MIRA
INFORM REPORT
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Report Date : |
19.08.2014 |
IDENTIFICATION DETAILS
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Name : |
LANKA ALUMINIUM INDUSTRIES PLC |
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Registered Office : |
01st Floor, Lakshman’s Building, |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
11.03.1983 |
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Com. Reg. No.: |
PQ 187 |
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Legal Form : |
Public Limited Liability Company (In Operation) Listed in Colombo Stock Exchange |
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Line of Business : |
Manufacture and sale of Aluminium Extrusions |
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No. of Employees : |
225 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No complaints |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Sri Lanka |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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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
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Source
: CIA |
GENERAL - Basic information at a glance
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a. |
Name of Subject of
Inquiry |
: |
LANKA ALUMINIUM INDUSTRIES PLC |
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b. |
Legal Form & Status |
: |
Public Limited Liability
Company (In Operation) Listed in Colombo Stock Exchange |
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c. |
Chairman |
: |
S. T. Nagendra. |
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d. |
Primary Line of
Business |
: |
Manufacture and sale of Aluminium Extrusions |
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e. |
Head Office |
: |
# 1st Floor, Lakshman's Building, Tel: (00 94
11) 256 5951-3 / 550 3300 Fax: (00 94
11) 257 6944/ 550 3381 Email: sales@lanka-aluminium.com |
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Factory |
: |
# 20, Temple Road , Ekala, Ja-Ela Tel No: (00 94 11) 223 6941 – 4 / 535 4700-1 |
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Sales & Service Centre |
: |
547 1/A, Sri Sangaraja Mawatha, Colombo 10 Tel/Fax No: (00 94 11) 238 8216 |
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f. |
No. of Employees |
: |
Approximately 170 (
Group 200) |
COMPANY DETAILS - Registration and
Shareholder Details
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a. |
Old Registration
No |
: |
N
(PVS) PBS 321 |
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Date of
Registration |
: |
11th
March 1983 |
||
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b |
New
Re-registration No |
: |
PQ
187 |
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Date of
Re-registration |
: |
20th
August 2008 |
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c. |
Registered Office |
: |
01st
Floor, Lakshman’s Building, # 321, Galle Road, Colombo 03 |
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d. |
Board of Directors As at 07th October 2013 |
: |
S.
T. Nagendra |
Chairman
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J.
D. Peiris |
Managing
Director |
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J.
M. Swaminathan |
Director |
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R.
Seevaratnam |
Director |
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P.
Chandaria |
Director |
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H.D.S.
Amarasuriya |
Director |
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C.L.K.P.
Jayasuriya |
Director |
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Weerakkody
Dinesh Stephen |
Director |
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e. |
Issued
Share Capital |
: |
Rs.
137,028,230.00 |
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f. |
Nominal Value of Share |
: |
Rs. 10.00 |
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|
g. |
Major Share Holders As at 07th October 2013 (Total Number of Share Holders 1,490) |
: |
Major Share Holders |
No. of
Shares |
|
Clovis
Company limited, Bermuda |
6,863,429 |
|||
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K.D.D.
Perera |
4,637,023 |
|||
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Dr.
H.S.D. Soysa |
138,150 |
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Dr.A.G.Visvalingam/Mrs.
V.I.Visvalingam |
135,020 |
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P.N.
Bhatt (Mrs) |
78,613 |
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H.
G. Carimjee |
68,400 |
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Y.
Esmailjee |
50,000 |
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Pan
Asia Banking Corp/ S.A.Gulamhussein |
45,200 |
|||
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h. |
Auditors |
: |
KPMG Ford,
Rhodes, Thornton & Company |
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I. |
Company Secretaries |
: |
S
S P Corporate Services (Private) Limited |
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j. |
Bankers |
: |
National
Development Bank DFCC
Vardhana Bank Hatton
National Bank Standard
Chartered Bank Nations
Trust Bank |
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FINANCIAL DETAILS - Most recent
available Financial Information
CURRENT INVESTIGATION
·
History.
The Subject Company LANKA ALUMINIUM INDUSTRIES PLC is a Public Limited
liability Company incorporated on
11th March 1983 under registration number PQ187. The word “LIMITED”
has been changed to “PLC” in terms of Companies Act #7 of 2007.
Lanka Aluminium Industries
plc is a Board of Investment (BOI) approved company listed in
the Colombo Stock Exchange, specializing in the manufacture of anodized and
powder coated aluminium extrusions. The product range includes sections for
architectural, general hardware, transport and other specialized applications.
·
Location.
The subject
company is located at client 1st Floor,
Lakshman’s Building, No.321,
The address of the subject company given by the
client is incorrect.
·
Operational
Details.
General
The subject company primary
line of business is Manufacture and
fabrication of articles and products of every description from aluminium or
derivatives of aluminium or derivers of aluminium, including aluminium plates,
sheets, circles, foil, slug aluminium cast products and role formed products.
Rods, wire rods and ex torsions of aluminium.
There are 4 subsidiary companies of the Subject Company, such as:
Comark Lanka (Pvt)
Limited - Trading in Aluminium extrusions and accessories
Castalloys (Pvt)
Limited - Manufacture and sale of Aluminium ingots and billets.
Classic Teas
(Pvt) Limited - Exporting Tea.
Comark Engineers
(Pvt) Limited - Undertaking contracts for Aluminium fabrication
Products
Aluminium plates,
sheets, circles, foil, slug aluminium cast products and role formed products.
Rods, wire rods and extrusions of aluminium etc
Import:
Raw material
Dubai
No of Employees
Approximately 225 (Group 200)
·
Financial Data
Received From
Company Annual Report 2012-2013
·
Trade references
The subject
company did not provide any trade reference referrals
·
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.
ANALYSIS & RATING - Appraisal
and Rating of Subject Company
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Rating: |
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a) Business Scale |
Medium / Large |
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b) Business Trend |
Growing |
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c) Management
Capability |
Above Average |
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d) Commercial
Morality |
Above Average |
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e) Reputation |
Above Average |
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f) Market Situation |
Very Competitive |
Information parted
Name: Mr.
Feroze
Designation: Group general manager finance & admin
Tel No: (009411) 2565951
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.06 |
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|
1 |
Rs.101.84 |
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Euro |
1 |
Rs.81.56 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Calling : |
JML |
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Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.