MIRA INFORM REPORT

Report No. :	489849
Report Date :	14.02.2018

IDENTIFICATION DETAILS

Name :	SOUTH ASIA TEXTILES LIMITED
Registered Office :	# 70, Felix Dias Bandaranayake Mawatha, Pugoga, Sri Lanka
Country :	Sri Lanka
Date of Incorporation :	13.02.2004
Com. Reg. No.:	PV 3574 PB
Legal Form :	Limited Liability Company
Line of Business :	Subject is engaged in Producing Weft knitted fabric, knitting, printing, dyeing and finishing fabric products for global brands
No. of Employees :	1300

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Sri Lanka	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

SRI LANKA - ECONOMIC OVERVIEW

Sri Lanka is attempting to sustain economic growth while maintaining macroeconomic stability under an IMF program. The government's high debt payments and bloated civil service cadre, which have contributed to historically high budget deficits and low tax revenues, remain a concern. Government debt is almost 80% of GDP and remains among the highest of the emerging markets.

The new government in 2015 drastically increased wages for public sector employees, which boosted demand for consumer goods but hurt the overall balance of payments and reduced foreign exchange reserves.

Tourism has experienced strong growth during recent years following the resolution 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.

Source : CIA

Company Profile

Basic Information

a.	Name of Subject of Inquiry	SOUTH ASIA TEXTILES LIMITED
b.	Legal Form & Status	Limited Liability Company (In Operation)
c.	Managing Director	Mr Prithiv Sivaji Dorai
d.	Primary Line of Business	Producing Weft knitted fabric, knitting, printing, dyeing and finishing fabric products for global brands
		# 70, Felix R Bandaranayake Mawatha, Pugoda,
		Sri Lanka.
e.	Principal Place of Business	Tel. No: (00 94 11) 522 32 00/ 557 99 00 Fax. No: (00 94 11) 2405 237 E-Mail: info@satextile.com Web Site: http://www.satextile.com
f.	Employees	Approximately 1300

Company Details

a.	Registration No	N(PVS)36622
	Date of Registration	13^th February 2004
b.	Re-registration No	PV 3574 PB
	Date of Re-registration	05^th May 2008
c.	Registered Office	# 70, Felix Dias Bandaranayake Mawatha, Pugoga, Sri Lanka.
		Prithiv Sivaji Dorai	Director
		Ajith Lasantha Devasurendra	Director
		Arachige Gunaratne Weerasinghe	Director
	Board of Directors As At 14^th October 2017	Ruwan Prasanna Sugathadasa	Director
d.		Neville Chrisoston Peiris	Director
		Kenneth Chrisopher Ediriweera Wijesuriya	Director
		Priyantha Pushpakumara Maddumage	Director
		Sanjeewa Edward Gardiner	Director
		Wadugamudalige Marius Ravindra Srilal Dias	Director
		Nadarajah Muralee Prakash	Director
e.	Sated Share Capital	LKR 1,364,518,888.00
f.	No. of Shares	357,361,456 (Ordinary after reverse split of 1 share for every 12 shares on 17.03.2016)
g.	Preferential Shares	NA
h.	Nominal Value of Share	NA
i.	Auditors	Ernst & Young Chartered Accountants # 201, De Saram Place, Colombo 10, Sri Lanka.
j.	Company Secretaries	Managers & Secretaries (Pvt) Ltd # 08, Tickell Road, Colombo 08, Sri Lanka.
K.	Main Bank/s	Nations Trust Bank PLC, Peoples Bank

Shareholders

NO.	NAME	NUMBER OF SHARES
1.	Ker Uei Yang (Singapore)	4,166,666
2.	Prithiv Sivaji Dorai	4,166,666
3.	Ceylon Leather Products Ltd	287,295,495
4.	Lanka Century Investments Plc	61,732,629

FINANCIAL DETAILS

- Most recent available Financial Information

NA

CURRENT INVESTIGATION

Company Logo

Name Changes

• South Asia Textile Industries Lanka (Pvt) Ltd name changed South Asia Textiles (Pvt) Ltd on 30^thJune 2016.

• South Asia Textile (Pvt) Ltd name changed South Asia Textiles Limited (PV 3574 PB) on 15^th August 2016

History.

The subject company was initially formed on 14^th February 2014 under N (PVS) 36622 under the Companies Act of Sri Lanka. The subject company was subsequently Re-registered on

05^th May 2008 under PV 3574 PB under the Companies Act No 7, of 2007 as per the mandatory regulations of Sri Lanka.

Caption

South Asia Textiles Industries Lanka (Pvt) Ltd, which commenced operations in 2004, is an ultra-modem manufacturing plant producing exceptional quality weft knitted fabric and specializes in knitting. dyeing, finishing. Printing , brushing, sueding and anti-pin micro/polar fleece fabric.

Lanka Century Investment PLC, our plant is based 40KM from the capital city Colombo. Our strategic location in Sri Lanka gives us an edge over distribution as we are situated in dose proximity to a plethora of garment manufacturing units and export processing zones that produce high quality garments to the leading global brands thus assuring our strong profile of local vendors and international buyers of a competitive and reliable local source with faster lead times for knitted fabric

With the greater flexibility, capability and 700,000KG per month Capacity on offer the plant is able to cater to a wide variety of orders, be it dyed fabric, printed fabric, brushed/suede fabric or yam dyed fabric.

With continuous Improvement (CI) approach and based on the excellent review, and high demand we are always exploring avenues. Markets and opportunities to grow further with our partners locally end overseas. In line with this we are always planning ahead to Increase capacity in all areas of production whilst also instilling better process, management. HR disciplines that will bring more productivity and efficiency to the company and will undoubtedly culminate in rich dividends to our valued customers and shareholders.

