MIRA INFORM REPORT

 

 

Report No. :

315432

Report Date :

22.04.2015

 

IDENTIFICATION DETAILS

 

Name :

AMERICAN & EFIRD LANKA (PVT) LTD

 

 

Registered Office :

# 67, Avissawella Road, Welivita, Kaduwela

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

22.03.1990

 

 

Com. Reg. No.:

PV 2953

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Importers, Exporters, Manufacture’s, Distributors, of Dyed Sewing Thread.

 

 

No. of Employees :

Approximately 500

 

 

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 – 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

 

a.

Name of Subject of Inquiry

:

AMERICAN & EFIRD LANKA (PVT) LTD

b.

Legal Form  & Status

:

Private Limited Liability Company (In Operation)

c.

Managing Director

 

F. Alfred Jackson (USA)                 

d.

Primary Line of Business

:

Importers, Exporters, Manufacture’s, Distributors, of Dyed Sewing Thread.

e.

Place of Business

&  Factory

 

:

# 67, Avissawella Road,

Welivita,

Kaduwela,

Sri Lanka.

  

Tel: (00 94 11) 472 6444

Fax: (00 94 11) 2414 300, 472 6410

 

E-mail : sanjay@amefird.com.lk,

               threads@amefird.com.lk

 

f.

No. of Employees

:

Approximately 500

 

 

COMPANY DETAILS  - Registration and Shareholder Details

 

 

a.

Registration No

:

N (PVS) 6244

Date of Registration

:

22nd March 1990

b.

Re-registration No

:

PV 2953

Date of Re-registration

:

24th March 2008

c.

Registered Office

:

# 67, Avissawella Road, Welivita, Kaduwela.

d.

 

Board of Directors

As at

15th February 2014

:

F. Alfred Jackson (USA)

Managing Director

Craig George Stover

 

Director

e.

Issued  Share Capital

:

Rs. 105,000,000.00

Number of Shares

 

10,500,000

f.

Nominal Value of Share

:

Not declared vide Companies Act #7 of 2007.

h.

Share Holders

As at

15th February 2014

:

Share Holders

No. of    Shares

American & Efird Global, LLC –

10,500,000

e.

Auditors

:

KPMG Ford Khodes Thornton & Company, 32A Sir Mohamed Macan Markar Mawatha, P.O Box 186, Colombo 03

f.

Company Secretaries

:

Corporate Services (Pvt) Ltd, 216, De Saram Place, Colombo 10

g.

Bankers

:

Commercial Bank ,Bank of Ceylon

 

 

 

 

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

 

 

CURRENT INVESTIGATION

 

·         History

 

                  The subject company AMERICAN & EFIRD LANKA (PVT) LTD, is a private limited liability company incorporated on 22nd March 1990 under registration number N (PVS) 6244 and the company was re-registered on 24th March 2008 under registration number PV 2953.

 

The Subject Company was originally incorporated as MANCHESTER YARN AND THREAD LTD and the name changed to AMERICAN & EFIRD LANKA (PVT) LTD on 06th June 2000.

 

·         Location

The Subject Company is located at the Client # 67, Avissawella Road, Welivita, Kaduwela

 

The subject company’s global supply network has 29 manufacturing centers and 69 service centres located in 43 countries

 

 

Operations Details.

 

General

 

The subject company’s primary line of business is Import, Export, Manufacture, and Distribution of Dyed Sewing Thread. The subject company is ISO 9001, ISO 14001 certified. It is a subsidiary of American & Efird Global, LLC , USA.

 

The Subject Company is a Member of Brandix Group which is the largest single apparel exporter in Sri Lanka with a large leading clients in Europe and North America.

 

Products

 

Perma Spun, Perma Core, D-Core, Sensation, Stylo (Tri lobal Embroidery thread), Teryl B, Wildcat, Best Stretch, Signature, Anecot.

 

 

Export Country

Bangladesh, Dubai, USA, Pakistan and Other Middle East Countries

 

No of Employees

 

Approximately 500

 

 

Directors Details

 

01)

Name

F. Alfred Jackson

PP Number

427626903

Nationality

American

Address

#36, Second Cross Street, Colombo 11

 

 

02)

Name

Craig George Stover

PP Number

017368519

Nationality

American

Address

#36, Second Cross Street, Colombo 11

 

 

·         Trade references

 

The Sri Lanka Apparel Exporters Association

                   Brandix Group

 

 

·         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.

 

ANALYSIS

 

Appraisal of Subject Company

 

Rating:

a) Business Scale         

Large

b) Business Trend

Average

c) Management Capability

Average

d) Commercial Morality

Average

e) Reputation

Average

f) Market Situation

Very Competitive

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.92

UK Pound

1

Rs.93.57

Euro

1

Rs.67.34

 

INFORMATION DETAILS

 

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%)

 

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