MIRA INFORM REPORT

 

 

Report Date :

18.08.2014

 

IDENTIFICATION DETAILS

 

Name :

HAYLEYS MGT KNITTING MILLS PLC

 

 

Registered Office :

Narthupana Estate,  Neboda,

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

26.01.1993

 

 

Com. Reg. No.:

N (PBS) 389             

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Manufactures and Exporters of knitted fabric

 

 

No. of Employees

1,200

 

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 :

Slow but correct

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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 following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging market

 

Source : CIA

 

 

 

Company name and address

 

a.

Name of Subject of Inquiry

 

:

HAYLEYS MGT KNITTING MILLS PLC

b.

Legal Form  & Status

 

:

 

Public Limited Liability Company listed in the Colombo Stock Exchange (In Operation)

c.

Chairman

 

:

A. M. Pandithage

d.

Primary Line of Business

 

:

Manufactures and Exporters of knitted fabric

f.

Business Office

&

Factory

:

 

Narthupana Estate,

Neboda,

Sri Lanka

 

Tel: (00 94 34) 229 7100 /  224 2055

Fax: (00 94 34)224 2054

 

Email : desmond.v@hayleysmgt.com

g.

Number of Employees

:

Approximately 1,200

 

 

COMPANY DETAILS 

 

Registration and Shareholder Details

 

a.

Registration No

:

N (PBS) 389             

Date of Registration

:

26th January 1993

b.

Re- Registration No

:

   PQ 37

Date of Re-Registration

:

19th July 2007

c.

Registered Office

:

# 400, Deans Road, Colombo-10. Sri Lanka.

d.

Board of Directors

As at

            21st May, 2014

 

:

A.M. Pandithage

Chairman

E.R.P. Goonetilleke

Managing Director

R. Seevaratnam

 Director

K. D. D. Perera  

Director

S. C. Ganegoda

Director

H. Somashantha

Director

R.N. Somaratne

Director

R.P. Pathirana

Director

Dr. N.S.J. Nawaratne

Director

 

 

Registration and Shareholder Details Cont

 

 

e.

Issued Share Capital

:

Rs. 1,441,916,442.00

No. Of  Shares

:

152,343,318

f.

Nominal Value of Share

:

Not applicable/declared vide Companies Act #7 of 2007

g.

Major Share holders

As at

31st March, 2014 (Total Number of Share Holders 1,704)

:

               Major  Share Holders

   No. of  Shares

Hayleys PLC. (Co. Incorp in Sri Lanka)

119,683,817

Employees Provident Fund     

4,063,200

MAS Holdings (Pvt) Ltd

3,011,364

Hayleys Advantis Limited

3,693,690

Equity Investments Lanka Ltd

 

2,637,364

Hayleys Agriculture Holdings Ltd

2,546,322

h.

Auditors

:

 KPGM Ford Rhodes Thornton& Co.

i.

Secretaries

:

Hayleys Group Services (Pvt) Ltd-

j.

Bankers

:

 

Standard Chartered  Bank, HSBC, Bank Of Ceylon

Commercial Bank, Hatton National Bank, Deutsche Bank

Seylan Bank, National Development Bank, Sampath Bank

Citibank. N.A

 

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

 

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information (Cont/d….)

 

         

 

 

 

CURRENT INVESTIGATION                      

 

                                              

                                                      Company Logo

 

History.

 

The Subject Company, HAYLEYS MGT KNITTING MILLS PLC is a Public Limited Liability Company incorporated on 26th January 1993 under Registration number N (PBS) 389 and Re-Registered on 19th July, 2007 under the Re-registration number PQ 37 in terms of Company ACT # 7 of 2007. The company is listed on the Colombo Stock Exchange.

 

 

The Subject Company, HAYLEYS MGT KNITTING MILLS PLC, is a Company with a very high recognition as one of the best managed companies in the country and is a quoted public company with a broad-based shareholding. 

 

 

Location.

 

The subject company main office and factory is located at client, Narthupana Estate, Neboda, Sri Lanka, approx. 50 kilo meters from Colombo.

 

 

Operations Details

 

General

The subject company’s primary line of business is Manufacture and Exporting of knitted fabrics.

 

Export Products

Knitted Fabrics

 

 

Export Country

UK, USA, Etc…

 

Employees

Approximately 1200

 

 

 

Financial Data

 

Received from the Annual Report – 2013-2014.

               

                 

Trade references

 

Well Known in 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.

 

 

Information denied by

 

Name

Mr, Desmond

Designation

Accounts Manager

Contact

009434-2297100

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.06

UK Pound

1

Rs.101.84

Euro

1

Rs.81.56

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIS

 

               

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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