MIRA INFORM REPORT

 

 

Report No. :

322761

Report Date :

23.05.2015

 

IDENTIFICATION DETAILS

 

Name :

GEHANTEX INDUSTRIES (PVT) LTD

 

 

Registered Office :

450/26, Gehan Mawatha, Koswatte, Thalangama North, Battaramulla

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

07.09.1979

 

 

Com. Reg. No.:

PV 2283

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is Manufacturers of Textile for Garments, Carpets etc. Importers of World Class Textiles for Carpets & Rugs.

 

 

No. of Employee :

Approx. 50 (Group approx. 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 :

Slow but correct

 

 

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

:

 

GEHANTEX INDUSTRIES (PVT) LTD

 

b.

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

c.

Chairperson

:

Rukmani Seelanathakuruppu (Ms)

d.

Primary Line of Business

:

Manufacturers of Textile for Garments, Carpets etc. Importers of World Class Textiles for Carpets & Rugs.

e.

Head office

&

Place of Business

 

:

 

#450/26, Gehan Mawatha,

Koswatte, Thalangama North,

Battaramulla. Sri Lanka

 

Tel. /Fax No: (00 94 11) 278 8020

 

Showrooms (Also belongs to Group of Companies Address)

 

GEHANTEX,

No.G 30-31, Liberty Plaza,

R.A.D. Mel Mw.,

 Colombo 03,

Sri Lanka.

 

Tel. No: [00 94 11] 257 6107, 257 7047

Fax:       [00 94 11] 257 3141

Mobile : (00 94 77) 788 5651-2-3

                                  789 8231-4

 

f.

No. of Employees

:

Approx. 50 (Group approx. 500)

           

 

COMPANY DETAILS

 

Registration and Shareholder Details

 

a.

Registration No

:

PVS 5946

Date of Registration

 

07th September 1979

b.

Registration No

 

PV 2283

Date of Registration

 

06th February 2008

c.

Registered Office

:

#450/26, Gehan Mawatha,Koswatte, Thalangama North,

 Battaramulla.

d.

Board of Directors

As at

24th October 2014

:

Rukmani Seelanathakuruppu (Ms)

Chairperson

Gehan Niranjan Seelanthakuruppu

Managing Director

Arunesh Seelanthakuruppu

Director

Manjula Seelanthakuruppu

Director

Dharshan Seelanthakuruppu

Director

e.

Issued Share Capital

:

Rs. 480,000.00

Number of Shares

:

48,000

f.

Nominal Value of Share

:

Not applicable/declared vide Companies Act #7 of 2007

 

 

Registration and Shareholder Details (Contd..)

 

 

g.

 

Share Holders

As at

24th October 2014

:

Share Holders

No. of

Shares

Rukmani Seelanthakuruppu

15,772

Gehan Niranjan Seelanthakuruppu

8,057

Arunesh Seelanthakuruppu

8,057

Manjula Seelanthakuruppu

8,057

Dharshan Seelanthakuruppu

8,057

h.

Auditors

:

Haqque Martin And Company

(#25, Ramakrishna Road, Colombo 06)

i.

Company Secretaries

:

Assignments (Pvt) Ltd

(#69/1, Kynsey Road, Colombo 08)

k.

Bankers

:

Sampath Bank, Sri Lanka

Commercial Bank of Ceylon, Sri Lanka

 

 

Directors Details

 

         01)

Name

Rukmani Seelanthakuruppu

ID Number

366180966 V

Nationality

Sri Lankan

Gender

Female

Date Of Birth

27th April 1936

Age

79 Years

Address

#450/24, Gehan Mawatha, Koswatte, Thalangama North, Battaramulla

 

 

         02)

Name

Gehan Niranjan Seelanthakuruppu

ID Number

621640267 X

Nationality

Sri Lankan

Gender

Male

Date Of Birth

12th June 1962

Age

52 Years

Address

#450/24, Gehan Mawatha, Koswatte, Thalangama North, Battaramulla

 

