MIRA
INFORM REPORT
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Report Date : |
20.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SRI LANKAN AIRLINES LIMITED |
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Registered Office : |
Airline Centre, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
11.01.1979 |
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Com. Reg. No.: |
PBS 1020 |
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Legal Form : |
Public Limited
Liability Company (In Operation) |
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Line of Business : |
Provide Local and International Scheduled and Non- Scheduled Air
Services for the carriage of passengers, freight and mail, Air Terminal
Services at |
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No. of Employees : |
Approximately 6000 |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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a. |
Name of Subject
of Inquiry |
: |
SRI
LANKAN AIRLINES LIMITED |
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b. |
Legal Form
& Status |
: |
Public
Limited Liability Company (In Operation) |
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c. |
Chairman |
: |
Nishantha
Wickramasinghe |
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d. |
Primary Line of
Business |
: |
Provide
Local and International Scheduled and Non- Scheduled Air Services for the
carriage of passengers, freight and mail, Air Terminal Services at Bandaranaike
International Airport, and Sale of Duty Free Goods on Board |
|
e. |
Head
office |
: |
Sri
Lankan Airlines Ltd, Airline
Centre, Bandaranaike
International Airport, Katunayake, Sri
Lanka. Tel No: (00 94 19) 733 5555 Fax No: (00 94 19) 733 5122 E Mail: ulweb@srilankan.aero |
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f. |
Ticketing
Offices |
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Level 3, East Tower, World Trade Centre, Echelon Square, Colombo 1, Sri Lanka. Tel No: (00 94 19) 733 5500 Fax No: (00 94 19) 733 5314 |
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f |
Ticketing
Offices |
: |
No. 28, Devos Avenue Colombo 4, Sri Lanka. Tel No: (00 94 19) 733 3333 Fax No: (00 94 19) 733 5333 |
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No 16 A, Gamini Mawatha, Galle, Sri Lanka Tel No: (00 94 91) 224 6942 - 3 Fax No: (00 94 91) 224 6944 |
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No 17, Temple Street, Kandy, Sri Lanka Tel No: (00 94 81) 223 2495 Fax No: (00 94 81) 22 2494 |
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No. 250, Dock Yard Road, Trincomalee. Sri Lanka Tel No: (00 94 26)
222 1101/ 11 Fax No: (00 94 26)
222 1101 |
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g. |
Place
of Business/ Operation |
: |
Colombo Bandaranayake International
Airport, Katunayake. Sri Lanka |
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h. |
No.
of Employees |
: |
Approximately
6000 |
COMPANY DETAILS
- Registration and Shareholder Details
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a. |
Registration No |
: |
PBS 1020 |
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Date of
Registration |
: |
11th January 1979 |
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b. |
Re-registration
No |
: |
PB 67 |
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Date of
Re-registration |
: |
09th November 2007 |
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c. |
Registered
Office |
: |
Sri Lankan Airlines Ltd, Airline Centre, Bandaranaike International
Airport, Katunayake, Sri Lanka. |
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d. |
Board Of
Directors As at 28th
October 2011 |
: |
Nishantha
Anthony Wickramasinghe |
Chairman |
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Kapila Chandrasena |
Director |
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Shamindra Punsiri Rajapakse |
Director |
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V. Manilal Fernando |
Director |
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Lakshmi Kumari Sangakkara |
Director |
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Sanath Ukwatte |
Director |
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e |
Auditors |
: |
Ernst & Young |
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f |
Company Secretaries |
: |
Mildred Ruby Peiris |
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g.
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Bankers
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:
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Bank of Ceylon, National Development Bank, Hong
Kong & Shanghai Banking Corporation, Hatton National Bank Sampath Bank, Commercial Bank, Nations Trust Bank Standard Chartered Bank |
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i.
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Issued Share
Capital
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:
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LKR.
5,146,346,300.00 |
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j.
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Nominal Value
of Share
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:
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LKR. 100.00 |
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k.
