MIRA INFORM REPORT

 

 

Report Date :

26.10.2012

 

IDENTIFICATION DETAILS

 

Name :

CEYLON AGRO – INDUSTRIES LTD

 

 

Registered Office :

# 346, Negombo Road, Seeduwa

 

 

Country :

Sri lanka

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

19.10.1989

 

 

Com. Reg. No.:

PB 93

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacture and supply of a range of wheat and poultry based, value added food products

 

 

No. of Employees :

Approximately 1,000 employees

 

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 :

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Sri lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Sri Lanka - ECONOMIC OVERVIEW

 

Sri Lanka continues to experience strong economic growth, driven by large-scale reconstruction and development projects following the end of the 26-year conflict with the LTTE. Sri Lanka is pursuing a combination of government directed policies, private investment, both foreign and domestic, to spur growth in disadvantaged areas, develop small and medium enterprises, and increase agricultural productivity. The government struggles with high debt interest payments, a bloated civil service, and historically high budget deficits. However recent reforms to the tax code have resulted in higher revenue and lower budget deficits in recent years. The 2008-09 global financial crisis and recession exposed Sri Lanka's economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded strongly with the end of the war and an IMF agreement, resulting in two straight years of high growth in 2010 and 2011. Per capita income of $5,600 on a purchasing power parity basis is among the highest in the region.

 

 

Source : CIA

 

 

gENERAL

Basic information at a glance

       

Name of Subject of Inquiry

:

CEYLON AGRO – INDUSTRIES LTD

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

Managing Director

:

Primus Cheng Chih Kwong                             

Primary Line of Business

:

Manufacture and supply of a range of wheat and poultry based, value added food products

Place of Business

:

 

# 346 Negombo Road,

Seeduwa,

Sri Lanka.

 

Tel. No: (00 94 11) 225 3527

Fax No: (00 94 11) 225 3537

 

Email: info.cai@prima.com.lk

 

No. of  Employees

:

Approximately 1,000

           

 

COMPANY DETAILS 

Registration and Shareholder Details

 

Registration No

:

N (PBS) /CGB 7

Date of Registration

:

19th October 1989

Re-registration No

 

PB 93

Date of Re-registration

 

10th December 2007

Registered Office

:

# 346, Negombo Road, Seeduwa, Sri Lanka.

Board of Directors

As At

17th May 2012

:

Primus Cheng Chih Kwong

Managing Director

Tan Beng Chuan

Director

P. A. Susantha Athula Kumara

Director

A. Rajanygam Malliah

Director

Ramanujam Prathap

Director

Kong Young Yeo

Director

Issued Share Capital

:

Rs.   1,059,625,630.00

 

Nominal Value of Share

:

Rs.                       10.00

 

Major Share Holders

As At

     17th May 2012

 

 

                   Major Share Holders

No. of Shares

 

Ceylon  grain elevators Ltd

22,831,718

 

Free Lanka Trading Company Ltd

 1,668,282

 

Progo Agro Industries (Pvt) Ltd

30,000,000

 

Auditors

:

Price Water House Cooper

 

Company Secretaries

:

SSP Corporate Services (Pvt) Ltd

 

Bankers

:

Hatton National Bank, Seylan Bank, Bank of Ceylon, National Development Bank

 

 

 

FINANCIAL DETAILS

Most recent available Financial Information

 

Income Statement

For the year ended 31st December

 

 

Year ended

31st December 2011

Rs’000

 

Year ended

31st December 2010

Rs’000

 

A

Revenue

:

3,372,059

2,652,180

B

 Cost of Sales

:

(2,159,481)

(1,634,273)

C

 Gross Profit

:

1,212,578

1,017,908

D

Other Operating Income

:

24,368

889

E

Administration Cost

:

(304,018)

(256,599)

F

Distribution Cost

:

(524,276)

(432,932)

G

Finance Income

:

13,496

9,620

G

Finance & Other Cost

:

(5,814)

(19,223)

H

Net Finance Income

:

7,681

(9,603)

I

Net Profit / (Loss) before Tax

:

416,334

319,663

J

Taxation

:

(10,031)

(13,465)

K

Net Profit / (Loss) After Tax:

:

406,303

306,198

 

Balance Sheet

As at 31st December

 

 

As At

31st December 2011

Rs’000

 

As At

31st December 2010

Rs’000

a)

Non-current Assets

:

1,649,729

1,317,451

c)

Current Assets

:

893,783

931,777

d)

Current Liability

:

1,046,485

1,015,641

e)

Non-current liability

:

185,355

37,416

f)

Total Liabilities

:

1,231,840

1,053,057

g)

Total Assets

:

2,543,512

2,249,229

h)

 

Net Worth

 

:

1,311,672

1,196,172

 

 

CURRENT INVESTIGATION 

 

·         History.

 

The Subject Company CEYLON AGRO – INDUSTRIES LTD is a Private    Limited   liability Company incorporated in 19th October 1989 under registration number N (PBS) /CGB 7 and then the company was re-registered on 10th December 2007 under registration number PB 93.

 The subject company is a member company of the Prima Group.

The Subject Company Ceylon Agro–Industries Ltd was formerly a Government of Sri Lanka owned Corporation under the name and style of Ceylon Oils and Fats Corporation and subsequent to its privatization, changed its name to the present Ceylon Agro–Industries Ltd. 

·         Location.

 

The Subject Company is located at the client # 346, Negombo Road, Seeduwa.

 

 

·         Operational Details.

 

General

 

                  The subject company primary line of business is Manufacture and supply of a range of wheat and poultry based, value added food products.

                  The subject company has earned certified by ISO 9001:2000, HACCP, SLS, HALAAL

 

 The subject company core business is divided into four main areas are:

·         Wheat based products

·         Poultry based products

·         Trading products

·         Agricultural products

 

 

 

Country

Main Markets: * North America
* South America
* Western Europe
* Eastern Europe
* Eastern Asia
* Southeast Asia
* Middle East
* Africa
* Oceania

 

Clients

SriLankan Airlines, KFC, McDonalds, Prima Kottu Mee

 

Employees

                   Approximately 1,500

 

·         Financial Data

Received from subject company annual report

 

·         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.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.63

UK Pound

1

Rs.86.18

Euro

1

Rs.69.75

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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

----

NB

New Business

----

 

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.