MIRA INFORM REPORT

Report Date :

10.01.2014

IDENTIFICATION DETAILS

Name :	CONSOLIDATED BUSINESS SYSTEMS (PVT) LTD
Registered Office :	# 184/2, Kaolin Refinery Road, Werahara, Borelesgamuwa
Country :	Sri Lanka
Date of Incorporation :	03.08.1979
Com. Reg. No.:	PV 5851
Legal Form :	Private Limited Liability Company
Line of Business :	Exporters of fresh and dried produce, tea and readymade ethnic foods under the brand name "Sun Island"
No. of Employees :	Approximately 500

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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

Name of Subject of Inquiry	:	CONSOLIDATED BUSINESS SYSTEMS (PVT) LTD
Legal Form & Status	:	Private Limited Liability Company (In Operation)
Managing Director	:	M.S.K. Peiris Wijesinghe
Primary Line of Business	:	Exporters of fresh and dried produce, tea and readymade ethnic foods under the brand name "Sun Island"
Head office & Place of Business	:	# 184/2, Kaolin Refinery Road, Werahara, Borelesgamuwa. Sri Lanka Tel. No: (00 94 11) 555 3920, 555 3921, 555 3922- 26 (00 94 11) 251 6142, 2516145, 2516148 Fax No: (00 94 11) 555 3927 , 254 5431 E-Mail: cbsltd1@sltnet.lk
No. of Employees	:	Approximately 500

COMPANY DETAILS

Registration and Shareholder Details

Registration No	:	PVS 5891
Date of Registration	:	03^rd August 1979
Re-registration No		PV 5851
Date of Re-registration		30^th July 2008
Registered Office	:	# 184/2, Kaolin Refinery Road, Werahara, Borelesgamuwa
Board of Directors As At 14^th October 2013	:	M. Shanthi Kumar Peiris Wijesinghe	Managing Director
		Suman Wijesinghe (Ms)	Director
		H.R. Rodrigo (Ms)	Director
		M. Ramila Gayani Wijesinghe Abeysekera (Ms)	Director
		M. Rishani Mahesica Gmuer (Ms)	Director
		M. Ruwani Thanuja Pieris (Ms)	Director
		Suman Wijesinghe (Ms) (alternate Director to Ruwani Thanuja Pieris)	Alternate Director
		Suman Wijesinghe (Alternate Director to Rishani Mahesica)	Alternate Director
Issued Share Capital	:	Rs. 108,200,000.00
Nominal Value of Share	:	Rs. 10.00
Share Holders As At 14^th October 2013	:	Share Holders		No. of Shares
		M.S.K. Peiris Wijesinghe		9,570,000
		Suman Wijesinghe		1,090,000
		M. Ramila Gayani Wijesinghe Abeysekera		160,000
Auditors	:	M/S. V.S. Associates
Company Secretaries	:	Businessmate (Pvt) Ltd.
Bankers	:	Bank of Ceylon, People’s Bank, Seylan Bank.

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/Partnerships/Proprietorships is not required to make public disclosure of their annual financials. Therefore no financials are available for this entity

CURRENT INVESTIGATION

History.

The Subject Company CONSOLIDATED BUSINESS SYSTEM (PVT) LTD is a Private Limited liability Company incorporated on 03^rd August 1979 under registration number PVS 5891 and the company was re-registered on 30^th July 2008 under registration number PV 5851, in terms of Companies Act #7 of 2007.

Location.

The Subject Company is located at the client. # 184/2, Kaolin Refinery Road, Werahara, Borelesgamuwa, approximately 15 Kms from the city of Colombo, where several factories are situated.

Operational Details.

General

The subject company’s primary line of business is processed and Exporting of fresh fruits, fresh vegetables, foodstuff, tea, spices & coconuts.

Products

Fresh Vegetables, Fresh Fruits, Fresh Coconut, Desiccated Coconut, Dry Food Stuff, Spices in Packets, Bulk Tea, Tea Bags. Quick Frozen Fruits, Vegetables, Meals, Curries and Sambols are also processed and exported.

The brand name of the products is “Sun Island”

Ethnic foods Special teas Leaf Tea Rice products Fruits

Exporting Country

Europe, East Asia, Middle East, America & Australia

No of Employees

Approximately 500

Directors’ Details

01)

Name	M.S.K.Peiris Wijesinghe
ID Number	503572320 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	22^th December 1950
Age	63 Years

02)

Name	S.Wijesinghe
ID Number	477453457V
Nationality	Sri Lankan
Gender	Female
Date of Birth	01^st September 1947
Age	67 Years

03)

Name	H.R. Rodrigo
ID Number	548030595V
Nationality	Sri Lankan
Gender	Female
Date of Birth	29^th October 1954
Age	59 Years

04)

Name	M.R.G.Wijesinghe Abeysekera
ID Number	778410516V
Nationality	Srilankan
Gender	Female
Date of Birth	06^th December 1977
Age	36 Years

05)

Name	M.R. Mahesica Wijesinghe Gmuer
ID Number	807020935V
Nationality	Srilankan
Gender	Female
Date of Birth	20^th July 1980
Age	33 Years

06)

Name	M.R. Thanuja Peiris
ID Number	758361926V
Nationality	Srilankan
Gender	Female
Date of Birth	1^st December 1975
Age	38 Years

Financial Data

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 & RATING

Appraisal of Subject Company

Rating:
a) Business Scale	Insufficient Information on finances
b) Business Trend	Steady
c) Management Capability	Average
d) Commercial Morality	Average
e) Reputation	Average
f) Market Situation	Competitive

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.18
UK Pound	1	Rs.102.31
Euro	1	Rs.84.50

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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