MIRA INFORM REPORT

Report Date :

14.03.2014

IDENTIFICATION DETAILS

Name :	CHEMANEX EXPORTS (PVT) LTD

Registered Office :	# 52, Galle Face Court 2, Colombo – 03,

Country :	Sri Lanka

Date of Incorporation :	08.12.1987

Com. Reg. No.:	N (PVS) 4051

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacture & Exporters of Sizing Chemicals

No. of Employees :	50

RATING & COMMENTS

MIRA’s Rating :

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

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. 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

Company name and address

a.	Name of Subject of Inquiry	:	CHEMANEX EXPORTS (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Chairman	:	Mahinda Preethiraj Jayawardena
d.	Primary Line of Business	:	Manufacture & Exporters of Sizing Chemicals
e.	Place of Business	:	# 52, Galle Face Court 2, Colombo – 03, Sri Lanka Tel. No: (00 94 11) 555 3140 Fax No: (00 94 11) 244 5050 E Mail: cnx@chemanex.lk
e.	Factory	:	# 600, Sri Sasanajothi Mawatha, Ratmalana.
f.	No. Of Employees	:	Approximately 50

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No		:	N (PVS) 4051
	Date of Registration		:	08^th December 1987
b.	Re-registration No		:	PV 3176
	Date of Re-registration		:	03^rd July 2008
c.	Registered Office		:	52, Galle Face Court 2, Colombo 03.
d.	Board Of Directors As At 03^rd September 2012		:	Mahinda Preethiraj Jayawardena		Chairman
				Fernando Eric Srilal Lakshman		Director
				Anura Mapalagama		Director
				Sugathpala Amila Nirashana		Director
e.	Total No. of Issued Shares		:	860,000
f.	Total Value of Shares		:	Rs. 47,000,000.00
	Nominal Value of Share			Not applicable vide Companies Act #7 of 2007
g.	Share Holders As At 03^rd September 2012		:	Share Holders	No of Shears
				Chemanex PLC	860,000
i.	Secretaries	:		P. L. Lasantha Prabuddhika Pradeep
j.	Auditors	:		KPMG
k.	Bankers		:	Not Disclosed

CURRENT INVESTIGATION

Company logo

History

The Subject Company CHEMANEX EXPORTS (PVT) LTD is a Private Limited Liability Company incorporated on 08^th December 1987 under Registration N (PVS) 4051 and subsequently re-registered under on 03^rd July 2008 under Reg. PV 3176.

Companies Act # 7 of 2007

The subject company Chemanex a member of CIC Group of Companies

The Subject Company CHEMANEX EXPORTS (PVT) LIMITED is a subsidiary company of Chemanex Plc

Subsidiaries

Chemanex Adhesives (Pvt) Ltd

CAL Exports Lanka (Pvt) Ltd

Chemanex Exports (Pvt) Ltd

Yasui Lanka (Pvt) Ltd

Premier Electronics (Pvt) Ltd

Chemcel (Pvt) Ltd

Location.

The Subject Company is located at the client # 52, Galle Face Court – 2, Colombo – 3, Sri Lanka. .

Operational Details

General

The subject company’s primary line of business is Manufacture & Exporters of Sizing Chemicals

The subject company has earned certified by ISO 9001: 2000 certification

Products

Sizing Chemicals, Starches, Glues, Enzymes

Countries

USA, Japan, Europe

No of Employees

Approximately 50

Directors’ Details

01)

Name	Mahinda Preethiraj Jayawardena
ID Number	522153893 V
Nationality	Sri lanka
Gender	Male
Date Of Birth	02^nd August 1952
Age	62 Years

02)

Name	Eric Srilal Lakshman Fernando
ID Number	4131712337 V
Nationality	Sri lanka
Gender	Male
Date Of Birth	12^th November 1941
Age	73 Years

03)

Name	Mapalagama Anura
ID Number	561723788 V
Nationality	Sri lanka
Gender	Male
Date Of Birth	20^th June 1956
Age	58 Years

04)

Name	Sugathpala Amila Nirashana
ID Number	712153598 V
Nationality	Sri lanka
Gender	Male
Date Of Birth	02^nd August 1971
Age	43 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

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.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.02
UK Pound	1	Rs.101.65
Euro	1	Rs.85.02

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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