MIRA INFORM REPORT

 

 

Report Date :

17.07.2013

 

IDENTIFICATION DETAILS

 

Name :

CEYLON ELECTRICITY BOARD

 

 

Registered Office :

# 50, Sir Chittampalam A. Gardiner Mawatha, Colombo 02

 

 

Country :

Sri Lanka.

 

 

Financials (as on) :

2010

 

 

Date of Incorporation :

Under Act of Parliament by way of the Ceylon Electricity Board Act No. 17 of 1969.

 

 

Legal Form :

A body corporate established in Sri Lanka under an act of Parliament No 17 of 1969 as amended by act Nos.31 of 1969 ,29 of 1979 and 32 of 1988.

 

 

Line of Business :

Supply of Electricity Power (Hydro, thermal & other)  to the entire country

 

 

No. of Employees :

Approximately 15,000

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam (LTTE). The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. 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 with the end of the war and an IMF agreement, resulting in two straight years of 8% growth in 2010-11. Growth moderated to about 6% in 2012. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern. Strong remittances from Sri Lankan workers abroad have helped to offset the trade deficit.

Source : CIA

GENERAL

- Basic information at a glance

     

a.

Name of Subject of Inquiry

:

CEYLON ELECTRICITY BOARD

b.

Legal Form  & Status

:

A body corporate established in Sri Lanka under an act of Parliament No 17 of 1969 as amended by act Nos.31 of 1969 ,29 of 1979 and 32 of 1988.

c.

Chairman

:

Professor Wimaladharma Abeywickrama

d.

Primary Line of Business

:

 

Supply of Electricity Power (Hydro, thermal & other)  to the entire country

 

e.

 

Head office

 

:

 

 

# 50, Sir Chittampalam A. Gardiner Mawatha,

Colombo 02.

Sri Lanka.

 

Tel. No: (00 94 11) 232 4471 – 8

Fax No: (00 94 11) 244 9572

 

E mail: dgmegp@ceb.lk

 

f.

Power Plant

:

 

 

Generation Headquarters,

New Kelani Bridge Road,

Kolonnawa.

 

Tel No: (00 94 11) 243 4197

Fax No: (00 94 11) 244 5686

 

g.

No. of Employees

:

Approximately 15,000

           

 

          

COMPANY DETAILS

- Registration and Shareholder Details

 

a.

Date of Registration

:

Under Act of Parliament by way of the

Ceylon Electricity Board Act No. 17 of 1969.

b.

Board Of Directors

As at

31st March 2012

:

W.B. Ganegala

Chairman

Anura Senaka Wijayapala

Vice Chairman

Nihal Wickremasuriya

General Manager

P.P. Gunasena

Working

Director

Dr.B.M.S. Batagoda

Director

W.D. Jayasinghe

Director

c

Secretary

:

Dr. Y.D. Nihal Jayathilake

d.

Auditors

:

Auditor- General 

e.

Banks

:

People’s Bank

Bank of Ceylon

Commercial bank

NTB

 

 

FINANCIAL DETAILS

- Most recent available Financial Information

                     

 

2010

Rs. Million

2009

Rs. Million

2008

Rs. Million

 2007

Rs. Million

A

Revenue

:

 

 

 

 

B

 Cost of Sales

:

 

 

 

 

C

 Gross Profit / (Loss)

:

 

5,694

 

(7,352)

 

(34,426)

 

(20,780)

D

Other Operating Income

:

 

3,621

 

4,273

 

 

3,581

 

9,205

E

Transmission & Distribution Cost

:

 

 

 

 

F

Others

:

 

 

 

 

G

Administrative Expenses

:

 

(1,647)

 

(2,855)

 

(1,487)

 

(1,534)

H

Profit/(Loss) from Operating Activities

:

 

5,062

 

(9,008)

 

(33,869)

 

(14,812)

I

Finance Cost

:

 

 

 

 

J

Amortization of Goodwill

:

 

 

 

 

K

Loss Before Tax

:

 

 

 

 

L

 

Income Tax Expense

:

 

 

 

 

 

M

 

Loss After Tax

 

 

4,047

 

(10,207)

 

(35,913)

 

(22,314)

 

N

 

Minority Interest

 

 

 

 

-

 

-

 

O

 

Loss for the Year

 

 

 

 

 

 

 

                                    

                                                                                                                  

 

2010       

Rs. Million

2009

Rs. Million

2008

Rs. Million

 2007

Rs. Million

a)

Non-current Assets

:

 

 

 

 

b)

Current Assets

:

 

 

 

 

c)

Non Current Liabilities

:

 

        228,925

 

141,883

 

110,419

 

94,774

d)

Current Liabilities

:

 

         89,263

 

98,801

 

84,700

 

47,189

e)

Total Liabilities

:

 

 

 

 

f)

Total Assets

:

 

         605,423

 

 

516,257

 

 

