MIRA INFORM REPORT

 

 

Report Date :

09.11.2013

 

IDENTIFICATION DETAILS

 

Name :

EASTERN MERCHANTS PLC

 

 

Registered Office :

# 341, Union Place, Colombo 02

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

21.12.1945

 

 

Com. Reg. No.:

PQ 153

 

 

Legal Form :

A public quoted company with limited liability incorporated in Sri Lanka

 

 

Line of Business :

Export of Traditional and Non-Traditional Commodities.

 

 

No. of Employees :

Approximately 200

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

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

 

1) GENERAL 

 

- Basic information at a glance

a.

Name of Subject of Inquiry

:

EASTERN MERCHANTS PLC

 

b.

Legal Form  & Status

 

:

 

A public quoted company with limited liability incorporated in Sri Lanka and listed with the Colombo Stock Exchange (In Operation)

c.

Chairman

 :

J. B. L. De Silva

d.

Primary Line of Business

:

Export of traditional and non-traditional commodities

e.

Head Office

:

 

# 341,Union Place,

Colombo 02,

Sri Lanka.                                                           

 

Tel: (00 94 11) 232 5736

Fax: (00 94 11) 244 8474

 

Email: chiraath@sltnet.lk

 

f.

Stores Complex

:

#.101,

Gonawala Road,

Sapugaskanda,

Maswila,

Ampegama.

f.

No. of Employees

:

Approximately 200

 

 

2) COMPANY DETAILS

- Registration and Shareholder Details

 

 

a.

Registration No

:

PQ 153

b.

Date of Registration

:

21st December 1945

c.

Registered Office

:

# 341, Union Place, Colombo 02, Sri Lanka.

d.

Board of Directors

As at

31st March 2013

:

J. B. L. De Silva

Chairman

A. Karunaratne

Managing Director

N. K. L. Tilakaratne

Director

S. A. Chandraratne

Director

H. P. J. de Silva

Director

C. I. Thilakaratne

Director

H. J. de Silva

Director

R. L. Nanayakkara

Director

S. Jayakody

Director

C.S.L.De Silva

Director

I.P. De Zoysa

Director

T. De Zoysa

Director

e.

Issued  Share Capital

:

Rs.1,174,460,000.00  

f.

Nominal Value of Share

:

Rs.10.00

 

h.

Major Share Holders

As at

31st March 2013

:

Major Share Holders

No. of    Shares

J. B. L. de Silva

32,382,280

H. J. de Silva

16,121,140

C. I. Tilakaratna

15,186,640

C. S. L. de Silva

14,581,140

N. S. Karunaratne

12,629,120

Eamel Exports Ltd

    6,103,400

S. de A. Rajapakse

2,940,000

i.

Auditors

:

Messrs. D.H.P. Munaweera and Co.

j.

Company Secretaries

:

S. Jayakody

k.

Bankers

:

HSBC

Seylan Bank

Hatton National Bank

Nation Trust Bank

National Development Bank

DFCC Bank PLC

 

 

 

3) FINANCIAL DETAILS

- Most recent available Financial Information

 

Description: New Picture (1)

 

Description: New Picture (1)

 

4) CURRENT INVESTIGATION

 

                                                           Company Logo

                                                               Description: New Picture

                                                             

·         History.

 

                  The Subject Company EASTERN MERCHANTS PLC is a Public Limited   Liability Company incorporated on 21st December 1945 under registration number PQ 153. (Listed with the Colombo Stock Exchange)

 

·         Location.

 

The Subject Company is located at the client # 341, Union Place, Colombo 02.

 

·         Operational Details.

 

General

                  The subject company primary line of business is Export of traditional and non-traditional commodities

 

Subsidiary Companies

o    Asia Brush (Pvt) Ltd

o    Eamel Exports Limited

o    Asian Wood ware Company (Pvt) Ltd

 

Products

Tea, Natural Rubber, Desiccated Coconut, Coconut Fibre, Coir Products, Cinnamon and Spices

 

Export Countries

European Countries

 

No of Employees

                 Approximately 200

 

·         Financial Data

 

Financial information obtained from Annual Report of the Subject Company

 

·         Trade references

 

Ceylon Chamber of Commerce

 

 

·         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.62.73

UK Pound

1

Rs.100.92

Euro

1

Rs.84.06

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.