MIRA INFORM REPORT

Report No. :	317929
Report Date :	02.05.2015

IDENTIFICATION DETAILS

Name :	HEMAS MANUFACTURING (PVT) LTD
Registered Office :	Hemas House, #75, Braybrooke Place, Colombo 02
Country :	Sri lanka
Date of Incorporation :	13.09.1993
Com. Reg. No.:	PV 149
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is Importer and Distributor of medical items and drugs
No. of Employee :	500

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	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	:	HEMAS MANUFACTURING (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	H. Nuruddin Esufally
d.	Primary Line of Business	:	Importer and Distributor of medical items and drugs.
e.	Group Head Office	:	Hemas House, #75, Braybrooke Place, Colombo 02 Sri Lanka Tel. No: (00 94 11) 473 1731 Fax No: (00 94 11) 243 7488 E-mail: privatelabel@hemas.com padma.consumer@hemas.com
	Factory, Office & Place of Business		P. O. Box – 01, Dankotuwa, Sri Lanka Tel. No: (00 94 31) 487 7877 Fax No: (00 94 31) 243 7188
f.	No. of Employees	:	Approximately 500

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No	:	N (PVS) 11675
	Date of Registration	:	13^th September 1993
b.	Re-registration No	:	PV 149
	Date of Re-registration	:	6th July 2007
c.	Registered Office	:	Hemas House, #75, Braybrooke Place, Colombo 02
d.	Board of Directors As At 14^th October 2014	:	Husein Nuruddin Esufally	Managing Director
			Pradipta Kumar Mahapatra	Director
			Roy Gnanakaran Joseph	Director
			Deepal Sooriyaarachchi	Director
			Steven Mark Enderby	Director
			W. Malinga De Fonseka Arsakularatne	Director
e.	Issued Share Capital	:	Rs. 1,197,990,030.00
	Total No: of issued shares	:	Ordinary Shares : 11,450,003 Preferential Shares: 108,349,000 Total: 119,799, 003
f.	Nominal Value of Share	:	Not stated vide companies Act #7 of 2007

Registration and Shareholder Details Cont…

g.	Share Holders As At 14^th October 2014	:	Share Holders	No. of pref. Shares	No. of Shares
			Hemas Holdings PLC		11,450,001
			Husein Nuruddin Esufally		01
			Murtaza Abidhusein Hassanally Esufally		01
			Forbes Air Services (Pvt) Ltd	38,349,000	-
			Hemas Air Services (Pvt) Ltd	10,000,000	-
			Hemas Pharmaceuticals (Pvt) Ltd	60,000,000	-
h.	Auditors	:	Ernst & Young (#201, De Soram Place, Colombo – 10)
i.	Company Secretaries	:	Hemas Corporate Services (Pvt) Ltd (Hemas House, #75, Braybrooke Place, Colombo 02)
j.	Bankers	:	Peoples Bank HSBC Hatton National Bank PLC National Development Bank

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 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 HEMAS MANUFACTURING (PVT) LTD is a Private Liability Company incorporated on 13^th September 1993 under registration number N (PVS) 11675 and then the company was re-registered on 06^th July 2007 under registration number PV 149.

Subject Company is a member of the Hemas Group consisting of 20 companies that covers the fields of travel, pharmaceutical, hospitals/healthcare, Aviation, Finance, manufacturing, management etc.

· Location.

The subject company’s corporate head office is located at Hemas House, #75, Braybrooke Place, Colombo 02 and the Office & Factory of the Subject Company located at P. O. Box – 01, Dankotuwa, a location approx. 50 kilo meters north of Colombo.

The client # 36, Bristol Street, Colombo 01 belongs to Group’s travel company.

· Operational Details.

General

The subject company’s primary line of business is importing, manufacturing, packaging and distributing of consumer products, health care products and medical products

Products

Baby Care, Herbal Hair Oil & Shampoo, Herbal Toothpaste etc.

Brands Name

Baby Cheramy, Kumarika, Clogard, Gold, Pro-Sport, Goya, Dandex and several others.

Company states that Hemas acts as a contract manufacturing partner in the development and manufacture of FMCG products for several leading companies. The efficiency of superior manufacturing processes, developed over 60 years along with the International Product Quality and Safety Standards observed is evident in the high quality of personal care products manufactured by Hemas.

Import Countries

Chemicals & equipments from England, India, Taiwan, Pakistan, Germany, USA, China

No of Employees

Approximately 500

Director Details

01

Name	H. Nuruddin Esufally
ID Number	603050134V
Nationality	Sri Lankan
Gender	Male
Date of Birth	31st October 1960
Age	54 Years
Address	#76/4, Flower Road, Colombo 7

02)

Name	Pradipta Kumar Mohapatra
ID Number	G6608195
Nationality	Indian
Gender	Male
Date of Birth	N/a
Address	N/a

03)

Name	Roy Gnanakaran Joseph
ID Number	602520358 X
Nationality	Sri Lankan
Gender	Male
Date of Birth	8th September 1960
Age	54 Years
Address	#93/15, Athwela Mw., Boralesgamuwa

04)

Name	Deepal Sooriyarachchi
ID Number	600590448 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	28th February 1960
Age	51 Years
Address	#28/10, Birnam Wood, Wijesekera Mw., Nugegoda

05)

Name	Stevan Mark Enderby
ID Number	505337631
Nationality	British

06)

Name	W. Malinga De Fonseka Arsakularatne
ID Number	7101425990 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	28th February 1971
Age	44 Years
Address	#153/6-1/6, Trillion Residencies, Elvitigala Mw., Colombo 08

· Trade references

Cosmetics, Devices, Drugs Regulatory Authority of Sri Lanka (CDDRA)

The subject is a well known company and the products are available islandwide.

· 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	Growing
c) Management Capability	Above Average
d) Commercial Morality	Above Average
e) Reputation	Above Average
f) Market Situation	Very Competitive

INFORMATION DECLINED

Management Non-cooperative (Tel. No. : 00094114731731)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.58
UK Pound	1	Rs.97.99
Euro	1	Rs.70.53

INFORMATION DETAILS

Information Gathered by :	NYN
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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