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Major Share
Holders
As at 31st
March 2011 |
:
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Share Holders |
No. of Shares |
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A.K. Nilmini Rupika
Abeysinghe |
1,464 |
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E.M. Aberathna |
1,773 |
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Indrapala
Abeysinghe |
1,732 |
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Tilakaratne
Abeyatunga |
1,837 |
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V.B. Abeywardene |
1,837 |
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Erathi
Abeysekara |
1,317 |
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P. Kithsiri
Abeyasekara |
1,325 |
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P. Anoma
Abeyasekara |
1,366 |
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Udayasiri
Abeyasekera |
1,309 |
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S.R. Bernad
Fernando |
1,732 |
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FINANCIAL DETAILS
- Most recent
available Financial Information
Income
Statement As at 31st March 2011
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2011 LKR. Million |
2010 LKR. Million |
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A |
Revenue |
: |
77,125.45 |
62,363.58 |
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B |
Cost of Sales |
: |
(73,187.54) |
(62,044.06) |
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C |
Gross
Profit |
: |
3,937.91 |
319.52 |
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D |
Other Income |
: |
4,489.25 |
4,516.99 |
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E |
Sales &
Marketing Cost |
: |
(6,329.48) |
(5,204.39) |
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F |
Administration
Cost |
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(1,817.32) |
(1,778.29) |
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G |
Finance Income |
: |
13.37 |
17.97 |
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H |
Finance &
Other Cost |
: |
(671.48) |
(545.71) |
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I |
Net Profit / (Loss) before Tax |
: |
(377.75) |
(2,673.91) |
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J |
Taxation |
: |
(3.86) |
(24.29) |
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K |
Net Profit / (Loss) After Tax: |
: |
(381.61) |
(2,698.20) |
FINANCIAL DETAILS
- Most recent available Financial
Information
Balance
Sheet As at 31st March 2011
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2011 LKR. Million |
2010 LKR. Million |
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a) |
Non-current
Assets |
: |
19,862.87 |
28,531.75 |
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b) |
Current Assets |
: |
18,276.59 |
15,755.44 |
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c) |
Current
Liabilities |
: |
28,017.97 |
28,244.54 |
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d) |
Non Current
Liabilities |
: |
6,904.67 |
12,444.22 |
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e) |
Total
Liabilities |
: |
34,922.64 |
40,688.76 |
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f) |
Total Assets |
: |
38,139.46 |
44,287.19 |
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g) |
Net Worth |
: |
3,216.82 |
3,598.43 |
Information parted by
(General Details)
Name: Ms.
Hepsy
Designation: Assistant Secretary
Contact: 009419-7335555
Date: 10.09.2012
CURRENT INVESTIGATION
Company Logo
·
History
The Subject Company SRI LANKAN AIRLINES LIMITED is a
Public Limited liability Company incorporated on 11th January 1979 under
registration number PBS 1020 and then the company was re-registered on
09th November 2007 under registration number PB 67.
·
Location.
The Head Office of
the Subject Company is located at Airline Centre, Bandaranaike International
Airport, Katunayake. And approx. 36 kilo meters from Colombo city.
·
Operational
Details.
General
The subsidiary
also added the ISO 14001:2004 certification for Best Environmental
Practices to its
Existing
certifications Of ISO 9001:2008 for Quality Management Systems, ISO
22000:2005 for
Food Safety Management Systems and HACCP-Codex
Alimentarius for Food Safety & Hygiene
Airbus A320-200 - 6 aircraft
Airbus A330-200 - 5 aircraft
Airbus A340-300 - 6 aircraft
De
Havilland Twin Otter - 2 aircraft
Awards:
SriLanka has
consistently achieved very high marks for excellence, especially in polls
of global travelers. The awards
include:
- World’s Best Airline in a survey of Economy
Class passengers
- World’s
Friendliest Cabin Staff - Skytrax
- World’s
Most Reliable Operator of Airbus A330s (small fleet) - Airbus Industrie.
- World’s Most Reliable Operator of Airbus A340s
(small fleet) - Airbus Industrie.
- First Runner-up for World’s Best Cabin Staff –
Skytrax
- Best Airline in South Asia (3 consecutive
times) from Travel Trade Gazette k
- Best Airline in Central Asia (4 consecutive
times) - Skytrax
- Best Overall In -flight Entertainment (small
fleet), twice – World Airline Entertainment Association
- Best Airline Turnaround of the Year 2004 –
Centre for Asia Pacific Aviation
- Galileo Indian Express Award for Best
Eastbound International Airline
- Runner –up for Best Asian Airline in Survey by
UK’s Daily Telegraph
- Imperial Mark in recognition of exceptional of
services, luxury and quality
- PATA Gold Award 2007 for Best Airline
Marketing Campaign
- Airline of the year 2008 and 2009 – Sri Lanka
Presidential Travel & Tourism Awards
Countries
Servicing:
At present
SriLanka is flying to 33 countries in Europe, Middle East, South Asia, Far East
covering 52 destinations such as London, Paris, Frankfurt, Milan, Beijing,
Bangkok, Singapore, Kuala Lumpur, Delhi, Male, Tokyo, Dubai etc.
Employees
Approximately 6000.
·
Financial Data
The financial
information has been obtained from Subject Company’s Annual Report .for
2010/2011.
·
General Comments
All operational and financial
information of the subject company are provided in their Annual Report of 2010/
2011.
·
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.54.26 |
|
|
1 |
Rs.88.14 |
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Euro |
1 |
Rs.71.03 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.