MIRA INFORM REPORT

 

 

Report Date :

21.11.2014

 

IDENTIFICATION DETAILS

 

Name :

NOR LANKA MANUFACTURING COLOMBO LIMITED

 

 

Registered Office :

# 231, Negombo Road, Wattala

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

06.09.2009

 

 

Com. Reg. No.:

PV 69844 PB

 

 

Legal Form :

Public Limited Liability Company 

 

 

Line of Business :

Trading, Sourcing and Exporting of Garments (Buying Office).

 

 

No. of Employees :

50

 

 

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 – 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

:

NOR LANKA MANUFACTURING COLOMBO LIMITED

 

b.

Legal Form  & Status

:

Public Limited Liability Company  (In Operation)

c.

Managing Director

:

 K. S. Gerald Perera

d.

Primary Line of Business

:

 Trading, Sourcing and Exporting of Garments (Buying Office)

e.

Country office

&

Place of Business

 

:

# 231, Negombo Road,

Wattala,

Sri Lanka.

Tel. No: (00 94 11) 446 2900

Fax No: (00 94 11) 436 9014

Email: info@norlankamfg.com

            Gerald.perera@norlankamfg.com

f.

Warehose

:

Peliyagosa, Srilanka

g.

No. of Employees

:

Not Disclosed

           

 

COMPANY DETAILS - Registration and Shareholder Details

 

a.

Registration No

:

PV 69844 PB

Date of Registration

 

06th November 2009

c.

Registered Address

:

# 231, Negombo Road, Wattala

d.

Board of Directors

As at

14th October 2013

:

K.S. Gerald Perera

Managing Director

Pallak Seth (Indian)

Director

Deepak Kumar Seth (Indian)

Director

Faiza Habeeb Seth (American)

Director

e.

Issued Share Capital

:

Rs. 64,427,000.00              

Number of Shares

:

6,442,700

f.

Nominal Value of Share

:

Not applicable/declared vide Companies Act #7 of 2007

g.

 

Share Holders

As at

14th October 2013

:

Share Holders

No. of

Shares

Nor Lanka Manufacturing Ltd (Incorporated in Hong Kong)

6,442,700

h.

Auditors

:

Pricewaterhouse Coopers

i.

Company Secretaries

:

Legalinc Secretarial & Management Services (Pvt) Ltd

j.

Bankers

:

SBC Bank, Colombo

k.

Export Countries :

 

·         UK

·         Europe

·         Canada

·         South America 

l.

Import Products :

 

Fabrics

m.

Import Countries :

 

China

India

n.

Payment terms :

 

Purchasing Term :             Cheque

Selling Term :                     L/C and Cheque 

o.

Sales (Approximately)

 

2014-2013 :                         Rs.1560.000 Millions

(2014-2015 - Expectation):  Rs.2100.000 Millions

p.

Auditor Name:

 

PricewaterhouseCoopers

 

 

Director’s Details

 

01)

Name

K.S. Gerald Perera

Passport Number

N 1785399

Nationality

Sri Lankan

 

02)

Name

Pallak Seth

Passport Number

Z2114493

Nationality

Indian

 

03)

Name

Deepak Kumar Seth

Passport Number

Z 2115004

Nationality

Indian

 

04)

Name

Faiza Habeeb Seth

Passport Number

029016880

Nationality

American

 

 

 

FINANCIAL DETAILS - Most recent available Financial Information

 

(Note: Based on the corporate laws of Sri Lanka, legal entities which are Private Company with   Limited Liability are not required to make public disclosure of their annual financials. Therefore no details financials are available for this entity)

CURRENT INVESTIGATION                      

 

·         History

 

                  The Subject Company NOR LANKA MANUFACTURING COLOMBO LIMITED is a Public limited liability Company incorporated on 06th November 2009 under the registration number PV 69844 PB.

 

                  The subject company earlier known as a G C LANKA TRADING (PVT) LTD it changed on 26th November 2012 and again name changed NOR LANKA MANUFACTURING COLOMBO (PVT) LTD it changed on 19th December 2012

 

                  This is a Board of Investment; Sri Lanka (BOI) approved company.

 

·         Location.

 

The Subject Company is located at client #.231, Negombo Road, Wattala,

a town approx. 16 kilo meters north of Colombo City, which is an industrial and thickly populated residential area.

 

·         Operational Details.

 

General

            The subject company’s primary line of business is Trading, Sourcing (Buying) and Export of Garments/ Apparels. The subject company is currently sourcing products from garment manufacturing companies in Sri Lanka.

 

            Products

Ladies, gents, boys, girls and kids trousers, shirts and other garment apparels.

 

Exporting Country

Europe Countries, Canada, and South America

 

Employees

                   Approx. 50

                  

·         Trade references

Board of Investment of Sri Lanka

 

 

INFORMATION PARTED BY

 

Name :

Mr. Danis Perera

Designation :

Chief Executive Officer

Contact No.:

00774779134

Date :

20.11.2014

 

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 :

GYT

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

VNT

 

               


 

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.