MIRA INFORM REPORT

 

 

Report Date :

04.10.2014

 

IDENTIFICATION DETAILS

 

Name :

ESKIMO FASHION KNITWEAR (PVT) LTD

 

 

Registered Office :

# 44/16, Baseline Road, Kadirana North, Negombo

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

25.07.1980

 

 

Com. Reg. No.:

PV 7225

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Exporter of Ready Made Garments.

 

 

No of Employees :

2500

 

 

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

:

ESKIMO FASHION KNITWEAR (PVT) LTD

b.

Legal Form  & Status

 

:

Private Limited Liability Company  (In Operation)

c.

Managing Director

 :

Michael – Lohs Hermann Kari Egbert (German)

d.

Primary Line of Business

:

Manufacturer and Exporters of ready made garments.

e.

Head office

&

Factory

:

 

# 44/16, Baseline Road,

Kadirana North,

Negombo,

Sri Lanka.

             

Tel No:  (00 94 31) 531 1666 – 74 / 555 5555

Fax No: (00 94 31) 223 8216

 

E mail :  eskimofash@eskimo.lk

 

f.

No. of Employees

:

Approximately 2500

 

COMPANY DETAILS - Registration and Shareholder Details

 

a.

Registration No

:

PVS 6707

Date of Registration

:

25th July 1980

b.

Re-registration No

:

PV 7225

Date of Re-registration

:

05th October 2008

c.

Registered Office

:

# 44/16, Baseline Road, Kadirana North, Negombo.

 d.

Board of Directors

As At

19th June 2014

:

Michael – Lohs Hermann Kari Egbert (German)

Managing Director

U. Sabine Rosemarie Chalotte (German)

Director

Manik Joseph Cecil Santiapillai

Director

e.

Issued Share Capital

:

Rs.   175,000,000.00  (Total No. of Shares: 175,000)

f.

Nominal Value of Share

:

Rs.              1,000.00

g

SVAT No

:

SVAT000392

Registration Date

:

01st April 2011

g.

Share Holders

As  At

19th June 2014

:

 

 Share Holders

No. of

Shares

Eskimo Strickwaren  GMBH (Incorporated in Germany)

174,988

Michael – Lohs Hermann Karl Egbert

01

Manik Joseph Cecil Santiapillai

01

U. Sabine Rosemarie Chalotte

10

h.

Secretaries

:

M. Saman Palitha Perera

i.

Auditors

:

Ernst & Young

g.

Bankers

:

National Development Bank, Commercial Bank PLC, HSBC

                       

FINANCIAL DETAILS - Most recent available Financial Information

 

THE COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES

                                                                       

(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 financials are available for this entity)

 

4) CURRENT INVESTIGATION                                                  

 

 

·         History.

 

The Subject Company ESKIMO FASHION KNITWEAR (PVT) LIMITED is a Private    Limited   liability Company incorporated in 25th September 1980 under registration number PVS 6707. The company was re-registered on 15th October 2008 under registration number PV 7225, in terms of companies Act #7 of 2007.

Initially the subject company known as ESKIMO FASHION KNITWEAR (LANKA) LIMITED the name was changed to ESKIMO FASHION KNITWEAR (PVT) LIMITED on 15th October 2008.

                 

·         Location.

 

The Subject Company is located at client # 44/16 Baseline Road, Kadirana North, Negombo, which is situated approximately 35 km north of Colombo city.

 

·         Operational Details.

 

General

 

The subject company primary line of business is Manufacture and Export of readymade garments.

The company's production facilities are technically advanced and comprise circular, raschel & flat knitting, sewing, machine & hand embroidery, finishing & packing, dyeing of yarn and piece goods.

 

The Eskimo Fashion Knitwear (Private) Ltd. now comprises a modern and integrated production plant built on 90,000 square meters of lush coconut land located near the international airport and the touristic town of Negombo. The Company started with an initial staffing of 200 people but has grown over the years and now employs over 2,500 people in 2 factories located in Negombo and Pallekele (Central province)

Eskimo Fashion Knitwear (Pvt) Limited, a 100% German owned, Board of Investment approved company opened its third factory recently in the Eastern Province in Punani. The factory is constructed on a 6.5 acre land leased from the Mahaweli Authority of Sri Lanka

 

Products

Knitwear, Pullovers, Cardigans, Mufflers Caps, Ladies & Children Thighs and Gloves of all types.

 

 

Export Countries

Iceland, Norway, Sweden, Finland, Ireland, Denmark, Netherland, UK, Belgium, Germany, Poland, France, Switzerland, Hungry, Spain

 

 

 

Employees

 

Approximately 2,500 employees.

 

Director’s Details

 

01)

Name

Michael – Lohs Hermann Kari Egbert

Nationality

Germany

Passport Number

333501433

 

 

02)

Name

U. Sabine Rosemarie Chalotte

Nationality

Germany

Passport Number

C4KJY3JJ5

 

 

03)

Name

Manik Joseph Cecil Santiapillai

ID Number

551602753 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

08th June 1955

Age

57 Years

 

Trade references

 

National Chamber of Exporters of Sri Lanka.

Board of Investment, Sri Lanka

Department of Commerce

 

 

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 computerized 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 co-operative [0009431531166]

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

 

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.