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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

514698

Report Date :

28.06.2018

 

IDENTIFICATION DETAILS

 

Name :

NORWOOD FASHION (PVT) LTD

 

 

Registered Office :

#425, Negombo Road, Peliyagoda

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

25.08.2014

 

 

Com. Reg. No.:

PV 100463

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing & Exporting, Distribution of Garments.

 

 

No. of Employees :

550 direct employees & another 400 indirect employees.

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd 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

(31.12.2017)

Current Rating

(01.04.2018)

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 the IMF program it began in 2016. The government's high debt payments and bloated civil service, which have contributed to historically high budget deficits, remain a concern. Government debt is about 79% of GDP and remains among the highest of the emerging markets. In the coming years, Sri Lanka will need to balance its elevated debt repayment schedule with its need to maintain adequate foreign exchange reserves.

In May 2016, Sri Lanka regained its preferential trade status under the European Union’s Generalized System of Preferences Plus (GSP+), enabling many of its firms to export products, including its top export garments, tax free to the EU. In 2017, Parliament passed a new Inland Revenue Act in an effort to increase tax collection and broaden the tax base in response to recommendations made under its IMF program. In November 2017, the Financial Action Task Force on money laundering and terrorist financing listed Sri Lanka as non-compliant, but reported subsequently that Sri Lanka had made good progress in implementing an action plan to address deficiencies.

Tourism has experienced strong growth in the years since the resolution of the government's 26-year conflict with the Liberation Tigers of Tamil Eelam. In 2017, the government promulgated plans to transform the country into a knowledge-based, export-oriented Indian Ocean hub by 2025.

 

Source : CIA

 

Company name and summery

 

a.

Name of Subject of Inquiry

:

NORWOOD FASHION (PVT) LTD

b.

Legal Form  & Status

:

Private Limited Liability Company (In Operation)

c.

CEO

:

K.A. Sebastian Gerard Perera

d.

Primary Line of Business

:

Manufacturing & Exporting, Distribution of Garments.

e.

Head Office

&

Place of Business

 

:

 

#425, Negombo Road,

Peliyagoda.

 

Tel: (00 94 11) 249 9700

Fax: (00 94 11) 450 1089

 

Email: info@norwoodfashions.com

 

f.

Factory

:

New Valley, Norwood,

Hatton,

Sri Lanka.

g.

No. of Employees

:

550 direct employees & another 400 indirect employees.

 

 

COMPANY DETAILS 

 

a.

Registration No

:

PV 100463

Date of Registration

 

25th August 2014

c.

Registered Address

:

#425, Negombo Road, Peliyagoda.

d.

Board of Directors

As at

23rd October 2017

:

K.A. Sebastian Gererd Perera

Director/

C.E.O

M. Shamila Lorane Fernando

Director

Ranil Majella Dias

Director

e.

Issued Share Capital

:

Rs. 31,877,280.00

Number of Shares

:

3,187,728

f.

Nominal Value of Share

:

Not applicable/declared vide Companies Act #7 of 2007

g.

 

Share Holders

As at

23rd October 2017

:

Share Holders

No. of

Shares

Marsk Clothing USA LLC, USA

01

Peridot Clothing Ltd (Hong Kong)

2,743,091

K.A. Sebastian Gererd Perera

1,952,470

M. Shamila Lorane Fernando

1,307,595

h.

Auditors

:

Pricewaterhousecoopers

(#100, Braybrooke Place, Colombo 02)

i.

Company Secretaries

:

Legalinc Secretarial and Management Services (Pvt) Ltd

(#65 1/1, Norris Canal Road, Colombo 10)

k.

Bankers

:

Sampath Bank PLC

 

 

Director’s Details

 

01)

Name

K.A. Sebastian Gerard Perera

ID Number

N 3432056

Nationality

Sri Lankan

Gender

Male

 

02)

Name

M. Shamila Lorane Fernando

ID Number

N 3081882

Nationality

Sri Lankan

 

03)

Name

Ranil Majella Dias

ID Number

N2662802

Nationality

Sri Lanka

 

 

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.

 

However, it should be noted that the particular industry/trading segment the company is involved has very good   growth potential and as such it can be expected for the company to expect a steady growth in the income

 

(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)

 

 

 

 

 

CURRENT INVESTIGATION                      

 

·         History.

NorWood

Company Logo

 

                   The Subject Company NORWOOD FASHION (PVT) LTD is a Private    Limited   Liability Company incorporated on 25th August 2014 under the registration number PV 100463.

 

                  Subject Company was initially named as “Marsk Clothing Hatton (Pvt) Ltd”

                   and has changed to the present name  NORWOOD FASHION (PVT) LTD on 17th November, 2014.

 

This is a Board of Investment; Sri Lanka (BOI) approved company.

 

                 The Factory was formally opened by Hon. LakshmanYapa Abeywardena Minister of         

                 Investment Promotion who stated that “Sri Lanka’s apparel industry has now emerged to 

                 become one of the leading export earners of the country bringing in about US$ 5 billion in  

                 export earnings.  He further stated that It is an industry that has now a very high reputation for

                  the quality of its products and also for the very high standards of its technology and safety.  

 

·         Location.

The Subject Company is located at client given address #425, Negombo Road, Peliyagoda.

 

·         Operational Details.

 

General

            The subject company’s primary line of business is Manufacturing, Exporting and Distribution of Garments.

 

            Products

Baby Wear, Lingerie, Nightwear.

 

Subject states that the total value of this investment is US$ 750,000 and the company will produce underwear for men and children for the British and European markets.  The products will be made for well-known brands such as George and Trimark of the UK and Lidel of Germany.

 

Export Country

                 UK and EU Countries.

 

Employees

                  550 direct employees & another 400 indirect employees.

  

 

·         Trade references.

Board of Investment of Sri Lanka (BOI)

 

 

Mortgaged Bonds of the subject

 

Certificate of charge created by the company.

 

01).

       I.        Date and description of instrument creating or evidencing the charge. -

            Mortgage Bond No. 6930 2190 4984 dated 29th May 2015

 

      II.        Amount secured – USD 1,850,000

 

     III.        Short Particulars of property charged - 

Hypothecation bond over stocks and books debt.

 

    IV.        Name, Address and description of the person entitled to the charge – credit administration department Sampath Bank PLC No.110, Sir. James Peiris Mawatha, Colombo 02.

 

02).

   I. Bond No. 6930 2190 4983 Dated 29th May 2015

 

  II. USD 2,000,000.00

 

   III. Charge on Savings accounts No. 1998 1000 0318 for USD 2,000,000.00

 

     V.        Same Bank.

 

Summery

 

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.: 00 94 11 249 9700)

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 68.52

UK Pound

1

INR 90.60

Euro

1

INR 79.87

LKR

1

INR 0.44

 

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

 

 

INFORMATION DETAILS

 

Information Gathered by :

SAV

 

 

Analysis Done by :

NIY

 

 

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.