465,296

 

417,610

g)

 

Net Worth

 

:

 

 

 

 

 

 

Income Statement

 

2010

Rs. Million

2009

Rs. Million

2008

Rs. Million

 2007

Rs. Million

 2006

Rs. Million

Turnover

121,862

110,518

111,287

87,575

69,941

Direct Cost

(116,168)

(117,871)

(145,713)

(108,355)

(81,733)

Gross Profit (Loss)

5,694

(7,352)

(34,426)

(20,780)

(11,792)

Administration

Expenses

 

(1,647)

 

(2,855)

 

(1,487)

 

(1,534)

 

(2,383)

Operation (Profit Loss)

4,047

(10,207)

(35,913)

(22,314)

(14,175)

 

Other Income

3,621

4,273

 

3,581

9,205

9,572

Interest Charges

(2,605)

(3,073)

(1,537)

(1,703)

 

(1,521)

Profit (Loss) before

Taxation

5,062

(9,008)

(33,869)

(14,812)

(6,124)

 

 

Balance Sheet

 

 

2010       

Rs. Million

2009

Rs. Million

2008

Rs. Million

 2007

Rs. Million

 2006

Rs. Million

Total Assets

 

605,423

516,257

 

 465,296

 417,610

355,035

 

Capital and Reserves

 

287,235

275,573

 

 270,176

 275,648

 245,520

Non-Current

Liabilities

228,925

141,883

 110,419

 94,774

 70,884

Current Liabilities

 

89,263

98,801

 84,700

 47,189

 38,630

 

Current investigation

 

                           

                           Company Logo

 

·         History.

                  The Subject Company, CEYLON ELECTRICITY BOARD (CEB), is a state owned company supplying of electricity to the whole Island. It was originally known as the “DEPARTMENT OF GOVERNMENT ELECTRICAL UNDERTAKING” and was converted to CEYLON ELECTRICITY BOARD under the Ceylon Electricity Board Act No. 17 of 1969. The board is under a statutory duty to develop and maintain an efficient, co-ordinated and economical system of electricity supply.

The Ceylon Electricity Board (also abbreviated as CEB), is the largest electricity company in Sri   Lanka. With a market share of nearly 100%, it controls all major functions of electricity generation, transmission, distribution and retailing in Sri Lanka. It is one of the only two on-grid electricity companies in the country; the other being Lanka Electricity Company. The company earned approximately LKR110.9 billion in 2008, with a total of nearly 4.1 million consumer accounts.

Opened in 1969, the company now has a total installed capacity of 2,684 MW, of which approximately 1,290 MW is from thermal energy, and 1,207 MW is from hydroelectricity. Due to low wind resource, rough terrain and poor road conditions in Sri Lanka, CEB owns only one3 MW wind farm in Hambantota, known as the Hambantota Wind Farm. The farm consists of five turbines, measuring 600 KW each. CEB also manages numerous hydroelectric dams such as the Victoria Dam, and power plants such as the Norocholai Coal Power Station.

 

·         Location.

                  The Subject Company is located at client given address # 50, Sir Chittampalam A. Gardiner 

                  Mawatha,Colombo 02, Sri Lanka.

 

 

·         Operational Details.

 

General

 

                  The CEB is under a statutory duty to develop and maintain an efficient, Co-ordinated and economical system of Electricity Supply. It is also the duty of the Board to generate or acquire supplies of electricity; to construct, maintain and operate the necessary works for the generation of electricity by all means, to construct, maintain and operate the necessary works for the inter-connection of Generating Stations and Sub-stations and for the transmission of electricity in bulk From Generating Stations and Sub-stations to such places as may be necessary from time to time To distribute and sell electricity in bulk.

                  Ceylon Electricity Board (CEB) recently filed the estimated costs for the supply of electricity for   

                  The year 2013, with the Public Utilities Commission of Sri Lanka. These estimated costs include   

                  Cost of Generation, Transmission, Distribution and other related costs for the supply of   

                  Electricity. The Commission will assess the validity of such cost estimates filled by the CEB.      

                  Further, the Commission will analyze whether, the prevailing electricity tariffs are not sufficient   

                  To recover the estimated expenditure of the CEB, or whether additional Government subsidies          

                  Are required to cover such expenses.

                  The CEB has estimated its expenses for the year 2013 as Rs. 268 billion. The Commission is in  

                   The process of assessing these estimates. The Commission will study whether these estimates  

                   Presented by the CEB are compiled in line with the approved tariff methodology. The  

                  Commission will also take into account the applicability and accuracy of these estimated costs

  

                 

 

              

 

·         Country

Sri Lanka

 

·         Employees

                  The employee strength of the subject company approximately 15,000 employees.

.

·         Trade references

The Government of Sri Lanka – Ministry of Power & Energy

 

 

·         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.59.39

UK Pound

1

Rs.89.89

Euro

1

Rs.77.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

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