MIRA INFORM REPORT

 

 

Report Date :

19.04.2014

 

IDENTIFICATION DETAILS

 

Name :

M. D. GUNASENA & COMPANY (PVT) LIMITED

 

 

Registered Office :

#. 217, Olcott Mawatha, Colombo-11

 

 

Country :

Sri Lanka

 

 

Date of Incorporation :

18.12.1945

 

 

Com. Reg. No.:

PV 8212

 

 

Legal Form :

Private Limited Liability Company  (In Operation)

 

 

Line of Business :

Printing, Selling and Distribution of Book, Periodicals, Magazines and stationery

 

 

No. of Employees :

Approximately 500 (Group)

 

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 :

Unknown

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, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Sri Lanka

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. 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. 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, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.

 

Source : CIA

 

 

 

 

GENERAL

 

Basic information at a glance

     

a.

Name of Subject of Inquiry

:

 M. D .GUNASENA & COMPANY (PVT) LIMITED

b.

Legal Form  & Status

:

Private Limited Liability Company  (In Operation)

c.

Chairman 

:

M.D. Percy Gunasena

d.

Primary Line of Business

:

Printing, Selling and Distribution of Book, Periodicals, Magazines and stationery

e.

Head office

&

Place of Business

 

:

 

#.217,

Olcott Mawatha,

Colombo-11,

Sri Lanka.

         

Tel. No: (00 94 11) 232 3981-4

Fax No: (00 94 11) 232 3336

E-Mail : headoffice@mdgunasena.com

 

g.

No. of Employees

:

Approximately 500 (Group)

                       

 

COMPANY DETAILS 

 

Basic information at a glance

 

a.

Registration No

:

PVS 296

Date of Registration

:

18th  December 1945

b.

Re-registration No

:

PV 8212

Date of Re-registration

:

16th  October 2008

c.

Registered Office

:

 #. 217, Olcott Mawatha,Colombo-11

d.

Board of Directors

As At

10th  October 2013

:

M.D. Percy Gunasena 

Chairman

M.D. Ananda Gunasena

Director

M.D. Rajiv Gunasena

 Director

M.D. Chandra Tennekoon (Ms)

Director

M.D. Himali Senanayake (Ms)

Director

M.D. Santha Ravindri Tennekoon (Ms)

Director

e.

Issued Share Capital

:

Rs.        1,000,000.00  (Total No. of Shares: 10,000)

f.

Nominal Value of Share

:

Not stated vide Companies Act #7 of 2007

 

 

Registration and Shareholder Details

 

g.

 

Major Share Holders

As At

10th  October 2013

:

Major Share Holders

No. of

Shares

M.D. Gunasena Corporation Limited

6,535

M.D. Percy Gunasena

650

M.D. Ananda Gunasena

350

M.D. Chandra Tennekoon (Ms)

200

M.D. Himali Senanayake (Ms)

200

M.D. Santha Ravindri Tennekoon (Ms)

100

M.D. Prian Gunasena

387

M.D. Sepala Gunasena

275

h.

Auditors

:

B.R. De Silva and Company

i.

Company Secretaries

:

Shirley Ganegoda Associates

j.

Bankers

:

Not Disclosed

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information

 

    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

                                                                       

 

CURRENT INVESTIGATION

                                                           

Company Logo

 

History.  

 

The Subject Company M D GUNASENA AND COMPANY LIMITED is a Private     Limited   liability Company incorporated on 18th December 1945 under registration number PVS 296 and  the company was re-registered on 16th October 2008 under registration number PV 8212, in terms of Companies Act No.7 of 2007.

 

M D GUNASENA AND COMPANY LIMITED is a Publisher, Printer and Bookseller based in Sri Lanka. The Company was established in 1913 and today has become the market leader with 17 Retail outlets and 50 franchise agents. Island wide. Ever since its inception in 9 decades ago they have sought to widen the boundaries of knowledge and education Sri Lanka. M D GUNASENA AND COMPANY LIMITED is the leading bookseller in Sri Lanka. They currently operate twenty bookshops strategically located to better serve island wide customer base. All bookstores feature commitment, to provide a better service to customers, together with an in-depth selection and a comfortable environment conducive to reading. They are open seven days a week and all stores carry a wide selection of books, audio CDs, DVDs/videos, toys, magazines and stationery. On 1st February 2010 they launched online bookstore, to reach customers across the globe.

 

Location.

The Head Office of the Subject Company is located at the client #.217, Olcott Mawatha, Colombo-11.

 

Operational Details.

 

General  

The subject company primary line of business is Printing, Selling & Distribution of Books, Magazines, Periodicals, and Stationery etc.

 

Products

Books, Magazine, Stationery Printed tags, printed boxes, printed leaflets, printed stickers, display units, printed cards, printed label

 

No of Employees

Approximately 500 (Group)

                  

Directors Details

01)

Name

M.D. Percy Gunasena

ID Number

 330230185V

Nationality

Sri Lankan

Gender

Male

Date of Birth

23rd  January 1933

Age

 81 Years

 

02)

Name

M.D. Ananda Gunasena

ID Number

413070155 V

Nationality

Sri Lankan

Gender

Male

Date of Birth

2nd  November 1941

Age

73 Years

 

03)

Name

M.D. Rajiv Gunasena

ID Number

 690342812V

Nationality

Sri Lankan

Gender

Male

Date of Birth

3rd  February 1969

Age

45 Years

 

04)

Name

M.D. Chandra Tennekoon

ID Number

 395061666V

Nationality

Sri Lankan

Gender

Female

Date of Birth

6th  January 1939

Age

75 Years

 

05)

Name

M.D. Himali Senanayake

Nationality

Sri Lankan

Gender

Female

Address

110/5, Cumaratunga Munidasa Mawatha, Colombo-03

 

06)

Name

M.D. Santha Ravindri Tennekoon

Nationality

Sri Lankan

Gender

Female

Address

76, Cumaratunga Munidasa Mawatha, Colombo-03

 

Associate Companies in the Group:

M D Gunasena & Company (Printers) Pvt Ltd

M D Gunasena Corporation Ltd   

 

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

The subject company did not provide any trade reference referrals

 

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.

 

 

ANALYSIS - Appraisal of Subject Company

 

a) Business Scale        

Medium

b) Business Trend

Growing

c) Management Capability

Above Average

d) Commercial Morality

Above Average

e) Reputation

Above Average

f) Market Situation

Competitive

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.38

UK Pound

1

Rs.101.63

Euro

1

Rs.83.57

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NNA

 

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.