MIRA INFORM REPORT

Report Date :

23.12.2014

IDENTIFICATION DETAILS

Name :	GLOBE KNITTING (PVT) LTD

Registered Office :	Kadawala, 11264, Dunagala

Country :	Sri Lanka

Date of Incorporation :	05.08.1991

Com. Reg. No.:	PV 7267

Legal Form :	Private Limited Liability Company

Line of Business :	Manufactures and exports textiles and garments products

No. of Employees :	350

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Sri Lanka

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

Company name and address

a.	Name of Subject of Inquiry	:	GLOBE KNITTING (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (in operation)
c.	Managing Director	:	Jung Brigitte Kroehl
d.	Primary Line of Business	:	Manufactures and exports textiles and garments products
e.	Place of Business & Factory	:	P.O. Box 1, Kadawala 11264, Dunagaha, Sri Lanka Tel. No: (00 94 31) 224 6167 Fax No: (00 94 31) 224 6120 E Mail: sujits@globeknitting.cm Website : http://www.globeknitting.com
f.	No. of Employees	:	350

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No		:	N (PVS) 7933
	Date of Registration		:	5^th August 1991
b.	Re-registration No		:	PV 7267
	Date of Re-registration		:	5^th September 2008
c.	Registered Office		:	Kadawala, 11264, Dunagala
d.	Board of Directors As At 14^th October 2011 ( Updated details of other directors not available due to relevant file not found at the ROC)		:	Jung Brigitte Kroehl	Managing Director
				Jung Dieter	Director
				D. T. Ramal Rajapaksa	Director
e.		Issued Share Capital	:	Rs. 30,000,000.00
f.		Nominal Value of Share	:	Rs. 10.00

Registration and Shareholder Details Cont

g.	Share Holders As At 14^th October 2011		Share Holders	No. of Shares
			Jung Brigitte Kroehl	715,000
			Jung Dieter	715,000
			DSI Samson Group (Pvt) Ltd	1,470,000
			USF United Stocking Factory Ltd	100,000
h.	Auditors	:	Abeyratne and Company
i.	Company Secretaries	:	ES Management (Pvt) Ltd
j.	Bankers	:	Peoples Bank

Director’s Details

Not Available as the relevant file of the subject is not found at the Office of the Registrar of Companies. Still searching for the file

CURRENT INVESTIGATION

· History.

The Subject Company GLOBE KNITTING (PVT) LTD is a Private Limited liability Company incorporated on 5^th August 1991 under registration number N (PVS) 7933 and then company was re-registered on 5^th September 2008 under registration number PV 7267 in terms of Companies Act #7 of 2007.

(Note: At present a re-organization process in the office of the Registrar of Companies with regard to the data base in underway and company files are removed daily in batches for that purpose. As such the relevant file of this subject too has been removed and it is not available for reference. Authorities do not inform us when the file will be made available to us for scrutiny but daily we keep on checking until it is found.)

Location.

The Subject Company is located at the client Kadawala, 11264, Dunagala

Operations Details.

General

The subject company primary line of business is manufactures and exports textiles and garments products

Products

Socks, Underwear, Babies, Children and Ladies Tights

Export Countries

USA, Norway, UK, Canada, Switzerland, Denmark, Germany,

No of Employees

350

Trade references

Board of Investment

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.

Information parted by

NAME	Ms. Nisha
DESIGNATION	Finance Executive
CONTACT NO	009431- 2246167

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.18
UK Pound	1	Rs.98.85
Euro	1	Rs.77.42

INFORMATION DETAILS

Information Gathered By :	JML

Analysis Done by :	RAS

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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