MIRA INFORM REPORT

Report No. :	506970
Report Date :	04.05.2018

IDENTIFICATION DETAILS

Name :	DIPPED PRODUCTS PLC
Registered Office :	# 400, Deans Road, Colombo 10
Country :	Sri Lanka
Financials (as on) :	2017
Date of Incorporation :	25.02.1976
Com. Reg. No.:	PQ 60
Legal Form :	Public Limited Liability Company listed in the stock exchange (In Operation)
Line of Business :	Manufacturer of Latex Industrial & Household Gloves and Plantation Management
No. of Employees :	1800 + Approximately

RATING & COMMENTS

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

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
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 (30.09.2017)	Current Rating (31.12.2017)
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 its IMF program that it began in 2016. 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 about 75% of GDP and remains among the highest of the emerging markets. Sri Lanka will need to balance its elevated debt repayment schedule with its requirement to maintain adequate foreign exchange reserve levels in the coming years.

In May 2016, Sri Lanka regained its preferential trade preferences under the European Union’s Generalized System of Preferences Plus (GSP+), enabling many of its firms to export products, including it top export garments, tax free to the EU. Also in 2016, the government reformed elements of the country’s tax regime to increase some tax rates and broaden the tax net in response to recommendations made under its IMF program.

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	DIPPED PRODUCTS PLC
b.	Legal Form & Status	Public Limited Liability Company listed in the stock exchange (In Operation)
c.	Chairman	Mr Mohan Pandithage
d.	Primary Line of Business	Manufacturer of Latex Industrial & Household Gloves and Plantation Management
e.	Principal Place of Business	# 400,Deans Road,Colombo 10, Sri Lanka. Tel. No: (00 94 11) 2683964 Fax. No: (00 94 11) 2699018 E-Mail : marketing@dplgroup.com Website : http://www.dplgroup.com/
f.	Employees	1800 + Approximately

Company Details

a.	Registration No	PBS 924
	Date of Registration	25^th February 1976
b.	Re-registration No	PQ 60
	Date of Re-registration	02^nd August 2007
c.	Registered Office	# 400,Deans Road,Colombo 10, Sri Lanka.
		Abeyakumar Mohan Pandithage	Chairman
		Faiz Mohideen	Director
		H S R Kariyawasan	Director
		Mahesha Ranasoma	Managing Director
		Kulappuarachchge Don Dammika Perera	Director
		Sarath Clement Ganegoda	Director
d.	Board of Directors As At	Marco Bottino	Director
	08^th December 2015	Sujeewa Rajapakse	Director
		Nanayakkara Atulugamage Raneel Ramesh Silva Nanayakkara	Director
		Sujeewa Prasanga Peiris	Director
		Ms Yogadinusha Bhaskaran (Alternate Director)	Director
		Kalupathirana Don Gamini Gunaratne	Director
		Salman Mohammed Shaikh (Alternate Director)	Director

e.	Issued Share Capital	LKR 598,615,120.00
f.	No. of Shares	59,861,512
g.	Nominal Value per Share	LKR 10.00
h.	Current Value per Share	LKR 84.00
i.	Auditors	Ernst & Young # 201, De Saram Place,Colombo 10,Sri Lanka.
j.	Company Secretaries	Hayleys Group Services (Pvt)Ltd # 400, Deans Road,Colombo 10,Sri Lanka.
k.	Main Bank/s	Peoples Bank Standard Charted Bank HSBC Sampath Bank PLC Deutsche Bank Hatton National Bank PLC NDB Bank PLC Bank of Ceylon
l.	Present Market Value/Share	LKR 90.00
m.	All Time High All Time Low	LKR 220.00 LKR 14.50
n.	Listed Date	1982.01.01

Shareholders

Refer Attached Annual Report

FINANCIAL DETAILS

Most recent available Financial Information

Refer Attached Annual Report

CURRENT INVESTIGATION

Clarifications obtained from Subject Company

• Company Logo

· History

The subject company was formed initially on 25^th February 1976 under the registration number PBS 924 and Re-registered under PQ 60 on 02^nd August 2007 as per the company registrations act which came into force from 2007. The company is part of the Hayley's Group Sri Lanka and is a public quoted company listed under the Colombo Stock Exchange.

Caption

Dipped Products PLC ("DPL") is a global leader in protective hand-wear, with over four decades of industry insights, strong innovative capabilities and a global reputation for quality and sustainable practices. We serve around 5% of global demand for natural and syntheticlatex based household and industrial gloves and our products are sold in over 70 countries world-wide. The DPL Group also has interests in Sri Lanka's plantation sector and produces 3.9% and 3.4% of the country's total tea and rubber output through its holdings in two leading Regional Plantation Companies (RPCs). DPL generates around 30% of Sri Lanka's total export earnings from rubber gloves, providing employment to 1,863 direct employees and over 1,000 indirect employees in Sri Lanka, Thailand and Italy. In addition over 17,000 people are deployed in our plantation sector companies. DPL is a subsidiary of Sri Lanka's most diversified conglomerate Hayleys PLC and is listed on the Main Board of the Colombo Stock Exchange.

· Operational Details.

General

Dipped Products PLC is a Manufacturer of Latex Industrial & Household Gloves and Plantation Management.

