MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	M J F TEAS (PVT) LTD
Registered Office :	# 111, Negombo Road, Peliyagoda
Country :	Sri Lanka
Date of Incorporation :	08.02.1995
Com. Reg. No.:	PV 5751
Legal Form :	Private Limited Liability Company
Line of Business :	Manufactures, Exporters, and dealers of Tea
No. of Employees :	30,000

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 :	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 31^st, 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	:	M J F TEAS (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Chairman	:	Merrill J. Fernando
d.	Primary Line of Business	:	Manufactures, Exporters, and dealers of Tea.
e.	Head office & Place of Business	:	#.111, Negombo Road, Peliyagoda, SriLanka. Tel. No: (00 94 11) 482 2000 / 482 2316 Fax No: (00 94 11) 482 2001 E-Mail: info@dilmahtea.com
f.	No. of Employees	:	Approximately 30,000 (Group)

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No	:	N (PVS) 14261
	Date of Registration	:	08^th February 1995
b.	Re-registration No	:	PV 5751
	Date of Re-registration		28^th July 2008
c.	Registered Office	:	# 111, Negombo Road, Peliyagoda, Sri Lanka.
d.	Board of Directors As At 14^th October 2013	:	Merrill J. Fernando		Chairman
			Malik J. Fernando		Director
			D. Chrishantha Fernando		Director
			Himendra Somasiri Ranaweera		Director
			M.D. Anne Perera		Director
e.	Issued Share Capital	:	Rs. 41,428,920.00	Rs. 517,861,100.00
f.	Nominal Value of Share	:	4,142,892 shares @ Rs. 10.00	5,178,611 shares @ Rs. 100.00
	Total No. of Shares	:	9,321,503
	Total Value of Issued Shares	:	Rs. 559,290,020.00

COMPANY DETAILS

Registration and Shareholder Details (Contd…)

h.	Share Holders As At 14^th October 2013	:	Share Holders	No. of Shares
			Malik J. Fernando	02
			D. Chrishantha Fernando	02
			MJF Holdings Ltd	9,321,499
i.	Auditors	:	Ernst & Young
j.	Company Secretaries	:	M.D. Anne Perera
k.	Bankers	:	-Not Disclosed-

Current investigation

History.

The subject company M J F TEAS (PVT) LTD is a Private limited liability Company incorporated in 08^th February 1995 under registration number N (PVS) 14261 and the company has been re-registered on 28^th July 2008 under re-registration number PV 5751 in terms of Companies Act No.7 of 2007.

MJF TEAS (PVT) LTD is a subsidiary company of the MJF Groups which is a well known conglomerate in Sri Lanka and abroad for quality teas. This is a family managed group having tea plantations and several associate companies.

Location.

The Subject Company is located at the client No.111, Negombo Road, Peliyagoda, a town adjoining Colombo city.

Operational Details.

General

The Subject Company, M J F TEAS (PVT) LTD, is a Manufacturer, Exporter and Dealers of Tea.

The subject company is a member of the well known tea Exporting Group named “DILMAH” TEAS in Sri Lanka and abroad under the “DILMAH” brand.

The Group’s Dilmah brand, coined by the Founder from the names of his two sons, Dilhan and Malik, is known for its quality in almost 90 countries around the world.

Products

Varieties of Sri Lankan teas under the Brand Name “DILMAH”

Bulk Tea

White Tea

Gift Tea Pack

Ice Tea

Green Tea

Tea Pack

Export Countries

Worldwide

No of Employees

Approximately 30,000 (Group) in plantations, trading & Productions

Directors Details

01)

Name	Merrill J. Fernando
ID Number	301272286 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	06^th May 1930
Age	83 Years

02)

Name	Malik J. Fernando
ID Number	660374140 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	08^th February 1966
Age	47 Years

03)

Name	D. Chrishantha Fernando
ID Number	681503790 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	28^th May 1968
Age	44 Years

04)

Name	R. Himendra Somasiri
ID Number	470901616 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	30^th March 1947
Age	66 Years

05)

Name	M.D. Anne Perera
ID Number	577170460 V
Nationality	Sri Lankan
Date of Birth	04^th August 1957
Gender	Male
Age	56 Years

Financial Data

The company has declined to provide information on its finances

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with

Limited Liability is not required to make public disclosure of their annual financials.

Therefore no Financials are available for this entity

Trade references

Sri Lanka Tea Board

Sri Lanka Export Development Board

Sri Lanka Chamber of Commerce

The subject company and the Teas- Dilmah are well known in the country.

Credit Recommendations

Since no financial information has been forthcoming from the company, it is not possible to

comment on the merits or otherwise of the company.

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 :

NIS

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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