MIRA INFORM REPORT

Report No. :	319210
Report Date :	30.04.2015

IDENTIFICATION DETAILS

Name :	TEXLAN CENTER (PVT) LTD
Registered Office :	Weniwal Godella Estate, Dagonna Road, Minuwangoda
Country :	Sri Lanka
Date of Incorporation :	09.03.2006
Com. Reg. No.:	PV 5388
Legal Form :	Private Limited Liability Company (In Operation)
Line of Business :	Manufacture and Export Socks
No of Employees :	Approx. 300 (Group)

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 – 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 Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	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	:	TEXLAN CENTER (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Chairman	:	C. Lalith Kumara Jayasuriya Perera
d.	Primary Line of Business	:	Manufacture and Export Socks.
e.	Head office & Place of business	:	Weniwal Godella Estate, Dagonna Road, Minuwangoda, Sri Lanka. Tel. No: (00 94 11) 229 5652-4 Fax No: (00 94 11) 229 5847 Email: info@texlan.lk
g.	Number of Employees	:	Approx. 300 (Group)

COMPANY DETAILS - Registration and Shareholder Details

a.	Registration No	:	N(PVS) 45358
b.	Date of Registration	:	9^th March 2006
c.	Registration No		PV 5388
d.	Date of Registration		16^th July 2008
e.	Registered Office	:	# 9 / 5, Thambiah Avenue, Colombo - 7
f.	Board of Directors As At 21st August 2014	:	C. Lalith Kumara Jayasuriya Perera	Chirman
			P. Angelo Bertarelli (Italy)	Director
			J. Mootatamby Swaminathan	Director
			C. Matteo Bertarelli (Italy)	Director
			L. Franscesco Bertarelli (Italy)	Director
			M. Paolo Bertarelli (Italy)	Director
			J. Dinal Martin Peiris	Director
			M. Farook Mohamed Silmy	Director
g.	Stated Share Capital	:	Rs. 175,000,000.00
	Stated Shares	:	17,500,000
h.	Nominal Value of Share	:	Not stated vide Companies Act #7 of 2007

i.	Share Holders As At 21^st August 2014	:	Share Holders	No. Of Shares
			S. Theagarajah Nagendra	01
			J. Mootatamby Swaminathan	01
			P. Angelo Bertarelli (Italy)	100,000
			Viscotex AG (Switzerland)	17,399,998
j.	Auditors	:	KPMG Ford Rhodes Thornton & Co.
k.	Company Secretaries	:	Jacey & Company
l.	Bankers	:	NDB, Commercial Bank Plc

Directors’ Details

01)

Name	C. Lalith Kumara Jayasuriya Perera
ID Number	537411953 V
Nationality	Sri Lankan
Gender	Female
Date of Birth	28^th August 1953
Age	61 Years
Address	#168/3, Nawala Road, Nugegoda.

02)

Name	P. Angelo Bertarelli
ID Number	Y 232010
Nationality	Italy

03)

Name	J. Mootatamby Swaminathan
ID Number	410091356 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	9^th January 1941
Age	74 Years
Address	Rosmead Place, Colombo 7.

04)

Name	C. Matteo Bertarelli
ID Number	Y 232181
Nationality	Italy

05)

Name	L. Franscesco Bertarelli
ID Number	Y 233872
Nationality	Italy

06)

Name	M. Paolo Bertarelli
ID Number	AA 0421931
Nationality	(Italy)

07)

Name	J. Dinal Martin Peiris
ID Number	612390010 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	26^th August 1961
Age	53 Years
Address	#114, Lake Drive, Colombo 8.

08)

Name	M. Farook Mohamed Silmy
ID Number	692021223 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	20^th July 1969
Age	45 Years
Address	#5, Rodrigo Avenue, Galpotta Road, Nawala.

FINANCIAL DETAILS - Most recent available Financial Information

Subject declined to provide financials. No reasons given.

Note: 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 TEXLAN CENTER (PVT) LTD is a Private Limited liability Company incorporated on 9^th March 2006 under registration number N (PVS) 45358 and then company was re-registered on 16^th July 2008 under registration number PV 5388 in terms of Companies Act # 7 of 2007.

· Location.

The Subject Company is located at the client Weniwalgodella Estate, Dagonna Road, Minuwangoda, an area in the North Western Province, approx. 35 kilo meters from Colombo.

· Operational Details.

General

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

Texlan is an Italian owned group of companies backed by over 40 years of experience in the hosiery industry.

The first plant in Sri Lanka was established over 30 years ago and the group has been constantly growing ever since. The group has expanded not only in hosiery manufacturing but has also backward integrated into the manufacturing of raw materials.

The group’s annual exports from Sri Lanka, alone, exceed 18 million pairs per year and further expansion is in the pipeline.

Subject is having two associate companies such as Finetex (Pvt) Ltd and Texlan Lanka (Pvt) Ltd

Products

Baby’s Socks, Children’s Socks, Ladies Socks and Men’s Socks.

Export countries

United Kingdom, USA, Germany, Europe (Swiss)

No of Employees

Approx.300 (Group)

· Trade references

Board of Investments (BOI) Sri Lanka

· 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

a) Business Scale	Medium
b) Business Trend	Growing
c) Management Capability	Average
d) Commercial Morality	Average
e) Reputation	Average
f) Market Situation	Competitive.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.20
UK Pound	1	Rs. 97.00
Euro	1	Rs. 69.33

INFORMATION DETAILS

Analysis Done by :	RSM
Report Prepared by :	DPT

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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