MIRA INFORM REPORT

Report Date :

21.11.2014

IDENTIFICATION DETAILS

Name :	ROYAL CASKS DISTILLERIES (PVT) LTD

Formerly Known As :	NIPPON LANKA DISTILLERIES COMPANY (PVT) LTD

Registered Office :	# 324/1,, High Level Road, Galagedara, Padukka

Country :	Sri Lanka

Date of Incorporation :	19.09.2006

Com. Reg. No.:	PV 13986

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing, Importing & Distributors of Liquor

No. of Employees :	Approx. 100

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

GENERAL

- Basic information at a glance

a.	Name of Subject of Inquiry	:	ROYAL CASKS DISTILLERIES (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	A.H. Piumi Palika Gunasekera
d.	Primary Line of Business	:	Manufacturing, Importing & Distributors of Liquor
e.	Place of Business		# 324/1,, High Level Road, Galagedara, Padukka, Sri Lanka. Tel. No: (00 94 11) ) 275 7580 / 275 7582 (Walter Hapuarachchi – Manager) Fax. No: (00 94 11) ) 275 7582
g.	No. of Employees	:	Approx. 100

COMPANY DETAILS

- Registration and Shareholder Details

a.	Registration No	:	N (PVS) 47846
	Date of Registration	:	19^th September 2006
	Re-registration No	:	PV 13986
	Date of Re-registration		12^th June 2009
c.	Registered Office	:	# 324/1, High Level Road, Galagedara, Padukka
d.	Board of Directors As At 14^th October 2013	:	A.H. Piumi Palika Gunasekera (Ms)	Managing Director
			G.D. Vajirapani Gunasekera	Director
e.	Issued Share Capital	:	Rs. 70.00
	Number of Shares	:	07
f.	Nominal Value of Share	:	10
h.	Share Holders As At 14^th October 2013	:	Share Holders			No. of Shares
			A.H. Piumi Palika Gunasekera		02
		:	G.D. Vajirapani Gunasekera		05
i.	Auditors	:	B V Fernando & Company
j.	Company Secretaries	:	Brai Consultants (Pvt) Ltd
k.	Bankers	:	Commercial Bank of Ceylon PLC – Sri Lanka

Director’s Details

01)

Name	A.H. Piumi Palika Gunasekera
ID Number	725010605 V
Nationality	Sri Lankan
Gender	Female
Date of Birth	01^st January 1972
Age	42 Years
Address	# 104/3, Katuwawala, Boralesgamuwa

02)

Name	G.D. Vajirapani Gunasekera
ID Number	693573971 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	22^nd December 1969
Age	45 Years
Address	# 68/C, Katuwawala, Boralesgamuwa

Current Investigation

· History.

The Subject Company ROYAL CASKS DISTILLERIES (PVT) LTD is a Private Limited Liability Company incorporated on 19^th September 2006 under the registration number N (PVS) 47846 and then company has been re-registered o 12^th June 2009 under the registration number PV 13986.

The subject company earlier known as a NIPPON LANKA DISTILLERIES COMPANY (PVT) LTD it changed on 17^th October 2013.

The subject company has another sister company A E F DISTILLERS (PVT) LTD

· Location.

The Subject Company is located at client # 324/1, High Level Road,

Galagedara, Padukka

· Operational Details.

General

The subject company’s primary line of business is Manufacturing, and Importing & Distributors of Liquor products

Products

Liquor Products

Import Country

India

Brands

“NIPPON, ROYAL”

Employees

Approx. 100

· Trade references

Not Available

· 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.

INFORMATION PARTED BY

Name :	Mr. Walter Hapuarachchi
Designation :	Manager
Contact No.:	0094112757580
Date :	20.11.2014

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.10
UK Pound	1	Rs.97.32
Euro	1	Rs.77.91

INFORMATION DETAILS

Analysis Done by :	RAS

Information Gathered by :	HNA

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%)

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