MIRA INFORM REPORT

Report No. :	328151
Report Date :	27.06.2015

IDENTIFICATION DETAILS

Name :	RAINBOW FASHIONS (PVT) LTD.
Registered Office :	Thalawa Road, Kunchikulama , Ipalogama
Country :	Sri Lanka
Date of Incorporation :	03.04.2008
Com. Reg. No.:	PV 63693
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is manufacture and exports of high quality garments
No. of Employee :	450

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	:	RAINBOW FASHIONS (PVT) LTD.
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation).
c.	Chairman	:	Muhammad Zubair Jan Muhammad.
d.	Primary Line of Business	:	Manufacture and Exports Of High Quality Garments.
e.	Head Office & Place of Business	:	Head Office # 610, Negombo Road, Mabola, Wattala, Sri Lanka. Tel. No: (00 94 11) 293 4853 Fax No: (00 94 11) 293 4853 Email: riyas@richlight.lk General Manager : Mr. Sanka wijeyananda Tel. No: (00 94 77) 7844338 Branch Office # 4 / A, Katuballi Road, Mahaiyawa , Kandy, Sri Lanka. Tel. No: (00 94 81) 220 0944 Fax No: (00 94 81) Email: riyas@richlicha.lk
	Factory		Thalawa Road, Kunchikulama, Ipalogama, Anuradhapura, Sri Lanka. Tel. No: (00 94 25) 492 7901 Fax No: (00 94 25) 492 7557 Email: info@rainbowfashion.lk
f.	No. of Employees	:	Approx. 450

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No		:	PV 63693
	Date of Registration		:	03^rd April 2008
b.	Registered Office		:	Thalawa Road, Kunchikulama , Ipalogama
c.	Board of Directors As At 31^st December 2012		:	Muhammad Zubair Jan Muhammad	Chairman
				Mohamed Ismail Faizal	Director
				Abdul Azeez Mohamed Rifkhan	Director
d.		Issued Share Capital	:	Rs. 30.00
e.		No of Shares	:	03
f.		Nominal Value of Share		Not Stated Vide Companies Act #7 Of 2007
g.		Share Holders As At 31^st December 2012		Share Holders		No. of Shares
				Muhammad Zubair Jan Muhammad		01
				Mohamed Ismail Faizal		01
				Abdul Azeen Mohamed Rifkhan		01
h.		Auditors	:	M .L.M Rajeen Auditor (#50,Yatinuwara Lane, Kandy)
i.		Company Secretaries	:	Seyed Mohamed Mohamed Makam. (#135, St. Sebastian Street Colombo-12)
k.		Bankers	:	Not Disclosed.

Directors’ Details

01)

Name	Muhammad Zubair Jan Muhammad.
ID Number	70021777 V
Nationality	Sri lanka
Gender	Male
Date Of Birth	21^st January 1970
Age	45 Years
Address	Wattarantenna Passage, Kandy

02)

Name	Mohamed Ismail Faizal.
ID Number	65271020 V
Nationality	Sri lanka
Gender	Male
Date Of Birth	27^th September 1965
Age	49 Years
Address	538/6, Peradeniya road, Sebel Place, Kandy

03)

Name	Abdul Azeez Mohamed Rifkhan
ID Number	763103200 V
Nationality	Sri lanka
Gender	Male
Date Of Birth	05^th November 1976
Age	39 Years
Address	#212,Mosque Road, Galhinna

FINANCIAL DETAILS

Most recent available Financial Information

Manager of the Subject Company was contacted and they declined to provide details without knowing the End of user of enquiry

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

· History.

The Subject Company RAINBOW FASHIONS (PVT) LTD .is a Private Limited

Liability Company incorporated on 03rd April 2008 under registration number PV 63693, in

Terms of Companies Act #7 of 2007.

· Location.

The Subject Company head office is located at # 610, Negombo Road, Mabola, Wattala, Sri

Lanka, approx 15 kilometres from Colombo City.

· Operations Details.

General

The primary line of business of the subject company is Manufacture and Exports of Garments.

Products

All Babies’ Wear Garments

Brands

Country

Western ,Europe.

Employees

Approx. 450

Trade references

Not Available

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.60
UK Pound	1	Rs.100.09
Euro	1	Rs.71.23

INFORMATION DETAILS

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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