MIRA INFORM REPORT

Report No. :	346369
Report Date :	28.10.2015

IDENTIFICATION DETAILS

Name :	G P GARMENTS (PVT) LTD
Registered Office :	Block B3 & B4, Seethawaka Export Processing Zone, Avissawella
Country :	Sri Lanka
Date of Incorporation :	09.11.1990
Com. Reg. No.:	PV7883
Legal Form :	Private Limited Liability Company (In Operation)
Line of Business :	Manufacture and Exporter of Readymade Garments.
No. of Employee :	Approximately 1600

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 – 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 government's 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, but low tax revenues remain a 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	:	G P GARMENTS (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director		Stefan Van Ende (Belgian)
	General Manager	:	Serge Watte (Belgian)
d.	Primary Line of Business	:	Manufacture and Exporter of Ready made Garments.
e.	Head office & Factory	:	Blocks B3 & B4, Seethawaka Export Processing Zone, Avissawella. Sri Lanka Tel. No : (00 94 36) 223 1825 Fax No : (00 94 36) 223 1685 Email: info@gp_garment.com
f..	No. of Employees	:	Approximately 1600

COMPANY DETAILS

- Registration and Shareholder Details

a.	Registration No	:	N (PVS) 6974
	Date of Registration	:	09^th November 1990
b.	Re- Registration No.	:	PV7883
	Date of Re-Registration	:	06^th October, 2008
c.	Registered Address	:	Block B3 & B4, Seethawaka Export Processing Zone, Avissawella
		:	Stefan Van Ende (Belgium)	Managing Director
d.	Board of Directors As At 31^st December 2014
			Amelie Derere (Ms) (Belgium)			Director
e.	Issued Share Capital	:	Rs. 15,000,000.00
f.	Issued Shares	:	1,500
g.	Nominal Value of Share	:	Not stated vide companies Act #7 of 2007
h.	Share Holders As At 31^st December 2014	:	Share Holders		No. of Shares
			Derere Geert		01
			Sriskantha Sri Pathmanathan		01
			Pratogest (Belgium)		1,498
i.	Auditors	:	KMPG Chartered Accountants
j.	Company Secretaries	:	Wijepala Deegoda Gamage,
k.	Bankers	:	-Not Disclosed-

FINANCIAL DETAILS

- Most recent available Financial Information

The company has declined to provide information on its finances without the identity of the end user of the enquiry.

(Note: Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability/partnerships/proprietorships are not required to make public disclosure of their annual financials. Therefore no financials are available for this entity.

Current investigation

• History.

The Subject Company G P GARMENTS (PVT) LTD is a Private Limited liability Company incorporated in 09^th November 1990 under Registration No. N (PVS) 6974 and Reregistered on 06^th October, 2008 under No. PV 7883, vide Companies Act #7 of 2007, as Belgian owned company in Sri Lanka.

• Location.

The Subject Company’s office & Factory are located at the client; Block B3 & B4, Seethawaka Export Processing Zone Seethawaka, Avissawella, a location approx. 45 kilo meters from Colombo.

GP Garments features a state-of-the-art production facility which covers an area of 16,000 sqm. The entire building is air-conditioned, hygienic and adheres to international standards, ensuring maximum productivity and safety to employees. A brand new cafeteria, a 9,000 sqm flat production floor and a 700 sqm finished-goods warehouse ensure that all production and staff requirements are well taken care of.

Subject states that all of the 1,200 sewing machines in operation are from ‘’Juki’’ brand,

• Operational Details.

General

The subject company primary line of business is Manufacturers and Exporters of Garments.

The subject company G P GARMENTS (PVT) LTD is a Board Of Investment (BOI) Approved Company.

Products

Collection list consist of breathable, camouflage, classic, denim, health care, painting, rain wear food industry

Trousers, Overalls, Boiler Suits Trousers, Brace Overalls, Coats, Aprons, Operation Shirts, Tie, Sweaters, Shorts, Body Warmers

Annual production capacity is approx. 3.5 million pieces, the company states.

Importing countries:

Subject states that through their sourcing office located in China helps the Sri Lankan operational teams to find quality fabric and accessories at the most competitive price across the region

Export Country

Belgium, USA

Employees

The total strength of employees in the group was stated as approximately 1600 employees.

• General Comments

The subject company provided limited info on operational and products etc but declined financial information. All information in this report has been obtained from other sources but clearly originating from the company.

• Trade references

The subject company did not provide any trade reference referrals

• Credit Recommendations

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.: 009436-2231825

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.96
UK Pound	1	Rs.99.73
Euro	1	Rs.71.84

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	DIV
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%)

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