MIRA
INFORM REPORT
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Report Date : |
17.02.2014 |
IDENTIFICATION DETAILS
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Name : |
DIPPED PRODUCTS PLC |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
25.02.1976 |
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Com. Reg. No.: |
PBS 924 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Manufacture and Distributors of Protective Gloves |
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No. of Employees : |
1400 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 (LTTE). 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. Growth slowed to 3.5% in 2009. Economic activity rebounded with the end of the war and an IMF agreement, resulting in two straight years of 8% growth in 2010-11. Growth moderated to about 6% in 2012. 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. Strong remittances from Sri Lankan workers abroad have helped to offset the trade deficit
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Source
: CIA |
GENERAL
Basic information at
a glance
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a. |
Name of Subject of Inquiry |
: |
DIPPED PRODUCTS PLC |
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b. |
Legal Form & Status |
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Public Limited Liability Company listed in the Colombo Stock Exchange (In Operation) |
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c. |
Chairman |
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A. M. Pandithage |
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d. |
Primary Line of Business |
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Manufacture and Distributors of Protective Gloves |
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e. |
Head office & Place of Business |
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Hayleys Building # 400, Deans Road, Colombo 10, Sri Lanka.
Tel. No: (00 94 11) 268 3964 Fax No: (00 94 11) 269 9018 E-Mail: postmast@dplgroup.com |
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f. |
No. of Employees |
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Approximately 1,400 |
COMPANY DETAILS
Registration and
Shareholder Details
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a. |
Registration No |
: |
PBS 924 |
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Year of
Registration |
: |
25th February 1976 |
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b. |
Re-registration No |
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PQ 60 |
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c. |
Registered Office |
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Hayleys Building, # 400, Deans Road, Colombo 10 |
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d. |
Board of Directors As at 31st March
2013 |
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A. M. Pandithage |
Chairman |
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Dr. K. I.
M. Ranasoma |
Managing Director |
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N. Y. Fernando |
Director |
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R. Seevaratnam |
Director |
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F. Mohideen |
Director |
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K. A. L.
S. Fernando |
Director |
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L. G. S. Gunawardena |
Director |
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S. C. Ganegoda |
Director |
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K. D. D. Perera |
Director |
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M. Bottlno |
Director |
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R.M.T. Premarathna |
Director |
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V.R. Gunasekera |
Director |
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COMPANY DETAILS
Registration and
Shareholder Details (Cont/d….)
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e. |
Issued Share
Capital |
: |
Rs. 598,615,120.00 |
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f. |
Nominal Value of
Share |
: |
Rs. 10.00 |
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g. |
Major Share
Holders As at 31st
March 2013 (Total Number of
Share Holders 2,278) |
: |
Major Share Holders |
No. of Shares |
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Hayleys PLC |
24,902,073 |
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Employees’
Provident Fund |
7,820,256 |
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Volanka (Pvt) Ltd |
4,873,640 |
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Haycarb PLC |
4,068,746 |
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Promar Overseas SA |
3,873,496 |
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National Savings
Bank |
1,000,000 |
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h. |
Auditors |
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Ernst & Young |
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i. |
Company
Secretaries |
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Hayleys Group
Services (Pvt) Ltd |
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j. |
Bankers |
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Bank of Ceylon,
Citibank N A, Deutsche Bank, Hatton National Bank PLC Hong Kong &
Shanghai Banking Corporation, NDB Bank People’s Bank, Sampath
Bank, Seylan Bank PLC Standard Chartered
Bank |
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FINANCIAL DETAILS
Most recent available
Financial Information
FINANCIAL DETAILS
Most recent available Financial
Information (Cont/d….)
CURRENT INVESTIGATION
Company Logo
History.
The Subject Company
DIPPED PRODUCTS PLC is a Public Limited Liability Company (listed in
the Colombo Stock Exchange) incorporated on 25th February 1976 under
registration number PBS 924 and then the company was re-registered under
registration number PQ 60.
Dipped Products PLC,
the rubber glove manufacturer of Hayleys
Group.
Subsidiaries of Dipped
Products Limited
Hand Protection Plantations
Palma Limited
Grossart (Private) Limited
Venigros (Private) Limited
Neoprex (Private) Limited
Texnil (Private) Limited
Feltex (Private) Limited
Dipped Products (Thailand) Limited
ICOGUANTI SpA
Hanwella Rubber Products Limited
Feltex (Pvt) Ltd
Plantations
DPL Plantations (Private) Limited
Kelani Valley Plantations PLC
Hayleys Plantation Services (Pvt) Ltd
Location.