• Operational Details.

General

The subject company which commenced operations in 2004 is an ultra-modern manufacturing plant producing weft knitted fabric and specializes in knitting, dyeing, printing, finishing, brushing, sueding and anti-pill micro/ polar. The company is a subsidiary of Ceylon Leather Products PLC, which is a well reputed business entity in Sri Lanka

Products

CIRCULAR & FLAT WEFT KNITTED FABRICS

FABRIC TYPES

· Single knitt

· Double Knitt

· Processing can be done with or without

· spandex

MATERIAL

· Cotton/Cotton poly Blends

· Regenerated fibers (Viscose/Modal/Micro Modal/Tencel)

· Synthetic - Polyester with or without Spandex

FABRIC CATEGORIES ACCORDING TO PROCESS

· Solid dyed

· Marl shades

· Yarn dyed (Feeder stripe)

· Pre-Shrunk

· Printed

STRUCTURES/DESIGNS

· Needle out (Rib /Interlock)

· Pique/Lacoste

· Loopback/Brush Back

· Waffle /Pointelle

· Slub yarn designs

· Glitter prints

CUSTOMISED FINISHES

· Solid dyed

· Sueding (Larfer /Sand paper)

· Special Hand feels

· Moisture management finish

· Antibacterial finish

· Avocado Finish

· Anti-Pilling

· Stain Away

· Strom Away

· Flame Retardants

Employees

1300 Approximately

Export Countries

UK, Europe & USA

Import Countries

India, Pakistan, Vietnam, Korea, Taiwan, Indonesia

Associate / Subsidiary Companies

Ceylon Leather Products PLC

Lanka Century Investments PLC

Charges

Date & Description of instrument crediting charges	Amount	Name /Address of person entitled to the charges
Mortgage bond # 2590 dated 17.03.2016 Arrested by S D N Premadasa-Notary Public	USD 3,500,000	People's Bank Corporation Banking Division
Mortgage bond # 2590 dated 17.03.2016 Arrested by S D N Premadasa-Notary Public	USD 1,700,000	People's Bank Corporation Banking Division
Mortgage bond # 2590 dated 17.03.2016 Arrested by S D N Premadasa-Notary Public	LKR 52,000,000.00	People's Bank Corporation Banking Division

Personal Details of Key Persons

Director 1

ITEM	DETAIL
Name	Prithiv Sivaji Dorai
ID Number	623280195X
Nationality	Sri Lankan
Gender	Male
Date of Birth	23^rd November 1962
Age	54
Address	# 09, Nimal Road, Colombo 04, Sri Lanka.
Director 2
ITEM	DETAIL
Name	Ajith Lasantha Devasurendra
ID Number	611230150V
Nationality	Sri Lankan
Gender	Male
Date of Birth	02^nd May 1961
Age	55
Address	# 17, Spathodea Avenue, Colombo 05, Sri Lanka.
Director 3
ITEM	DETAIL
Name	A.Gunaratne Weerasinghe
ID Number	421412863V
Nationality	Sri Lankan
Gender	Male
Date of Birth	20^th May 1942
Age	74
Address	# 50/1, Pepiliyana Road, Nugegoda, Sri Lanka.
Director 4
ITEM	DETAIL
Name	Ruwan Prasanna Sugathadasa
ID Number	731400628V
Nationality	Sri Lankan
Gender	Male
Date of Birth	19^th May 1973
Age	43
Address	# 39/3, Gregory's Road, Colombo 07, Sri Lanka.
Director 5
ITEM	DETAIL
Name	Neville Chrysoston Peiris
ID Number	460270448V
Nationality	Sri Lankan
Gender	Male
Date of Birth	27^th January 1946
Age	71
Address	# 284/2, Thimbirigasyaya Road, Colombo 05, Sri Lanka.
Director 6
ITEM	DETAIL
Name	Kenneth Chrisopher Ediriweera Wijesuriya
ID Number	681300805V
Nationality	Sri Lankan
Gender	Male
Date of Birth	09^th May 1968
Age	48
Address	# 278/1, Old Kottawa Road, Udahamulla, Nugegoda, Sri Lanka.
Director 7
ITEM	DETAIL
Name	N.Priyantha Pushpakumara
ID Number	721780430V
Nationality	Sri Lankan
Gender	Male
Date of Birth	26^th June 1972
Age	44
Address	# 36/1, Araliya Uyana, Depanama, Pannipitiya, Sri Lanka.
Director 8
ITEM	DETAIL
Name	Sanjeewa Edward Gardiner
ID Number	692871880V
Nationality	Sri Lankan
Gender	Male
Date of Birth	13^th October 1969
Age	47
Address	# 323, Union Place, Colombo 02, Sri Lanka.
Director 9
ITEM	DETAIL
Name	W.Marius Ravindra Srilal Dias
ID Number	541982396V
Nationality	Sri Lankan
Gender	Male
Date of Birth	16^th July 1954
Age	62
Address	# 18/122, Evergreen Park, Dabare Mawatha, Colombo 05, Sri Lanka.
Director 10
ITEM	DETAIL
Name	Nadarajah Muralee Prakash
ID Number	632300824V
Nationality	Sri Lankan
Gender	Male
Date of Birth	17^th August 1963
Age	53
Address	# 7 2/9, Barnes Residence, Barnes Place, Colombo 07, Sri Lanka.

INFORMATION DENIED

Management Non Co-Operative (Tel No.: 00 94 11 52232 00)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.28
UK Pound	1	INR 89.02
Euro	1	INR 78.93
LKR	1	INR 0.41

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Information Gathered by :	PNM
Analysis Done by :	VAR
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.