Products

DPL Line Pro

DPL Occupational

Palm Pro

Palmrite

Ultra Grip

And other types of Gloves listed under products

Employees

1500 + in the Glove manufacturing sector and over 20,000 workers in the plantation sector

Export Countries

The gloves produced by DPL, is Exported to around 70 countries worldwide including Asia, Middle East, Europe, Africa, CIS and Americas (AUSTRALIA, New Zealand, Russia, UK, USA, Brazil etc.. )

Associate Companies

Dipped Products is a subsidiary of the Hayley's Group Sri Lanka, which is rated among the top 5 companies in the Island for productivity, profitability and Revenue.

Dipped Products (Thailand) Ltd

Manufacturing Facilities

The sector's manufacturing facilities are listed below;

Factory Location Product range (gloves)

Dipped Products PLC Kottawa Household & Industrial Grossart (Pvt) Limited Kottawa Fabric supported, household & industrial Neoprex (Pvt) Limited Kottawa Household & Industrial Hanwella Rubber Products Limited

Hanwella Household & Industrial D P L Premier Gloves Limited EPZ-block B, Biyagama Household & Industrial D P L Universal Gloves Limited EPZ-block A, Biyagama Fabric supported & Industrial

Dipped Products (Thailand) Limited Khun Nieng, Songkhla (Thailand) Medical Examination

Personal Details of Key Persons

The following information was found through the registrar of companies:

Director 1

Name	Abeyakumar Mohan Pandithage
ID Number	511291887V
Nationality	Sri Lankan
Gender	Male
Date of Birth	8^th May 1951
Age	64
Address	#119,Kynsey Road, Colombo 08,Sri Lanka.
Director 2
ITEM	DETAIL
Name	Faiz Mohideen
ID Number	470463546V
Nationality	Sri Lankan
Gender	Male
Date of Birth	15^th February 1947
Age	69
Address	# 5/2,Liberty Plaza Apartments, Colombo 03,Sri Lanka
Director 3
ITEM	DETAIL
Name	Kachchakaduge Anthony Lewine Supala Fernando
ID Number	612063451V
Nationality	Sri Lankan
Gender	Male
Date of Birth	24^th July 1961
Age	54
Address	# 127/36,Dutugamunu Street, Colombo 06,Sri Lanka.

Director 4

ITEM	DETAIL
Name	Mahesha Ranasoma
ID Number	643521245V
Nationality	Sri Lankan
Gender	Male
Date of Birth	17^th December 1964
Age	51
Address	# 20/3A,Thalawathugoda,Beddagana Second Lane,Beddagana,Pita Kotte,Sri Lanka.

Director 5

Name	Kulappuarachchige Don Dammika Perera
ID Number	673632793V
Nationality	Sri Lankan
Gender	Male
Date of Birth	28^th December 1967
Age	48
Address	# 01, 'Cambridge House' Cambridge Place,Colombo 07,Sri Lanka.
Director 6
ITEM	DETAIL
Name	Sarath Clement Ganegoda
ID Number	622330369X
Nationality	Sri Lankan
Gender	Male
Date of Birth	20^th August 1962
Age	53
Address	# 127/36,Dutugamunu Street,Colombo 06,Sri Lanka.

Director 7

Name	Marco Bottino
ID Number/Passport Number	AN 2465565
Nationality	Italy
Local Address	# 400, Deans Road,Colombo 10,Sri Lanka.
Address	Via Piaggio 10/10 16136 Genova, Italy

Director 8

Name	Sujeewa Rajapakse
ID Number	612730598V
Nationality	Sri Lankan
Gender	Male
Date of Birth	29^th September 1961
Age	54
Address	#9/31C,Perera Mawatha, Thalangama North , Battaramulla, Sri Lanka.

Director 9

Name	Nanayakkara Atulugamage Raneel Ramesh Silva Nanayakkara
ID Number	641710601V
Nationality	Sri Lankan
Gender	Male
Date of Birth	19^th June 1964
Age	51
Address	#101/1A,Pepiliyana,Boralsegamuwa,Sri Lanka.

Director 10

Name	Sujeewa Prasanga Peiris
ID Number	691982360V
Nationality	Sri Lankan
Gender	Male
Date of Birth	16^th July 1969
Age	46
Address	# 431/2,Dutugemunu Mawatha,Thalangama North,Battaramulla,Sri Lanka.

Director 11

Name	Yogadinusha Bhaskaran
ID Number	746640730V
Nationality	Sri Lankan
Gender	Female
Date of Birth	12^th June 1974
Age	41
Address	#7A, Iceland Residencies,Galle Face,Colombo 03,Sri Lanka.

Director 12

Name	Kalupathirana Don Gamini Gunaratne
ID Number	603270177V
Nationality	Sri Lankan
Gender	Male
Date of Birth	22^nd November 1960
Age	55
Address	#27A, Flower Road,Colombo 07,Sri Lanka.

Director 13

Name	Salman Mohammad Shaikh
ID Number/Passport Number	AH 5192534
Nationality	Pakistan
Gender	Male
Date of Birth	NA
Age	NA
Local Address	#400, Deans Road,Colombo 10,SriLanka.
Address	#67B,3^rd Sunsent Street Phase 2 Defense Housing Authority

INFORMATION DENIED

Management non-co-operative (00 94 11) 2683964

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.61
UK Pound	1	INR 90.60
Euro	1	INR 79.86
NIS	1	INR 18.48

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

INFORMATION DETAILS

Information Gathered by :	KAM
Analysis Done by :	NIY
Report Prepared by :	TRU

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.