MIRA INFORM REPORT

 

 

Report Date :

17.09.2007

 

IDENTIFICATION DETAILS

 

Name :

SRI LANKA CONSUMER CO-OPERATIVE SOCIETIES FEDERATION LTD

 

 

Registered Office :

# 11, Saunders Place, Colombo – 12

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

15th September 1989

 

 

Com. Reg. No.:

CO / 001

 

 

Legal Form :

Co-operative Society

 

 

Line of Business :

Importers and Distributors of essential commodities.

 

 

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 :

Regular

 

 

Litigation :

Clear

 

 

GENERAL - Basic information at a glance

     

Name of Subject of Inquiry

:

SRI LANKA CONSUMER CO-OPERATIVE SOCIETIES FEDERATION LTD

Legal Form  & Status

:

 

Set up by act of parliament Act no 05 of 1972 and under the preview of subsequent Act no 32 of 1983 and Act no 11 of 1992 and additionally under Western Provincial Council      (In operation)

 

Registered with Commissioner Department of Co-operative Department.

 

Chairman

:

Mr. D. S. K. Palitha Rohana

Primary Line of Business

:

Importers and Distributors of essential commodities through out multi purpose co-operative societies in Sri Lanka.

Head Office

&

Place of Business

 

:

# 11, Saunders Place,

Colombo – 12.

           

Tel. No: (00 94 11) 243 8137/ 8

Fax No: (00 94 11) 233 1008

 

E-mail: coopfed@soi.lk

No. of Employees

:

Approximately 200 employees

 

 

COMPANY DETAILS  - Registration and

Shareholder Details

 

Registration No

:

CO / 001

Date of Registration

:

15th September 1989

Registered Office

:

Department of Co-operative Development – Colombo

 

 

Board Of Directors

 

 

:

Mr. T. M. R. B. Thennakoon

Director

Mr. W. Hemalal Jayasiri

Director

Mr. H. M. Thilakarathne

Director

Mr. K. V. Kamaleshwaran

Director

Mr. Nimal Edirisinghe

Director

Mr. S. J. M. Wejerathne

Director

Secretaries

:

Mr. K. Dissanayake    (Acting)

Auditors

:

Department of Co-operative Development

Bankers

:

People’s Bank/ Commercial Bank/ Seylan Bank/ Bank of Ceylon

 

 

FINANCIAL DETAILS - Most recent available

Financial Information

     

 

 

Year Ended

31st Dec 2006

’000

Year Ended

31st Dec 2005

’000

A

Revenue

:

1,230,708

494,504

B

 Cost of Sales

:

(1,159,059)

(478,621)

C

Gross Profit

:

71,649

15,883

D

Other Income

 

396,963

9,132

E

Administration Expenses

:

(200,807)

(15,174)

F

Distribution Expenses

:

(221,614)

(18,348)

G

Financing

:

(5,458)

(4,833)

H

Net Profit / (Loss) before Tax

:

40,733

13,340

I

Income Tax (expenses)/  

Release                                                                                                                    

:

-

-

J

Net Profit / (Loss) After Tax:

:

40,733

13,340

 

                                                                 

 

Year Ended

31st Dec 2006

’000

Year Ended

31st Dec 2005

’000

a)

Non-current Assets

:

91,015

90,825

b)

Investment

:

Nil

Nil

c)

Current Assets

:

239,892

90,217

d)

Current Liability

:

324,171

210,173

e)

Non-current liability

:

6,736

29,131

f)

Total Liabilities

:

330,907

181,042

g)

Total Assets

:

330,907

181,042

 

 

CURRENT INVESTIGATION                      

 

History

 

The Subject Company SRI LANKA CONSUMER CO-OPERATIVE SOCIETIES FEDERATION LTD is a Set up by act of parliament Act no 05 of 1972 and under the preview of subsequent Act no 32 of 1983 and Act no 11 of 1992 and additionally under Western Provincial Council.

 

Registered with Commissioner  Department of Co-operative Department. in 15th September 1989. The Subject Company have four subsidiary companies given below.

 

Prima Company Ltd

Unilever Company Ltd

Elephant House Soft Drinks

Watawala Tea Company Ltd

 

Location

The Subject Company is located at the client given address # 11, Saunders Place, Colombo – 12

 

 

 

 

 

 

Operations Details

 

General

The subject company primary line of business is Importers and Distributors of essential commodities through out multi purpose co-operative societies in Sri Lanka.

 

Import Products

All essential commodities

 

Manufacturing and Distributing Products

Packed Items to be distributed through MPCS & Super Markets. 

 

Import Country

India, China, Chilli, Colombia, Brazil, and Turkey.

 

 

Employees

 

The employee strength of the subject company is approximately 200 employees.

 

 

Financial Data

 

Received from Subject Company.

 

                   

General Comments

 

When we contact the Managing Director of the Subject Company responded well to our inquiries and provided background and financial information and as such all information in this report has been obtained 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.

 

 

 

 

 

 

 

 

ANALYSIS & RATING - Appraisal and Rating

of Subject Company

 

Rating:

 

Management Capability              : Average

Commercial Morality                  : Average

Reputation                                 : Average

Market Situation                        : Very Competitive

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

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