MIRA INFORM REPORT

Report Date :

23.05.2014

IDENTIFICATION DETAILS

Name :	HIRDARAMANI MERCURY APPARELS (PVT) LTD
Registered Office :	# Level 23, West Tower, World Trade Centre, Colombo 01.
Country :	Sri Lanka
Date of Incorporation :	19.05.1987
Com. Reg. No.:	PV 137
Legal Form :	Private Limited Liability Company (In Operation)
Line of Business :	Manufacturers and Exporters of knit and women apparels
No. of Employees	Approximately 30,000 employees (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 – March 31^st, 2014

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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	:	HIRDARAMANI MERCURY APPARELS (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	M. Lalchand Hirdaramani
d.	Primary Line of Business	:	Manufacturers and Exporters of knit and women apparels
e.	Head office	:	# Level 23, West Tower, World Trade Centre, Colombo 01. Tel. No: (00 94 11) 479 7000 / 225 0600 Fax No: (00 94 11) 244 6135 E-Mail: HMK.Info@hirdaramani.com info@hirdaramani.com
f.	No. of Employees	:	Approximately 30,000 employees (Group)

COMPANY DETAILS - Registration and Shareholder Details

a.	Registration No	:	N (PVS) 3488
	Date of Registration	:	19^th May 1987
b.	Re-registration No		PV 137
	Date of re-registration		28^th June 2007
c.	Registered Office	:	Level 23, West Tower, World Trade Center, Colombo 01
d.	Board of Directors As At 12^th December 2013	:	M. Lalchand Hirdaramani	Managing Director
			V. Kishore Hirdaramani	Director
			N. Kishore Hirdaramani	Director
			Ranil Prasad Pathirana	Director
			R. Anil Kumar Hirdaramani	Director
			Siddarth Janak Hirdaramani	Director
f.	Issued Share Capital	:	Rs. 200,000,000.00
	Number of Shares	:	20,000,000
g.	Nominal Value of Share	:	Not applicable vide Companies Act #7 of 2007

COMPANY DETAILS - Registration and Shareholder Details

h.	Share Holders As At 12^th December 2013	:	Share Holders	No. of Shares
			Hirdaramani Apparel Holdings Limited	20,000,000
i.	Auditors	:	Price Water House Coopers
j.	Company Secretaries	:	Nihal Jinadasa
k.	Bankers	:	Peoples Bank, Bank of Ceylon

FINANCIAL DETAILS - Most recent available Financial Information

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

Hirdaramani Group Logo

History.

The Subject Company HIRDARAMANI MERCURY APPARELS (PVT) LTD is a Private Limited Liability Company incorporated on 19^th May 1987 under registration number N (PVS) 3488 and then the company was re-registered on 28^th June 2007 under registration number PV 137

The subject company HIRDARAMANI MERCURY APPARELS (PVT) LTD is a subsidiary company of

HIRDARAMANI GROUP.

The Subject Company, HIRDARAMANI MERCURY APPARELS (PVT) LTD, originally incorporated in Sri Lanka on 19^th May 1987 as Mercury Garments (Pvt) Ltd then changed its name to Desmonds Mercury (Pvt) Ltd on 8^th October 1996 and then they changed to HIRDARAMANI MERCURY APPARELS (PVT) LTD on 02^nd August 2005.

Location.

The Subject Company’s Head Office is located at the client # Level 23, West Tower, World Trade Centre, Colombo 01.

Mercury Apparel focuses on both Knit and Woven garments and operates four facilities in Seethawaka, two in Katunayake as well as one in Kirindiwela running 64 lines with a capacity of 1.3 million pieces a month.

The subject company having 2 production facilities as Listed below:-

1. Seethawaka - Tel No: (00 94 11) 246 9040

Established : 2000

Production Area: 82,000 sq.ft, singlestoried, fully air-conditioned

Capacitiy: 280,000 pieces per month

2. Katunayake - Tel No: (00 94 11) 225 0600

Established: 1987

Production Area: 86,000 sq.ft, fully air-conditioned

Capacitiy: 300,000 number of pieces per month

Operational Details.

General

The subject company primary line of business is Manufacturers and Exporters of knit and woven apparels.

Products

Men's, women's and children's leggings, joggers, t-shirts, Jackets, Casual Pants, Dungarees, Fleece Jackets, Hoodies, Gowns and Bathrobes.

Certifications:

ISO 9001:2000

National Exports Awards for the years of 2004, 2005 and 2006

Certified ISO 9001:2008

Merit award winner for Japanese 5S Awards 2003

Winner of Industrial safety Awards 2004

Sri Lanka National Quality Awards 2005

Sri Lanka National Quality Awards 2006

Winner of Industrial safety Awards 2008

Export Countries

UK, USA, and Hong Kong.

No of Employees

Approximately 30,000 employees (Group)

01)

Name	Siddarath Janak Hirdaramani
ID Number	843602754 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	25^th December 1984
Age	29 Years

02)

Name	Mahesh Lalchand Hirdaramani
ID Number	561931410V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	11^th July 1956
Age	57 Years
Address	#.58, Ward place, Colombo-07

03)

Name	Vinod Kishore Hirdaramani
ID Number	712281650V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	15^th August 1971
Age	42 Years
Address	#.44, Horton Place, Colombo-07

04)

Name	Nikhil Kishore Hirdaramani
ID Number	743094158V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	4^th November 1974
Age	39 Years
Address	#.91, Horton Place, Colombo-07

05)

Name	R. Prasad Pathirana
ID Number	660142754V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	14^th January 1966
Age	48 Years
Address	#.40/17- Lake Gardens, Sri Jayawardanapura Mawatha, Rajagiriya

06)

Name	R. Anil Kumar Hirdaramani
ID Number	811033790V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	12^th April 1981
Age	33 Years
Address	#.76, Rosmead Place, Colombo-07

Financial Data

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

Trade references

The subject company did not provide any trade references

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.58.57
UK Pound	1	Rs.98.88
Euro	1	Rs.80.05

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.