MIRA INFORM REPORT

           

 

 

Report Date :

18.05.2013

 

IDENTIFICATION DETAILS

 

Name :

ROYAL CERAMICS LANKA PLC

 

 

Formerly Known as:

ROYAL CERAMICS LANKA LTD

 

 

Registered Office :

# 10, R A. de Mel Mawatha, Colombo 03

 

 

Country :

Sri Lanka

 

 

Financials (as on) : 

2012

 

 

Date of Incorporation :

29.08.1990

 

 

Com. Reg. No.:

PQ 125

 

 

Legal Form :

Public Limited Liability Company - quoted on the Colombo Stock Exchange  (In operation)

 

 

Line of Business :

Manufacturers, Distributors and Exporters of Porcelain & Ceramic Floor Tiles

 

 

No. of Employees :

Approximately 1500

 

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

 

 

 

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

 

Name of Subject of Inquiry

:

ROYAL CERAMICS LANKA PLC

Legal Form  & Status

:

Public Limited Liability Company - quoted on the Colombo Stock Exchange  (In operation)

Chairman

:

A M Weerasinghe

Primary Line of Business

:

Manufacturers, Distributors and Exporters of Porcelain & Ceramic Floor Tiles

Head office

:

 

# 10, R A. de Mel Mawatha,

Colombo 03.

 

Tel. No: (00 94 11) 479 9400

Fax No: (00 94 11) 472 0077

 

E Mail: ho.gen@rcl.lk

 

Factory No 1

:

 

Baduwatte,

Eheliyagoda.


Tel: (00 94 36) 225 8872, 258 8873
Fax: (00 94 36) 225 8181


Email: rclfct@diamond.lanka.net   

 

Factory No. 2

:

 

Millewa Road,

Thuduwa,

Horana.


Tel: (00 94 34) 428 5085

Fax: (00 94 34) 226 1894

Show Room

:

 

# 51/1, Fife Road,

Colombo 5.

 

Tel: 11-4521700, (94) 11-4510802
Fax: 94) 11-2508945, (94) 11-2508946

 

E-Mail: langres@sri.lanka.net

 

No. of Employees

:

Approximately 1500

 

 

COMPANY DETAILS 

Registration and Shareholder Details

 

Registration No

:

N (PVS/PBS) 6743

Date of Registration

:

29th August 1990

Re-registration No

 

PQ 125

Date of Re-registration

 

13th March 2008

Registered Office

:

# 10, R A. de Mel Mawatha, Colombo 03

Board of Directors

 As At

31st December 2012

:

A. M. Weerasinghe

Chairman

K. D. D. Perera

Deputy Chairman

W. D. N. H. Perera

Managing

Director

T. G. Thoradeniya

Director

R B Thambiayah

Director

L T Samarawickrema

Director

M D S Goonatilleke

Director

G A R D Prasanna

Director

R N Asirwatham

Director

Auditors

:

Ernst & Young

Company Secretaries

:

P W Corporate Secretarial (Pvt) Ltd.   

Bankers

:

Commercial Bank of Ceylon Ltd., Hatton National Bank Ltd.

Seylan Bank Ltd, Standard Chartered Bank Ltd, Sampath Bank Ltd, Pan Asia Banking Corporation Ltd

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information 

 

New Picture

New Picture

 

Current investigation

                                   

                                                                  http://www.cse.lk/cmt/upload_logo/683_1282729788.jpeg

                                                                  Company Logo

 

·         History.

 

                  The Subject Company ROYAL CERAMICS LANKA PLC is a Public Limited   liability Company incorporated on 29th August 1990 under registration number N (PVS/PBS) 6743 and then company was re-registered on 13th March 2008 under registration number PQ 125.

 

                  Originally the Subject Company known as ROYAL CERAMICS LANKA LTD, but when the company was quoted on the Colombo Stock Exchange the company name was changed to ROYAL CERAMICS LANKA PLC

 

The subject company having 3 subsidiary companies known as:-

 

1)     Rocell Bathware (Pvt) Ltd

2)     Royal Porcelain (Pvt) Ltd

3)     Royal Ceramics Distributors (Pvt) Ltd

4)     Ever Paint and Chemical Industries (Pvt) Ltd

 

·         Location.

 

The Subject Company is located at the client # 10, R A. De Mel Mawatha, Colombo 03.

 

The company has 43 showrooms located in various parts of the country through which it retails its products.

 

·         Operational Details.

 

General

                  The subject company primary line of business is Manufacturers, Distributors and Exporters of Porcelain & Ceramic Floor Tiles.

 

                   Royal Ceramics Plc, a unit of Sri Lanka's Vallibel group has bought control of Lanka  

                   Ceramics group 2.9 billion rupees. A controlling 79 percent stake in Lanka Ceramic and four   

                   Subsidiaries which included Horana Plantations was bought for 2.9 billion rupees. With Lanka   

                   Ceramic units Lanka Tiles and Lanka Wall tiles under its umbrella the Royal Ceramics   

                    Group.

 

The subject company is a well known Porcelain & Ceramic Tiles manufacturing company in Sri Lanka the brand name it uses in marketing in Sri Lanka is “ROCELL”

 

Products

Porcelain & Ceramic Floor Tiles.

 

Export Countries

Canada, Singapore, Japan, the Middle East and Australia.

 

Employees

                   Approximately 1500

 

 

·         Financial Data

Received from their Annual report.

 

·         Trade references

Not Available

 

·         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.54.89

UK Pound

1

Rs.83.66

Euro

1

Rs.70.58

 

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%)

 

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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.