^th November 1996 as a Board of Investments (BOI) project and re-registered in terms of Companies Act #7 on 8^th February, 2008 under No. PV 2322.

It has began business with a factory in Horana and as at today the company operates two other factories in Kandy of (Central province) and Koggala (Southern Province) Free Trade Zone, which are equipped with modern machinery.

The company is owned by one-family members (Wettimunys) who are well known and reputed Cricketers in Sri Lanka who played for Sri Lanka team.

· Location.

The Head office of the Subject Company is Operating at # Henegama, Pokunuwita, Horana, within the Industrial Zone, approx. 50 kilo meters south of Colombo.

The client given location is the registered address of the company.

· Operational Details.

General

The subject company primary line of business is manufacture and exporter of ready-made garments for overseas markets. Company manufacture high quality ladies and gents garments, knit tops, blouses, skirts, pants and children wear, the samples of which are shown below.

They claim to have a monthly production capacity over 450,000 pieces.

Products

Ladies, Gents and children’s wear. Brands such as: RBK, M&S, Next, Tesco.

Corporate wear – for business establishments

Factory at Pallekele, Kandy (Capital city of Central Province)

Export Country

United Kingdom

Import Country

China, Italy, Taiwan

No of Employees

Approximately 2000

· Financial Data

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

· Trade references

The subject company did not provide any trade reference referrals

· 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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.62
UK Pound	1	Rs.83.57
Euro	1	Rs.67.17

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%)

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