MIRA INFORM REPORT

Report No. :	340371
Report Date :	16.09.2015

IDENTIFICATION DETAILS

Name :	STRETCHLINE (PVT) LIMITED
Registered Office :	10th Floor, Aitken Spence Tower II, No.315, Vauxhall Street, Colombo - 2
Country :	Sri Lanka
Date of Incorporation :	08.03.1993
Com. Reg. No.:	PV 2777
Legal Form :	Private Limited Liability Company (In Operation)
Line of Business :	Manufacturers & Exporters of Elastic Garments.
No. of Employees :	Approximately 1,300

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 – 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

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	:	STRETCHLINE (PVT) LIMITED
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Chairman	:	Sharad Dayalal Amalean
d.	Primary Line of Business	:	Manufacturers & Exporters of Elastic Garments.
e.	Office, Place of Business & Factory	:	Lot 89, Biyagama Export Processing Zone, Walgawa, Malwana, Sri Lanka Tel. No: (00 94 11) 482 8100 Fax No: (00 94 11) 481 7621 E Mail: arjunaw@stretchlinesl.com timothys@stretchlinesl.com
	Covering Plant	:	# 47, Biyagama Export Processing Zone, Walgama, Malwana. Tel. No: (00 94 11) 476 8200 Fax No: (00 94 11) 440 8584 E-mail: gavinj@stretchlinesl.com
f.	No. of Employees	:	Approximately 1,300

COMPANY DETAILS - Registration and Shareholder Details

a.	Registration No	:	N (PVS) 10678
	Date of Registration		08th March 1993
b.	Re-Registration No	:	PV 2777
	Date of Re-Registration		11th March 2008
c.	Registered Office	:	10th Floor, Aitken Spence Tower II, No.315, Vauxhall Street, Colombo - 2
d.	Board of Directors As At 15^th October 2014	:	Sharad Dayalal Amalean		Chairman
			Timothy Allen Brent Speldewinde		CEO
			Brian Norman Collier (British)		Director
			David Andrew Trust (USA)		Director
			Christopher Stafford Tubbs (British)		Director
			Laura Beth Trust (USA)		Director
			Alan Lichman (USA)		Director
e.	Issued Share Capital	:	Rs. 100,500,000.00
	Number of Shares	:	10,050,000
f.	Nominal Value of Share	:	Not Applicable vide companies act#7 of 2007
g.	Share Holders As At 15^th October 2014	:	Share Holders	No. of Shares
			Stretchline Holdings Ltd (Company incorporated in Hong Kong)	10,050,000
h.	Auditors	:	KPMG Ford Rhodes Thornton & Company (# 32A, Sir Mohamed Macan Markar Mawatha, Colombo 03)
i.	Company Secretaries	:	Corporate Advisory Services (Pvt) Limited (# 216, De Saram Place, Colombo 10) Tel: (00 94 11) 471 8200
j.	Bankers	:	Standard Chartered Bank. HSBC. National Development Bank. Hatton National Bank. Bank of Ceylon.

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 STRETCHLINE (PVT) LIMITED is a Private Limited Liability Company incorporated on 08^th March 1993 under registration number N (PVS) 10678 and then the company was re-registered on 11^th March 2008 under re-registration number PV 2777.

This Company was originally incorporated as “BEST KNIT (PVT) LIMITED” on 08^th March 1993 and changed its name to STRETCH LINE (PVT) LIMITED on 28^th November 1995.

The Subject Company, STRETCHLINE (PVT) LIMITED is a joint venture established in

1993 between MAS Holdings, Mast and Charnwood Elastics Group, UK.

Company states that STRETCHLINE (Pvt) LIMITED produces approx. two million metres of elastic every week. Charnwood has manufactured elastics for over twenty years; its major buyers include contract garment manufactures for Marks & Spencer, BHS, Mothercare and Little woods. The STRETCHLINE production facility in Sri Lanka was Charnwood's first overseas plant.

· Location.

The Subject Company is located at the Client # Lot 89, Biyagama Export Process, Walgama, Biyagama, and approx. 25 kilo meters from Colombo.

· Operational Details.

General

The subject company’s primary line of business is Manufacture and Exporting of Elastic Garments.

Stretchline is a global brand in narrow fabrics and the largest producer of crochet, woven, jacquard and printed elastic. It is a three way joint venture between Stretchline (UK), MAS Holdings (Sri Lanka) and Brandot International Ltd. (USA) that was first established in 1996. Stretchline is reputed for its innovation and design with patented products such as Fortitube bra-wire casing Locksafe, Bondelast, Stay4Sure elastics as well covered elastomeric yarn. Stretchline has manufacturing plants in Sri Lanka, China, Indonesia, Mexico, Honduras, USA and UK which are supported by marketing offices in the US, UK and Hong Kong, enabling the Group to provide needle point support to the world’s leading lingerie and active wear brands

Products

o Narrow Performance Fabrics
Woven, Knitted, Jacquard, Printed & PredyedWoven Elastic

o Elastomeric Covered Yarns

Export Country

USA / Mexico / UK / China / Hong Kong / Indonesia

Brand Names

o fortitude

o bondelast

o Locksafe

o ecolastic

o stay4sure

o SAFEYARNS

Awards Stretchline has been certified by:

· ISO 9001

· ISO 14001

· Oeko Tex Standard 100 certificates

· OHSAS certificate

No of Employees

Approximately 1,300

· Directors Details

01)

Name	Sharad Dayalal Amalean
Nationality	Sri Lankan
ID Number	562632247 V
Gender	Male
Date of Birth	19^th September 1956
Age	58 Years
Address	No.16/3, De Fonseka Road, Colombo -5, Sri Lanka

02)

Name	Timothy Allen Brent Speldewinde
Nationality	Sri Lankan
ID Number	612811962 V
Gender	Male
Date of Birth	7^th October 1961
Age	53 Years
Address	No.261, R. A De Mel Mawatha, Colombo – 3, Sri Lanka

03)

Name	Brian Norman Collier
Nationality	British
Passport Number	093223890
Address	No.532/3,Galle Road, Colombo – 3, Sri Lanka

04)

Name	Trust David Andrew
Nationality	American
Passport Number	039100531

05)

Name	Christopher Stafford Tubbs
Nationality	British
Passport Number	093127860

06)

Name	Laura Beth Trust
Nationality	American
Passport Number	478221514

07)

Name	Alan Lichman
Nationality	American
Passport Number	219218300

· Trade references

National Chamber of Exporters

Sri Lanka Vietnam Business Council

· 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.: 009411-4828100)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.44
UK Pound	1	Rs.102.41
Euro	1	Rs.75.05

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	RAS
Report Prepared by :	VNT

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