MIRA INFORM REPORT

Report No. :	313748
Report Date :	01.04.2015

IDENTIFICATION DETAILS

Name :	ORIENT GARMENTS PLC
Registered Office :	# 78B, Polgasovita Road, Mattegoda
Country :	Sri lanka
Financials (as on) :	31.03.2014
Date of Incorporation :	04.03.1982
Com. Reg. No.:	PV 9346 PB PQ
Legal Form :	Public Limited Liability Company
Line of Business :	Manufacture and export of ready made Garments
No. of Employee :	4000

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 :	Slow but correct
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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

Name of Subject of Inquiry	:	ORIENT GARMENTS PLC
Legal Form & Status	:	Public Limited Liability Company - quoted on the Colombo Stock Exchange (In operation)
Chairman	:	Dr. A. S. Shabbir Gulamhusein
Primary Line of Business	:	Manufacture and export of ready made Garments
Corporate Head office	:	# 49/16,Iceland Building, Galle Road, Colombo-03, Sri Lanka. Tel. No: (00 94 11) 244 8392 – Fax No: (00 94 11) 244 7972 E-mail: orient@orientgl.com
Factory & Place of Business	:	# 78 B, Polgasowita Road, Mattegoda, Sri Lanka Tel No: (00 94 11) 538 7222/ 538 7200/ Fax No: (00 94 11) 555 3412
No. of Employees	:	Approximately 4000

COMPANY DETAILS

Registration and Shareholder Details

Registration No	:	PVS 8311
Date of Registration	:	4^th March 1982
Re-registration No	:	PV 9346 PB PQ
Date of Re-registration	:	14^th November 2008
Registered Office	:	# 78B, Polgasovita Road, Mattegoda.
Board of Directors As At 14^th October 2014	:	Dr. A. S. Shabbir Gulamhusein	Chairman
		Dr. L. M. Fritsgerald Adams	Director
		Danushya Mediwake Gulamhusein	Director
		Udeni Abeykoon	Director
		Imran Zahir	Director
		Idris Shabbir	Director
		Dr. Thirugnanasambandar Senthil Verl	Director
		Stanley Christoffel Asoka Obeysekere	Director
Issued Share Capital	:	Rs. 90,483,320.00
Number of Shares		54,916,656
Nominal Value of Share	:	Not declared vide Companies Act #7 of 2007.

COMPANY DETAILS

Registration and Shareholder Details

Major Share Holders (Total 20) As At 31^st March 2014	:	Major Share Holders	No. of Shares
		Dr. T. Senthilverl Seylan Bank PLC/Thirugnanasambandar National Development Bank PLC.T.	24,935,743
		Adam Investments Limited Pan Asia Banking Corporation PLC/ Adam INV	21,844,063
		Pan Asia Banking Corporation PLC/Lankem Ceylon PLC	1,352,000
		Gampaha District Co-Operative Rural Bank Union LTD	1,237,900
		Mr. A. Rajaratnam	538,200
		Bank of Ceylon #01 Account	348,900
		Mr. K. L. Udayananda	148,059
		Mr. K. D. S. R. Kulatunga	138,727
Auditors	:	Amerasekera & Co, #12, Rotunda Gardens, Colombo 3
Company Secretaries	:	P. W. Corporate Secretarial (PVT) LTD
Bankers	:	Bank of Ceylon, Hatton National Bank , Seylan Bank, National Development Bank, Commercial Bank

FINANCIAL DETAILS

Most recent available Financial Information

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2014

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2014

CURRENT INVESTIGATION

· History.

The Subject Company ORIENT GARMENTS PLC at present is a Public Limited Liability Company initially incorporated on 4^th March 1982 under the registration number PVS 8311, and then re-registered on 14^th November 2008 as a Private Limited Company vide Companies Act #7 of 2007 under original name Orient Garments (Pvt) Ltd. Later on10th November, 2010 company was converted to a Unlisted Public Company under the registration number PV 9346 PB and name changed to read as ORIENT GARMENTS LTD (without “PVT”). Finally on 09^th August 2011 Company was converted to a “Listed PUBLIC Liability Company ( “PLC”) on 09^th August 2011 and abbreviation of the suffix of the company’s name has been changed from ‘LTD’ to ‘PLC’. Accordingly ORIENT GARMENTS LTD is named as “ORIENT GARMENTS PLC” from that date, 09^th August, 2011.

· Location.

The subject company is located at client #78 B, Polgasowita Road, Mattegoda, Sri Lanka

· Operational Details.

General

The primary line of business of the Subject Company is Manufacture and export of Ladies and Kids ready made Garments.

Products

Outwear, Work-wear, Sportswear and Rainwear

Export Countries

Mexico, Philippines, USA, UK, and Europe.

No of Employees

Approximately 4000

01)

Name	Dr. Ali Asger Shabbir Gulamhusein
ID Number	843071457V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	02^nd November 1984
Age	30 years
Address	#11/1, Havelock Road, Colombo 05

02)

Name	Dr. Lawrence Mervyn Fritsgerald Adams
ID Number	651092450V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	18^th April 1965
Age	49 years
Address	#6C, Palmyra Court, Palmyra Avenue, Colombo 3

03)

Name	Danushya Mediwake Gulamhusein
ID Number	837024480V
Nationality	Sri Lankan
Gender	Female
Date Of Birth	20^th July 1983
Age	31 years
Address	#980/4, Wickramasinghe Road, Ethul Kotte, Kotte

04)

Name	Udeni Abeykoon
ID Number	635055677V
Nationality	Sri Lankan
Gender	Female
Date Of Birth	05^th January 1963
Age	52 years
Address	#497/6E, N T Perera Mawatha, Angoda

05)

Name	Imran Zahir
ID Number	821492971V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	28^th May 1982
Age	32 years
Address	#758, Havelock Road, Colombo 6

06)

Name	Idris Shabbir
ID Number	761862510V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	04^thJuly 1976
Age	38 years
Address	#11/3, Havelock Road, Colombo 5

07)

Name	Dr. Thirugnanasambandar Senthil Verl
ID Number	452881411V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	14^thOctober 1945
Age	69 years
Address	#28D, Visaka Road, Colombo 09

08)

Name	Stanley Christoffel Asoka Obeysekere
ID Number	841963296V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	14^thJuly 1984
Age	30 years
Address	#5/6, Park West Apartments, 92, Layards Road, Colombo 5

· Financial Data

Received from the Annual Report- 2013/2014

· Trade references

The subject company did not provide any trade references

· 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.

ANALYSIS

Appraisal Subject Company

Rating:
a) Business Scale	Medium/ Large
b) Business Trend	Growing
c) Management Capability	Above Average
d) Commercial Morality	Above Average
e) Reputation	Above Average
f) Market Situation	Very Competitive

Please note that Explanatory Notes on Credit Appraisal is given in the Glossary Section

INFORMATION DENIED

Management non co-operative

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.59
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	RAS
Report Prepared by :	ASH

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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