MIRA INFORM REPORT

Report No. :	316182
Report Date :	17.04.2015

IDENTIFICATION DETAILS

Name :	NALAKA EXERCISE BOOK INDUSTRIES (PVT) LTD
Registered Office :	# 258/A, Galvihara Road (Quarry Road), Dehiwala
Country :	Sri Lanka
Date of Incorporation :	18.07.2002
Com. Reg. No.:	PV 8302
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is Manufacturer and distributor of exercise books and stationery
No. of Employee :	75

RATING & COMMENTS

MIRA’s Rating :

B

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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	:	NALAKA EXERCISE BOOK INDUSTRIES (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Chairman /Managing Director	:	R. A. Nalaka Nishantha Perera
d.	Primary Line of Business	:	Manufacturer and distributor of exercise books and stationery
e.	Head Office & Place of Business	:	# 258/A, Galvihara Road (Quarry Road), Dehiwala, Sri Lanka. Tel. No: (00 94 11) 273 6760/ 551 2641/ 247 1608 Fax No: (00 94 11) 271 2360 E Mail: nalaka_ex@sltnet.lk
	Factories	:	1) Horaketiyawatta Road, Poruwadanda, Horana 2) # 132, Borupana Road, Ratmalana
f.	No. of Employees	:	Approximately 75

COMPANY DETAILS

Registration and Shareholder Details

a.	Registration No		:	N (PVS) 31096
	Registration Date		:	18^th July 2002
b.	Re-Registration No		:	PV 8302
	Re-Registration Date		:	20^th October 2008
c.	Registered Office		:	# 258, Quarry Road, Dehiwala.
d.	Board of Directors As At 04^th December 2012		:	R. A. Nalaka Nishantha Perera	Managing Director
				W. A. Ariyawathi Perera (Ms)	Director
				H. Champika Damayanthi (Ms)	Director
e.		Issued Share Capital	:	Rs. 1,000,000.00
		Number of Shares	:	100,000
f.		Nominal Value of Share	:	Not applicable/declared vide Companies Act #7 of 2007. It could be computed as Rs.10.00.
g.		Share Holders As At 04^th December 2012		Share Holders		No. of Shares
				R. A. Nalaka Nishantha Perera		50,000
				W. A. Ariyawathi Perera (Ms)		25,000
				H. Champika Damayanthi (Ms)		25,000
h		TIN No		114310964
i.		SVAT No		SVAT001303
		Reg. Date		25^th April 2011
j.		Auditors	:	A J S Associates (# 100/20, Sir Chittampalam A Gardiner Mawatha, Colombo 02)
k.		Company Secretaries	:	Hinguralage Champika Damayanthi (# 258, Quarry Road, Dehiwala)
l.		Bankers	:	Nation Trust Bank, Commercial Bank

FINANCIAL DETAILS

Most recent available Financial Information

The company has declined to provide information on its finances as they insist to know the details of the end user.

We attempted to obtain collaboration of the manufactured data but could not obtain any reliable feedback.

(Note: Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability are not required to make public disclosure of their annual financials. Therefore no financials are available for this entity)

CURRENT INVESTIGATION

· History.

The Subject Company NALAKA EXERCISE BOOK INDUSTRIES (PVT) LTD is a Private Limited Liability Company incorporated on 18^th July 2002 under the registration number N (PVS) 31096 and re-registered in terms of Companies` Act # 7 of 2007 on 20^th October 2008 under the registration number PV 8302.

The company has an associate company under the name and style of Nalaka Paper Mills (Pvt) Ltd. It is located at the factory site at Poruwadanda.

· Location.

The Subject Company is located at the client # 258/A, Galvihara Road, (Quarry Road) Dehiwala.

· Operations Details.

General

The subject company’s primary line of business is Manufacture and distribution of all kind of stationary items.

Products

Exercise Books, C.R.Books, Writing Pads, Colouring Work Books, Drawing Books, Wrapping Papers, Paper Bags, Duplicating Books, S.H.N Books, Field Note Books, Typing Paper, Triplicating Books, Scribbling Pad, A/C Books and All Kind of Stationery Books, Importers of Paper & Paper boards printing inks, Off set Plates & Chemicals Etc.

Exercise Books CR Books

Note Pad Writing Pad

Raw Material Import Countries

China, India and Taiwan

No of Employees

Approximately 75

An visual of an Ad Posted on Rainbow Pages -2014

Director’s Details

01)

Name	R. A. Nalaka Nishantha Perera
ID Number	712740094 V
Nationality	Sri Lankan
Gender	Male
Date of Birth	30^th September 1971
Age	43 Years
Address	# 258,1/1, Galvihara Road, Dehiwela

02)

Name	W. A. Ariyawathi Perera
ID Number	397220940 V
Nationality	Sri Lankan
Gender	Female
Date of Birth	09^th August 1939
Age	75 Years
Address	Pahala Horaketiya Watta, Poruwadanda

03)

Name	H. Champika Damayanthi
ID Number	708471518 V
Nationality	Sri Lankan
Gender	Female
Date of Birth	12^th December 1970
Age	44 Years
Address	# 258,1/1, Galvihara Road, Dehiwela

INFORMATION DENIED BY

Name :	Mr. Nalaka
Designation :	Director
Contact No.:	0094777313915

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.37
UK Pound	1	Rs.92.44
Euro	1	Rs.66.56

INFORMATION DETAILS

Information Gathered by :	JML
Analysis Done by :	RAS
Report Prepared by :	ASH

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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