MIRA INFORM REPORT

 

 

Report Date :

21.02.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

ESTERN MERCHANTS PLC

 

 

Registered Office :

# 341, Union Place, Colombo 02

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

2010

 

 

Date of Incorporation :

21.12.1945

 

 

Com. Reg. No.:

PQ 153

 

 

Legal Form :

Public Limited Liability Company, listed with Colombo Stock Exchange

 

 

Line of Business :

Exporter of traditional and non-traditional commodities

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Sri Lanka

b1

b1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Name of Subject of Inquiry

:

 

ESTERN MERCHANTS PLC

 

Legal Form  & Status

 

:

 

Public Limited Liability Company, listed with Colombo Stock Exchange (In Operation)

Chairman

 :

J. B. L. De Silva

Primary Line of Business

:

Export of traditional and non-traditional commodities

Head Office

:

 

# 341,

Union Place,

Colombo 02,

Sri Lanka.                                                           

 

Tel: (00 94 11) 232 5736

Fax: (00 94 11) 244 8474

 

Email: chiraath@sltnet.lk

 

Stores Complex

:

No.101,

Gonawala Road,

Sapugaskanda,

Maswila,

Ampegama.

No. of Employees

:

Approximately 260

General – basic information at A glance


company details – registration and shareholder details

 

Registration No

:

PQ 153

Date of Registration

:

21st December 1945

Registered Office

:

# 341, Union Place, Colombo 02, Sri Lanka.

Board of Directors

As at

31st March 2010

:

J. B. L. De Silva

Chairman

J. Karunaratne

Managing Director

N. K. L. Tilakaratne

Director

S. A. Chandraratne

Director

H. P. J. de Silva

Director

C. I. Thilakaratne

Director

H. J. de Silva

Director

R. L. Nanayakkara

Director

S. Jayakody

Director

Issued  Share Capital

:

Rs.   118,467,330.00

Nominal Value of Share

:

Rs.  10.00

 

Major Share Holders

As at

31st March 2010

:

Major Share Holders

No. of    Shares

J. B. L. de Silva

462,604

H. J. de Silva

230,102

C. I. Tilakaratna

216,952

C. S. L. de Silva

207,602

N. S. Karunaratne

180,416

Eamel Exports Ltd

100,000

S. de A. Rajapakse

42,000

Auditors

:

DHP Munaweera & Company

Company Secretaries

:

S. Jayakody

Bankers

:

 

HSBC

Seylan Bank

Hatton National Bank

Nation Trust Bank

National Development Bank

 

 

 

FINANCIAL DETAILS - Most recent available Financial Information

 

Income Statement

 

2010

Rs.’000

2009

Rs.’000

A

Revenue

:

3,892,888

2,691,997

B

 Cost of Sales

:

(3,962,586)

(2,604,646)

C

 Gross Profit

:

200,302

87,351

D

Other Income

:

13,809

15,625

 

 

:

214,111

102,976

E

Administration Cost

:

(168,072)

(85,311)

F

Distribution Cost

:

(183)

(207)

G

Other Cost

:

(7,784)

(3,530)

H

Profit from Operation

:

38,072

13,928

I

Finance Expenses

:

(19,879)

(27,493)

J

 

:

18,193

(13,565)

K

Change in fair value of investment property

 

47,503

-

L

Net Profit / (Loss) Before Tax

 

65,696

(13,565)

M

Taxation

:

(3,903)

(1,464)

N

Profit / (Loss) After Tax

:

61,793

(15,029)

 

Balance Sheet

 

2010

Rs.’000

2009

Rs.’000

a)

Non-current Assets

:

827,819

107,754

b)

Investment

:

-

-

c)

Current Assets

:

468,580

178,174

d)

Current Liability

:

429,758

159,702

e)

Non-current liability

:

15,889

16,695

f)

Total Liabilities

:

445,647

176,397

g)

Total Assets

:

1,296,399

285,928

h)

 

Net Worth

 

:

850,752

109,531

 

 

CURRENT INVESTIGATION                      

 

·       History.

 

                  The Subject Company ESTERN MERCHANTS PLC is a Public Limited   Liability Company incorporated on 21st December 1945 under registration number PQ 153.

 

·         Location.

 

The Subject Company is located at the client given address # 341, Union Place, Colombo 02.

 

·         Operational Details.

 

General

                  The subject company primary line of business is Export of traditional and non-traditional commodities

 

Subsidiary Companies

o        Asia Brush (Pvt) Ltd

o        Eamel Exports Limited

 

Products

Tea, Natural Rubber, Desiccated Coconut, Coconut Fibre, Coir Products, Cinnamon and Spices

 

 

Export Countries

European Countries

 

 

No of Employees

       Approximately 250

 

·         Financial Data

 

Financial information obtained from Annual Report of the Subject Company

 

·         Trade references           

 The subject company did not provide any trade references

 

·         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:

a) Business Scale        

Medium

b) Business Trend

Growing

c) Management Capability

Average

d) Commercial Morality

Average

e) Reputation

Average

f) Market Situation

Competitive

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.73.04

Euro

1

Rs.61.43

 

 

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

 

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

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