MIRA INFORM REPORT

 

 

Report Date :

10.12.2014

 

IDENTIFICATION DETAILS

 

Name :

AVERY DENNISON LANKA (PVT) LTD

 

 

Registered Office :

Block – B, Export Processing Zone, Biyagama

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

24.03.1997

 

 

Com. Reg. No.:

PV 7935

 

 

Legal Form :

Private Limited Liability Company  (In Operation)

 

 

Line of Business :

Manufactures and supplies apparel identification products

 

 

No. of Employees :

Approximately 400

 

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 – 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 markets.

Source : CIA

 

GENERAL - Basic information at a glance

     

 

a.

Name of Subject of Inquiry

:

AVERY DENNISON LANKA (PVT) LTD

b.

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

c.

CEO

:

M. Olbunmi Akinbade

d.

Primary Line of Business

:

Manufactures and supplies apparel identification products

e.

Head office

&

Place of Business

 

:

 

Block – B, Export Processing Zone, Biyagama,

Sri Lanka.

         

Tel. No: (00 94 11) 246 5000

Fax No: (00 94 11) 246 5011

 

E-Mail: averydennison@averydennison.lk

             

 

f.

No. of Employees

:

Approximately 400

                       

 

COMPANY DETAILS  - Registration and Shareholder Details

 

a.

Registration No

:

N (PVS) 18749

Date of Registration

 

24th March 1997

b.

Re-registration No

:

PV 7935

Date of Re-registration

 

7th October 2008

c.

Registered Office

:

# 216, De Saram Place, Colombo 10, Sri Lanka.

d.

Board of Directors

As At

24th June 2013

:

Pardal Rishi

Director

Morgarent Wen Kuei Yu

Director

e.

Issued Share Capital

:

Rs. 125,000,000.00          

No. of Shares

 

12,500,000

f.

Nominal Value of Share

:

Not applicable vide Companies Act #7 of 2007

g.

 

Share Holders

As At

24th June 2013

 

:

Share Holders

No. of

Shares

Paxar Far East Limited

12,500,000

h.

Auditors

:

M/S. KPMG Chartered Accountants

i.

Company Secretaries

:

Corporate Services (PVT) Ltd

j.

Bankers

:

-Not Disclosed-

 

 

FINANCIAL DETAILS - Most recent available Financial Information

 

THE COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES

 

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

 

 

CURRENT INVESTIGATION                      

 

History.

                                            logo

                                                         Company Logo

                                           

The Subject Company AVERY DENNISON LANKA (PVT) LTD is a Private Limited   Liability Company incorporated on 24th March 1997 under registration number N (PVS) 18749 and then the company was re-registered on 07th October 2008 under registration number PV 7935

 

The subject company was initially known as FERGUSON LANKA (PVT) LTD and its name was changed to PAXAR LANKA (PVT) LTD on 19th April 1999 and again name of the Subject Company was changed to AVERY DENNISON LANKA (PVT) LTD on 11th December 2008.

 

 

Location

 

The Subject Company is located at the client Block – B, Export Processing Zone, Biyagama, Sri Lanka.

 

 

Operational Details

 

General

The subject company primary line of business is Manufactures and supplies apparel identification products

 

Avery Dennison Corporation is a NYSE listed fortune 500 Company, headquartered in Pasadena, California, USA. Avery Dennison is said to be the global leader in apparel identification products supply with operations in 60 countries worldwide.

 

Products

Apparel labels, retail tags, brand & product identification, tapes, fasteners Textile articles, paper products, labels printed or not printed

 

Brands

Victoria's Secret, Marks & Spencer, Nike, Gap, Macy’s, Next, Wall-Mart, Reebok

 

Country

USA, China, UK, Europe

 

No of Employees

 Approximately 400

 

 

Directors Details 

 

01)

Name

Pardal Rishi

PP Number

Z 2187793

Nationality

Indian

 

02)

Name

Morgarent Wen Kuei Yu

PP Number

E 4062984

Nationality

 Australian

 

 

Trade references

 

Board of Investment

National Chamber of Exporters of Sri Lanka

 

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.61.88

UK Pound

1

Rs.96.90

Euro

1

Rs.76.29

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SDA

 

               

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.