MIRA INFORM REPORT

Report No. :	311083
Report Date :	16.03.2015

IDENTIFICATION DETAILS

Name :	UNICHELA (PVT) LTD
Registered Office :	10th Floor, Aitken Spence Tower II, Vauxhall Street, Colombo - 2
Country :	Sri Lanka
Date of Incorporation :	09.09.1986
Com. Reg. No.:	PV 10271
Legal Form :	Private Limited Liability Company (In operation)
Line of Business :	Manufacturers and Exporters of readymade garments
No. of Employee :	Approximately 3500

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	:	UNICHELA (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In operation)
c.	Chairman	:	Mahesh Dayalal Amalean
d.	Primary Line of Business	:	Manufacturers and Exporters of ready made garments
e.	Corporate Head Office	:	# 10^th Floor, Aitken Spence Tower II, # 315, Vauxhall Street, Colombo-02, Sri Lanka. Tel. No: (00 94 11) 479 6444 Fax No: (00 94 11) 479 6481 / 230 0494
	Place of Business & Factory		# 124, Horana Road, Panadura, Sri Lanka Tel. No: (00 94 38) 429 9100 Fax No: (00 94 38) 223 5510 E Mail: sureuf@masholdings.com unichela@sri.lanka.net
f.	No. of Employees	:	Approximately 3500

COMPANY DETAILS

- Registration and Shareholder Details

a.	Registration No	:	N (PVS) 2872
	Date of Registration	:	9^th September 1986
b.	Re-registration No	:	PV 10271
	Date of Re-registration	:	17th December 2008
c.	Registered Office	:	10th Floor, Aitken Spence Tower II, Vauxhall Street, Colombo - 2
d.	Board of Directors As At 29^th July 2014	:	Mahesh Dayalal Amalean	Chairman
			Piranavan Sivagananathen	Director
			Sharad Dayalal Amalean	Director
			J. Dian Gomes	Director
			D. V. Renuka Suren Fernando	Director

COMPANY DETAILS

- Registration and Shareholder Details (Cont/d….)

e.	Issued Share Capital	:	Rs. 50,829,000.00
	Number of Shares		5,082,900
f.	Nominal Value of Share	:	Not applicable vide Companies Act #7 of 2007
g	SVAT No	:	SVAT000339
	Reg. Date	:	05^th April 2011
h	TIN No		114028720
i.	Share Holders As At 29^th July 2014	:	Share Holders	No. of. Shares
			Mas Capital (Pvt) Ltd	5,082,900
j.	Auditors	:	Pricewaterhousecoopers # 100, Braybrooke Place, Colombo 02
k.	Company Secretaries	:	Corporate Services (Pvt) Ltd # 216, De Saram Place, Colombo 10
l.	Bankers	:	Hongkong & Shanghi Banking Corporation Limited

Directors Details

01)

Name	Sharad Dayalal Amalean
ID Number	562632247 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	19th September 1956
Age	58 Years
Address	No.16/3, De Fonseka Place, Colombo - 04

02)

Name	Mahesh Dayalal Amalean
ID Number	550951762 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	4th April 1955
Age	59 Years
Address	No.46A, Skelton Road, Colombo - 05

03)

Name	Dian Gomes
ID Number	572650600 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	21st September 1957
Age	57 Years
Address	No.28, Stafford Avenue, Kirulapone, Colombo - 06

04)

Name	Piranavan Sivagananathen
ID Number	631440428 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	23rd May 1963
Age	51 Years
Address	No.33, Mary’s Road, Colombo - 04

05)

Name	D. V. Renuka Suren Fernando
ID Number	732872787 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	13th October 1973
Age	41 Years
Address	No.23A, Madinnagoda Road, Rajagiriya

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

Group Logo

• History.

The Subject Company UNICHELA (PVT) LTD is a Private Limited Liability Company incorporated on 9th September 1986 under registration number N (PVS) 2872 and then the company was re-registered on 17th December 2008 under registration number PV 10271

The Subject company UNICHELA (PVT) LTD is a subsidiary of MAS GROUP OF

COMPANIES which is said to having an annual turnover of over around USD 700 Million.

The Group is now run by one Family and this family has been in the Textile Business for over 60 Years in Sri Lanka, the Original Business name being “NAGINDAS”. These Directors from one Family are Graduates from the Universities in India and are well known in the Business Circle and well thought of Business persons of high Calibre. The Companies belonging to the MAS GROUP OF COMPANIES are as follows;

Linea Intimo (Pvt) Ltd

Bodyline (Pvt) Ltd

Leisureline (Pvt) Ltd

Slimline (Pvt) Ltd

Linea Clothing (Pvt) Ltd

Unichela (Pvt) ltd

Stretchline (Pvt)Ltd

Shadowline (Pvt) Ltd

Linea Aqua (Pvt) Ltd

Prym Intimates Lanka (Pvt) Ltd

Intimate Fashion India (Pvt) Ltd

Columbia Clothing (Pvt) Ltd

Cottonline (Pvt) Ltd

MAS Active (Pvt) Ltd

MAS Holdings (Pvt) Ltd

• Location.

The Subject Company is located at the client # 124, Horana Road, Panadura,

a thickly populated residential cum business town on the Colombo – Galle Highway 2,

approx. 35 kilo meters from Colombo.

• Operational Details.

General

The subject company’s primary line of business is Manufacture and exporting of ready-made Garments

Products

Readymade garments.(Such as: Sportswear, Swimwear…etc)

Brands

Victoria's Secret Stores, GAP, Marks & Spencer and Jockey

Export Countries

UK, USA

No of Employees

Approximately 3500

• Trade references

Sri Lanka Apparel Exporters Association

National Chamber of Exporters, Sri Lanka

Sri Lanka Export Development Board (EDB)

• 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 denied

MANAGEMENT NON CO-OPERATIVE

TEL No.: (009411) 4796444

(009438) 4299100

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.67
UK Pound	1	Rs.93.16
Euro	1	Rs.66.42

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	ANK

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.