MIRA INFORM REPORT

 

 

Report Date :

21.11.2014

 

IDENTIFICATION DETAILS

 

Name :

BRANDIX APPAREL LTD

 

 

Registered Office :

# 409, 03rd Floor, Galle Road, Colombo 03

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

08.04.1993

 

 

Com. Reg. No.:

N (PVS) / PBS 10863

 

 

Legal Form :

Public Limited Liability Company (In Operation) – Not listed with Colombo Stock Exchange

 

 

Line of Business :

Manufacturers and Exporters of all types of Ladies and Gents Garments.

 

 

No of Employees :

Approx. 15,000 in the Brandix Group

 

 

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 :

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 – 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

 :

BRANDIX APPAREL LTD

b.

Legal Form  & Status

 :

Public Limited Liability Company (In Operation) – Not listed with Colombo Stock Exchange

c.

Chairman

 :

M. Ashroff Omar

d.

Primary Line of Business

:

Manufacturers and Exporters of all types of Ladies and Gents Garments.

e.

Principal Place of Business

:

 

# 23-25, Rheinland Place,

Colombo – 03,

Sri Lanka.

 

Tel. No: (00 94 11) 472 7222 / 472 7131 / 472 7115 /472 7777 /

               (00 94 11) 472 7000

Fax No: (00 94 11) 257 5485 / 257 5488

 

Email: info@brandix.com

 

 

f.

No of Employees

:

Approx. 15,000 in the Brandix Group

 

 

COMPANY DETAILS 

 

Registration and Shareholder Details

a.

Old Registration No

:

N (PVS) / PBS 10863

Date of Registration

:

08th April 1993

b.

New Re-registration No

:

PB 85

Date of Re-registration

:

10th December 2007

c.

Registered Office

:

# 409, 03rd Floor, Galle Road, Colombo 03, Sri Lanka.

d.

    Board of Directors

            As at

    15th October 2013

 

M. Ashroff Omar

Chairman

A. J. Johnpillai

Director

Feroz Omar

Director

G. D. M. Ranasinghe

Director

T. L. F. W. Jayasekera

Director

M. Aslam Omar

Director

e.

Total No. of Issued Shares

:

Ordinary Shares

Preference Shares

197,025,395

13,500

Total Value of Shares

:

Rs. 1,970,253,950.00

Rs. 135,000.00

f.

Nominal Value of Share

:

Rs.  10.00

 

g.

 

Share Holders

As At

15th October 2013

:

  Share Holders

No. Of  Shares

Ordinary Shares

Preference Shares

Brandix Lanka Ltd

(Company Incorp. In SriLanka)

197,025,389

13,500

Mast Lanka Limited

01

-

Brandix Management Services (Pvt) Ltd

02

-

Brandix Textile Holding (Pvt) Ltd

01

-

Phoenix Holdings (Pvt) Ltd

01

-

Phoenix Ventures Limited

01

-

h.

Auditors

:

PriceWaterHouseCoopers  

 

Company Secretaries

:

Brandix Management Services (Pvt) Ltd

i.

Bankers

:

Bank of Ceylon, HSBC, Hatton National Bank PLC, Commercial Bank, Citibank NA, Standard Chartered Bank

 

·         Directors Details

01)

Name

M. Ashroff Omar

ID Number

551352110 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th May 1955

Age

59 Years

Address

No.119/4, Kynsey Road, Colombo – 08, Sri lanka.

   

02)

Name

Feroz Omar

ID Number

641052566 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

14th April 1964

Age

48 Years

Address

No.161/3, Duwa Road, Baddegana, Pitakotte, Sri lanka.

 

03)

Name

T. L. Francis Waas Jayasekara

ID Number

530060241 X

Nationality

Sri Lankan

Gender

Male

Date of Birth

6th January 1953

Age

61 Years

Address

No.82B, Ward Place, Colombo – 07, Sri lanka.

 

04)

Name

G. D. M. Ranasinghe

ID Number

631440428 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

23rd May 1963

Age

51 Years

Address

No.45/15A, Chandraloka Mawatha, Udahamulla, Nugegoda,  Sri lanka.

 

05)

Name

M. Aslam Omar

ID Number

 541192719 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

28th April 1954

Age

60 Years

 

06)

Name

Ajit Joseph Johnpillai

PP Number

 L 850830

Nationality

New Zeland

Gender

Male

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

It should be noted that the particular industry segment the company is involved has very good 

Growth potential and as such it can be expected for the company to expect a good growth

Prospects

 

(Note: 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.

New Picture

Company Logo

 

The Subject Company, BRANDIX APPAREL LTD was incorporated as a Public Limited Liability company (not listed with Colombo Stock Exchange) on 08th April 1993 under registration number N (PVS) 10863 / PBS and then the company was re-registered on 10th December 2007, in terms of Companies Act #7 of 2007.

 

Initially the subject company was named as “Mast Lanka (Pvt) Ltd” and it changed to BRANDIX APPAREL (PVT) LTD on 19th December 2003. Once again the name was changed to the present name “BRANDIX APPAREL LTD” after transforming it to a “Public Limited Liability Company not listed at the Stock Exchange” with re-registration on 10.12.2007 and is still the name used.

 

The subject company is a member of the “BRANDIX GROUP” which is well known locally And internationally.

 

·         Location.

The Subject Company is located at the client # 23-25, Rheinland Place, Colombo – 03.

 

·         Operational Details.

 

General

The subject company primary line of business is Manufacture and exporting all types of Ladies and Gents Garments.

 

Brandix Group consist of following Companies

Brandix Textiles

Brandix Lingerie

Brandix Intimate Apparel

Brandix Hangers

Brandix Finishing

Brandix Essentials / Brandix Apparel India

Brandix College of Clothing Technology

Brandix Casualwear

Brandix Asia

Brandix Apparel

 

Products

All types of ladies and gents garments such as

·         Casual Wear

·         Sleep Wear and Lounge

·         Briefs

·         Bras

 

Export Countries

UK, Hong Kong, china, Thailand and Singapore.

 

No of Employees

The employee strength of the subject company is approximately 14,500 employees.

 

·         Trade references

National Chamber of Exporters of Sri Lanka.

Sri Lanka Apparel Exporters Association

Sri Lanka Export Development Board (EDB)

 

·         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 DECLINED

 

Management non-cooperative

 

(00 94 11) 472 7222

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.10

UK Pound

1

Rs.97.32

Euro

1

Rs.77.91                        

 

INFORMATION DETAILS

 

Information Gathered by :

JML

 

 

Analysis Done by :

SUM

 

 

Report Prepared by :

SMN

 

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.