MIRA INFORM REPORT

 

 

Report Date :

08.09.2014

 

IDENTIFICATION DETAILS

 

Name :

CEYLON LEATHER PRODUCTS PLC

 

 

Registered Office :

# 64, Belummahara, Mudungoda

 

 

Country :

Sri Lanka

 

 

Financial as on :

31.03.2014

 

 

Date of Incorporation :

28.09.1990

 

 

Com. Reg. No.:

PQ 99

 

 

Legal Form :

Public Limited Liability Company

 

 

Line of Business :

Manufacture of Leather, Leather Footwear and Leather Goods

 

 

No. of Employees

600

 

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 :

Slow but correct

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

 

 

 

Company name and address

 

a.

Name of Subject of Inquiry

:

CEYLON LEATHER PRODUCTS PLC

b.

Legal Form  & Status

:

Public Limited Liability Company quoted on the Colombo Stock Exchange  (In operation)

c.

Chairman 

:

Neville Peiris

d.

Primary Line of Business

:

Manufacture of Leather, Leather Footwear and Leather Goods

e.

 

Head office

&

Factory

 

:

 

# 64, Belummahara,
Mudungoda,

Sri Lanka.

 

Tel. No: (00 94 33) 522 8228 / 562 2431

Fax No: (00 94 33) 225 8751

 

E-Mail: md@clplsrilanka.com

               clpl@slt.lk

 

f.

No. of Employees

:

Approximately 600

 

 

 COMPANY DETAILS

 

Registration and Shareholder Details

 

a.

 

Registration No

:

N (PBS/CGB) 21

Date of Registration

:

28th September 1990

b.

Re-registration No

:

PQ 99

Date of Re-registration

:

10th December 2007

c.

Registered Office

:

# 64, Belummahara, Mudungoda

d.

 

    Board of Directors

           As at

   31st March 2014

 

 

:

Neville Peiris

Chairman

Siddhasri Sitendra Senaratne

Managing Director

E.M. Mangala Boyagoda

Director

A.G. Weerasinghe

Director

P D J Fernando

Director

Eric Bird Wikramanayaka

Director

Kelly Tyler Ehler – (Canadian)

Director

e.

Stated Capital

:

Rs. 1,979,344,948.00

f.

Number of Shares

:

34,233,7744

g.

Nominal Value of Share

:

Not applicable in terms of Companies Act # 7of 2007

 

 

COMPANY DETAILS

 

Registration and Shareholder Details (Cont/d….)

 

 

h.

        Major Share Holders

As At

31st March 2014 (Total Number of Share Holders 2,119)

:

Major Share Holders

No. of

Shares

Lanka Century Investments PLC

31,284,589  

Amana Bank Limited

372,573                       

Mrs. F.M. Jazeel

203,800

Seylan Bank PLC/Capital Trust Holdings (Pvt) Ltd

114,982

Harsha International (Pvt) Ltd

100,000

N.A.A. Karunarathna

70,575

Waldock Mackenzie Ltd/L.P. Hapangama

64,900

Mrs. D.S.K. Athukorala

55,970

Dr. Sena Yaddehige

54,100          

i.

Auditors

:

Ernst & Young

j.

Company Secretaries

:

P W Corporate Secretarial (Pvt) Ltd

k.

Bankers

:

People’s Bank, International Division

Hatton National Bank Limited, City office

Sampath Bank Limited, City Office

l.

Export / Import Countries

:

Export Countries: China

Import Countries: India

 

 

 FINANCIAL DETAILS

 

Most recent available Financial Information

 

 

 

 

 

 

FINANCIAL DETAILS

 

Most recent available Financial Information (Cont/d….)

                                                                                                                                                        

 

 

CURRENT INVESTIGATION                      

 

History.

 

The Subject Company CEYLON LEATHER PRODUCTS PLC is a Quoted Public Limited liability incorporated on 28th September 1990 under the registration number N (PBS/CGB) 21 and then the company was re-registered on 10th December 2007 under the registration number PQ 99.

                       

Location.

 

The Subject Company is located at client # 64, Belummahara, Mudungoda

 

 

Operational Details

 

General

The subject company primary line of business is Manufacture of Leather, Leather Footwear and Leather Goods

 

Subsidiaries

Ceylon Leather Products Distributors (Pvt) Ltd

South Asia Textile Industries Lanka (Pvt) Ltd

Palla & Company (Pvt) Ltd

 

Products

Leather Footwear - Gents/Ladies Leather Goods - Hand Bags, Back Packs, Belts, Purses Etc., Finished Leather 

 

 

 

 

 

 

 

 

 

 

 


Employees

Approximately 600

 

 

Financial Data

 

Received from Company Annual Report.

 

 

 

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.

 

 

Information parted by

 

NAME

Mr. Ranjit

DESIGNATION

Accountant

CONTACT NUMBER

0772642761

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.44

UK Pound

1

Rs.98.64

Euro

1

Rs.78.20

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.