 

           03)

Name

Manjula Seelanthakuruppu

ID Number

651770289 V

5Nationality

Sri Lankan

Gender

Male

Date Of Birth

25th June 1965

Age

49 Years

Address

#450/24, Gehan Mawatha, Koswatte, Thalangama North, Battaramulla

 

 

              04)

Name

Dharshan Seelanthakuruppu

ID Number

732812288 V

Nationality

Sri Lankan

Gender

Male

Date Of Birth

07th October 1973

Age

41 Years

Address

#450/24, Gehan Mawatha, Koswatte, Thalangama North, Battaramulla

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

The company has declined to provide information on its finances without knowing  

 the identity of the end user as they are fearing that the details will go to wrong hands or the 

 Competitors etc.

 

However, it should be taken in to consideration that the particular industry/trade segment the   Company involved has a very good growth potential and as such it can be expected for the   Company to expect very good income prospects as a major distributor of carpets and accessories.

 

(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)

 

Sales Turnover :                       Year                                         Amount (Approximately)

 

                                                2013-2014                                 Rs. 22.000 Million                    

                                                2014-2015                                 Rs. 25.000 Million

                                                2015-2016 (Expected)                Rs. 30.000 Million

 

 

CURRENT INVESTIGATION                      

 

·         History

 

                  The Subject Company GEHANTEX INDUSTRIES (PVT) is a Private    Limited   liability Company incorporated on 07th September 1979 under registration number PVS 5946 and the company was re-registered on 06th February 2008 under registration number PV 2283.

 

                  The Gehantex Group, a family business was established on 20th May 1963 by Late Mr. G. Seelanathakuruppu – Founder Chairman and Mrs. Rukmani Seelanathakuruppu, the present Chairperson. The group comprises of Gehan Industries (1963), Ceylon Handlooms (1963), G.Seelanathakuruppu & Sons Ltd (1969), Gehantex Industries (1979), GSL Tea Expo (1978) and Japanese Tawashi Brush Export (1978).

 

·         Location.

 

                  The subject company is located at client #450/26, Gehan Mawatha, Koswatte, 

                   Thalangama North, Battaramulla..

 

 

Operational Details.

 

General

 

            The subject company primary line of business is Manufacturers of Textile for Garments, Carpets etc. (Importers of World Class Textiles for Carpets & Rugs)

 

Gehantex pioneered Handloom cotton textiles, garments, handmade and machine made carpets and rugs for homes and hotels local and overseas, covering Asia, Middle East, Europe and USA. Presently, the company import world class textiles, carpets and rugs marketed by their showrooms and dealers island wide.

 

It is stated that the Company was the official interior decorators and supplies of curtains, linen, carpets and rugs for the state visits by the Holy Pope, HRM Queen Elisabeth, HRM Prince Charles and many Heads of States, the Non Align conference (1976), SARRC Conferences (1991, 1998 & 2008). Further, the company had and still has the privilege of supplying their products to many national events

 

          Products

         

                Handloom cotton textiles, garments, hand made and machine made carpets and rugs for homes

               and hotels and carpet accessories

 

               Importing Countries:

                 Raw materials and carpets etc imported from Belgium, China, Italy, UK etc

 

Export Country

Countries in Asia, Middle East, Europe and USA

 

 

Employees

                  Approx.100 (Group over 500)

 

                            Payment Terms (Selling and Purchasing) :  L\C and Cheque 

 

 

Trade references

 

Subject Company is well known.

 

Export Development Board

Sri Lanka Tourists Board

 

 

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 PARTED BY (GENERAL DETAILS)

 

Name :

Ms. Premalal

Designation :

Accountant

Contact No.:

00094112788019

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.57

UK Pound

1

Rs.99.67

Euro

1

Rs.70.93

 

 

INFORMATION DETAILS

 

Information Gathered by :

MNJ

 

 

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%)

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.