MIRA INFORM REPORT

 

 

Report Date :

23.10.2012

 

IDENTIFICATION DETAILS

 

Name :

BRANDIX APPAREL LTD

 

 

Formerly Known As :

BRANDIX APPAREL (PVT) LTD

 

 

Registered Office :

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

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

08.04.1993

 

 

Com. Reg. No.:

PB 85

 

 

Legal Form :

Public Limited Liability Company (In Operation) – Not listed with Colombo Stock Exchange

 

 

Line of Business :

Manufacturers and Exporters all types of Ladies and Gents Garments

 

 

No. of Employees :

15,000 in the Brandix Group

 

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

(31.03.2012)

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

 :

BRANDIX APPAREL LTD

Legal Form  & Status

 :

Public Limited Liability Company (In Operation) – Not listed with Colombo Stock Exchange

Managing Director

 :

K. Balendra

Primary Line of Business

:

Manufacturers and Exporters all types of Ladies and Gents Garments.

Principal Place of Business

:

 

# 409,03rd 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

 

 

No of Employees

:

15,000 in the Brandix Group

 

Company Details

Registration and shareholder details

Old Registration No

:

N (PVS) / PBS 10863

Date of Registration

:

08th April 1993

New Re-registration No

:

PB 85

Date of Re-registration

:

10th December 2007

Registered Office

:

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

Board of Directors

As At

15th October 2011

:

K. Balendra

Chairman

M. Ashroff Omar

CEO

A. J. Johnpillai

Director

Feroz Omar

Director

G. D. M. Ranasinghe

Director

T. L. F. W. Jayasekera

Director

Issued Share Capital

:

Rs.                1,970,388,950.00

Nominal Value of Share

:

Rs.                                   10.00

Share Holders

As At

15th October 2011

:

  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

Auditors

:

PriceWaterHouseCoopers  

Company Secretaries

:

Brandix Management Services (Pvt) Ltd

Bankers

:

Bank of Ceylon

HSBC

Hatton National Bank PLC

Commercial Bank

Citibank NA

Standard Chartered Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DETAILS

Most recent available Financial Information

 

Balance Sheet (2012 financial details are still not available)

 

Year ended

31st March 2011

Rs’000

Year ended

31st March 2010

Rs’000

A

Sales

:

40,693,006

34,315,575

B

Cost of sale

:

(38,464,712)

(32,168,964)

C

 Gross Profit

:

2,228,294

2,146,611

D

Distribution Costs

:

(133,374)

(123,748)

E

Administrative Expenses

:

(807,275)

(672,725)

F

Operating profit

:

1,287,645

1,350,138

G

Other operating income

:

224,783

34,997

H

Finance cost

:

(376,907)

(465,143)

I

Profit before tax

:

1,135,521

919,992

J

Tax

 

(34,041)

(2,745)

K

Net profit

 

1,101,480

917,247

 

Income Statement (2012 financial details are still not available)

   

 

Year ended

31st March 2011

Rs’000

Year ended

31st March 2010

Rs’000

a)

Non-current Assets

:

7,628,559

2,273,024

b)

Current Assets

:

13,300,500

11,228,144

c)

Current Liability

:

14,936,789

9,696,555

d)

Non-current liability

:

2,619,201

869,011

e)

Total Liabilities

:

17,555,,990

10,565,565

f)

Total Assets

:

20,929,059

13,501,168

g)

 

Net Worth

 

:

3,373,069

2,935,603

                                                                                                                                                              

 

CURRENT INVESTIGATION                      

 

·         History.

Company Logo

 

 

The Subject Company, BRANDIX APPAREL LTD was incorporated as a Public Limited Liability company (not listed with Colombo Stock Exchange) on 08th April 1993 under registration number N (PVS) 10863 / PBS and then the company was re-registered on 10th December 2007.

 

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”.

 

·         Location.

 

The Subject Company is located at the client given address # 23/25, Rheineland Place, Colombo-03, Sri Lanka.

 

·         Operational Details.

 

General

The subject company primary line of business is Manufacturers and Exporters all types of Ladies and Gents Garments.

 

 

Products

All types of ladies and gents garments such as

·                                                                                                   Casual Wear

·                                                                                                   Sleep Wear and Lounge

·                                                                                                   Briefs

·                                                                                                   Bras

 

Export Countries

UK, Hong Kong, china, Thailand and Singapore.

 

 

No of Employees

                  The employee strength of the subject company is approximately 14,500 employees.

 

·         Directors Details

01)

Name

M. Ashroff Omar

ID Number

551352110 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th May 1955

Age

57 Years

Address

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

 

 

 

02)

Name

K. Balendra

ID Number

403332780 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

28th November 1940

Age

71 Years

Address

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

           

 

03)

Name

Feroz Omar

ID Number

641052566 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th April 1964

Age

47 Years

Address

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

 

04)

Name

T. L. Francis Waas Jayasekara

ID Number

530060241 X

Nationality

Sri Lankan

Gender

Male

Date of Birth

6th January 1953

Age

59 Years

Address

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

 

05)

Name

G. D. M. Ranasinghe

ID Number

631440428 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

23rd May 1963

Age

49 Years

Address

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

 

 

·         Financial Details

Received From subject company annual report

 

·         Trade references

National Chamber of Exporters of Sri Lanka.

 

·         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.53.67

UK Pound

1

Rs.86.05

Euro

1

Rs.70.07

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.