MIRA INFORM REPORT

Report Date :

27.09.2014

IDENTIFICATION DETAILS

Name :	LANKA SATHOSA LTD

Registered Office :	# 108, Negris Building, York Street, Colombo 01

Country :	Sri Lanka

Date of Incorporation :	26.10.2005

Com. Reg. No.:	PB 1326

Legal Form :	Government on Public Limited Liability Company

Line of Business :	Sale and distribution of essential goods of every description and other commodities

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

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

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	:	LANKA SATHOSA LTD
b.	Legal Form & Status	:	Government on Public Limited Liability Company (in operation)
c.	Chairman	:	K. Nalin Ruvanjeewa Fernando
d.	Primary Line of Business	:	Sale and distribution of essential goods of every description and other commodities
e	Head Office		# 108,1st Floor, Negris Building, York Street, Colombo 01, Sri Lanka. Tel. No: (00 94 11) 243 6301 - 2 Fax No: (00 94 11) 243 7583 E mail: chairman@laksathosa.org
g.	No. of Employees	:	Not disclosed

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No		N (PBS) 1290
	Date of Registration	:	26^th October 2005
b.	Re-Registration No		PB 1326
	Date of Re-Registration	:	19^th March 2010
c.	Registered Office	:	# 108, Negris Building, York Street, Colombo 01
d.	Board Of Directors As At 05th August 2014	:	K. Nalin Ruvanjeewa Fernando	Chairman
			Duraisamy Jeevanadan	Director
			Chryshantha Kapuwatte	Director
			N. M. Dayapala Navaratne	Director
			Chamila Jayan Munasinghe	Director
			D. Ajith Perera Abeysekara	Director
			D.D. Upul Shantha De Alwis	Director
f.	Issued Share Capital	:	Rs. 893,752,720.00
	Number of Shares	:	89,375,272
g.	Nominal Value of Share	:	Not applicable/declared vide Companies Act #7 of 2007. As per share capital it could be Rs.10/-

Registration and Shareholder Details Cont…

h.	Share Holders As At 05^th August 2014		Share Holders	No of Shears
			D. Mahinda Gammapila	01
			Roshanie Rathnayake	01
			Sajith Ruchika Attygala	01
			H. Leslie Tissera	01
			Siripala Wirithamulla	01
			Nihal Jayawardena	01
			Ajith Niwad Cabral	01
			Corporative Wholesale Establishment	2,279,884
			Secretary to the Treasury	87,095,381
j.	Secretaries	:	Corporate Affairs (Pvt) Ltd
k.	Auditors	:	H L B Edirisinghe & Company
l.	Bankers	:	Bank of Ceylon, National Savings bank

Directors Details

01)

Name	K. Nalin Ruvanjeewa Fernando
ID Number	731293260 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	08^th May 1973
Age	41 Years

02)

Name	Duraisamy Jeevanadan
ID Number	653092016 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	04^th November 1965
Age	48 Years

03)

Name	Chryshantha Kapuwatte
ID Number	613192492 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	14th November 1961
Age	52 Years

04)

Name	N. M. Dayapala Navaratne
ID Number	590320919 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	01^st February 1959
Age	55 Years

05)

Name	Chamila Jayan Munasinghe
ID Number	812530160 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	09^th September 1981
Age	33 Years

06)

Name	D. Ajith Perera Abeysekara
ID Number	653181051 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	13^th November 1965
Age	48 Years

07)

Name	D.D. Upul Shantha De Alwis
ID Number	671400895 V
Nationality	Sri Lankan
Gender	Male
Date Of Birth	19^th May 1967
Age	47 Years

FINANCIAL DETAILS

Most recent available Financial Information

(Note: 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)

CURRENT INVESTIGATION

History.

The subject company, LANKA SATHOSA LTD is a Government owned Public Limited

Liability Company incorporated on 26^th October 2005 under registration number N (PBS) 1290

And the Company was re-registered on 19^th March 2010 under registration number PB 1326, in

Terms of Companies Act #7 of 2007.

Lanka Sathosa Operates under the Ministry of Co-operatives and Internal Trade as a fully

Government owned Company.

The Lanka Sathosa Limited is the largest retail network in Sri Lanka and it maintains an island-wide 284 sales outlets

LOCATION:

The subject company is located at client # 108, Negris Building, York Street,

Colombo 01.

The company having 299 Braches across Sri Lanka

Operational Details

General

The main line of business of the subject company is Sale and distribution of essential goods of

Every description and other commodities. The subject company is having their own distribution

And marketing divisions to supply the items to island wide dealers.

Products:

Essential Foods, consumer goods

No of Employees:

Not Disclosed

Trade references

Government Liability Company

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 denied

NAME	MR. MANOJ
DESIGNATION	Senior Accountant
CONTACT	00094-11-23436301

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.44

INFORMATION DETAILS

Information Gathered By:	HTL

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%)

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