The Subject Company is located at the client
The Glove factory is
presently located at Rathupaswala, Nittambuwa, and approx. 40 kilo meters from
Colombo and on the Colombo- Kandy highway. Recently there was a public protest
by the general public area against the factory been located there, due to a
problem of contamination of water in the area. In response to the public
opinion, the factory is now in the process of locating in the EPZ, Biyagama.
Below is a news
report published in the local daily “Daily Mirror” on 13th Dec. 2013
is as follows:
Quote:
“Dipped Products PLC, the rubber glove manufacturer of Hayleys Group said it is investing in a new facility at the Biyagama BOI Zone, where commercial operations are expected to commence from mid April 2014.
The company’s glove
manufacturing facility--Venigros-in Rathupaswala, Weliweriya was alleged for
contaminating water in the area, a claim which is not martially substantiated.
Accordingly, Dipped
Products was compelled to close down the factory end of July amid severe
protests that even cost a life and injured many protestors.
“In spite of all efforts made by the management to resume operations, inter
alia, continued opposition by villagers prevented the company from doing so for
the last 5 months,” Dipped Product said in a disclosure.
At a recent press conference, the senior management of the company accused
authorities including the National Water Supply and Drainage Board and the
Health Ministry for failing to clear the misconception among villagers
concerning the company’s non-involvement in water pollution.
Dipped Products Managing Director Dr. Mahesh Ranasoma said, following the
initial misconception of the factory being responsible for the low pH levels in
the area’s water sources, various tests were carried out by government analyst,
Water Supply and Drainage Board and Central Environmental Authority, and all
specified that no clear evidence was present to determine a link between the
contamination and the factory’s effluent releases.
“Once our position was cleared, we made repeated requests to t he Board of
Investment, Water Supply and Drainage Board, Health Ministry and the Gampaha GA
to issue statements that would clear the misconception regarding our
involvement, but was unsuccessful. As a result, our repeated attempts to talk
to the villagers and clear misunderstandings have failed, leading to a halt in
our production process,” Dr. Ranasoma noted.
”Hayleys Chairman Mohan Pandithage who also expressed his views at the media
briefing said they were still trying their best to reach an amicable solution
and facilitate the factory reopening.
“We were informed that we could relocate the factory to Biyagama. But we do not
wish to relocate as it would incur heavy costs on the company. Also, by the
time we complete the relocation, we would have lost all our clients and it all
would have been for nothing,” he said adding that despite the many invitations
received from Malaysia to move operations there, they would try out all other
options to work out a solution in Sri Lanka.
According to Dipped Products management, Venigros factory accounts for 1
percent of Sri Lanka’s exports. The company’s global market share in
non-surgical rubber gloves stands at 4 percent and has 7 manufacturing
subsidiaries in Sri Lanka, a medical glove manufacturing company in Thailand
and a marketing company based in Italy.”
Unquote
Operational Details.
General
The subject company primary line of business is Manufacture and marketing of industrial and
general purpose gloves, Management of tea and rubber plantations.
DPL owns and operates
seven manufacturing subsidiaries in its home country, a medical glove
manufacturing company in Thailand and a marketing company based in Italy.
The subject company has earned certified by ISO 9001:2008, ISO 14001:2004
Products
Natural Rubber, Natural Rubber Synthetic Blended, Synthetic Rubber,
Country
Worldwide (Asia/Africa, Australia/Newzeland, Europe, North America, South America
No of Employees
Approximately 1400
Financial Data
Received from
Company Annual Report 2012/2013.
Following is an
extract from a media report of Lanka Business Online.lk dated 30 Oct. 2013.
Quote “Dipped Products Plc fell 78 percent to 69 million rupees in the September 2013 quarter from a year earlier, after a factory was closed.
The firm reported earnings of 1.16 rupees per share for the
quarter in accounts filed with the Colombo Stock Exchange. In the six months to
September earnings were 8.08 rupees per share on total profits of 483 million
rupees, down 24 percent. Group revenues fell 6 percent to 5.58 billion rupees
and cost of sales fell one percent to 4.7 billion rupees shrinking gross profit
26 percent to 874 million rupees in the quarter” Unquote
Trade references
The Ceylon Chamber
of Commerce
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.28 |
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1 |
Rs.103.67 |
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Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.