MIRA INFORM REPORT

Report Date :

17.02.2011

IDENTIFICATION DETAILS

Name :	VIRGIN COCONUT INDUSTRIES (PVT) LTD

Registered Office :	# 23, Ridgeway Place, Colombo -05

Country :	Sri Lanka

Date of Incorporation :	15.09.2006

Com. Reg. No.:	PV 15506

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacture, Export & Distribution of Organic Virgin coconut oil

RATING & COMMENTS

MIRA’s Rating :

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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Information declined by

Name : Mr. J. Ron Corea

Designation : Chairman cum Managing Director

Date : 14.02.2011

Name of Subject of Inquiry	:	VIRGIN COCONUT INDUSTRIES (PVT) LTD
Legal Form & Status	:	Private Limited Liability Company (In Operation)
Managing Director	:	J. Ron Corea
Primary Line of Business	:	Manufacture, Export & Distribution of Organic Virgin coconut oil
Head Office & Place of Business	:	# 23 & 25, Ridgeway Place, Colombo 04, Sri lanka. Tel: +94 11 2504159 Email: info@virgincoconutindustries.com Contact Person: Doreen Jayakoddy Marketing Director Tel: +94 77 3401183 Email: vci@sltnet.lk dorjay@sltnet.lk Factory : Nalawalana, Gonawila
No. of Employees	:	Approx.25

GENERAL- Basic information at a glance COMPANY DETAILS- Registration and Shareholder Details

Registration No	:	N (PVS) 47784
Date of Registration	:	15^th September 2006
Re-Registration No.	:	PV 15506
Date of Re- Registration	:	26^th August 2009
Registered Office	:	# 23, Ridgeway Place, Colombo -05. Sri Lanka
Board of Directors As at 14^th October 2010	:	J. Ron Corea	Managing Director
		E.D. Hyacinth Jayakoddy	Director
Authorised Share Capital	:	Not Applicable
Issued Share Capital	:	Rs. 20.00
Nominal Value of Share	:	Rs. 10.00
Share Holders As at 14^th October 2010	:	Share Holders	No. of Shares
		J. Ron Corea (Australian)	01
		E.D. Hyacinth Jayakoddy	01
Auditors	:	Aiyar & Company
Company Secretaries	:	Business and industrial Consultants (Pvt) Ltd
Bankers	:	-Not Disclosed-

CURRENT INVESTIGATION

Company Logo:

· History.

The Subject Company Virgin Coconut Industries(PVT) Ltd is a

Private Limited Liability Company incorporated on 15^th September, 2006 under

Registration No. N (PVS) 47784 and re-registered in terms of Companies Act.No.7 of

2007 on 26^th August, 2009 under Registration No. PV 1550

· Information of Directors:

01)

Name	J. Ron Corea
Gender	Male
Nationality	Australian
Passport No.	L 91996819
Date of Birth	N/A
Age	N/A
Address	# 23 Ridgeway place, Colombo 4

02)

Name	E.D. Hyachinth Jayakoddy
Gender	Male
Nationality	Sri Lankan
National ID No.	507302955V
Date of Birth	27^th March 1950
Age	60 Years
Address	# 23 Ridgeway place, Colombo 4

· Location:

The Subject Company is located at the client given address # 23, Ridgeway Place, Colombo

04, Sri Lanka, a highly residential and commercial area.

The coconut/ oil processing factory is situated at Nalawalana, Gonawila in the North

Western Province, a predominantly coconut growing area approx. 75 kilo meters from

Colombo.

· Operational Details.

General

The subject company’s primary line of business is production of Organic Virgin Coconut Oils for export and local markets. The Company has been established in 2006.

The company claims having a modern coconut processing plant at Gonawila, in the North Western Province of Sri Lanka, a predominantly coconut growing area. They produce organic virgin coconut oil of the highest quality. Company claims that Quality and safety is predominant in all areas of the operation, starting from the preparation of fresh kernel for dehydration to the end product ready for shipment to meet the prescribed standards as their product conforms to the requirements of both the EU (EEC Regulations 2092/91) and the US (National Organic Program of the USDA).

Organic virgin coconut oil has been proclaimed as one of the healthiest oils that could be used.

The company says that oils are, processed under 40⁰C temperature, colourless and free from any foreign matter or chemicals, none fermented, with fresh taste & fragrance.

The company further states on the medicinal value of the oil as follows:

Reduces risk of atherosclerosis and heart disease
Reduces risk of cancer and other degenerative conditions.
Helps prevent bacterial, viral and fungal infections
Supports immune system function
Helps control diabetes
Provides an immediate source of energy
Supports healthy metabolic function
Improves digestion and nutrient absorption
Supplies important nutrients necessary for good health.
Promotes weight loss
Helps prevent osteoporosis.

Oil can be used as a natural skin lotion topical ointment and hair conditioner and helps in relieving and curing skin conditions.

Products

100% natural organic Virgin Coconut Oils made out of coconuts. They also produce value added oil with herbal root named “Savandara”.

Above: Fresh coconut

Above: Inside of Oil Processing factory

Virgin coconut oil:

Virgin coconut oil with “Savandara” Herbal Root

Contents in oil

No. Parameter ........................................Value
1. Moisture Content ................................00.06%
2. Free Fatty Acid ..................................00.04%
3. Iod Number ........................................06.41 Iod/100g
4. Caproic C6 .........................................00.1%
5. Caprylic C8 ........................................07.3%
6. Capric Acid C10 ..................................06.6%
7. Lauric Acid C12 ..................................50.1%
8. Myristic Acid C14 ................................19.5%
9. Palmitic Acid C16 ................................06.6%
10. Stearic Acid C 18 ..............................01.50%
11. Oleic Acid C18 – 1 .............................05.6%
12. Linoleic C 18 – 2 ...............................02.5%

Exporting Countries

USA, EU, Australia

No of Employees

Approx. 25

· Financial Data

The subject company declined to provide information on its finances.

Further, In Sri Lanka, Private Companies do not publish their Accounts for Public use other than the Shareholders.

· Credit Recommendations

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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.50
UK Pound	1	Rs.73.07
Euro	1	Rs.61.63

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.

Information declined by

GENERAL- Basic information at a glance COMPANY DETAILS- Registration and Shareholder Details

CURRENT INVESTIGATION

Unit