MIRA INFORM REPORT

Report Date :

16.09.2014

IDENTIFICATION DETAILS

Name :	STRETCHLINE (PVT) LIMITED
Registered Office :	10^th Floor, Aitken Spence Tower II, No.315, Vauxhall Street, Colombo – 2
Country :	Sri Lanka
Date of Incorporation :	08.03.1993
Com. Reg. No.:	N (PVS) 10678
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers & Exporters of Elastic Garments
No. of Employees	1000

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	A1	A1

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

Company name and address

a.	Name of Subject of Inquiry	:	STRETCHLINE (PVT) LIMITED
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Chairman	:	Sharad Dayalal Amalean
d.	Primary Line of Business	:	Manufacturers & Exporters of Elastic Garments
e.	Office, Place of Busines & Factory	:	Lot 89, Biyagama Export Processing Zone, Walgawa, Malwana, Sri Lanka Tel. No: (00 94 11) 482 8100 Fax No: (00 94 11) 481 7621 E Mail: arjunaw@stretchlinesl.com timothys@stretchlinesl.com
	Covering Plant	:	# 47, Biyagama Export Processing Zone, Walgama, Malwana. Tel. No: (00 94 11) 476 8200 Fax No: (00 94 11) 440 8584 E-mail: gavinj@stretchlinesl.com
f.	No. of Employees	:	Approximately 1000

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No	:	N (PVS) 10678
	Date of Registration		08^th March 1993
b.	Re-Registration No	:	PV 2777
	Date of Re-Registration		11^th March 2008
c.	Registered Office	:	10^th Floor, Aitken Spence Tower II, No.315, Vauxhall Street, Colombo - 2
d.	Board of Directors As At 16^th May 2014	:	Sharad Dayalal Amalean	Chairman
			T. Allen Brent Speldewinde	CEO
			B. Norman Collier (British)	Director
			Martin Trust (USA)	Director
			David Andrew Trust (USA)	Director
			C. Stafford Tubbs (British)	Director

COMPANY DETAILS

Registration and Shareholder Details – (Contd)

e.	Issued Share Capital	:	Rs. 100,500,000.00
f.	Nominal Value of Share	:	Rs. 10.00
g.	Share Holders As At 16^th May 2014	:	Share Holders	No. of Shares
			Stretchline Holdings Ltd (Company incorporated in Hong Kong)	10,050,000
h.	Auditors	:	KPMG Ford Rhodes Thornton & Company
i.	Company Secretaries	:	Corporate Advisory Services (Pvt) Limited
j.	Bankers	:	Standard Chartered Bank HSBC National Development bank Hatton National Bank Bank of Ceylon

Directors Details

01)

Name	Sharad Dayalal Amalean
Nationality	Sri Lankan
ID Number	562632247 V
Gender	Male
Date of Birth	19^th September 1956
Age	57 Years
Address	No.16/3, De Fonseka Road, Colombo -5, Sri Lanka

02)

Name	T. Allen Brent Speldewinde
Nationality	Sri Lankan
ID Number	612811962 V
Gender	Male
Date of Birth	7^th October 1961
Age	52 Years
Address	No.261, R. A De Mel Mawatha, Colombo – 3, Sri Lanka

03)

Name	B. Norman Collier
Nationality	British
Passport Number	093223890
Address	No.532/3,Galle Road, Colombo – 3, Sri Lanka

04)

Name	Martin Trust
Nationality	American
Passport Number	028946968
Address	601, North Country Road, Palm Beach, FL33480, USA

05)

Name	Trust David Andrew
Nationality	American
Passport Number	039100531

06)

Name	C. Stafford Tubbs
Nationality	British
Passport Number	093127860

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

Company Logo

History.

The Subject Company STRETCHLINE (PVT) LIMITED is a Private Limited Liability Company incorporated on 08^th March 1993 under registration number N (PVS) 10678 and then the company was re-registered on 11^th March 2008 under re-registration number PV 2777.

This Company was originally incorporated as “BEST KNIT (PVT) LIMITED” on 08^th March 1993 and changed its name to STRETCH LINE (PVT) LIMITED on 28^th November 1995.

The Subject Company, STRETCHLINE (PVT) LIMITED is a joint venture established in

1993 between MAS Holdings, Mast and Charnwood Elastics Group, UK.

Company states that STRETCHLINE (Pvt) LIMITED produces approx. two million metres of elastic every week. Charnwood has manufactured elastics for over twenty years; its major buyers include contract garment

manufactures for Marks & Spencer, BHS, Mothercare and Little woods. The STRETCHLINE production facility in Sri Lanka was Charnwood's first overseas plant.

Location.

The Subject Company is located at client # Lot 89, Biyagama Export Process, Walgama, Biyagama, and approx. 25 kilo meters from Colombo.

Operational Details

General

The subject company’s primary line of business is Manufacture and Exporting of Elastic Garments.

Stretchline is a global brand in narrow fabrics and the largest producer of crochet, woven, jacquard and printed elastic. It is a three way joint venture between Stretchline (UK), MAS Holdings (Sri Lanka) and Brandot International Ltd. (USA) that was first established in 1996. Stretchline is reputed for its innovation and design with patented products such as Fortitube bra-wire casing Locksafe, Bondelast, Stay4Sure elastics as well covered elastomeric yarn. Stretchline has manufacturing plants in Sri Lanka, China, Indonesia, Mexico, Honduras, USA and UK which are supported by marketing offices in the US, UK and Hong Kong, enabling the Group to provide needle point support to the world’s leading lingerie and active wear brands

Products

Narrow Performance Fabrics
Woven, Knitted, Jacquard, Printed & PredyedWoven Elastic

Elastomeric Covered Yarns

Elastic Garments

Export Country

USA / Mexico / UK / China / Hong Kong / Indonesia

Brand Names

fortitude

bondelast

Locksafe

ecolastic

stay4sure

SAFEYARNS

Awards Stretchline has been certified by:

ISO 9001

ISO 14001

Oeko Tex Standard 100 certificates

OHSAS certificate

No of Employees

Approximately 1000

Trade references

National Chamber of Exporters

Sri Lanka Vietnam Business Council

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.

Information parted by

NAME	Mr. Sharad Dayalal Amalean
DESIGNATION	Chairman
CONTACT NO.:	(00 94 11) 482 8100

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.99
UK Pound	1	Rs.99.09
Euro	1	Rs.79.03

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	RAS
Report Prepared by :	NIS

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.