MIRA INFORM REPORT

 

 

Report Date :

03.11.2014

 

IDENTIFICATION DETAILS

 

Name :

A C L CABLES PLC

 

 

Registered Office :

# 60, Rodney Street, Colombo 08

 

 

Country :

Sri Lanka

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.03.1962

 

 

Com. Reg. No.:

PQ 102

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Manufacturing and selling of power cables, conductors, armoured cables, aerial bundled cables, control cables, telephone cables and auto cables

 

 

No. of Employees :

Approximately 500

 

 

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 :

No Complaints

 

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

:

 

A C L CABLES PLC

 

b.

Legal Form  & Status

 

:

 

Public Limited Liability Company (In Operation) - listed in Colombo Stock Exchange

c.

Managing Director

 :

U. G. Madanayake

d.

Primary Line of Business

:

Manufacturing and selling of power cables, conductors, armoured cables, aerial bundled cables, control cables, telephone cables and auto cables

e.

Head Office

:

# 60, Rodney Street,

Colombo 08,

Sri Lanka.

 

Tel: (00 94 11) 269 7652

Fax: (00 94 11) 269 9503

 

E-Mail:  info@acl.lk

 

f.

Factory

:

 

Madapatha,

Piliyandala,

Sri Lanka

 

Tel: (00 94 11) 270 7361

Fax: (00 94 11) 270 6805

Mobile: (0094 77) 758 3602

E-Mail: seimon@acl.lk  

 

g.

No. of Employees

:

Approximately 500

 

COMPANY DETAILS

- Registration and Shareholder Details

 

 

a.

Registration No

:

PBS 420

Date of Registration

:

10th March 1962

 

Registration No

:

PQ 102

b.

Date of Registration

:

13th December 2007

c.

Registered Office

:

# 60, Rodney Street, Colombo 08, Sri Lanka.

d.

Board of Directors

As at

31st March 2014

:

U. G Madanayake

Chairman

Suren Madanayake

Managing Director

N. C Madanayake (Ms)

Director

A. M De S. Jayarathne

Director

Hemaka Amarasuriya

Director

D. D Wahalatantri

Director

P. S. R Casie Chitty

Director

e.

Issued  Share Capital

:

Rs.598,936,800.00

Number of Shares

:

59,893,680

f.

Nominal Value of Share

:

Rs.10.00

 

h.

Major Share Holders

As at

31st March 2014

(Total Number of Share Holders are 2,205)

:

Share Holders

No. of    Shares

U. G Madanayake

22,837,216

Suren Madanayake

13,302,396

Sri Lanka Insurance Corporation Limited Life Fund

2,100,200

Employees Provident Fund

3,247,926

National Savings Bank

1,275,200

Employees Trust Fund Board

1,116,270

N. C Madanayake

1,032,100

FAB Foods (Pvt) Ltd

767,520

Bank of Ceylon

541,900

David Peiris Motor Company Ltd.

647,716

R. D. M. Perera

        350,932

e.

Auditors

:

PricewaterhouseCoopers

f.

Company Secretaries

:

Corporate Affairs (Private) Limited

g.

Bankers

:

Standard Chartered Bank, Hatton National Bank Limited, National Development bank, Sampath Bank, Nation Trust Bank, HSBC, Peoples’ Bank, Commercial bank, City Bank, Deutsche Bank

 

 

FINANCIAL DETAILS

- Most recent available Financial Information

 

New Picture (6)

 

 

 

 

New Picture (7)

 

 

Current Investigation

 

                                                         New Picture (8)

·         History.

 

The Subject Company ACL CABLES PLC is a Public Limited   liability Company incorporated on 10th March 1962 under registration number PBS 420 and then company has been re-registered on 13th December 2007 under the registration number PQ 102

 

·         Location.

 

The Subject Company is located at the client # # 60, Rodney Street, Colombo 08, Sri Lanka.

 

·         Operational Details.

 

General

                  The subject company primary line of business is manufacturing and selling of power cables, conductors, armoured cables, aerial bundled cables, control cables, telephone cables and auto cables

 

Products

·     Power Cables

·     Conductors

·     Armoured cables

·     Aerial bundled cables

·     Control cables

·     Telephone cables

 

Subsidiary companies of Subject Company

·         ACL Plastics PLC

·         Lanka Olex Cables Ltd and Kelani Cables PLC

·         Ceylon Bulbs and Electrical Ltd

·         ACL Kelani Magnet Wire (Pvt) Ltd

 

No of Employees

                  Approximately 500

 

 

·         Financial Data

Received from Subject Company 2013-2014 annual report

 

                

·         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.

 

 

INFORMATION dECLINED BY

 

Name :

Mr. Champika Coomasaru

Designation :

Accounts Manager

Contact No.:

91-94112697652

Date :

31.10.2014

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.98.06

Euro

1

Rs.77.19

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIT

 

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.